By Mohammad Shoeb
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.
‘Another proof of Qatar’s development strategy’
Saad Sherida Al Kaabi, President & CEO of Qatar Petroleum, said: “QP’s objective for the competitive process was to choose a partner that has world class technical capabilities that enable it to continue the development and operation of Al Shaheen Field in partnership with QP, while at the same time ensuring the highest possible financial return to Qatar.”
He added: “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.”
He told reporters that the success of the competitive process is owed to the vision, guidance and strong support of the Emir H H Sheikh Tamim bin Hamad Al Thani.
Al Kaabi noted: “This process has, from day one, enjoyed the gracious guidance of His Highness to seek innovative ways to develop our country’s energy resources through successful international partnerships, to enhance the transfer of technology and knowledge, develop our young workforce in Qatar.”
He expressed his gratitude to Maersk Oil Qatar for their “significant efforts and valuable contribution in managing Al Shaheen field during the past quarter of a century and for the offer they have presented”. Al Kaabi said that both the parties have agreed to retain all the existing employees of Maersk Oil Qatar working on Al Shaheen project.
He also thanked all the major oil companies that participated in the competitive bidding process and encouraged them to participate in future opportunities in Qatar.
Patrick Pouyanne, Chairman and CEO of Total Group, who was also present at the press meeting, said: “It’s a historic day for Total… It’s a big responsibility to operate and maintain such a big and complex oil field like Al Shaheen. We will not only maintain the existing production capacity of about 300,000 barrels per day, but will also try our best to enhance it by introducing latest technology and efficiency at our disposal.”
The Peninsula
