DNO and Genel ready for FID on Block Dohuk project
The Norwegian independent company DNO and its partners, a Turkish-based company Genel Energy (Genel) and the local Kurdistan Regional Government (KRG) are preparing the final investment decision (FID) to develop on fast track the Block Dohuk in the north of the Kurdistan Region of Iraq.
Located in the southwest neighborhood of the city of Dohuk, approximately 80 kilometers north of Mosul, the Block Dohuk covers more than 169 square kilometers.
DNO is the operator of the Block Dohuk with 40% working interests.
With its operations concentrated in the Middle-East and North of Africa, DNO pioneered the oil and gas exploration in the Kurdistan Region of Iraq with a first production sharing agreement (PSA) signed with the KRG in 2004.
In 2005 and 2008, DNO identified the Summail and Summail extension prospects in the Block Dohuk to start the exploration.
In 2006, DNO hit one of the first major oil discoveries in the Kurdistan Region with the Tawke field.
With crude oil reserves estimated to 700 million barrels, DNO is planning to ramp up the production from the Tawke field from the current 100,000 barrels per day (b/d) to 200,000 b/d.
In the Block Dohuk, DNO and Genel faced a more challenging situation that has delayed the development since 2011.
Summail gas to supply Dohuk Power Generation plant
Summail-1 from the Block Dohuk was the first gas field developed by DNO in the Kurdistan Region.
In June 2006, DNO measured a flow of 4 million cubic feet per day (cf/d) of gas from its first well to be confirmed by appraisal wells.
But the additional wells revealed in another part of the reservoir the presence of heavy crude oil while no sustainable gas flow measurement could be performed.
Therefore in December 2012, DNO and Genel decided to seal the well in the meantime to proceed to further exploratory 3D seismic campaign and redefine the strategy to develop the Block Dohuk.
In August 2013, DNO and Genel presented their new concept to develop the Block Dohuk in phases.
Since the Block Dohuk is expected to supply gas as feedstock to the Dohuk Power Generation plant, DNO, Genel and KRG agreed on a development program giving the priority to the gas field production.
On the Block Dohul Phase-1, DNO and Genel will re-open the Summail-1 well and install a first gas central processing train
Then DNO and Genel are planning in the following phases to drill Summail-2 at the end of 2013 and Summail-3 in 2014.
While deploying the gas production wells on the Block Dohuk, DNO and Genel will expend the capacity of the gas central processing facility.
Based on this Summail development scheme, DNO and Genel are planning to make the final investment decision (FID) as soon as possible to begin the production of natural gas from the Block Dohuk in 2014.
