SHARJAH, 8 July 2008--The Government of the Emirate of Sharjah and BP Sharjah Limited have concluded a farm-out agreement for 20 years with RAK Petroleum Public Company Limited to create a new, 34 sq km, East Sajaa Concession. RAK Petroleum will drill for gas in the concession area, with any discoveries to be processed through the existing Sajaa Plant operated by BP Sharjah Limited.
RAK Petroleum holds a 55% stake and operatorship in the new concession, with the Government of Sharjah and BP Sharjah Limited holding 27% and 18% respectively.
BP Sharjah Limited will continue to operate the main Sajaa Gas Concession, in which the Government of Sharjah holds 60% stake, and BP Sharjah Limited holds 40% stake, and which includes the Sajaa, Moveyied and Kahaif fields.
H.H. Sheikh Ahmed Bin Sultan Al-Qasimi, Deputy Ruler of Sharjah and Chairman of Sharjah Petroleum Council, stated that:
“The Government of Sharjah spares no efforts to encourage global and local oil companies participating in the exploration and production of oil and gas in the Emirate of Sharjah. The Government will lend all necessary efforts to help the oil and gas companies in achieving their goals with mutual benefits.”
Mr. Abdul-Aziz Al Ghurair, Chairman of the Board of RAK Petroleum added: “We are pleased to be signing the acreage in Sharjah which gives us access to a very interesting low risk gas / condensate prospect. Rak Petroleum will continue to add to our exploration portfolio with the aim to becoming a larger player in the rapidly expanding regional gas markets.”