RAK Petroleum agrees farm-out deal with Repsol

16/08/2010 - Ras Al Khaimah Property News
RAK Petroleum agrees farm-out deal with Repsol

Posted by Bob Brunskill

Ras Al Khaimah-based oil and gas company RAK Petroleum has agreed to farm-out a 50 per cent interest in Block 47 onshore the Sultanate of Oman to Repsol Exploration.

Under the deal, the partnership plans to drill the Zad prospect at the block, with the well expected to spud in October 2010.

The well is estimated to take three months to drill and is targeting the Amin sandstone reservoir, similar to the Kauther field discovered by Petroleum Development of Oman to the south-east of the block.

RAK Petroleum will retain operatorship of Block 47 according to the terms of the arrangement.

"Repsol is a partner of choice for RAK Petroleum, bringing a wealth of experience and expertise to this project," noted Bijan Mossavar-Rahmani, chairman and chief executive officer of RAK Petroleum. 

"While the Zad prospect is purely an exploration play, it is conveniently located close to both gas and oil pipelines and presents a favourable development opportunity if a discovery is made," he added.

RAK Petroleum is registered in the Free Trade Zone of Ras Al Khaimah and is operator of seven blocks in the Sultanate of Oman and in the UAE.