Cairo- Enhancing economic ties, Qatar Petroleum and France’s oil giant, Total, signed an agreement to create a new company that will develop and operate one of the world’s largest oil fields located in the Arab Gulf , Al-Shaheen offshore oil field.
A Development and Fiscal Agreement (DFA) was also signed between QP and the two parties to the joint venture, in which QP licensed the rights for the development and operation of the field, and for the production, sale and export of crude oil from Al Shaheen oil field for 25 years.
The signed agreements included a Joint Venture Agreement (JVA) to establish a new Qatari company to be known as “North Oil Company” that will develop and operate Al Shaheen oilfield.
The new company will be 70 percent owned by QP and 30 percent by Total. As part of the joint venture, the state-owned oil and gas corporation licensed the rights for the production, sale and export of the Al-Shaheen offshore oil field’s crude for 25 years starting July 2017.
Al Shaheen oilfield is among the world’s largest. It has been producing oil for 22 years, yet holds the potential to produce a few-fold of the oil it has produced so far. It currently produces around 40 percent of Qatar’s crude oil, at around 300,000 barrels per day.
As part of yesterday’s announcement, QP said that among all the bidders, Total presented the best offer to meet QP’s requirements.
QP’s President and CEO Saad Sherida al-Kaabi thanked Maersk Oil for their “significant efforts and valuable contribution in managing Al-Shaheen field… and for the offer they have presented,” but that ultimately the bidding process was aimed at choosing a partner with “world class technical capabilities” that could ensure “the highest possible financial return to the state of Qatar.”
“The strong and serious technical and financial offers we have received during an industry downturn is a true testament to Qatar’s attractiveness reflected by its natural resources, safe investment climate, and for being such a great place to live in. This is another proof of Qatar’s ability to ensure the future successes of its development strategy, including that of its strategic natural resources,” CEO Kaabi added.