Crescent Petroleum
Encyclopedia
Crescent Petroleum is a privately owned oil and gas company headquartered in the United Arab Emirates
. It began operations in 1971 as the first independent and privately owned Middle Eastern petroleum company to engage in the acquisition, exploration and development of petroleum concessions. The company has its headquarters in Sharjah in the United Arab Emirates. Crescent Petroleum is also the largest private shareholder in Dana Gas
, the first and largest publicly listed private-sector natural gas company in the Middle East.
granted in 1969 by the Government of Sharjah. Following offshore seismic work in 1971, the Mubarek Field discovery wildcat
was drilled in 1972. Over the next decade, Crescent Petroleum identified several opportunities in the oil and gas sector across the world, that led to the company securing concessions in Argentina, Canada, France, Tunisia, United Arab Emirates, and the erstwhile Yugoslavia
. By the late 1990s, additional concessions were procured in Egypt, Pakistan, Oman, and Yemen.
Crescent Petroleum’s current major operations are in the UAE and in Iraq’s Kurdistan Region, where along with its affiliate Dana Gas, it is the largest private investor in the local energy sector, investing over US$850 million and producing over 300 million cubic feet of gas and 14,000 barrels of condensate
per day, enabling almost continuous electricity in the main cities of Iraq’s Kurdistan region.
In May 2010, Crescent Petroleum and the Russian government-owned oil company, Rosneft
signed a Strategic Cooperation Agreement to jointly develop material oil and gas opportunities in the Middle East and North Africa region. The following month, the two companies signed a Farm-Out agreement under the aegis of the Russian Deputy Prime Minister Igor Sechin
. Under the terms of the agreement, both companies would jointly develop the Sharjah Onshore Concession, with Rosneft holding a 49% stake as participating interest. The two companies agreed to invest USD 60 billion in initial exploration activities which includes the drilling of two oil wells to a depth of 4500 metres (14,763.8 ft). The project hopes to benefit from existing infrastructure in Sharjah to produce condensates and natural gas liquids that could be consumed domestically and exported internationally. The agreement also includes a budget for the development of local infrastructure while preserving the region’s natural ecosystems and terrain.
The bonhomie between the Russian government and Crescent Petroleum was underscored in August 2010, after Russian Prime Minister Vladimir Putin hosted a high-level roundtable conference between senior executives of Crescent Petroleum and Russian industry senior executives. Putin applauded the pursuit of joint projects in the Middle East region and also welcomed Crescent's entry to the Russian markets.
through a 92 miles (148.1 km) offshore pipeline was constructed by Crescent Petroleum. In late 2005, the company commenced a program of drilling further infill wells to increase production of petroleum.
Crescent Petroleum also discovered the Zora Gas Field off the coast of the United Arab Emirates in 2001 and has drilled two horizontal wells
which both tested positive for hydrocarbons.
Crescent Petroleum has an offshore concession to Sir Abu Nu'ayr, an island owned by the Emirate of Sharjah, and its territorial seas. The area is known to have an abundant hydrocarbon basin. Crescent Petroleum was also granted a 1243 square kilometres (479.9 sq mi) of acreage concession onshore Sharjah for hydrocarbon exploration, and has commenced extensive appraisal works within the block.
The Gulf-South Asia Gas Project (GUSA) launched by Crescent in 1991 was the first workable project for producing, transmitting by pipeline and delivering natural gas from Qatar to Pakistan and eventually other parts of the Indian subcontinent. The GUSA Project comprises two main parts that will transport the gas 1186 kilometres (736.9 mi) to Pakistan.
Crescent Petroleum was instrumental in establishing Dana Gas PJSC, one of the first major private-sector natural gas resource enterprises in the Persian Gulf region. Dana Gas is engaged in the business of the ownership, transportation, processing, distribution, marketing and sale of natural gas and petroleum related products, including the development of gas-related projects and services in the Middle East, North Africa and South Asia regions. Crescent Petroleum has a 21% stake in Dana Gas. Crescent Petroleum, in a 50-50 joint venture with Dana Gas PJSC, has invested over US$ 700 million as of 2009 under a Strategic Alliance Protocol and a Petroleum Contract signed with the Kurdistan Regional Government
(KRG) in Iraq in April 2007, making it the largest private-sector investment in Iraq in several decades. As part of the project implementation, the primary phase was completed in 15 months, with the companies having installed a 180 kilometres (111.8 mi) gas pipeline across mountainous terrain that required the clearing of several minefields. In addition, upstream activities on seismic surveys and production wells were carried out, and new gas processing facilities were installed. The initial primary phase gas production commenced in October 2008 at 90 million cubic feet per day, and is expected to rise in stages to 300 million cubic feet per day in late 2009, as the power plants become fully operational. In May 2009, the companies announced a strategic partnership with OMV
of Austria
and MOL of Hungary who jointly announced their intention to invest a further USD 8 billion in this project and aim to carry excess gas produced into Turkey and also across Turkey into Europe as a source of gas for the Nabucco Pipeline Project
.
as Vice-Chairman of Crescent Group and CEO of Crescent Petroleum, and son Badr Jafar
as Managing Director of Crescent Group, President of Crescent Petroleum and CEO of Crescent Investments.
