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Wed 14 Nov 2012 06:37 PM

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Qatar, Total ink new deal on offshore oil field

French firm and Qatar Petroleum sign 25-year agreement for the Al Khalij field

Qatar, Total ink new deal on offshore oil field

Qatar said on Wednesday that it has signed another 25-year agreement with France's Total to oversee a major offshore oil field.

Dr Mohammed bin Saleh Al Sada, Qatar's Minister of Energy and Industry and chairman and managing director of Qatar Petroleum, and Yves-Louis Darricarrère, Total’s president, Upstream, signed the deal for the Al Khalij field.

Located about 130km east off the Qatari coast, Al Khalij field was discovered by Total in 1991 and commenced production in 1997.

An Exploration and Production Sharing Agreement (EPSA), which was signed in 1989, is due to expire in early 2014.

Under the new deal, QP and Total will have a 60/40 operating interest in the field following the expiry of the EPSA, and Total will continue to operate the field, Total said in a statement.

Al-Sada said: "We have been working with our long time partner, Total, on Al Khalij field since its discovery. It has been a mutually beneficial and fruitful partnership.

"We are pleased to sign this new agreement to further develop the field  as part of His Highness, Sheikh Hamad Bin Khalifa Al Thani’s vision to continue to prudently develop our natural resources and to increase Qatar’s hydrocarbon reserves.”

Total said the new agreement was further evidence of its commitment to Qatar.

The company was one of the first participants in the multi-billion dollar gas projects in Ras Laffan. Total subsequently participated in other large developments in Qatar’s refining and petrochemicals sectors as well.

Darricarrère added: “This new agreement exemplifies the long-standing partnerships forged with the State of Qatar, as it reflects Total’s commitment to work hand in hand with QP.

"I am delighted to see Total continuing to be recognized, not only for operational excellence in the energy sector, but also as an active member of Qatar’s community and society at large.”

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