Licencing Update: Sharjah, UAE

In 2018, Sharjah's first onshore licencing round opened, offering companies 30-year contracts in an area with a production history demonstrating a 90% recovery factor.
This article appeared in Vol. 15, No. 4 - 2018


Onshore Licencing Round in Sharjah, UAE

Map showing location of the Sharjah Licence Round Concessions. Sharjah’s first onshore licensing round opened in late June, offering companies 30-year contracts with a 10-year extension. 

These cover three concession areas (A, B and C) located in the producing Thrust Zone play trend, including an un-appraised deeper gas discovery below the Sajaa gas-condensate field (Area A). 

The Emirate’s national oil company, SNOC, is currently preparing to drill a well in Area B as operator and is also offering participation in this project. 

Area A comprises 437 km2, Area B, 264 km2 and Area C 1,184 km2.

Proven Recovery and New Seismic Data

Over 5 Tcfg has been proven in existing fields, where production history demonstrates a recovery factor of 90% from naturally fractured carbonates in the Cretaceous Thamama Formation. There is evidence of hydrocarbons in lower horizons and also in shallower Tertiary reservoirs. 

Newly acquired extensive 3D seismic (shot in 2016 and fully processed in 2017 and early 2018), significantly improved the imaging of the fold thrust belt and early indications are emerging of potentially large, undrilled leads and prospects and untested plays. Interpretation of the seismic is ongoing and volumetric assessments will be made available in the data room, along with well and related data.

Existing Infrastructure

Nearby SNOC field infrastructure, gas-condensate processing and export facilities mean that suitable field discoveries can be tied into the existing plants, with SNOC offering to purchase the hydrocarbons. New fiscal terms based on a ‘flexible gross split’ ensure even modest resources can be commercialized and also generate good returns on larger accumulations.

Closing Bids

Bidding closes on November 18 and contracts will be effective from January 2019.


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