Enterprise Oil plc, London, has acquired a farmout of a redevelopment program in Mubarek field off Sharjah, U.A.E.
Mubarek is operated by the Buttes Gas & Oil Co. International (BGOI) unit of Crescent Petroleum Co., Sharjah.
Mubarek was discovered in 1972 and brought on stream in 1974. It has yielded 83 million bbl of crude oil from its Ilam/Mishrif reservoir.
Mubarek oil production averaged about 4,000 b/d in 1994 and has fallen further since then.
Project details
Enterprise will spend $25 million for a 3D seismic survey of the field and drilling at least two wells, in return for a 40% share of output from the new wells drilled.
Enterprise sees the project as a low risk exploration and production venture, with Mubarek field wells typically producing 20,000 b/d of oil in the past.
"If we are lucky," the official said, "and drilling proves as low risk as we hope, we will get a substantial return from the two wells we are due to drill plus an optional two wells on top of that."
The official said Enterprise is looking to prove additional reserves of "tens of millions of barrels of high quality oil, with considerable upside beyond this."
Enterprise expects the drilling program to be completed by yearend 1997 and may lead to further development of the license area. BGOI will remain operator.
Mubarek has two Cretaceous main reservoirs: Ilam/Mishrif, containing 36 gravity oil and associated gas, and the lower Thamama reservoir, which produces gas and condensate.
The Enterprise farm-in covers geological structures down to and including the Ilam/Mishrif formation. Crescent retains control of the Thamama reservoir.
Mubarek's crude oil and condensate is pumped to a floating storage unit for tanker export.
Gas is exported via an offshore gathering platform and 16 in. pipeline to Dubai.
New production would be processed through these facilities.
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