RAK Petroleum, the oil and gas exploration and production company, recorded net earnings of Dh56.3 million ($15.3 million) for the year 2010, compared to Dh29.5 million in 2009.

“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 and chief executive 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 per cent last year. DNO is a publicly traded Norwegian oil and gas company with assets predominantly in the Middle East (Kurdistan Region of Iraq and Yemen).

Under new equity accounting rules for associated companies (shareholding in excess of 20 per cent) RAK Petroleum assumes a proportionate share of DNO International’s profit and loss in its own financial results as from 2010. On a stand alone basis, RAK Petroleum’s 2010 net earnings stood at Dh97.0 million on turnover of Dh399.3 million.

In announcing RAK Petroleum’s financial results, Mossavar-Rahmani also provided an operational review of the year and an update on field activities.

He 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 per cent 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 metres confirmed the presence of a reservoir bearing hydrocarbons with a vertical closure of about 200 metres. 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 Ras Al Khaimah.-TradeArabia News Service