Eni has signed an exploration and production-sharing agreement with the emirate of Ras Al Khaimah, the Italian oil company’s latest expansion in the Middle East.
The agreement covers Block A offshore Ras Al Khaimah, one of the seven United Arab Emirates (UAE). It was signed between Eni and the emirate’s RAK Petroleum Authority, Eni said in a statement on April 18.
Block A is an area of 2,412 sq km. Eni will be the block’s operator, with a 90% participating interest, while RAK GAS will hold the remaining 10%.
Earlier this year, Eni pledged $3.3 billion to buy part of the world’s fourth-biggest refinery in the UAE, increasing its own refining capacity by more than a third.
In January the oil company of Sharjah, another emirate, awarded Eni concessions in three areas.
That same month Eni also signed an exploration and production agreement in neighboring Oman.
The block where the discovery was made is operated by Eni Vietnam B.V. and ESSAR E&P Ltd.
Preliminary estimates indicate between 7 Tcf and 9 Tcf of raw gas in place along with 400-500 MMbbl of associated condensates, the company said.
The companies are screening development options and intend to fast-track production.