Qatar Petroleum invites bid for its biggest oil and gas field

offshore Qatar-cclark395 flickrQatar Petroleum (QP) has invited international oil companies to compete for operating and developing Al-Shaheen oilfield from mid-2017, in a blow to the current operator of more than two decades Maersk Oil

According to industry sources, Maersk Oil had hoped to extend its production sharing agreement.

QP said that Maersk Oil, oil and gas unit of giant conglomerate AP Moller - Maersk, was invited to bid after their 25-year agreement expires in 2017. But the invitation to other companies signals that negotiations behind closed doors about renewing the current contract have not succeeded, Reuters reported.

Maersk Oil Chief Executive Jakob Thomasen said in a statement, “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. We look forward to this opportunity to continue our partnership with Qatar Petroleum, based on our long-term commitment and detailed technical knowledge.”

The oilfield, 80 km off Qatar’s coast, currently produces around 300,000 bpd. QP has not yet specified a deadline for submitting bids. Maersk Oil had earlier announced that it has a target of producing 400,000 boepd by 2020 from around 250,000 boed in 2014.

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