Abu Dhabi-based international energy company, Taqa, said it plans to invest more than $300 million for the first phase of development of the Atrush Block in the Kurdistan region of Iraq where it has received approval from the Kurdistan Regional Government (KRG).
“In phase I of the development of the Atrush block, Taqa would invest in drilling three production wells and the construction of a central processing facility,” the company said in a statement.
“We spent $600 million to acquire this asset towards the end of last year. The first production starts not before 2015 and we are looking at an initial production of 30,000 barrels per day. Further down the line, in the second phase, another 30,000 barrels per day production would be added,” a spokesperson for Taqa told Gulf News by telephone.
The Taqa-operated Atrush Block is located 85 kilometers northwest of Erbil.
Commenting on KRG’s approval, David Cook, Executive Officer and Head of Oil & Gas at Taqa, said: “The Kurdistan region of Iraq is an exciting exploration frontier and has tremendous potential. It is our ambition to build an integrated business in the Kurdistan region of Iraq, including potential power and water projects in addition to oil and gas infrastructure developments.”
Discovered in 2011, the Atrush field is expected to provide long-term benefits to the region and the community. The approval of the Field Development Plan by the KRG provides for a 25-year period during which Taqa and its partners expect to maximize recovery of the oil resources.
Taqa said the Atrush partners are continuing appraisal activities. “Taqa and its partners will also evaluate the feasibility of producing associated natural gas for delivery to the domestic market,” it added.
Taqa said it is currently preparing to drill the fourth well on the Atrush block.
Taqa’s stock on the Abu Dhabi Securities Exchange yesterday closed 0.78 per cent lower at Dh1.28 in line with broader market sentiments.
Taqa swung to a Dh172 million net loss in the fiscal second quarter compared to a Dh447 million net profit in the corresponding period a year earlier.
“Lower production in the UK North Sea and unplanned outages at two power plants were the main factors behind a 4 per cent decline in revenue,” Taqa said in a statement at the end of July.