Total to invest $2 bn in Qatar Al-Shaheen oilfield

Jun 28, 2016 12:00 AM

Total plans to invest more than $2 billion in developing the Al-Shaheen oilfield over five years, the company's chief executive said on Monday, after the French major won a 30 percent stake to operate Qatar's largest offshore oilfield.

"We have a plan to invest for five years 2017-2022, more than $2 billion in that field in order to integrate technology," Total's CEO Patrick Pouyanne said in a news conference in Doha.

Total will be in charge with operating the oilfield it starting July 14, 2017, and a new company named North Oil Company will be created to manage the joint venture, Saad al-Kaabi, CEO of state-owned Qatar Petroleum (QP) said.

State-owned Qatar Petroleum (QP) will keep the remaining 70 per cent in the new joint venture for the Al-Shaheen field, which is 80 km (50 miles) off Qatar's coast and currently produces around 300,000 barrels per day (bpd).

Six international oil firms including BP and Royal Dutch Shell Plc have bid to operate the oilfield.

The 25-year operations contract deal announcement on Monday is a blow to Denmark's A.P. Moller-Maersk, which has been operating the oilfield since 1992.

For years it was expected that Maersk Oil would renew its 25-year production agreement on Al-Shaheen field when its licence runs out in 2017. But the Gulf state surprised the company last year by putting out a tender for the field.

Maersk submitted a new bid for the field but Total has made the best offer.

 

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