Gross 2P reserves
bopd gross production in 2015
production growth in 2015
The Taq Taq licence area, with gross 2P reserves standing at 172 mmbbls, is situated in the Zagros basin where large, elongated anticlines dominate. The Taq Taq licence area is located 60 km northeast of the Kirkuk oil field and the adjacent city of Kirkuk, 85 km southeast of the city of Erbil and 120 km northwest of the city of Sulaimaniah. The gross area of the Taq Taq licence area is approximately 951 square km.
The Taq Taq field has been producing since 2006 and as a result of a multi-year investment programme in both production wells and surface facilities delivered compound annual growth of 29% between 2010 and 2015. As of 31 December 2015 the field had produced 184 mmbbls.
Gross remaining recoverable 2P reserves at 31 December 2015 were estimated at 172 mmbbls by McDaniel in its technical reserves assessment dated 27 February 2016. The proven plus probable plus possible (‘3P’) reserves at 31 December 2015 were assessed by McDaniel at 416 mmbbls. Going forward, the Company’s strategy at Taq Taq will be to maximise recovery of the 2P reserves through its discretionary investment programme, while also exploring opportunities to unlock upside potential by targeting prospective resources in the Cretaceous Qamchuqa reservoir.
The Taq Taq field produced a gross average of 116,000 bopd in 2015, compared to 103,000 bopd in 2014, representing 13% growth year-on-year. Production performance was strong in the first half of 2015, averaging 128,900 bopd on the back of high surface capacity utilisation as the KRG maximised exports through the KRI-Turkey pipeline. During the second half of 2015, production declined, averaging 104,000 bopd and exiting the year at 85,000 bopd. These declines reflected reservoir underperformance and also reflected a suspension of sub-surface investment in the second half of the year as the Company waited for regular export payments to be established.
During 2015, good progress was made in the construction of the second central processing facility. CPF 2 is designed to process 90,000 bpd of oil and has 45,000 bpd of water handling capacity. CPF 2 will commence operations in Q2 2016.