Turkey - Bati Raman Enchanced Oil Recovery Project

Document of a %Er The World Bank FOR OFFICIAL USE ONLY Repor No. P-2886-TU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TURKEY FOR A BATI RAMAN ENHANCED OIL RECOVERY FIELD DEMONSTRATION PROJECT October 30, 1980 This document has a restrcted distribution and may be used by recipients only in the performnce of their official duties. Its contents maY not otherwise be disclosed without World Bank authoriation.  TURKEY CURRENCY EQUIVALENTS Currency Unit Calendar 1978 July 1979 Jan. 1980 A October 1980 US Dollar 1 - TL 24.28 TL 47.10 /2 TL 70.0 /3 TL 83.50 -/3 TL 1 * US$ 0.04 US$ 0.02 US$ 0.01 US, 0.01 /1 Since January 1980 the rate is being adjusted for the differential inflation between Turkey and its major trading partners. TL 70/$1 was used for this report. /2 Except for imports of crude oil, petroleum products and fertilizer raw materials, and exports of agricultural products benefitting from official price supports, for which it was TL 35 - US$1.00. /3 Except for imports of fertilizers and insecticides/pesticides, as well as raw materials and inputs for their manufacture, for which the rate was TL 55 - US$1.00, and is TL 70.0 - US$1.00 as from October 1980. WEIGHTS AND MEASURES 1 Barrel (Bbl) m 0.159 cubic meters (m3) 1 Cubic foot (CF) = 0.028 m3 1 British Thermal Unit (BTU) = 0.252 kilocalories (Kcal) 1 Kilowatt hour (Kwh) = 2.978 Kcal 1 Metric ton (mT) of oil, 350 API = 7.3 Bbl 1 Kilometer (km) = 0.621 miles FISCAL YEAR Republic of Turkey March 1 to February 28 Turkiye Petrolleri Anonim Ortakligi (TPAO) January 1 to December 31 ABBREVIATIONS AND ACRONYMS Bbls - Barrels BOTAS - Boru Hatilari ile Petrol Tasima A.S. (Petroleum Pipeline Corporation) CO2 - Carbon dioxide EOR - Enhanced Oil Recovery GDPA - General Directorate of Petroleum Affairs GOT - Government of Turkey GWh - Gegawatt (1,000,000 kilowatts) IPRAS - Istanbul Petrol Rafinerisi Anonim Sirketi MCF/d - Thousand cubic feet per day MENR- - Ministry of Energy and Natural Resources MMCF/d - Million cubic feet per day MW - Megawatt (1,000 kilowatts) SPO - State Planning Organization TEK - Turkiye Elektrik Kuruma (Turkish Electricity Authority) TKI - Turkiye Komur Isletmeleri Kurumu (Turkish Coal Enterprises) TOE - Metric tons of oil equivalent in heating value TPAO - Turkiye Petrolleri Anonim Ortakligi (Turkish Petroleum Corporation) TPY - Tons per year TSKB - Turkiye Sinai Kalkinma Bankasi (Industrial Development Bank of Turkey) UNDP - United Nations Development Program  FOR OFFICIAL USE ONLY TURKEY BATI RAMAN ENHANCED OIL RECOVERY FIELD DEMONSTRATION PROJECT Loan and Project Summary Borrower; Republic of Turkey Beneficiary; Turkiye Petrolleri Anonim Ortakligi (TPAO) Amount; US$62 million equivalent Terms. Seventeen years including four years of grace, with interest at 9.25 percent per annum. Relending Terms; Seventeen years including four years of grace, at not less than 11.10 percent per annum. Beneficiary will bear the foreign exchange risk. Project Description; The project includes: (i) The Bati Raman enhanced oil recovery field test - a field demonstration test of the carbon dioxide (C02) injection enhanced oil recovery (EOR) technology, on a limited area of the Bati Raman reservoir for evaluating its suitability and determining the data required for designing a full field project. It consists of drilling of additional five wells at the Dodan gas field to provide the CO2 requirements, laying of a pipeline 75 km long to transport 55 million cft. per day of carbon dioxide gas from the Dodan gas field to the Bati Raman oil field, drilling of five additional wells and the preparation of 30 wells to handle CO2 injection and oil production through the installation of associated surface and sub-surface equipment, and the testing and evaluation of the results. (ii) the Raman oil field development - a production component covering the drilling and completion of 18 new production wells, along with provision of associated surface and sub-surface equipment in a newly discovered extension of the Raman oil field, and a reservoir analysis study to determine the optimum approach to an enhanced oil recovery program for the field. (iii) the Thrace (Hamitabat) gas field - an evaluation of the production potential of the Thrace gas field to provide reliable estimates of gas reserves and produc- tivity, through the stimulation of the gas field by fracturing six to ten wells and a study to determine the optimum use of the gas. | This document has a restricted distribution and may be used by recipients only in the performance of | their official duties. Its contenst may not otherwise be disclosed without World Bank authorization.  - ii - (iv) Management studies - to strengthen TPAO's operations and management capabilities through the review of organizational structure, systems of internal communication, financial planning and management systems. The project will help to; (i) expand the recoverable reserves of Turkey's largest proven reservoir through the application of new enhanced oil recovery techniques, thereby improving its medium-term production capacity; (ii) increase Turkey's crude oil production in the short-term by developing the newly discovered oil reserves in the Raman oil field; and (iii) evaluate the gas reserves and production potential of a newly dis- covered gas field. The Bati Raman EOR sub-project is the first field application of carbon dioxide injection into a heavy oil reservoir. There is an inherent risk that it may prove less successful than projected. The risks are normal in other sub-projects. Estimated Costs; Local Foreign Total