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Tuesday, January 28, 2020

Gulf News - Sharjah announces new gas discovery

by Century Financial in Century in News

Gulf  News - Sharjah announces new gas discovery

The Sharjah National Oil Corporation (SNOC) and its Italian partner ENI, on Monday announced a successful new discovery of natural gas and condensate onshore at the Mahani field in Sharjah.

The discovery of at Mahani-1 exploration well with flow rates of up to 50 million standard cubic feet per day comes within the first year of the partnership and represents the first onshore discovery of gas in the emirate since the early 1980’s.

Mahani-1 well was drilled at a total depth of 14,597 feet, which resulted in the discovery of gas with the associated capacitors in the formation of the Thumama. The size of the discovery will be estimated in time in light of expectations for further evaluation and development.

The Mahani-1 exploration well, located in the Area B Concession, is the first exploration well drilled by SNOC following the acquisition of a new 3D seismic survey covering the territory, the national energy company said in a statement. SNOC, which is the operator of Area B, and ENI both hold a 50% stake in the discovery as part of a concession agreement that was signed in early 2019.

Historic find

Shaikh Ahmad Bin Sultan Al Qasimi, Deputy Ruler of Sharjah and chairman of Sharjah Oil Council, said the discovery of natural gas was historic and would contribute to the emirate’s resources and energy reserves as well as positively contributing to the economy.

Shaikh Ahmad added that the Mahani discovery fulfills the emirate’s commitment to make reliable and sustained gas supplies available throughout the UAE.

Shaikh Sultan Bin Ahmed Al Qasimi, president SNOC, commenting on the new discovery, said it would reflect positively on the economic sector in Sharjah and the goals of sustainable development and energy security.

He pointed out that the new gas field constitutes an important addition to support the emirate’s economy, which is classified as strong and stable, and would enhance its economic competitiveness.

Economic Boost

Vijay Valecha, Chief Investment Officer at Century Financial, said the new gas discovery would have an economic boost for both Sharjah and the UAE as a whole.

"Sharjah has been the emirate with probably the least amount of energy resource discoveries so this is definitely a big boost for them, and will go a long way to helping out their economy."

“One discovery as well doesn’t just lead to one industry, there are several industries involved here including the explorations, drillers, refiners and then the exporters. So the emirate stands a lot to gain from this,” he added.

More discoveries

“This finding could also encourage more explorations with the potential for even more discoveries,” he said.

Vijay Valecha, said the new discovery could also help with the UAE’s stated goal of positioning itself as a self-sufficient gas exporter.

“This definitely helps with that mission, anytime you’re able to find more natural energy resources is a good thing for the country in terms of commodity exports, and from what has been reported so far this is a fairly large discovery.

“The UAE is obviously looking at economic diversification, but, the oil and gas industry remains one of its most important, especially for continued economic growth and stability, and so the more discoveries of these commodities the better it will be for the country as an energy provider,” he added.

Source - Gulf News 

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