RAK Petroleum Public Company Limited, the oil and gas exploration and production company, today announced net earnings of US$15.34 million for the year ended 31 December 2010, compared to $8.03 million in 2009, delivering a second consecutive year of profitability.
“During 2010, the company again posted record production and operating results while continuing to sharpen its focus on growing a successful Middle East and North Africa oil and gas enterprise,” said Bijan Mossavar-Rahmani, chairman of the board of directors and chief executive officer of RAK Petroleum.
“The existing portfolio of exploration and production assets was high-graded, additional non-core financial holdings were divested and the Company’s cash holdings were further deployed towards strategic oil and gas investments.”
The Company increased its ownership stake in DNO International from 10 to 30 percent last year. DNO International is a publicly traded Norwegian oil and gas company with assets predominantly in the Middle East (Kurdistan Region of Iraq and Yemen).
On a stand alone basis, RAK Petroleum’s 2010 net earnings stood at 26.43 million on turnover of $108.9 million.
“I expect our strategic investment in DNO International will realise significant value for our shareholders moving forward,” said Mossavar-Rahmani, who joined DNO International’s board of directors in March.
Mossavar-Rahmani noted that the company produced a daily average of 9,250 barrels of oil and associated liquids and 31.2 million cubic feet of natural gas in 2010 from Block 8, Sultanate of Oman, and plans to tap the additional potential of its two operated offshore fields by drilling three new wells on the Bukha and West Bukha fields.
RAK Petroleum has a 50 percent interest in Block 8 with Korea’s LG International holding the balance.
Turning to other blocks in which RAK Petroleum has an operating interest, Mossavar-Rahmani said that the recently drilled exploration well in Oman Block 47 to a depth of 3,885 meters confirmed the presence of a reservoir bearing hydrocarbons with a vertical closure of about 200 meters. Additional tests are needed to evaluate the quality, size and commercial potential of this reservoir, he added.
Following additional sub-surface and facilities studies during 2010, RAK Petroleum plans to re-enter and deepen the S-5 well this summer as the next step in the redevelopment of the Saleh field, offshore the Emirate of Ras Al Khaimah.
