Kuwait Energy has made an oil discovery in the South Kheir 1X NFW. The well was tested in late January 2018, and flowed from the Miocene Hammam Faraun Member of the Belayim Formation, at a maximum rate of 2,452 bo/d, on a 128/64" choke. The discovery is located on the Kheir development lease of the "Area A" PSA, in the onshore western Gulf of Suez. It lies to the south of the Kheir Field. The well was spudded on 11 December 2017.<P />The "Area A" PSA comprises of six contiguous development leases. It is operated under an Exploration & Production Service Contract with state-entity General Petroleum Co (GPC). Under the terms of the rare risk-service agreement, contractors/IOCs carry all the cost of exploration activity. If a development lease is granted and production commences, then contractors are paid a service fee related to output, with the state (in the form of GPC), entitled to 100% of production. Kuwait Energy (70% WI) and Petrogas (30% WI), signed the PSA in 2013. GPC holds the concession rights with 100% equity.<P />
South Kheir 1X (SK-1X) op. by Kuwait Egy. (70%, Petrogas E&P 30%) in Shukheir (Area A) tested successfully at an initial oil flow rate of 2 452 bo/d from the Hamman Faraun MBR/Belayim Fm [2ââchoke], after that the well stabilized at an oil rate of 1 900 bo/d [1ââchoke]. 