QP Inaugurates North Oil Company Operations in Shaeen Oil Field

Doha, July 11 (QNA) - Qatar Petroleum (QP) Tuesday held a ceremony to inaugurate the operations of North Oil Company, the new developer and operator of Shaheen Oil Field in northern Qatar. QP announced that the North Oil Company has successfully completed all the transition activities to operate the Shaheen field as of July 14, the date of the expiry of the exploration and production sharing agreement signed between QP and the current operator, Maersk Denmark. Under the new contractual arrangements established by Qatar Petroleum in June 2016, the North Oil Company was granted the right to develop and operate the Shaheen Oil Field for 25 years. North Oil Company was founded a year ago to develop and operate the Shaheen oil field. The company is a joint venture between Qatar Petroleum (70 percent) and Total France company (30 percent). QP President and CEO Eng. Saad Sherida Al Kaabi said in remarks at the press conference held on the margin of the ceremony that the North Oil Company intends to invest, over the next five years, about USD 3.5 billion dollars in the field, which is the largest oil fields in the State of Qatar. Eng. Al Kaabi said that Qatar Petroleum attaches great value to its relationship with its international partners in the oil and gas sector, including Total, which has been working in Qatar for more than 80 years. The two sides share the basic principles of commitment to contracts, transparency and the highest standards of security, safety and environment in all operations, he added expressing belief that Qatar's commitment to these principles has made it one of the most attractive countries for investment in in the oil and gas sector. He added that the contract between QP and Total for the development and operation of Shaheen oil field is completely different from the contract with Maersk, explaining that the new contract was drafted in a way to ensure the highest returns for Qatar. Al Kaabi said QP is committed to fulfilling its obligations to all parties without exception, adding that the company has showed a unique ability to maintain its contracts and promote its commercial, contractual and ethical dealings no matter how circumstances change. He expressed pride in the international appreciation and admiration that QP received regarding its professional stance as it continues to function despite the unfair and illegal siege that was imposed on the State of Qatar and its people and residents. In this regard, Al Kaabi added that QP has worked since the first day of the unfair siege to collect its resources so as to ensure regular and uninterrupted work across its facilities, stressing that the company and its subsidiaries put plans in place assuming that the current situation continues for an unknown time. He extended thanks to the employees of the energy sector who, he said, work as one team with dedication for the business to carry on. Qatar is not planning to up its oil production currently as it is committed to the decisions of the Organization of the Petroleum Exporting Countries (OPEC) on reducing oil production in member states, Al Kaabi said, adding that the goal of pumping new investments is to maintain the production of Shaheen Oil Field. Asked about the possibility of cutting natural gas supply to the UAE in light of the continued siege, the QP president and CEO said Qatar is able to do that, especially as he chairs the executive committee that supervises the gas line, and has the right to cut the supply, but he added that Qatar observes ethics in its dealings. As for the reported obstacles in helium production, Al Kaabi said Qatar has no problems in helium production but what happened was a temporary suspension of land exporting after the siege decision but added that QP has overcome this hurdle by resuming exporting through sea lines, noting that, after the siege, the world has come to realize Qatar's significance in helium market as it produces a quarter of global needs. Al Kaabi stressed that QP aims for more successes on the ground whether in Qatar or abroad, predicting that it will be stronger than now in the next 10 years. For his part, Total Chairman and CEO Patrick Pouyanne said during the press conference that North Oil Company will work through its technical capacities to ensure maximum benefit from Shaheen Oil Field. He added that the plan to develop the field includes the digging of more than 100 wells over the next five years and the implementation of new technologies to maintain production while preserving the highest safety standards and lowering operation costs. Pouyanne noted that Total aims to carry out more investments in Qatar. Shaheen Oil Field is located offshore 80 kilometers north of Ras Laffan and includes 33 platforms and nearly 400 wells. It is Qatar's largest oil field and, at a daily production capacity of 300 barrels, is one of the biggest offshore oil fields in the world. (QNA)