OREANDA-NEWS. June 10, 2010. In Sharjah (United Arab Emirates) a ceremony took place to mark the commencement of work on a prospective area development project to be jointly implemented by Rosneft and Crescent Petroleum Company International Limited (UAE), reported the press-centre of Rosneft.

In the Sharjah Chamber of Commerce & Industry, where the official announcement about Rosneft’s rights to a participating interest in the Crescent on-shore Concession becoming effective was made, were present: Igor Sechin - Deputy Prime-Minister of the Russian Federation, Chairman of Rosneft’s Board of Directors, Sheikh Sultan Bin Mohammed Al-Qassimi - Ruler of Sharjah, the Member of the Supreme Council of UAE, Sergey Shmatko and Mohammed bin Dha'en Al Hamili - Ministers of Energy of Russia and UAE, Sergey Bogdanchikov - President of Rosneft, Hamid D. Jafar - Chairman of Crescent Petroleum Company as well as Omar Ghobash - U.A.E. Ambassador to the Russian Federation.

Rosneft owns 49% of the participating interest in the Crescent Petroleum’s project, with Crescent Petroleum holding the remaining 51%. The preliminary investment of approximately USD 60 million will go principally towards drilling the first two wells to an approximate depth of 2,500 meters. Rosneft’s entry into the project follows the ground-breaking Strategic Cooperation Agreement with Crescent Petroleum which was signed on May 19, 2010 to jointly develop oil and gas opportunities in the Middle East and North Africa.

From the Chamber of Commerce & Industry the participants in the celebrations traveled to the production site, where the ceremony to mark the commencement of the exploration drilling works took place. If the drilling operations within the area with potential for gas or gas condensate field discovery produce sufficient evidence for calling a commercial discovery the Parties will establish a joint operating company in order to pursue the field’s development.

Using the gas transmission and processing infrastructure already in place in Sharjah, natural gas produced from the Concession can be processed and transported to end consumers onto the rapidly growing gas markets of Sharjah and the Northern Emirates, as well as exported. Rosneft and Crescent intend to draw from the skills and resources of service companies based in the region for the benefit of both parties. The project’s work program includes a budget for local infrastructure development, including the construction of roads and water wells for the local populace whilst preserving the region’s ecosystem.

Rosneft President Sergey Bogdanchikov remarked that “This is the beginning of the Strategic Co-operation Agreement between our two companies. This marks a major milestone for us, and we look forward to working on other opportunities together with Crescent Petroleum in the Middle East and North Africa.”

Badr Jafar, Executive Director of Crescent Petroleum, in his turn said “We are pleased to be joined by Russia’s leading oil company in this project. This partnership reflects the close relationship that has been established, and the positive synergies between the companies – combining Rosneft’s strengths with Crescent Petroleum’s regional experience. This is hopefully the first of many joint projects together across the region, and we would also like to thank the governments of the UAE and Russia for their support for our initiative.”

About the project
The prospective area where Crescent Petroleum holds a concession covers some 1,243 sq. km. The western part of this desert type area is occupied by the Oman Mountains. The area possesses a highly developed infrastructure, with a gas line running through it. Gas treatment facilities are available at a distance of 14-15 km.

Crescent Petroleum is the longest established private exploration and production company in the Middle East and the largest shareholder in Dana Gas, the Middle East's first and largest regional private-sector natural gas company. The Company has over 40 years of experience as an international operator in numerous countries including Egypt, Pakistan, Yemen, Canada, Tunisia, Argentina, Iraq and the United Arab Emirates. The Company is headquartered in Sharjah.