Matco Oil of the US is believed to have signed revenue sharing contracts with Sharjah and Fujairah for as long as 39 years following the discovery of a new oilfield with potential reserves of 12.5 billion barrels, reported the Gulf News.
The field apparently straddles the Sharjah-Fujairah border.
The revenue-sharing equation with each emirate will likely involve different ratios, they said.
The ratios could not be independently verified, since neither Matco nor government officials were willing to comment, but highly placed sources indicated the Sharjah sector might hold greater potential.
The reported discovery would also place Fujairah on the map of oil producers for the first time, said the paper.
The company recently convened a two-day seminar for prospective regional investors willing to invest in the venture.
It is said to have earmarked $1.2 billion for the project, and around 50 per cent of this could be open for other investors. It is also said to be seeking investments from other Gulf countries, according to the paper – Albawaba.com
Drilling is expected to begin by the first week of December. The development is significant for Fujairah, where previously no oil had been found.
