Polish oil and gas company PGNiG SA has signed an agreement with the emirate of Ras al Kaimah, UAE, to explore for and produce hydrocarbons in the Block 5.
Piotr Woźniak , President of the PGNiG Management Board said: “We are entering a region of fundamental importance for the global oil and gas market in what marks another step in the pursuit of the PGNiG Group’s strategy to strongly expand the international presence of its exploration and production segment.”
“I am sure that by joining forces with local partners we will not only benefit business wise, but will also gain an opportunity to share knowledge and experience,” he added.
PGNiG won a tender for the acquisition of rights to explore for, to appraise and to produce hydrocarbons in Ras Al Khaimah in December 2018. The onshore/offshore license area is 619 square kilometers in size.
The latest agreement allocates obligations and provides for a split of costs and profits under the license. Initially, the work will be carried out in three two-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 licence.
According to the latest OPEC statistics, the United Arab Emirates proven reserves amount to 98 billion barrels of oil and over 6 trillion cubic meters of natural gas. Crude oil production amounts to 3 million barrels a day and marketed production of natural gas to 54.1 billion cubic meters per annum.