CALGARY, Canada – Sea Dragon Energy Holding has completed the acquisition of all shares in National Petroleum Co. Shukheir Marine (NPC SHM).
The assets include a 100% interest in the Shukheir Marine concession offshore Egypt, which contains the producing Shukheir Bay and Gamma oil fields.
NPC SHM is now a wholly owned indirect subsidiary of Sea Dragon, which intends to pursue development and exploration opportunities identified on 3D seismic and geological mapping of the area.
Shukheir Bay, which covers a shallow water area of 5 sq km (1.9 sq mi), was discovered in 1980 through drilling of a deviated well that indicated oil in Miocene Lower Rudeis sandstones. Five further deviated wells were drilled later.
This past October, the field produced 410 b/d of 34° API oil through two wells. Production is sent through three 2.2-km (1.3-mi), 4-in. pipelines to General Petroleum Co.’s (GPC) Shukheir gathering station at the western onshore Shukheir area for initial degassing and dewatering. The treated crude is then pumped to GPC’s facilities in the Um El Yusr station for further processing prior to export.
The Gamma field, covering 23.7 sq km (9.1 sq mi) of shallow water, was discovered in 1987 at an exploration well that tested oil from the Miocene Kareem formation and Cretaceous Nubia sandstones. Eight further wells were subsequently drilled.
Gamma currently produces 44° API oil from the Miocene Kareem formation sandstone in the GA-1 well, which averaged 50 b/d in October. The oil is transferred via an 8-in. subsea pipeline to the western onshore Wadi Dara processing facilities for complete treatment.
It is then shipped to the GPC Shukheir gathering station via a 6-in. subsea pipeline. A 17.9-km (11-mi) multi-size pipeline (6/8/10-in.) then routes the treated oil to the GPC facilities in the Um El Yusr station for further treatment before export.
Said Arrata, chairman and CEO of Sea Dragon, said: “The Shukheir Bay field is a mature field with low-risk development drilling locations and workover opportunities. In addition, the Gamma field has a large exploration target identified on trend to a well which discovered a significant oil column in the Nubia formation.”