France’s Total said Tuesday that it has signed an agreement with Qatar Petroleum for a stake in the giant Al-Shaheen oil field.
The agreement grants Total a 30 percent interest in the concession covering the offshore Al-Shaheen oil field for a period of 25 years.
The agreement is effective as of July 14, 2017.
The Al-Shaheen field produces 300,000 barrels of oil per day.
The concession will be operated by a new operating company held by state-owned Qatar Petroleum, with a 70 percent stake, and Total, with a 30 percent stake.
“Total is honored to have been awarded a 30% interest in the Al-Shaheen concession. This is an important recognition of Total’s technical and commercial competence, and the Group will deploy its best technical expertise and experienced teams to this field,” Total chairman and CEO Patrick Pouyanné said.
The field is located in offshore Qatar about 50 miles north of Ras Laffan and began production in 1994.
Al-Shaheen’s existing development consists of 30 platforms and 300 wells.
Production from the field accounts for about half of Qatar’s oil production.
“This agreement is in line with Total’s strategy to reinforce its presence in the Middle East, in particular by accessing giant fields and by complementing its portfolio with low-technical cost oil assets,” Pouyanné added.