PGNiG SA will explore for and produce hydrocarbons in Ras Al Khaimah—the northernmost member of the United Arab Emirates—under a production-sharing agreement signed by PGNiG, the Ras Al Khaimah Petroleum Authority, and Rak Gas LLC.
PGNiG won a tender for acquisition of rights to explore for, to appraise, and to produce hydrocarbons in Ras Al Khaimah in December 2018 (OGJ Online, May 24, 2018). License Block 5, which covers 619 sq km, is comprised of onshore “thrust front” compressive structures extending in the offshore transition zone with Cretaceous “Arabian Platform” and Tertiary potential, according to the RAK Petroleum Authority web site.
The agreement allocates obligations and provides for a split of costs and profits under the license. Initially, the work will be carried out in three 2-year exploration stages, to be followed by a 30-year production phase. After each exploration stage, the company may choose to relinquish its interest in the license.
Execution of activities under the license will be the responsibility of a newly established branch of PGNiG in the emirate of Ras Al Khaimah.
Latest statistics from the Organization of Petroleum Exporting Countries put UAE proved reserves at 98 billion bbl of oil and more than 6 trillion cu m of natural gas. Crude oil production amounts to 3 million b/d and marketed production of natural gas to 54.1 billion cu m/year.
