PTT Exploration and Production Plc (PTTEP) continues to expand its investment in petroleum production in the United Arab Emirates (UAE) by acquiring a 25% stake in the Sharjah Onshore Area A from a subsidiary of Eni, an Italy-based integrated energy company.
"This Sharjah Onshore Area A is our fifth project in the UAE since the company's first entry into the country in 2019," said Montri Rawanchaikul, chief executive of PTTEP.
A farm-in agreement to acquire a 25% stake in the Sharjah Onshore Area A, an exploration block of the Sharjah Emirate, was recently made between PTTEP Mena, a subsidiary of PTTEP, and Eni Sharjah BV.
The process is expected to be completed within this year after fulfilling conditions in the agreement and obtaining government approval.
Following the investment of PTTEP, participating interest in Sharjah Onshore Area A will comprise operator Eni Sharjah BV at 50%, Sharjah National Oil Corporation (SNOC) 25% and PTTEP Mena 25%.
"The investment reflects our strategic emphasis on natural gas resources and the growing partnership with Eni through which our strengths are combined to unlock new reserves," said Mr Montri.
Situated in the Sharjah Emirate, north of the UAE, Sharjah Onshore Area A spans across an area of 437 square kilometres.
Eni was awarded this exploration block from SNOC in early 2019.
PTTEP invests in four other projects in the UAE.
They are the Abu Dhabi Offshore 1, 2 and 3 as well as the Sharjah Onshore Area C.
All areas are in the exploration phase and in partnership with Eni.
PTTEP and Eni announced a successful discovery of significant gas resources in the Abu Dhabi Offshore 2 in August this year.
They discovered gas at the first exploration well named XF-002.
Gas reservoirs were tested and found to have excellent flow rates. Fast-track development options are currently under evaluation.
PTTEP will push forward gas production development plans, believing experience in the gas business, along with technology, will help the UAE increase its gas reserves.
