Satyendra Pathak
Doha
The Prime Minister and Minister of Interior HE Sheikh Abdullah bin Nasser bin Khalifa al Thani inaugurated the North Oil Company (NOC) in Doha on Tuesday.
NOC, the new operator and developer of the offshore Al-Shaheen oil field, will take over the operation of the giant Al Shaheen oil field on July 14 from the field's former operator Maersk Oil.
Made up of a 70 percent stake from Qatar Petroleum (QP) and a 30 percent stake from French energy company Total, NOC was established a year ago to develop and operate Al-Shaheen oil field.
Under the new contractual arrangements, NOC has the rights to develop and operate Al-Shaheen oil field for the next 25 years.
Addressing a press conference on the sidelines of the inaugural ceremony,
Total Chairman & CEO Patrick Pouyanne said that an investment of $3.5 billion would be made in the first five years to maintain the current output level at 300,000 barrels a day.
"There will be no disruption in output and deliveries of crude during the transition to Total as the field's operator," he said.
The first phase of the Al Shaheen development plan, consisting of the drilling of 56 new wells, will start this summer with the mobilisation of the first two rigs. The third rig will be added at the beginning of the next year. The first phase will be followed by two others over the next five years to further develop the field.
Earlier speaking at the inaugural ceremony, Qatar Petroleum President & CEO Saad bin Sherida al Kaabi said,"First of all, I would like to extend my deep thanks to Maersk Oil, whose production sharing agreement with Qatar Petroleum will expire in two days. Maersk has worked in this field for 25 years and has exerted great efforts in its successful development. I would like to invite them to join hands with Qatar Petroleum in new field development opportunities, whether inside or outside Qatar."
Welcoming North Oil Company to Qatar's oil and gas family, he said,"NOC marks an important milestone in Qatar's oil and gas industry and will play an important role in maintaining the longest possible plateau of sustainable production levels."
He said,"We attach great value to our relationships with our international partners in the oil and gas industry, including Total, which has worked in Qatar for more than 80 years. They share our core principles and values of commitment to contracts, transparency, and adherence to the highest security, safety and environmental standards in all our operations. We believe that such values are core to making Qatar one of the most attractive countries in the world for investment in the oil and gas sector."
Stressing that QP remains committed to its obligations towards all its customers without exceptions, he said,"We have demonstrated a unique ability to respect our contracts in the best ethical business practice regardless of the prevailing circumstances. We are proud of the international recognition and admiration which QP has received for its professional conduct during the unjust siege that has been imposed on Qatar and its people and residents."
"We have mobilised all resources, from the very first day of this aggressive act, to ensure continued safe and reliable energy supplies to all customers in more than 130 countries across the globe. We have also affirmed business as usual throughout all our operations, and across all QP facilities. I would like to re-affirm that QP and all its companies have placed adequate plans to function under the assumption that the status quo could continue indefinitely."
Speaking on the occasion, Total Chairman & CEO Patrick Pouyanne said,"Joining Al Shaheen is a major milestone and accomplishment in the long history of the Total's partnership with Qatar. NOC will leverage its technical capabilities to optimise the exploitation of Al Shaheen complex oil field."
"Our solid development plan for Al Shaheen includes the drilling of more than 100 wells over the next 5 years and the implementation of new technologies in order to maintain production while preserving the highest safety standards and reducing operating costs."
NOC is set to become a world leading offshore operator by developing one of the largest and most complex oil fields in the world and by applying cutting-edge, innovative and world- class technologies.
Al Shaheen oil field is located in Qatari waters 80 kilometers north of Ras Laffan with facilities consisting of 33 platforms and close to 400 wells. Currently producing about 300,000 barrels of oil per day, Al Shaheen is Qatar's largest offshore oil field and one of the largest offshore oil fields in the world.