Offshore staff
OSLO, Norway –DNO International has signed an amended agreement to the offshore Saleh concession with the government of the Emirate of Ras Al Khaimah, RAK Gas, and Dahan Petroleum.
This gives Dahan exploration rights to outlying areas of the concession in exchange for coveringDNO’s and RAK Gas’ costs for an exploration program.
Dahan has 12 months to perform a review of existing technical data and to acquire 3D seismic. Thereafter, it may elect to drill, at its sole risk and expense, an exploratory well in the acreage surrounding, but not including, Saleh field.
Under the amended agreement, DNO would have a 16% carried interest in this well. Dahan has the option to drill further exploration wells in the designated areas, with DNO either persevering with its 16% carried interest on each well, or lifting its participation to 40% on a paying basis.
Dahan is a subsidiary of Lime Petroleum, which also has interests in the Sultanate of Oman, the Emirate of Sharjah and on the Norwegian continental shelf. Dahan will operate the outlying exploration activities until a commercial discovery is made, at which time DNO will take over as operator for the joint venture. Otherwise, participating interests and other fiscal and operating terms of the Saleh field concession area remain unchanged, with DNO retaining 70% and RAK Gas the remaining 30%.
David Thorpe, general manager of DNO Ras Al Khaimah said: “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.”
Saleh came onstream in 1984, but following water encroachment and pressure decline in the Mishrif-Mauddud reservoir, the field has produced only intermittently since 1996.
The deeper-lying Thamama reservoir, from which DNO produces oil and gas in the nearby West Bukha field off Oman, remains largely untapped at Saleh. The company is finalizing plans to drill into the Saleh Thamama reservoir once a rig becomes available.
4/25/2012
