Posted by Bob Brunskill
RAK Petroleum has secured a 100 percent stake in and operatorship of the offshore Saleh gas field.
The deal with the Ras Al Khaimah Gas Commission (Rakgas) will see the company up its stake in the currently non-producing gas and condensate field from 40 per cent.
"This exchange agreement with Rakgas and the government of Ras Al Khaimah provides us with an expanded presence in an area where we have considerable experience and heritage, while refocusing RAK Petroleum's balance sheet on our core business," said Bijan Mossavar-Rahmani, chief executive officer of RAK Petroleum.
In addition, the company pointed to its own recent studies of the Saleh field that have encouraged it to "revisit the opportunities for rejuvenation" at the site.
RAK Petroleum expects to begin redevelopment of the Saleh field in the first half of 2011.
An existing 18in, 45km pipeline links the Saleh field to the Rakgas gas and liquids processing facilities onshore Ras Al Khaimah.