Ras Al-Khaimah grants 25-yr oil concession

EXPLORATION RIGHTS: Ras Al-Khaimah's Crown Prince and Deputy Ruler, Sheikh Saud (l) signed on behalf of the emirate. (photo supplied)

The government of the UAE emirate of Ras Al-Khaimah has granted a 25-year petroleum concession to RAK Petroleum Al-Khaleej Limited, a wholly owned subsidiary of RAK Petroleum, the company said on Wednesday.

"We are pleased that a company that bears the name Ras Al Khaimah will have the opportunity to explore for and hopefully develop the hydrocarbon resources of our Emirate," said Sheikh Saud bin Saqr Al-Qasimi, Ras Al-Khaimah's crown prince and deputy ruler.

The new concession covers an area of 850 square km on the onshore RAK coastal plain and near shore transition zone. RAK Petroleum plans to commence a fast track seismic campaign in 2009, the company said in a statement.

"We believe that Ras Al-Khaimah is both under-explored and prospective. This concession is a natural addition to our portfolio of regional assets," said Bijan Mossavar-Rahmani, RAK Petroleum'S managing director.

The company has interests in four blocks in the UAE and five in the Sultanate of Oman, all of which it operates.

RAK Petroleum is an unlisted public company incorporated in the Ras Al-Khaimah Free Zone, and was established in late 2005, funded by an initial capital of approximately 3 billion dirhams ($817 million) raised by private placement. RAK Petroleum has a further unissued authorised capital allocation of 2  billion dirhams to be utilised in future fundraisings.

The overwhelming majority of RAK Petroleum's issued share capital is held in the UAE and Saudi Arabia.

The RAK Petroleum board of directors is chaired by Abdul Aziz Al-Ghurair who is also chief executive of Mashreqbank and was recently elected Speaker of the UAE's Federal National Council.

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