The tiny Arabian Gulf state of Sharjah announced an oil-strike on October 9 in a well ten miles (16 Kms) off the island of Abu Musa, which it shares with Iran.
AVs Sharjah (4 shots)
AVs New oil rig (4 shots)
Initials BB/1246 DF/PN/BB/1251
Script is copyright Reuters Limited. All rights reserved
Background: The tiny Arabian Gulf state of Sharjah announced an oil-strike on October 9 in a well ten miles (16 Kms) off the island of Abu Musa, which it shares with Iran.
The ruler of Sharjah, Sheikh Sultan bin Mohamed El-Qassemi, said in a radio broadcast that the Mubarak Number One well was producing between 13,000 and 20,000 barrels of crude oil a day. He said drilling by an American company was continuing.
The oil-strike is the first made so far in Sharjah, which has been the 'poor relative' among its fellow members of the Union of Arab Emirates.
Under an agreement reached last November, the revenue from any oil found within 12 miles (19 Kms) of Abu Musa must be shared equally between Sharjah and Iran. The agreement resolved a dispute between the two countries over the ownership of Abu Musa, which Iran had threatened to occupy by force.
SYNOPSIS: Sharjah, on the Arabian gulf, has long been one of the poorest members of the Union of Arab emirates. It has not shared in the oil wealth of its neighbour states.
But last weak, oil was discovered in an off-shore well ten miles from the island of Abu Musa. Sharjah's ruler, Sheikh Sultan bin Mohamed El-Qassemi, said the well was producing up to twenty thousand barrels of crude oil a day. He said drilling by an American company would continue. If the oil-strike is commercially viable, Sharjah will have to share the proceeds equally with Iran under an agreement last November which resolved a dispute over ownership of Abu Musa island.