Project Profile
Value: US$500 million
Location: Middle Eastern island of Abu Musa in the Persian Gulf
Start-up Year: May 2012
Reserves: 150 and 250 million barrels of oil (from one well)
Production: 60,000 bopd and150 MMcf (4.2 MMcm) of gas
Water depth: 12,500 feet (3,810 metres) - 15,500 feet (4,724 metres)
Located offshore the Middle Eastern island of Abu Musa in the Persian Gulf, the Mubarek oil and gas field has been continuously producing for more than 30 years. Situated in 200 feet (61 metres) of water about 31 miles (50 kilometres) northwest of Sharajah in the United Arab Emirates, Mubarek has been a source of controversy because both the UAE and Iran have laid claim to the island and, in turn, the Mubarek field. In 1969, the Mubarek field was granted by the government of the UAE to concessionaire Buttes Gas & Oil Co. International Inc., a subsidiary of Crescent Petroleum. Crescent Petroleum continues to serve as the field\'s operator.
Field Development:
With seismic completed on the Mubarek field in 1971, the Mubarek discovery well was drilled in 1972. The field encompasses two geologic formations: the Ilam/Mishrif oil reservoir is located at a depth of 12,500 feet (3,810 metres), and the Thamama gas condensate reservoir is located at a depth of 15,500 feet (4,724 metres). Drilling the Mubarek field has proven to be a challenge because the reservoirs are located below a thick, plastic-like salt layer. The need for fracturing and the presence of high-pressure water flows and a complex sequence of over-pressure and under-pressure formations has added to the difficulty of the drilling environment. Nonetheless, a well drilled on the field in the early 1990s held the record for the world\'s deepest short-radius horizontal well at the time.
Production:
Mubarek achieved first oil production in 1974, and it has been producing ever since. This first phase of development tapped the oil reservoir only, reaching a peak production of 60,000 bopd. Subsequent development of the Mubarek field included the installation of a 600,000-barrel FSU through a fixed turret mooring system that allows for rotation with the tides and wind. Development of Mubarek\'s gas reservoir commenced in 1987. Consolidated Transmissions, another subsidiary of Crescent Petroleum constructed and installed the 57-mile (92-kilometre) offshore gas export pipeline for this phase of development. With a daily capacity of 150 MMcf (4.2 MMcm), gas sales from the field began in Dubai in January 1993. To date, the field is estimated to have produced more than 100 million barrels of oil and condensate, as well as 300 Bcf (8.5 Bcm) of natural gas. Required investments for these phases of development are estimated at more than US$500 million, which is equal to about US$2.90 a produced barrel.
Recent Development:
In May 2005, Sastaro Limited, a subsidiary of Sky Petroelum, signed a Participation Agreement with Buttes Gas and Oil Co. and ultimately Crescent Petroleum. The agreement allowed Sky to participate in the drilling of two wells: the Mubarek H-2 and the Mubarek K2-ST4. The agreement required that Sky contribute US$25 million to the drilling campaign, whereby earning a share of future production. The new field development plan called for the drilling of two infill wells in the Ilam/Mishrif reservoir, with resulting production being tied into existing Mubarek infrastructure. In January 2006, the jackup rig Rani Woro was hired to drill the two wells. Completed in May 2006, the first well in the campaign H-2 was drilled to a total depth of 15,020 feet (4,578 metres), logging positive oil saturations over more than 100 feet (30 metres) in the reservoir section. Spud in June 2007, the second well of the campaign K2-ST4 was drilled to a total depth of 13,528 feet (4,123 metres) and came online in October 2007.
Operator:
Buttes Gas and Oil Co (Crescent Petroleum): Operator with 100% interest