An oil and gas exploration agreement was signed on Sunday by the Sharjah Government and Crescent International Petroleum.
The agreement gives the company the right to prospect in a 1,250 sqkm area south and southeast of the Al Sajaa field.
The contract was signed by His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, and Crescent’s Chairman and CEO, Hamid Jafar.
The 25-year agreement stipulates the Sharjah-based oil and gas exploration and production company will conduct seismic surveys and dig two exploratory wells in order to determine the area’s potential.
In the event that extraction of oil and gas proves economical, Crescent will develop the area. The company, which produces oil and gas from the offshore Mubarak field, is expected to start the exploration work during the third quarter of this year after completing detailed studies.
Other petroleum companies carried out seismic surveys and geological and geophysical studies in the area in the 1960s and 1970s but the development process was not completed.
Crescent is currently jointly developing two large fields in northern Iraq with Dana Gas. It has explored and developed fields in Egypt, Yemen, Tunisia, Pakistan, Canada, Argentina and the former Yugoslavia.
Crescent is currently co-developing with Dana Gas two big gas fields in northern Iraq.
Follow Emirates 24|7 on Google News.