His Excellency Sheikh Sultan bin Ahmed Al Qasimi, President of SNOC told the media, “The commencement of the first gas production from Mahani, less than a year after discovery, is a tremendous achievement for Sharjah, meeting our commitment to contribute to the efforts of making reliable gas supplies widely available for the local energy needs of Sharjah and the UAE.”

Both SNOC and Eni hold a 50 percent stake each in the Mahani gas field, according to the agreement signed in 2019 following the successful First Sharjah Licence Round. The two companies are also partners in the onshore Concession Areas A and C, where exploration is actively in progress, with Eni being the Operator.

The UAE is expecting oil demand to bounce back in 2021, however, it won’t be immediate. According to Energy Minister Suhail Al Mazrouei, rollout of coronavirus vaccines and improvement in ties between the US and China are likely to improve demand for oil.

Brent oil prices to pick up to $47 per barrel in 2021, significantly lower than 2019 levels, according to the Institute of International Finance (IIF). The institute said that higher global oil inventory levels and surplus crude oil production capacity in key oil producers will limit significant upward pressure on oil prices next year.

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The discovery is anticipated to uplift Sharjah’s industrial and commercial sectors. This in turn will attract global investors across sectors to the emirate. 

The gas field was discovered by state-owned and Sharjah National Oil Corporation (SNOC) and Italy’s oil fIrm Eni. The discovery was made during the first year of their partnership. The new gas field is called Mahani.  Under the terms of a concession agreement signed last year, SNOC and Eni will hold 50 percent stake in the discovery. 

The Mahani-1 exploration well was drilled to a measured depth of 14,597 feet, a local media report said. It is the first exploration well drilled by SNOC after a new 3D seismic survey acquisition in the emirate.

Sheikh Sultan bin Ahmed Al Qasimi, President of SNOC, told the media that, “The launch of the International Competitive Exploration Licensing Round by the Sharjah National Oil Corporation (SNOC) on behalf of the Sharjah Petroleum Council in 2018 has enabled new and valuable strategic partnerships. This discovery is a promising development for SNOC and meets our commitment to make reliable gas supplies available throughout the United Arab Emirates.

According to Sheikh Sultan bin Ahmed Al Qasimi, Sharjah will make significant enhancements to the nation’s energy resources to meet residential, industrial and utility demands. 

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