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Gulf Keystone Petroleum is the operator of the Shaikan Field, situated around 60 km to the north-west of Erbil, the largest city in the Kurdistan Region of Iraq, and covering an area of 280 km². The Company has a Production Sharing Contract with the Kurdistan Regional Government and has an 80% working interest in the Shaikan licence.
PF-1
First oil | |
---|---|
SH-1 | September 2010 |
SH-3 | November 2011 |
SH-4 | March 2014 |
SH-7 | December 2014 |
SH-8 | March 2015 |
SH-9 | December 2020 |
SH-15 | April 2022 |
PF-2
First oil | |
---|---|
SH-2 | June 2014 |
SH-5 | June 2014 |
SH-10 | December 2014 |
SH-11 | April 2015 |
SH-12 | November 2019 |
SH-13 | December 2021 |
SH-14 | December 2021 |
SH-16 | December 2022 |
SH-17 | TBC |
SH-18 | TBC |
Shaikan – a giant, long-life field with a proven track record of low-cost production and significant growth potential
The Shaikan Field is one of the largest oil discoveries in the Kurdistan Region of Iraq and has been in production since July 2013. As of March 2024, the field had produced over 124 million stock tank barrels (“MMstb”). The Company has a track record of delivering profitable growth, with gross average production increasing from 31,563 bopd in 2018 to 49,165 bopd in the period from 1 January and 24 March 2023 prior to the Iraq-Turkey Pipeline closure, equating to an 11% compound annual growth rate (“CAGR”).
The Company estimates gross 2P reserves of 458 MMstb at 31 December 2023. Our internal estimates account for the impact of the production shut-in and suspension of expansion activity in 2023 following the suspension of Kurdistan exports on 25 March 2023. While we have seen no degradation to the reservoir, and the field is performing in line with our expectations, our estimates incorporate a delay in return to development drilling. Based on 2022 gross average production of 44,202 bopd, the last full year of export sales prior to the ITP closure, estimated gross 2P reserves-to-production ratio is around 28 years, underpinning the case for further investment. We expect to commission an updated Competent Person’s Report, including a comprehensive independent assessment of 1P and 2P reserves and 2C resources, at the appropriate time once the operating environment has normalised.
Field overview
- Located c.60km north-west of Erbil in the north-west Zagros fold-belt
- One of the largest oil fields in Kurdistan by reserves and production
- Two production facilities with total processing capacity of c.60,000 bopd and pipeline & truck export capacity
- Proven production track record: cumulative production to date of >124 MMstb from the Jurassic reservoir, as at 19 March 2024
- Significant growth potential, with material oil volumes in the Jurassic, Triassic and Cretaceous formations
- Rigorous focus on maintaining low-cost production
Key information
- Gulf Keystone interest: 80%
- Partner: MOL 20%
- Discovered: August 2009
- Production start: July 2013
Track record & performance
The Shaikan Field Production Sharing Contract (“PSC”) was awarded in 2007, with oil discovered in 2009 through the SH-1 well and first commercial production achieved in July 2013. Since then, over 124 MMstb of oil has been produced. The Company has a track record of delivering profitable growth, with gross average production increasing from 31,563 bopd in 2018 to 49,165 bopd in the period from 1 January and 24 March 2023 prior to the Iraq-Turkey Pipeline closure, equating to an 11% compound annual growth rate (“CAGR”).