WJO 2024 Capital Budget Review Workshop

[Audio] Good morning everyone. Today I will be presenting the business case for the installation of a new flare package, production separator and other necessary accessories at a specific location to increase the handling capacity due to increased production from satellite sub centers. We will discuss the details of the project and how it could improve our operations..

[Audio] The project is focused on increasing production capacity at SC-34 by installing a new flare package, production separator, and the necessary accessories. A summary of the project is provided in a table which includes the title, background description, and the scope of the project. The scope includes the installation of the new flare package with the KOD drum, and the addition of a production separator with a capacity of 50000 bbls, along with piping, civil, structural, electrical, and instrumentation works..

[Audio] The installation of a new flare package, production separator and other necessary accessories is justified by the drilling of the 1st and 2nd Eocene Maastrichtian wells in the south wafra area. SC-29 and SC-28 will be the Satellite Sub Centers, connected to SC-34. The cost variance is within the approved budget's allowable 10% limit and completion date is unchanged. This project will lead to increased capacity and profits due to the production from the Satellite Sub Centers..

[Audio] An AFE is being updated to account for the recommendations from the Flare Optimization study, which has indicated potential tying of SC34 into the new GHU Flare. Additionally, feedback is being sought from KGOC regarding whether or not to include the new PCR building under this Business Request..

[Audio] The AFE No. 214351602 is associated with the project of the installation of an additional Production Separator and Flare Stack at SC-34 WJ35. The Cont Team is WJ35, with an approved value of 1,610000 KD and an ITD of 142,695 KD. The AFE status is currently in progress and the completion date is 24th December..

[Audio] This slide provides data regarding three requests regarding the installation of a new flare package, production separator, and other necessary accessories. The first table includes BR number, the requesting division or team, the controlling division or team, the approved and revised estimated cost, and the approved and proposed completion dates. The second table includes ITD till 2022, 2023 forecast amount, previous year amount, and year 2024-2027. The third table provides an explanation for any variance in completion date, citing non-ops alignment, additional requirements, and vendor delivery time..

[Audio] The updated cost breakdown for the installation of the new flare package, production separator and other necessary accessories at the SC-34 sub center is presented in this slide. A table is shown with the AFE and reference number, project title, contractor team, approved value, initial total duration and current status. The approved value for this project is 1 million 610 thousand KD and the initial total duration is 142 thousand 695 KD. The current status of the project is N/A..