MANAMA: The Kingdom of Bahrain’s latest oil discovery in terms of current price of $70 per barrel is worth $5.6 trillion US dollars. The Kingdom earlier this week had announced the largest oil discovery since 1932 with an estimated reserves of 80 billion barrels.
Bahrain’s National Oil and Gas Authority (NOGA), alongside international consultants DeGolyer and MacNaughton, Halliburton, and Schlumberger, on Wednesday in a joint press conference has made the details public of its largest oil fields discovery since 1932 which estimated around 80 billion barrels.
All stakeholders held a Press conference at Bapco Club gave technical details on the Kingdom’s largest ever discovery of oil and gas, with tight oil amounting to at least 80 billion barrels.
The discovery, made within the 2,000 square kilo meters Khalij Al-Bahrain Basin, is located in shallow waters off the Kingdom’s West coast, close to a fully-operational oil field with ready-to-connect-to facilities, according to Halliburton, who added that this unique factor provides potential for significant cost optimisation.
A separate discovery of significant gas reserves in two accumulations below Bahrain’s main gas reservoir has been confirmed.
Extensive work has already been carried out to evaluate in-place volumes. The first well in the drilling program is planned to produce in August, and over the next two years focus will be given to maximising production and commercial efficiency.
“DeGolyer and MacNaughton’s and Haliburton’s independent appraisals have confirmed NOGA’s find of highly significant quantities of oil in-place for the Khalij Al Bahrain, with tight oil amounting to at least 80 billion barrels, and deep gas reserves in the region of 10-20 trillion cubic feet,” Bahrain’s Minister of Oil, Shaikh Mohammed bin Khalifa Al Khalifa, while announcing the size and content of the discovered natural resources, said.
“Agreement has been reached with Halliburton to commence drilling on two further appraisal wells in 2018, to further evaluate reservoir potential, optimise completions, and initiate long-term production,” the Minister, added.
“Oil in place of 80 billion barrels is based on a P50 resource estimate,” said DeGolyer and MacNaughton Senior Vice president, Dr John Hornbrook, speaking at today’s press conference. Dr Hornbrook added that “the discovery breaks new ground for the Bahrain oil and gas industry using established technologies.”
Positive test well results have successfully demonstrated the productivity of the significant resource, with Schlumberger, who performed the first test well drilling, adding that Bapco has already succeeded in flowing high-quality oil from the wells during the testing and flow back phases. “Based on the core analysis carried out on several wells the formation could be classified at the edge of the conventional-unconventional type of plays,” a Schlumberger spokesperson said.
“The presence of a layer with moderate conventional reservoir properties on top of an organic-rich source rock creates a unique self-sourcing and trapping system, enhancing production and economic viability. The confirmation of this significant resource highlights the vast E&P (exploration and production) potential and opportunities in Bahrain,” Bapco Chief Exploration Geologist in charge of the discovery, Yahya Alansari, added.
The newly-discovered resource, which officials expect to be ‘on production’ within five years, is expected to provide significant and long-term positive benefits to the Kingdom’s economy – both directly and indirectly through downstream activities in related industries.
NOGA added that the next stage of development will focus on ensuring robust frameworks, data and terms are in place to facilitate further activities and commercial opportunities with international partners.
