Polish Producer Wins UAE Upstream Block
Polish Oil and Gas Company, PGNiG, is to explore for oil and gas in the United Arab Emirates (UAE), it said December 6, after winning a tender for rights in the Emirate of Ras Al Khaimah.
CEO Piotr Wozniak said that "the experience PGNiG has had so far in exploring oil and gas abroad is very good and it brings significant benefits to the company. UAE is another country where we will develop our business. It is a very promising market". According to Opec statistics for the UAE, proven reserves amount to 98bn barrels of oil and over 6 trillion m³ natural gas.
Initially, the operations will be carried out in three, two-year exploratory periods, with an option of extending by a two-year appraisal period, followed by a 30-year production period. After each of the exploration periods, there is the possibility of resigning from the licence.
PGNiG will work under the terms of a production-sharing agreement with the Ras Al Khaimah Petroleum Authority and perform exploration work, but did not specify the well commitments in its statement.