Sharjah National Oil Corp. (SNOC) is seeking international partners for exploration and development of three onshore areas covering much of the emirate.
One of the areas, 437-sq-km Area A, contains Sajaa, Moveyeid, and Kahaif natural gas and condensate fields, found by the former Amoco Corp. and operated now by SNOC. The fields are excluded from the concession, but an undeveloped deeper-pool discovery below Sajaa is included.
For Area A and 1,184-sq-km Area C adjacent to the east, SNOC offers 75% interests and operatorships. Partners will carry SNOC through exploration and appraisal, recovering costs during development. There are no bonuses on these areas.
Bids will be based on drilling commitments.
SNOC will operate 264-sq-km Area B, where it plans to drill its first well, and retain a 50% interest with no carry. Bids will be based on a bonus and agreement to fund 50% of SNOC’s first well. Partners will pay their own ways through exploration, appraisal, and development.
The license round uses a new fiscal regime based on a concession agreement with a “flexible gross split” in which the government’s share of revenue is variable.
“The resulting threshold for any discovery is low, and even small discoveries would be commercial,” according to documents from Envoi Ltd., London, which is assisting SNOC.
Bids are due by Nov. 18, 2018.
