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Petrogas E&P LLC has a 50% working
interest in the Block-5 Contract Area held
by their wholly owned subsidiary Mazoon
Petrogas SAOC. Mazoon Petrogas SAOC has a
50% ownership of the Daleel Petroleum Co.
LLC, a joint venture with the China National
Petroleum Corporation. Daleel Petroleum Co.
LLC is the operator in Block 5
and has managed operations since Year 2002.
Block-5 covers an area of 992 km2 and
contains four producing fields. The four
fields are the Daleel (Shuaiba) field, the
Shadi field, the Mazoon field and the Bushra
field. Of the four producing fields, The
Daleel (Shuaiba) field is by far the most
prolific field with more than 50 million
barrels produced to date. It consists of
several fault blocks N-S oriented, each with
different hydrocarbon distribution and
pressure regime.
The Daleel (Shuaiba) field was brought into
production in 1990 and a total of 115
appraisal and development wells have been
drilled of which some 70 are currently
producing and 8 injecting water. The Shadi
field was brought on stream in 2001 and
produces from 2 wells. The Mazoon field came
on stream in 2002 and is producing from 8
wells. The Bushra field started production
in 2003 from 1 well but it was shut down in
2004 when production became uneconomical. It
was recently put back to production along
with several recent oil bearing discoveries
in the Bushra cluster area.
While most wells in Block-5 are free
flowing, artificial lift is increasingly
required in the Daleel (Shuaiba) field to
produce depleted wells and wells that see
increasing water production as a result of
water flooding. The major enhancement to
production in the Daleel (Shuaiba) field is
through water flooding that has shown the
ability to improve the sweep and recovery
rate from the reservoirs. The water flood
project began as a pilot project in 2002
and, given its success, water flood is now
being implemented on a phased basis to all
producing blocks.
The Block-5 facilities have been upgraded to
handle 25,000 barrels a day of produced
fluid and 60,000 barrels of water injection.
Further facilities expansion will be
required as the total produced fluids and
oil production increase through the full
implementation of the water flood project to
35,000 bopd and 90,000 bwd. At the B block
and at Daleel main station, oil production
is separated and stabilized and exported via
an 8 inch spur line to the
PDO-Lekhwair-Fahud pipeline and then onto
the oil export terminal at Mina Al Fahal.
Production from Mazoon, Shadi and Bushra are
transported by tanker to the Daleel
facilities for export.
Production from the Contract Area achieved a
temporary plateau, under depletion, in 1995
at around 10,000 barrels a day and this rate
declined to around 4,500 barrels of oil per
day by 2002. However, with the increased
development drilling and water injection,
production has now (end of Q1 2008) reached
approximately 18,000 barrels a day and is
planned to increase to 30,000 bopd when
water flood is fully implemented. At end
2007 the total cumulative production from
Block-5 was 59 million barrels.
Light 30-39°API oil is produced in the
Daleel, Mezoon and Bushra cluster fields
from Cretaceous Upper Shuaiba and Natih A-D
reservoirs. The Upper Shuaiba Daleel
accumulation is stratigraphically trapped on
the flank of the Lekhwair High. The Natih
reservoirs occur both in truncation traps on
the eastern flank of Daleel and as fault-dip
closures in the Bushra cluster fields. Both
the Upper Shuaiba and Natih reservoirs have
tilted oil-water contacts due to Plio-Pleistocene
regional deformation. Oils are typed to
North Oman Huqf and Natih source rocks.
Ongoing exploration activities are focussed
on Natih and Shuaiba prospects to the east
and west of Daleel. |