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
. It began operations in 1971 as the first independent and privately owned Middle Eastern petroleum company to engage in the acquisition, exploration and development of petroleum concessions. The company has its headquarters in Sharjah in the United Arab Emirates. Crescent Petroleum is also the largest private shareholder in Dana Gas
Dana Gas
Dana Gas is an independent gas company headquartered in Sharjah, United Arab Emirates. The largest private shareholder in Dana Gas is Crescent Petroleum....
, the first and largest publicly listed private-sector natural gas company in the Middle East.
History
Crescent petroleum traces its origins to Buttes Gas & Oil Co. International Inc., a wholly owned subsidiary of Crescent Petroleum. Buttes Gas & Oil Co. was the holder of a ConcessionConcession (contract)
A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...
granted in 1969 by the Government of Sharjah. Following offshore seismic work in 1971, the Mubarek Field discovery wildcat
Wildcatter
A wildcatter is an American term for a person who drills wildcat wells, which are oil wells drilled in areas not known to be oil fields. A wildcatter notable for his success was Texan oil tycoon Glenn McCarthy....
was drilled in 1972. Over the next decade, Crescent Petroleum identified several opportunities in the oil and gas sector across the world, that led to the company securing concessions in Argentina, Canada, France, Tunisia, United Arab Emirates, and the erstwhile Yugoslavia
Yugoslavia
Yugoslavia refers to three political entities that existed successively on the western part of the Balkans during most of the 20th century....
. By the late 1990s, additional concessions were procured in Egypt, Pakistan, Oman, and Yemen.
Crescent Petroleum’s current major operations are in the UAE and in Iraq’s Kurdistan Region, where along with its affiliate Dana Gas, it is the largest private investor in the local energy sector, investing over US$850 million and producing over 300 million cubic feet of gas and 14,000 barrels of condensate
Condensate
Condensate may refer to:* The liquid phase produced by the condensation of steam or any other gas* The product of a chemical condensation reaction, other than water* Natural gas condensate, in the natural gas industry- Quantum physics :...
per day, enabling almost continuous electricity in the main cities of Iraq’s Kurdistan region.
In May 2010, Crescent Petroleum and the Russian government-owned oil company, Rosneft
Rosneft
Rosneft is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin, across the Moskva river...
signed a Strategic Cooperation Agreement to jointly develop material oil and gas opportunities in the Middle East and North Africa region. The following month, the two companies signed a Farm-Out agreement under the aegis of the Russian Deputy Prime Minister Igor Sechin
Igor Sechin
Igor Ivanovich Sechin is a Russian official, considered a close ally of Vladimir Putin. Sechin is often described as one of Putin's most conservative counselors and the leader of the Kremlin's Siloviki faction, a statist lobby gathering former security services agents...
. Under the terms of the agreement, both companies would jointly develop the Sharjah Onshore Concession, with Rosneft holding a 49% stake as participating interest. The two companies agreed to invest USD 60 billion in initial exploration activities which includes the drilling of two oil wells to a depth of 4500 metres (14,763.8 ft). The project hopes to benefit from existing infrastructure in Sharjah to produce condensates and natural gas liquids that could be consumed domestically and exported internationally. The agreement also includes a budget for the development of local infrastructure while preserving the region’s natural ecosystems and terrain.
The bonhomie between the Russian government and Crescent Petroleum was underscored in August 2010, after Russian Prime Minister Vladimir Putin hosted a high-level roundtable conference between senior executives of Crescent Petroleum and Russian industry senior executives. Putin applauded the pursuit of joint projects in the Middle East region and also welcomed Crescent's entry to the Russian markets.
