E VALUATION OF THE S IRRI P ROSPECT A REA Hamed Kamel PEEG Fahd Al-Hashmi PGEG Khaled Aness PGEG Ahmed Al-Belooshi PEEG Engineering Staff:

Project Objectives Field Background Field Seismic Interpretation Field Exploration Plan Field Development Plan Economic Analysis HSE Awareness Recommendations

O BJECTIVES Client’s Letter Seismic interpretation, exploration and development plans and economic analysis Give recommendation on whether to proceed with the project or not

F IELD B ACKGROUND

G EOGRAPHICAL REFERENCE (1) – Long E and Lat N (2) – Long E and Lat N (3) – Long E and Lat N (4) – Long E and Lat N

S EISMIC I NTERPRETATION Rationale Methodology Manual Interpretation Software Interpretation Results

S EISMIC M ANUAL I NTERPRETATION Contouring maps Structure analysis Spill point determination Finding the depth (velocity * time ) Results: Structure: Anticline OOIP= 7.90 billion bbl. Spill Point N

C OMPUTER I NTERPRETATION  Picking horizons  Miss tied correction  Create TWTT contour map  Depth map  Find Area, volume and reservoir thickness

C OMPUTER I NTERPRETATION Picking horizons Top Mishrif Bottom Mishrif

C OMPUTER INTERPRETATION Before correctionAfter correction Line Miss-tie (ms) BeforeAfter o Miss-tie correction

C OMPUTER I NTERPRETATION Create TWTT contour map Bottom contour map Top contour map N N

C OMPUTER INTERPRETATION Creating Depth maps Depth (m) = Velocity(m/s) * Time (s) N Depth map of the top reservoir

C OMPUTER INTERPRETATION Constructing a Thickness Map Thickness= (Bottom of reservoir- Top of reservoir/2)*3800 m/s Spill point Thickness map showing oil water contact Spill point N

S EISMIC I NTERPRETATION R ESULTS Anticline structure Area: 93km 2 Average thickness: 24.6 m OOIP=Porosity*(1-Sw)*volume = 2.5 Billion bbl

E XPLORATION AND D EVELOPMENT P LAN Methodology Location of Exploration wells Rig selection Scenarios Demonstration Production Forecast Production Facility Options Economic Indicators

F IELD E XPLORATION P LAN Location of Wildcat Well: o One well at the center of the potential reservoir o Purpose Location of Delineation Wells: o Four delineation wells at the borders o Purpose

F IELD E XPLORATION P LAN Delineation wells Wildcat well N

F IELD E XPLORATION P LAN Rig selection Jack up IS 300' WD Reasons Water depth 300’ Low Cost  $82,333 per day More working rigs

F IELD D EVELOPMENT P LAN Types of wells: 500 m Vertical, 1000m Horizontal and 2000m Horizontal Different drainage area and different cost for each type Methodology: At the center of the reservoir

W ELL P ROFILES Production Profiles V(500m)H(1000m)H(2000m) Initial flow rate OOIP in drainage area (MMSTB) Cumulative Oil Production (MMbbl) Cumulative Water Production (bbl) 4,415,8827,024,74513,624,578 EOR Start3 rd Year

F IELD D EVELOPMENT P LAN Production Profile

F IELD D EVELOPMENT P LAN Production Profile

F IELD D EVELOPMENT P LAN Well Type Key :

F IELD D EVELOPMENT P LAN Well Type Key:

F IELD D EVELOPMENT P LAN Type of well Scenario IScenario II No. of wells 500 Vertical Horizontal Horizontal3031 Total5548

S CENARIO SELECTION

ScenarioCumulative Oil Production (billion bbl) Scenario Scenario 21.7

C OMPARISON SUMMARY Scenario 1: More wells (55) ∑ Oil production (1.3 billions bbl) Scenario 2 : Less wells (48) ∑ Oil production (1.7 billions bbl)

F IELD D EVELOPMENT P LAN Data Set Vertical Drilling Cost($/ft )610 Horizontal Drilling Cost($/ft )660 Drilling Penetration rate (ft/day) 432 Jack up IS 300' WD ($/day) 82,333 Standby rate ($/day) 41,167 Acid stimulation rate ($/ft) 2,000 Tie-in Cost per well ($) 500,000 V(500m)H(1000m)H(2000) Drilling Cost (MM $) 61524

P RODUCTION FACILITIES Three different production facilities were applied to each scenario: o FPSO only (Floating Production, Storage and Offloading unit) o Platform only o FPSO & Platform Select based on the Economic Analysis

P RODUCTION F ACILITIES Platform Construction (2 years) Cost: $350million Facilities Gas – Oil separation facility Water treatment facility Pipeline Fluid separation, processing & treatment Gas processing Oil treatment Water treatment

P RODUCTION F ACILITIES FPSO Oil production cost 190,000 $/day + Variable rate $14/bbl

CAPEX

OPEX

P RODUCTION F ACILITIES O PTIONS Platform PeriodTotal ExpensesRevenueDis. Net Cash flow YearMM$ ,0912, ,4443,5771, ,7454,7691, ,0516,5642, ,3648,1412, ,2259,6473, ,29211,1903, ,59910,7172, ,27611,1612, ,42612,3143, ,19611,1072, ,8761,427 27,078

P RODUCTION F ACILITIES O PTIONS FPSO PeriodTotal ExpensesRevenueDis.Net Cash flow YearMM$ ,4351, ,287 3,5281, ,659 4,7042, ,251 6,4762, ,741 8,0322, ,183 9,5193, ,660 11,0433, ,366 10,5773, ,559 11,0162, ,917 12,1552, ,370 10,9642, ,081 6,7881, ,715 5,5881, ,225 3, ,708

P RODUCTION F ACILITIES O PTIONS FPSO + Platform PeriodTotal ExpensesRevenueDis. Net Cash flow YearMM$ ,176 2,4351, ,5281, ,132 4,7042, ,419 6,4763, ,733 8,0323, ,080 9,5193, ,389 11,0434, ,323 10,5773, ,371 11,0163, ,570 12,1553, ,383 10,9642, ,577 6,7881, ,055 5,5881, , ,167

S ELECTED F ACILITY PlatformFPSOFPSO+Platform Discounted(10%) NCF(MM$) 27,07831,70836,167

E CONOMIC A NALYSIS

E CONOMIC I NDICATORS

HSE A WARENESS Seismic survey: Air guns effect on marine life Exploration: Reef life destruction & hydrocarbon leakage Development: CO 2 emission

C ONCLUSION & R ECOMMENDATION Conclusion: Jack up used for drilling Both (FPSO+Platform) Scenario 2 Recommendation: Start drilling exploration well If hydrocarbons found, we recommend PI ENTERPRISES to start drilling using the 2 nd scenario If not, do not proceed with drilling