(MENAFN) Crescent Petroleum said that it has signed a farm-out agreement with Rosneft Oil Company, Russia?s leading oil company, for the Sharjah Onshore Concession, Gulf News reported.
The farm-out agreement follows the ground-breaking Strategic Cooperation Agreement between Rosneft and Crescent Petroleum which was signed on 19th May 2010 to jointly develop material oil and gas opportunities in the Middle East and North Africa region.
Under the terms of the accord, both companies will work together to develop the Sharjah Onshore Concession which comprises a large area of 1,243 square kilometers in Sharjah, and which neighbors the prolific Sajaa gas field in production since 1982, and also borders each of the remaining six Emirates of the UAE as well as the Sultanate of Oman.
Rosneft receives a 49 percent of the participating interest in the concession, with Crescent Petroleum holding the remaining 51 percent. The current agreed investment plan of approximately 60 million will go principally towards initial exploration activities including the drilling of two wells to an approximate depth of 14,800 feet.