Projects
The first project handled by Crescent was the Mubarek Field off the coast of UAE. Within 13 months from the discovery confirmation well, the field was put on full production at a rate of over 60,000 barrels of oil per day, with the drilling of three additional wells, the installation of the processing platform, an additional well-head platform, export loading terminal, and associated support structures and pipelines. This was a world record at the time for bringing an offshore field on-stream from oil discovery. Crescent Petroleum has also earned several operational world records including the deepest short radius horizontal section drilled, and the deepest slim hole to be cased by expandable casing. Since the start of production in 1974, the Mubarek Field has undergone several development phases. The initial phase of the development of Ilam/Mishrif oil reservoir, at a depth of 12500 feet (3,810 m) was completed in 1977. Development of the Thamama gas condensate reservoir, at a depth of 15500 feet (4,724.4 m), was started in 1987 for production of the gas and condensate. A central gas processing facility was established in the early 1990s, and gas export to Jebel AliJebel Ali
Jebel Ali is a port town, located 35 kilometres southwest of the city of Dubai in the United Arab Emirates . The village has a thriving expatriate community with over 300 residents. The area is also home to "5,500 companies from 120 countries"....
through a 92 miles (148.1 km) offshore pipeline was constructed by Crescent Petroleum. In late 2005, the company commenced a program of drilling further infill wells to increase production of petroleum.
Crescent Petroleum also discovered the Zora Gas Field off the coast of the United Arab Emirates in 2001 and has drilled two horizontal wells
Directional drilling
Directional drilling is the practice of drilling non-vertical wells. It can be broken down into three main groups: Oilfield Directional Drilling, Utility Installation Directional Drilling Directional drilling (or slant drilling) is the practice of drilling non-vertical wells. It can be broken down...
which both tested positive for hydrocarbons.
Crescent Petroleum has an offshore concession to Sir Abu Nu'ayr, an island owned by the Emirate of Sharjah, and its territorial seas. The area is known to have an abundant hydrocarbon basin. Crescent Petroleum was also granted a 1243 square kilometres (479.9 sq mi) of acreage concession onshore Sharjah for hydrocarbon exploration, and has commenced extensive appraisal works within the block.
The Gulf-South Asia Gas Project (GUSA) launched by Crescent in 1991 was the first workable project for producing, transmitting by pipeline and delivering natural gas from Qatar to Pakistan and eventually other parts of the Indian subcontinent. The GUSA Project comprises two main parts that will transport the gas 1186 kilometres (736.9 mi) to Pakistan.
Kurdistan Regional Government
The Kurdistan Regional Government , , is the official ruling body of the predominantly Kurds-populated Kurdistan Region in Northern Iraq...
(KRG) in Iraq in April 2007, making it the largest private-sector investment in Iraq in several decades. As part of the project implementation, the primary phase was completed in 15 months, with the companies having installed a 180 kilometres (111.8 mi) gas pipeline across mountainous terrain that required the clearing of several minefields. In addition, upstream activities on seismic surveys and production wells were carried out, and new gas processing facilities were installed. The initial primary phase gas production commenced in October 2008 at 90 million cubic feet per day, and is expected to rise in stages to 300 million cubic feet per day in late 2009, as the power plants become fully operational. In May 2009, the companies announced a strategic partnership with OMV
OMV
OMV is Austria's largest oil-producing, refining and gas station operating company with important activities in other Central European countries...
of Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
and MOL of Hungary who jointly announced their intention to invest a further USD 8 billion in this project and aim to carry excess gas produced into Turkey and also across Turkey into Europe as a source of gas for the Nabucco Pipeline Project
Nabucco Pipeline
The Nabucco pipeline is a proposed natural gas pipeline from Erzurum in Turkey to Baumgarten an der March in Austria diversifying natural gas suppliers and delivery routes for Europe. The pipeline attempts to lessen European dependence on Russian energy...
.
Structure
Crescent Petroleum is part of the Crescent Group of Companies which includes Crescent Petroleum Company International Limited, Gas Cities Limited, and Crescent Investments LLC, the Group's non-energy interests. The Chairman of the Group is Hamid Jafar, with his son Majid JafarMajid Jafar
Majid Jafar born in 1976 is a United Arab Emirates businessman of Iraqi origin. He is the CEO of Crescent Petroleum. the Middle East's oldest private oil and gas company, headquartered in the UAE and with offices in the UK and Internationally...
as Vice-Chairman of Crescent Group and CEO of Crescent Petroleum, and son Badr Jafar
Badr Jafar
Badr Jafar is an Emirati business executive and entrepreneur based in the United Arab Emirates . Educated in the UAE and United Kingdom, he is the President of Crescent Petroleum and founder-Chief Executive Officer of Crescent Investments, the Crescent Group conglomerate's non-petroleum division...
as Managing Director of Crescent Group, President of Crescent Petroleum and CEO of Crescent Investments.