Joint oil venture by QP and Total to see $3.5bn investments in next five years

Qatar Petroleum (QP) has joined hands with French company Total to jointly develop the Northern Gas Field at a cost of over $3.5bn.

The North Oil Company (NOC), a 70:30 joint venture between QP and Total, will spend the amount in the next five years in Qatar’s giant Al Shaheen oilfield, reported Gulf Times. It is understood that once fully functional, production will be limited to 300,000 barrels a day.

Qatar’s Prime Minister HE Sheikh Abdullah bin Nasser bin Khalifa Al Thani inaugurated the NOC in the presence of QP President Saad Sherida Al Kaabi and Total Chairman Patrick Pouyanne.

Al Shaheen is Qatar’s largest offshore oil field and one of the world’s biggest offshore oil fields. If you are confused by how much oil and gas Qatar has, then this post will give you a solid idea.

Recently, Qatar had announced an ambitious plan to increase LNG production by 30% to 100m tonnes a year.

It was announced that NOC, formed a year ago, will take charge of the Al Shaheen oil field from former operators Maersk Oil on July 14, according to Qatar Tribune. The NOC will have the rights to develop and operate Al Shaheen oil field for the next 25 years. It currently caters for 40% of Qatar’s total oil needs.

“There’ll be no disruption in output and deliveries of crude during the transition to Total as the field's operator,” said Pouyanne.

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 2018. The first phase will be followed by two others over the next five years to further develop the field.

“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 and hence, in contributing to Qatar’s economic development over the next 25 years,” said Al Kaabi.