By OGJ editors
HOUSTON, Jan. 19 -- Having received approval from the Yemeni authorities, OMV AG will begin the $250-300 million development of Block S2 (Al Uqlah) in the Shabwa province of western Yemen.
Block S2, containing a complex fractured-basement reservoir, will be developed in two phases. Phase I will concentrate on acquisition of 3D seismic data, and Phase II entails full field development.
The area of the block to be developed covers 1,029 sq km. OMV will assess the hydrocarbon potential of the remainder of the block and, subject to government approval, explore the nearby Block 2 (Al Mabar), for which OMV on July 13, 2005, signed a production sharing agreement (PSA).
Block S2 could begin oil production as early as the third quarter of this year. OMV will gradually increase production to 11,000 b/d by 2007-08. The field is expected to reach plateau production of 32,000 b/d by 2009-10.
Proved reserves are estimated at 50 million bbl. Proved and probable reserves are estimated at 170 million bbl.
OMV discovered oil on Block S2 with the Al-Nilam-1 well in 2003. After a comprehensive block evaluation in 2004, the Habban-1 oil discovery was drilled in 2005. The Al-Nilam-ST1 tested the potential of the fractured basement in another compartment of Habban field.
OMV, operator, holds a 44% interest in Block S2. Sinopec International Petroleum Exploration & Production Corp. has 37.5%; Yemen General Corp. for Oil & Gas, 12.5%; and Yemen Resources Ltd., 6%.