RAK GAS

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The Ras al Khaimah Gas Commission was established in 1984 by Emiri Decree number 14/84 issued by the ruler of Ras al Khaimah and its dependencies. In 2007, the Commission was changed into an LLC company and named RAK Gas. RAK Gas head office is in the city of Ras al Khaimah, Emirate of Ras al Khaimah. The Chairman of the Board is His Highness Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council Ruler of Ras al Khaimah. RAK Gas is 100% owned by the Government of Ras al Khaimah, 99% direct ownership and 1% through the Government’s Investment and Development Office.[1]

Mission Statement

The mission of RAK Gas is to provide the Emirate of Ras al Khaimah with a consistent and secure supply of energy as well as generate growth and revenues for its government.

The Company’s core business is to source and market natural gas. Aadditionally, the Company has gas processing facilities and international portfolio of exploration and production assets.

RAK Gas processing facilities are at Khor-Khwair in Ras al Khaimah, where it treats raw gas and strips out the LPG and condensate streams. The LPG is marketed domestically.

RAK Gas’s Exploration and Production Portfolio includes interests in a number of exploration-stage blocks. It has interests in offshore blocks in Ras al Khaimah as well as having interests in a number of exploration blocks in Africa.[2]

Exploration

The mission of RAK Gas is to provide the Emirate of Ras Al Khaimah with a consistent and secure supply of energy as well as generate revenues for its government. RAK Gas is 100% owned by the Government of Ras al Khaimah, 99% direct ownership and 1% through the Government’s Investment and Development Office.

RAK Gas has accumulated an extensive experience associated with natural gas operations as well as the financial resources to properly evaluate and develop oil and gas blocks. Furthermore, it holds significant exploration acreage in Egypt, Malawi, Somaliland and Pemba-Zanzibar.

RAK Gas is committed to the highest health, safety and environmental standards in all aspects of its operations as well as dedicated to assisting the development of the indigenous technical capabilities within the territory it operates in, through the established relationships with firms capable of providing training and development.[3]


Our Operations

Gas Marketing

Gas marketing is the core activity of RAK Gas. Pursuant to Amiri Decree no. 14/84 (and subsequent amendments), RAK Gas is the sole supplier of natural gas in the Emirate of Ras al Khaimah. RAK Gas currently sources gas from the Bukha and West Bukha fields in Oman, the Umm al Quwain field in Umm al Quwain, the Dolphin project, and the Saleh field in Ras al Khaimah. The Saleh field is 100% owned and operated by RAK Gas, and is nearing the end of its economic life.[4]

Gas Processing

RAK Gas owns a processing plant at Khor Khwair, comprising two separate gas treatment trains, which treat the raw gas from the Bukha, West Bukha and Umm al Quwain fields. The RAK Gas processing plant was originally built in 1984 to process gas and liquids from the Saleh Field in RAK. In 1991, RAK Gas signed a long-term lease agreement for the RAK Gas processing plant with the license holders to the Bukha Field in Oman. Under the lease agreement, RAK Gas processes the gas from the Bukha Field, stripping liquids and LPG. Since the signature of this lease agreement, the process train at the RAK Gas processing plant has been referred to as the “Bukha Train”.[5]

In 2006, RAK Gas initiated an expansion of the processing plant to add a second train (the “Atlantis Train”) to process gas and liquids from the Umm al Quwain field. The Atlantis Train has been in operation since May 2008. More recently, RAK Gas has upgraded the Bukha Train to accept gas from the West Bukha field, and introduced crossover capabilities between the Bukha and Atlantis Trains.[6]

RAK Gas owns two condensate storage tanks, each of 250,000 barrels capacity, located next to the processing plant. The tanks are used to store condensate produced at the plant, before loading on to tankers through a single point mooring loading system. This system can accept tankers of up to 280,000 dwt in 30 meter water depth and has a throughput capacity of 10,000 barrels per hour. RAK Gas owns six 50-ton LPG storage tanks, apportioned equally between the Bukha Train and the Atlantis Trains, and a fleet of LPG trucks and trailers used to deliver LPG to customers in RAK and the other Emirates.[7]

License round 2018

Ras Al Khaimah Offshore and Onshore Acreage are currently unlicensed. Building on legacy work and studies, RAK Gas reviewed the offshore and onshore subsurface potential, using Play Based Exploration (PBE), to build a rejuvenated Exploration Portfolio. RAK Gas has committed to organise a License Round for its entire offshore and onshore concessions in 2018, to allow prospective companies bid for acreage.[8]


Block 1 Rak B Undeveloped Oil and Gas discovery. Cretaceous “Arabian Platform” leads related to extensional setting. Possible deeper potential (Jurassic).

