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    Eni Signs UAE Upstream Block Agreement

Summary

This is new territory for the Italian company.

by: William Powell

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Natural Gas and LNG Latest & Breaking News, Middle East, Corporate, Exploration & Production, News By Country

Eni Signs UAE Upstream Block Agreement

Italian producer Eni has signed an exploration and production-sharing agreement covering Block A offshore Ras Al Khaimah, in the United Arab Emirates (UAE), it said April 18. It also signed the relevant joint operating agreement with RAK Petroleum Authority.

Block A covers 2,412 km² offshore Ras Al Khaimah, with water depths ranging from 10 to 90 metres. Eni will act as operator with a 90% participating interest and RAK Gas a partner with a 10% stake. Its statement did not say whether oil or gas was the objective.

The entry into the Emirate of Ras Al Khaimah represents a further step in Eni’s positioning in the Middle East and the establishment of the company in the UAE where Eni already operates in Abu Dhabi and Sharjah. Eni is also present in Oman, Lebanon, Iraq and Bahrain.

According to Opec statistics, the UAE’s proven reserves amount to 98bn barrels of oil and over 6 trillion m³ of gas. Crude oil production amounts to 3mn b/day and marketed production of natural gas to 54.1bn m³/yr.

Polish state-run producer PGNiG announced it had agreed upstream terms for a smaller block in RAK earlier this year.