The agreement is for a 25-year term beginning July 14, 2017, when the current 25-year production-sharing agreement with operator Maersk Oil AS expires. The concession will be operated by a new company held 70% by QP and 30% by Total.
Located in Qatari waters 80 km north of Ras Laffan, Al-Shaheen began production in 1994 and currently flows 300,000 b/d of oil. The existing development consists of 30 platforms and 300 wells, and production from the field represents about half of Qatar’s oil output. QP and Maersk Oil produced the 1 billionth bbl from the field in 2010 (OGJ Online, July 20, 2010).
QP in July 2015 invited several international oil companies to participate in a competitive tender process for future development of Al-Shaheen. Maersk Oil earlier this year submitted its bid in the tender, but the firm says a minority stake in the new joint venture under the terms offered by QP would have created a marginal impact on Maersk Group’s earnings in the years ahead.
Total has been present in Qatar since 1936, and currently holds 20% interest in the upstream portion of Qatargas I, 10% in the Qatargas 1 liquefaction plant JV, 24.5% in Dolphin Energy Ltd., and 16.7% in the Qatargas II Train 5 JV. Total’s Qatari production averaged 134,000 boe/d in 2015.
Total also is a partner in the Laffan Refinery with 10% interest and in the Qapco 20% and Qatofin 48.6% petrochemical plants. Outside the country, the firm’s strategic partnership with Qatar extends to Africa, where QP International holds 15% stake in Total E&P Congo (OGJ Online, May 22, 2013).