Block 2 Saleh Field discovered in 1964. Gas Production from Cretaceous “Arabian Platform” (1984 to 2016). Cretaceous leads, related to extensional setting. Possible deeper potential (Jurassic).

Block 3 Cretaceous Arabian Platform leads, related to extensional setting. Possible deeper potential (Jurassic).

Block 4 Cretaceous Arabian Platform leads, related to extensional setting. Possible shallower potential related to Miocene Carbonates (Asmari Formation).

Block 5 Onshore “thrust front” large compressive structures extending in the offshore transition zone. Cretaceous “Arabian Platform” and Tertiary Potential.

Block 6 Onshore “thrust front” large compressive structures. extending in the offshore transition zone. Cretaceous “Arabian Platform, Jurassic and Permo-Triassic potential.

Block 7 Onshore potential related to compressive structures. Cretaceous “Arabian Platform, Jurassic and Permo-Triassic potential.

Signing of Production Sharing Agreement (PSA)

In October 2018, the Revolutionary Government of Zanzibar signed a Production Sharing Agreement (PSA) with RAK GAS to pave the way for oil and gas exploration activities in the Indian Ocean archipelago. The agreement witnessed by Zanzibar’s President Dr. Ali Mohammed Shein and Sheikh Said Bob Saqr Al-Qasimi, the ruler of Ras Al Khaima, covers the Pemba-Zanzibar block and involves exploration, development, production and ultimate sharing of benefits derived from resources found.[9]

Speaking after the agreement was sealed, President Shein described it as the first of its kind for Zanzibar’s oil and gas sector, adding that if all goes well, the sector will take Zanzibar an extra mile in terms of socio-economic development. “This exercise will be the beginning of Zanzibar’s resolve to undertake more oil and gas projects in the spirit of finding ways and means to strengthen its economy and that of its people,” the President said.[10]

He, however, called on Zanzibaris to be patient as the benefits of investment in oil and gas may take time to be realized. “The PSA signing doesn’t guarantee that we’ve got oil… it’s one of the key processes,” he explained, adding: “The government will ensure that the people remain well-informed on the exploration progress.”[11]

He noted that before the Zanzibar Oil and Gas (Upstream) Act 2016 was approved and assented, it was not possible for Zanzibar to start exploring its natural resources. “Some investors could not continue with exploration because there was no law governing the exploration of gas and oil,” he said.[12]

On his part, Sheikh Al-Qasimi said the PSA signing opens a new chapter in diplomatic relations between Zanzibar and the UAE.[13]


References

  1. "Company overview" “RakGas”, retrieved 8th August 2018.
  2. "Company overview" “RakGas”, retrieved 8th August 2018.
  3. "Exploration and Production" “RakGas”, retrieved 8th August 2018.
  4. "Our Operations" “RakGas”, retrieved 8th August 2018.
  5. "Our Operations" “RakGas”, retrieved 8th August 2018.
  6. "Our Operations" “RakGas”, retrieved 8th August 2018.
  7. "Our Operations" “RakGas”, retrieved 8th August 2018.
  8. "License round 2018" “RakGas”, retrieved 8th August 2018.
  9. "Zanzibar, UAE firm sign another key pact on oil, gas exploration" “IPPMedia”, retrieved 27th October 2018.
  10. "Zanzibar, UAE firm sign another key pact on oil, gas exploration" “IPPMedia”, retrieved 27th October 2018.
  11. "Zanzibar, UAE firm sign another key pact on oil, gas exploration" “IPPMedia”, retrieved 27th October 2018.
  12. "Zanzibar, UAE firm sign another key pact on oil, gas exploration" “IPPMedia”, retrieved 27th October 2018.
  13. "Zanzibar, UAE firm sign another key pact on oil, gas exploration" “IPPMedia”, retrieved 27th October 2018.