Thailand’s PTT Exploration & Production (BKK:PTTEP) further expands its investment in the United Arab Emirates (UAE) by acquiring 25% participating interest in the Sharjah Onshore Area A from Italy’s Eni (MIL:ENI).
The investment marks state-backed PTTEP’s fifth project in the UAE as the company continues to strengthen presence and growth in the Middle East, it said Wednesday.
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 Agreement to acquire 25% stake of the Sharjah Onshore Area A, an exploration block of the Sharjah Emirate from Eni Sharjah B.V., a subsidiary of Italy-based integrated Energy Company Eni. The process is expected to be completed within 2022 after fulfilling conditions in the agreement and obtaining government approvals.
“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,” said PTTEP’s CEO.
Situated in the Sharjah Emirate, north of the UAE, Sharjah Onshore Area A spans over an area of approximately 437 square kilometers. Eni has been awarded this exploration block from Sharjah National Oil Corporation (SNOC) in early 2019. Upon the completion of the acquisition, participating interest of Sharjah Onshore Area A will comprise Eni Sharjah B.V. (Operator) 50%, SNOC 25% and PTTEP MENA 25%.
Apart from the Sharjah Onshore Area A, PTTEP invests in four other projects in the UAE namely the Abu Dhabi Offshore 1, the Abu Dhabi Offshore 2, and the Abu Dhabi Offshore 3, and the Sharjah Onshore Area C. All are in the exploration phase and in partnership with Eni. PTTEP and Eni recently announced a successful discovery of significant gas resources in the Abu Dhabi Offshore 2 in August this year.
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