Qatar Petroleum has invited bids for the Al Shaheen oilfield.

Qatar invites bids for Al Shaheen field

DOHA, May 7, 2015 – State-owned Qatar Petroleum has issued invitations for bids on the Al Shaheen offshore oilfield, indicating that negotiations with operator Maersk Oil have failed to secure an agreement on an extension for its production-sharing contract, which expires in 2017.

The company said on Wednesday it had invited “a group of leading international oil and gas companies” to submit bids for the operation and development of the field following the existing contract’s expiration.

The Al Shaheen field is located 80 kilometres off the Qatari coast. Production at the field averages about 300,000 barrels of oil per day.

Maersk Oil was among the companies invited to bid, but the move is nonetheless a blow to the Danish company’s hopes of securing an extension through negotiations with Qatar Petroleum. Its 25-year contract for the field began in 1992.

“We have known that we would be challenged on terms and conditions in connection with the 2017 extension and have been awaiting more information on how Qatar Petroleum wished to go about such a process,” Maersk Oil CEO Jakob Thomasen said in a statement.

“We look forward to this opportunity to continue our partnership with Qatar Petroleum, based on our long term commitment and detailed technical knowledge.”

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