Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Enhancing Reservoir Performance and Production Capability of Divided Zone Onshore Assets Presentation by: Hashim M. Al-Rifaai – C&MD, KGOC Kuwait Oil & Gas Summit & Exhibition February 12th - 15th 2012, Kuwait Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Agenda • • • • World Trends Initiatives Opportunities Conclusions 2 World Demand for Oil Forecasted demand for energy showing a rising trend Global demand for oil is projected to increase from 81.2 mboe/d in 2010 to 101 mboe/d in 2035 – source OPEC World Oil Outlook 2011 3 Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Agenda • • • • World Trends Initiatives Opportunities Conclusions 4 Key initiatives for enhancing recovery efficiency and oil production 1. Adopting robust Reservoir Management Strategy • Reservoir Management Framework (RMFW) 2. Improved Oil Recovery (IOR) • Pressure Maintenance/Water Injection Projects 3. Enhanced Oil Recovery (EOR) • Chemical flooding project • Thermal Projects o Steamflood in carbonate reservoirs o Down hole heating for deeper heavy oil reservoir • Waterflood in heavy oil carbonate reservoirs 5 Reservoir Management Framework 6 Improved Oil Recovery (IOR) Benefits OF IOR Projects. In Wafra –Ratawi Ultimate R.F has been increased from 20 % to 37 % by applying water Injection in phases. 6 % increase in ultimate recovery with water Dumpflood in Humma – Marrat 6 % gain in recovery is expected by water injection in S.F RLS on success of 7 pilot. Enhanced Oil Recovery (EOR) - Techniques Chemical Flooding for light oil. Chemical Flood is under evaluation as Post Water Flood EOR Expected Benefits Reserves Addition for KGOC with 6 % increase in ultimate recovery. Planned Chemical Flood Technology transfer for implementation in other water injection projects. Sharing of state of art in EOR technology. 8 Enhanced Oil Recovery (EOR) - Techniques Thermal Projects for heavy and viscous oil Key Message Large Heavy oil resources exist in Divided Zone. Ultimate Primary Recovery is expected less than 10 %. Most of the heavy oil resources can be recovered only by applying appropriate EOR methods Thermal EOR potential is very significant, with the prospect of recovering additional 35 % of OIIP 9 Phased Approach for Managing Challenges and Risk Mitigation Primary Production Studies Cyclic test Legend Pilot production well Pilot injection well Pilot observation well (# not final) Full Field Steam Flood Large Scale Pilot Small Scale Test 10 Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Agenda • • • • World Trends Initiatives Opportunities Conclusions 11 Opportunities Huge opportunities have been cataloged to mature benefits of adopted initiatives in Areas of Exploration and Development 1. Exploration Opportunities Fully Explore the Divided Zone area with modern technology (3-D Seismic, Aero Gravity-Magnetic) Target deep oil and gas potential Drill appraisal wells to determine field boundaries 12 Opportunities 2. Development Opportunities Full field Steamflood for 1st Eocene reservoir. Cyclic steam stimulation on selected wells of heavy oil reservoirs. Optimum Development of 2nd Eocene Reservoir in synergy with 1st Eocene. Down hole heating for deeper heavy and viscous oil 13 Opportunities 3. Development Opportunities • Back pressure reduction – Wafra Asset. • Chemical Flooding in Wafra-Ratawi. • Suitable EOR process for Wafra Maastrichtian reservoir. • Commercial production from SUG Maastrichtian. • Integrated water management. 14 Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Agenda • • • • World Trends Initiatives Opportunities Conclusions 15 Conclusions KGOC is at the forefront of using leading industry technology in its business to optimize its onshore assets value and enhance reserves. Opportunity exists to increase Divided Zone mature (Onshore) assets value through implementation of thermal EOR projects for heavy oil; innovative IOR techniques and chemical EOR for light oil. KGOC endeavor to bring in state of the art technology in the oil and gas sector will result in development of local industry and knowhow. 16 Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Enhancing Reservoir Performance and Production Capability of Divided Zone Onshore Assets Thank you