Sharjah chooses ENI to drill in 3 onshore oil, gas blocks
SNOC KEEN TO CONDUCT LICENCE ROUNDS FOR ADDITIONAL AREAS, CEO SAYS
Sharjah yesterday awarded three onshore blocks to Italian oil major ENI, in a ceremony attended by His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah.
Also in attendance was ENI’s chief executive, Claudio Descalzi.
The pair signed an agreement awarding ENI three long-term concessions to explore and develop onshore oil and gasfields, in a 30-year partnership with the Sharjah National Oil Corporation (SNOC).
The 2018 Exploration Bid Round ceremony saw ENI awarded Areas A, B & C onshore Exploration Concession Agreements. “These agreements mark for ENI another major step towards an organic growth in the UAE,” said Descalzi. “Today’s awards are a further confirmation of our willingness to root our presence in the Middle East by creating long-term strategic partnerships.”
Concession Areas A and C cover 437 square kilometres and 1,184 square kilometres respectively.
ENI will act as operator with a 75 per cent participating interest, while SNOC will take a 25 per cent stake. Concession Area B covers an area of 264 square kilometres, with SNOC acting as operator and holding a 50 per cent participating interest, while ENI will hold the other 50 per cent.
There was “considerable interest” in the licensing round, according to a statement from the Sharjah Government Media Bureau.
These agreements are the result of the first International Competitive Exploration Licensing Round launched by the state-owned Sharjah National Oil Corporation (SNOC) in 2018 to explore and develop hydrocarbon resources through the establishment of new partnerships.
Shaikh Sultan and Descalzi also discussed a number of energy, oil and natural gas-related issues, as well as future projects aimed at ensuring the sustainability of energy.
“We are delighted to welcome ENI as our partner in Sharjah. ENI has an excellent track record in both exploration and development and brings both technical expertise and the ability to move ahead with activities at a fast pace,” said Hatem Al Mousa, CEO of SNOC. “I would like to thank all the companies who participated in the process. SNOC plans to conduct Licence Rounds for additional areas in the future,” he added.
ENI’s presence in the Middle East has grown significantly over the past year, with the company beginning its exploration activities in Oman, and the signing of major offshore concession agreements with Abu Dhabi National Oil Company (Adnoc).
In the Middle East, ENI is also present in Lebanon and Iraq.
Middle Eastern energy analyst Robin Mills commented on the announcement in a tweet, calling it a “good result for Sharjah to attract the most successful recent IOC [international oil company] explorer.”
ENI has an excellent track record in both exploration and development and brings both technical expertise and the ability to move ahead with activities at a fast pace.” Hatem Al Mousa | Chief Executive of SNOC