The FINANCIAL — The Naftohaz Ukrainy national oil and gas company on March 29 started to drill its first prospecting gas well Hamad-1 on the territory of the emirate of Al Fujairah in the United Arab Emirates.
Ukrainian News learned this from a statement by Naftohaz Ukrainy, the wording of which was made available to the agency.
The Ukrainian national oil and gas company has started to drill the gas well in the frames of a production sharing agreement among the government of the emirate of Al Fujairah, Naftohaz Ukrainy, and Naftogaz Middle East L.L.C.
According to the statement, the designed depth of the gas well is 5.5 kilometers.
"As a result of the drilling it is expected to receive inflow of natural gas and gas condensate," the statement reads.
On January 26, 2005, the government of the emirate of Al Fujairah, Naftohaz Ukrainy, and Naftogaz Middle East L.L.C. signed a contract envisaging works on prospecting of deposits of hydrocarbons on the territory of the emirate of Al Fujairah and their development and exploitation of deposits in the event of finding hydrocarbons.
According to the contract, the works on prospecting and production of energy carriers will be performed on four blocks, including two blocks on land and two blocks on the sea shelf of the Gulf of Oman.
On May 6, 2005, an agreement was signed on implementation of an investment project on distribution of profit between the Naftohaz Ukrainy national oil and gas company and the Trade and Industry Chamber of Al Jazeera and Naftogaz Middle East L.L.C.
The term of the agreement is 29 years, including four years of prospecting.
The projected production of natural gas is 47 billion cubic meters and 14.9 million tons of gas condensate.
As Ukrainian News earlier reported, the Naftohaz Ukrainy national oil and gas company on February 18 started production of oil from an extension well on the territory of Alam El Shawish block in the Western Desert of Egypt.