PGNiG Prepares to Drill its First Well in the United Arab Emirates

May 15, 2021 | Oil & Gas | Energy Facts Staff Writer | 4min

PGNiG starts the second stage of exploration works in Ras Al Khaimah Emirate. The company is at the stage of making design and location arrangements for the first exploration well, which will provide an answer to the question about the production potential of the licence where PGNiG operates.

The project assumes drilling an exploration well to a maximum depth of about 3,500 metres. Its location will be determined on the basis of the results of the analysis of the three-dimensional seismic image. PGNiG is beginning preparations for tenders, which will select contractors for drilling and other services. The drilling is planned to commence in Q3 2022.

“The seismic surveys confirmed the probability of the presence of hydrocarbon deposits in the area of our licence. Detailed interpretation of the data will allow us to select a location which will give the best chance for a positive outcome of the drilling works,” said Paweł Majewski, President of the Management Board of PGNiG SA. “I am glad that thanks to our close cooperation with RAK GAS LLC, which is our licence partner, and the Ras Al Khaimah Petroleum Authority (RAKPA), which is the petroleum administration of the Emirate of Ras Al Khaimah, we can prepare a drilling plan and commence the second stage of exploration works on our licence,” added President Majewski.

Preparatory works connected with the organization of tenders were one of the topics discussed at the meeting of representatives of PGNiG and RAK GAS LLC held in Warsaw.

“We are very pleased to have had PGNiG exploring for oil and gas in Ras Al Khaimah for over 2 years and very much value the strong relationship we have built with PGNiG over this time. Having successfully acquired high quality 3D seismic, the oil and gas potential is now very clear, and we are delighted that PGNiG will be following up with a plan to drill an exploration well,” said Nishant Dighe, Chief Executive of RAKPA and CEO of RAK GAS LLC, after the meeting with PGNiG representatives.

PGNiG’s concession in Ras Al Khaimah has an area of 619 square kilometers and its scope includes exploration, appraisal and production of hydrocarbons. Work is being carried out over three 2-year exploration periods, with the possibility of an extension to the final exploration period if appraisal is still ongoing. This is followed by a 30-year production period. After each exploration period, the licence interest may be relinquished.

The ongoing work is based on an Exploration and Production Sharing Agreement (EPSA), which PGNiG signed with RAKPA and RAK GAS LLC in January 2019. A PGNiG Branch was established in the Emirate and was granted an operating license in April 2019.

The first phase of the exploration work consisted of a 3D seismic survey. Geofizyka Toruń, a PGNiG Group company, was responsible for its implementation.