A new agreement has been signed for the development and operation of an offshore oil field shared between Qatar and Abu Dhabi.
Qatar Petroleum informed on Tuesday it has signed a concession agreement with the Abu Dhabi Supreme Petroleum Council (on behalf of the Government of Abu Dhabi), ADNOC, United Petroleum Development Co Ltd (Japan), and Bunduq Company Limited (operator) for the continued development and operation of the shared Al-Bunduq offshore oil field.
The signed agreement replaces the original concession agreement signed in March 1953 between the ruler of Abu Dhabi and D’Arcy Exploration Company Limited, which was amended several times since then. In March 1969, the State of Qatar and the Emirate of Abu Dhabi signed an agreement stipulating that the Al-Bunduq field is equally owned by both sides.
On this occasion, Saad Sherida Al-Kaabi, the President & CEO of Qatar petroleum, said: “We are delighted to sign this concession agreement, which will ensure the continued development and operation of the Al-Bunduq oil field for many years to come. I would like to take this opportunity to thank our Japanese partners for their outstanding performance during more than four decades of the field’s life, and for their safe and environmentally friendly operations. We are confident that Bunduq Company Limited will spare no effort to take advantage of the field’s full potential during the next period of its life for the benefit of all parties.”
The signing of the new agreement comes as the original concession agreement expired on March 8, 2018. It will govern the continued development and operation of the shared field.
Bunduq Company Limited, which operates and manages Al-Bunduq field, was established in 1970 and is fully owned by United Petroleum Development Co Ltd, a Japanese company owned by Japanese shareholders Cosmo (45%), JX Nippon (45%) and Mitsui (10%).
Al-Bunduq offshore oil field, shared between the State of Qatar and the Emirate of Abu Dhabi, was discovered in 1965 and started production in 1975. The field’s crude oil production is exported to Japan and other Asian markets.