Maersk, Qatar in talks to extend Al-Shaheen deal
Doha, September 21, 2012
Denmark's Maersk Oil is in talks with Qatar Petroleum to extend a production sharing contract for the offshore Al-Shaheen oilfield by another 13 years to 2030, industry sources said on Friday.
Crude production at the field could rise to 400,000 barrels per day (bpd) in 2017 from the current 300,000 bpd, one source said, with new equipment such as a floating storage and offloading unit (FSO) possibly being installed if the contract is extended.
"We believe there is potential for additional development of the field, and we are evaluating this potential together with our partner Qatar Petroleum," Maersk Oil spokesman Paul Taylor said in an email, though he declined to comment further on the talks.
The field, which produces a heavy sour grade popular with Asian refiners, has been capable of producing 525,000 bpd since Maersk Oil completed an expansion project in 2010, but its output has been capped at 300,000 bpd to extend its life and meet OPEC quotas, the sources said. A higher output could help meet strong demand growth in Asia as more refineries are built.
Maersk Oil, a unit of A.P. Moller-Maersk, entered into an Exploration and Production Sharing Agreement (EPSA) with Qatar Petroleum for Block 5 including the Al Shaheen discovery off the shore of Qatar in 1992. The companies have extracted around 1.2 billion barrels of oil from the field since then. - Reuters
More Energy, Oil & Gas Stories
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd