PTTEP is looking to further expand investment in the Sharjah Emirate of the United Arab Emirates (UAE) by acquiring 25% participating interest in the Concession Area C onshore the Emirate of Sharjah, from Eni Sharjah B.V. The investment aligns with PTTEP's strategic focus on petroleum prolific area in the Middle East.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), revealed that the company's subsidiary, PTTEP MENA Limited, has signed a Farm-in/Farm-out Agreement to acquire 25% stake in the Concession Area C from Eni Sharjah B.V., a subsidiary of Italy-based Energy Company Eni.
Area C is situated in the central part of Sharjah Emirate, covering an area approximately 1,184 square kilometers. Eni has been awarded this exploration block in early 2019. The block has high gas & condensate potential with the possibility of integrating with surrounding fields which previously made successful discovery of large gas & condensate resources and are equipped with infrastructure and facilities as well as market demands for petroleum output.
"This investment marks another important milestone for PTTEP in expanding our presence into another area of UAE, the Sharjah Emirate. It is made possible through our growing partnership with Eni and aligns with our strategy to pursue investment opportunities in high petroleum potential areas in the Middle East, especially of gas resources. We believe that the capabilities, expertise and technology brought by this partnership to the Concession Area C will lead to successful discovery," said Mr. Montri.
The acquisition will be completed after fulfilling all conditions in the agreement and obtaining all necessary government approvals, with an expected completion date within 2021.
Upon the completion of the acquisition, Eni Sharjah B.V. (Operator) will hold 50% participating interest while SNOC will hold 25% and PTTEP MENA 25% accordingly.
According to the exploration plan, 3D Seismic survey is being conducted on the block during late 2021 - 2022 to assess its hydrocarbon potential.
At present, PTTEP invests in three projects in UAE in partnership with Eni: the Abu Dhabi Offshore 1 Project, the Abu Dhabi Offshore 2 Project, and the Abu Dhabi Offshore 3 Project which are all in the exploration phase.