Chevron will shortly submit a development plan for the Sarta block in the Kurdistan Region of Iraq, according to Ian MacDonald, the company’s vice president of exploration and production for Europe, Eurasia and the Middle East.
The development plan will reflect the company’s optimistic view of the field’s potential, while taking into account the realistic assessment of the challenges that lay ahead, MacDonald said at an energy conference held in London Monday.
“This definitive step signifies our strong commitment to develop those resources as quickly as the circumstances allow,” MacDonald said.
“In these complex times operators must and will find a resolve to maintain their commitments through geopolitical uncertainties and challenging operating environments. This requires all parties to show trust…and understanding,” he added.
Aside from the political insecurity challenges present in the KRI, there region also holds a variety of technical challenges, which would delay development plans, MacDonald said.
“Fractured carbonates with unpredictable structures, hydrogen sulphide, variable crude quality. Inevitably these realities will taper the pace at which development goals can be realized,” MacDonald stated.
“In the medium to longer term however we have enormous confidence that the challenges can and will be overcome as we have proved in our operations repeatedly around the world,” he added.
Chevron operates and has an 80 percent interest in the Sarta production-sharing contract (PSC) and the Qara Dagh PSC. The two blocks cover a combined area of 279,000 net acres. In 2015, Chevron acquired 2-D seismic data and completed testing in two wells in the Sarta block.
“We are steadily increasing our knowledge about the KRI’s hydrocarbon resources,” MacDonald said.
“We continue to be optimistic about the geological potential. “We have long recognized the region as a promising place to do business, which has a comparative and supportive government, a skilled and capable workforce and it extends acceptable terms to those doing business there,” he added.
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