Dahan Petroleum will conduct an exploration programme on outlying areas of Ras Al Khaimahs Saleh offshore concession after the firm reached an agreement with DNO International and RAK Gas
The amended concession agreement has granted Dahan exploration rights in exchange for covering the participation costs of DNO and RAK Gas in the exploration programme.
"We are pleased that Dahan will conduct an exploration programme designed to give us a fresh look at the area surrounding the Saleh field," said DNO Ras Al Khaimah general manager David Thorpe.
Dahan has 12 months to conduct a technical review of the existing data and to acquire 3D seismic data, after which it can drill at its own expense an exploratory well in the acreage surrounding, but not including, the Saleh field, DNO said in a statement.
The agreement will see DNO maintain a 16 per cent interest in an exploratory well. Dahan will control the exploration activities until a commercial discovery is made, following which DNO International has the option to continue its 16 per cent carried interest, or participate at 40 per cent on a paying basis.
"If a discovery is made, we intend for it to be tied back to our existing platform and pipeline facilities, enhancing the commerciality of the planned Saleh redevelopment project," said Thorpe.
The Saleh field ownership will remain unchanged with Norway's DNO holding 70 per cent and RAK Gas holding the remaining 30 per cent.
