By Simon Webb
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.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.