The NS377-5 oil development well in the North Shadwan Development Lease in the Gulf of Suez offshore Egypt has reached a total depth of 2,909 meters after intersecting a gross oil column of 107 meters in the Kareem Formation sandstone of Miocene age.
The NS377-5 well was drilled as an extended reach deviated well from an onshore location. This will enable rapid completion and connection of the well to onshore production facilities.
NS377-5 was drilled approximately 465 meters northwest of the NS377-3 well, which was also drilled as a development well in the last quarter of 2009 and encountered a 144-meter oil column. Although the gross oil column is less than in the earlier well, the reservoir quality is improved; and the initial production from NS377-5 is expected to be in the same order as NS377-3 at 1,500 to 2,000 barrels of oil per day.
North Shadwan Development: NS377 and NS385 Oil Fields
The development program for the near-shore fields is proceeding as planned, yielding results in line with, or exceeding expectations. The drilling program thus far, although technically challenging, has been undertaken efficiently and on budget by the operator BP, which indicates a strong likelihood the anticipated savings and increased profitability in undertaking this development from onshore rather than offshore will be fully realized.
Crude oil will be exported about 7 kilometers to the northwest via a new pipeline to Petrobel's Ras Ghara processing facility on the east coast of the Gulf of Suez. Full production from the field is expected to commence in the third quarter of this year at an initial rate in excess of 3,000 bopd.
Drilling Campaign at NS385
Development drilling on the NS385 oil field, located offshore and four kilometers southeast of the NS377 oil field is also planned to commence in 2010. Extended reach technology will again be utilized to penetrate the reservoir from an onshore drilling location. Production will be tied into the same export route as the NS377 oil field.
These two oil fields are estimated to contain recoverable reserves of approximately 11 million barrels.
The North Shadwan Joint Venture comprises BP Exploration (Delta) Limited with 50 percent interest, Beach Petroleum (Egypt) Pty Ltd with 20 percent interest and TriOcean Energy Company with 30 percent interest.