QP & Total to invest $3.5bn on Al Shaheen oil field
12 Jul 2017 - 1:32
By Mohammad Shoeb / The Peninsula
Qatar Petroleum (QP) and French energy giant Total yesterday announced to invest $3.5bn (about QR12.74bn) for the development of exploration of Al Shaheen oil field.
This was announced at a press conference held on the sidelines of the launching ceremony of the North Oil Company (NOC), which was established a year ago as a partnership between a wholly owned affiliate of QP (70 percent) and a wholly owned affiliate of Total (30 percent) to develop and operate Al Shaheen oil field.
The inauguration of NOC was held under the patronage, and in the attendance, of the Prime Minister and Interior Minister, H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani.
QP has announced that NOC has successfully completed all transition activities to take over the operation of the giant Al Shaheen oil field on July 14, 2017 – the day of the expiry of the exploration and production sharing agreement between QP and the Field’s former operator, Maersk Oil. Under the new contractual arrangements that were put in place in June 2016, NOC has been licensed the rights to the development and operation of Al Shaheen oil field for the next 25 years.
In a speech at the inauguration event, Saad bin Sherida Al Kaabi, the President & CEO of QP, welcomed the Prime Minister and the CEO of Total, and said: “First of all, I would like to extend my deep thanks to Maersk Oil, whose production sharing agreement with Qatar Petroleum will expire in two days. Maersk has worked in this field for 25 years and has exerted great efforts in its successful development. I wish them every success, and I would also like to invite them to join hands with Qatar Petroleum in new field development opportunities, whether inside or outside Qatar.”
Al Kaabi said: “We attach great value to our relationships with our international partners in the oil and gas industry, including Total, which has worked in Qatar for more than 80 years, sharing our core principles and values of commitment to contracts, transparency, and adherence to the highest security, safety and environmental standards in all our operations. We believe that such values are core to making Qatar one of the most attractive countries in the world for investment in the oil and gas sector.”
He stressed that QP remains committed to its obligations towards all its customers without exceptions.
Commenting on the occasion, Patrick Pouyanné, the Chairman & CEO of Total, added: “Joining Al Shaheen is a major milestone and accomplishment in the long history of the Group’s partnership with Qatar, where we have been active for more than 80 years. The transition activities were conducted successfully thanks to the strong commitment of all parties and the deployment of the best expertise by both Total and Qatar Petroleum.”
Since its creation, NOC has worked together with its shareholders and the former operator, Maersk Oil Qatar, to ensure a safe and efficient transition of the existing operations.
Al Shaheen oil field is located in Qatari waters 80 kilometers north of Ras Laffan with facilities consisting of 33 platforms and close to 400 wells. Currently producing about 300,000 barrels of oil per day, Al Shaheen is Qatar’s largest offshore oil field and one of the largest offshore oil fields in the world.