Located in the emirate of Sharjah, Sharjah Onshore Area A is an exploration block that spans over an area of nearly 437km2
Eni to divest 25% stake in Sharjah Onshore Area A to PTTEP. (Credit: Anita starzycka from Pixabay)
PTT Exploration and Production Company (PTTEP) has signed a farm-in deal with Eni Sharjah, a subsidiary of Eni, to acquire a 25% participating stake in the Sharjah Onshore Area A in the UAE.
The agreement has been executed through the Thailand-based company’s subsidiary, PTTEP MENA.
Located in the emirate of Sharjah, north of the UAE, Sharjah Onshore Area A is an exploration block that spans over an area of about 437km2.
The investment marks the fifth project for PTTEP in the UAE.
The other four projects that PTTEP invested in the country are the Abu Dhabi Offshore 1, the Abu Dhabi Offshore 2, the Abu Dhabi Offshore 3, and the Sharjah Onshore Area C projects.
PTTEP CEO Montri Rawanchaikul said: “PTTEP continues to expand our investment in our strategic focus area in the Middle East, with this Sharjah Onshore Area A being the fifth project in UAE since the company’s first entry into UAE in 2019.
“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.”
Upon the completion of the transaction, Eni Sharjah will hold an operating stake of 50% in Sharjah Onshore Area A. Sharjah National Oil Corporation (SNOC) and PTTEP MENA will have stakes of 25% each in the exploration block.
The acquisition, which is subject to customary closing conditions and government approvals, is expected to be completed by the end of this year.
In August 2022, Eni and PTTEP made a second gas discovery in Abu Dhabi Offshore Block 2, offshore UAE through the drilling of the exploration well XF-002.