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Mon 13 Apr 2009 07:00 AM

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RAK Petroleum ups stake in Omani oil blocks

UAE company acquires extra stakes as it looks to drill well, invest up to $20m this year.

UAE-based RAK Petroleum PLC has acquired the stakes held by UK-based Indago Petroleum in two Omani oil blocks, RAK Petroleum said in a statement on Monday.

RAK already held 50 percent stakes in the blocks but took the rest from Indago as it wanted to drill a well in one of the blocks this year, General Manager Alain Duport told Reuters in a telephone interview.

"Indago wanted to keep the cash instead of drilling on these blocks," Duport said. "It is our intention to go ahead."

RAK will spend around $15-20 million on a well this year and the same again on another next year, he added.

Indago paid RAK $3.5 million to be released from all obligations on the blocks, RAK said in the statement.

RAK Petroleum is based in the northern emirate of Ras al-Khaimah in the UAE. It paid $28 million for Eagle Energy's 10 percent stake in Oman's Block 8 last week, taking RAK's stake in the field to 50 percent.

Block 8 contains the West Bukha oil and gas field. That field began pumping 30 million cubic feet per day of gas and 10,000 barrels per day of oil to Ras al-Khaimah in February. Gas supply from West Bukha should rise to 40-45 million cfd next year, Duport said.

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