Total’s Al Shaheen stake winning another proof of Qatar’s development strategy
DOHA: Total, the French energy giant, has won the bid for the future development and operation of Qatar’s Al Shaheen oilfield for 25 years, starting from July 14, 2017.
This was announced yesterday at a press conference by Qatar Petroleum (QP), the state-owned public corporation, in the presence and under the patronage of the Prime Minister and Interior Minister, H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani.
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.
The announcement was marked by the signing of an agreement between QP and Total for the further development and operation of the oil field.
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. Under the agreement both companies are expected to invest about $2bn over the next five years starting in from July 2017.
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.