Poland Signs UAE Upstream Deal

Polish state-run producer PGNiG , the Ras Al Khaimah Petroleum Authority and the Arab emirate's national company RAK Gas have signed a production-sharing agreement for a 619-km² block, they said January 16.

PGNiG CEO Piotr Wozniak said the deal was another step in the 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."

PGNiG won a tender for acquisition of rights to explore for, to appraise and to produce hydrocarbons in Ras Al Khaimah in December 2018. The agreement allocates obligations and provides for a split of costs and profits under the licence. 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.

RAK Gas CEO Nishant Dighe said the company "looked forward to a successful and mutually beneficial partnership that we are confident will unlock the hydrocarbon potential in Ras Al Khaimah.”

According to Opec statistics, the United Arab Emirates 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.