Google Trade Arabia News Service - Sana'a- OMV, a leading oil and gas group in Central Europe, has started oil production with early production facilities in Block S2 (Al Uqlah) in Yemen.
Initially, the daily production rate of the first production well Kharwah-1 is approximately 1,000 barrels (bbl).
Further development of the oil field, operated by OMV, is carried out in two phases. In the first phase a daily production of 11,000 bbl should be achieved by 2008. In the second phase production will be increased to 32,000 bbl/d as of 2009/2010, a statement said.
Proved reserves amount to approximately 50 million bbl. The field is expected to have a lifetime of at least 20 years. Furthermore OMV was awarded a new exploration licence on December 9, 2006, which will boost OMV�s Yemen portfolio, it said.
The development area for oil discoveries in Block S2 comprises an area of approximately 1,000 sq km in central Yemen. Investments for the first development step amount to $85 million, it said. Current estimates for the full field development, including phases 1 and 2, are $250 to $300 million..
-TradeArabia News Service