Energy News: Total pledge to maintain Al Khalij assets with QPI

Energy major Total, which operates the Al Khalij offshore field, will work closely with Qatar Petroleum in ensuring the integrity of assets, overall safety, and use of right technology that fights against the decline of the plateau.

“We want to produce from the field as long as possible. We want to maintain the plateau,” said Total E&P Qatar managing director Stephane Michel in an interview with Gulf Times here.

Last year, Qatar had signed a new agreement with Total to further develop the Al Khalij offshore field under a heads of agreement (HoA) signed between the two parties for another 25 years.

Under the new HoA, QP and Total will have a 60: 40 operating interest in the field following the expiry of the exploration and production sharing agreement (EPSA). Total will continue to operate the field.

Located about 130km east of the Qatari coast, Al Khalij field was discovered by Total in 1991 and commenced production in 1997 pursuant to an exploration and production sharing agreement (EPSA), which was signed in 1989 and due for expiry in early 2014.

 “We have been present in Qatar for more than 75 years. QP and Total have been trusted partners for a long time.

“We are delighted we could renew our Al Khalij field licence for another 25 years. We are committed to maximising oil recovery and training and developing Qataris in our operations in this country,” Michel said.

The HoA is further evidence of Total’s commitment to Qatar. This commitment took a new dimension when the company was one of the first participants in the multi-billion dollar gas projects in Ras Laffan.

Total subsequently participated in other large developments in Qatar’s refining and petrochemicals sectors as well.

Currently, Total has a 20% interest in the upstream part of Qatargas 1, a 10% interest in the Qatargas 1 liquefaction plant joint venture, a 24.5% stake in the Dolphin Energy project and a 16.7% stake in Qatargas 2 (Train 5 JV).

Total also has a 20% stake in Qapco and Qatofin (48.6% direct and indirect) petrochemical plants.

In addition to investments in Qatar’s energy sector, sustainable development is a core commitment of Total in Qatar.

On Dolphin Energy, Michel said “ a new compression facility at Ras Laffan that will start up in early 2015 will enhance the capacity to 3.2bn standard cubic feet (sbcf) a day by 2015.

The way this 1bcf extra capacity will be used will depend on Qatar and the UAE but at least the enhanced capacity will be available.”

Total has a 24.5% stake in the unique regional project in which it partners Mubadala Development Company and Occidental Petroleum.

It supports long-term projects in the country to promote education, research, environmental protection and local economic development.

Total backs Qatar’s drive to become a centre of excellence for research through its integrated research centre, which opened in 2009 at the Qatar Science and Technology Park (QSTP).

Total has also shown its commitment to the country’s educational sector through its partnership with Qatar Foundation, and notably HEC Executive MBA as well as Qatar University, the energy major said.

QPI participation in
Congolese  oil project
to add value: Michel

Qatar’s participation in the Moho North project in Congo will add value to Congolese petroleum industry, said Total E&P Qatar managing director Stephane Michel.

“Qatar is a big investor and Africa needs investments. This partnership we have with Qatar Petroleum International in Congo makes a lot of sense,” Michel told Gulf Times.

Africa, he said, is a continent of “opportunities”.

“Total has a strong presence in Africa and we have big investments there. QPI’s investments in the upstream side of the Congolese oil project will support Total E&P Congo in its development programme,” Michel said.

Recently, Qatar Petroleum International and Total signed a framework agreement whereby QPI will participate in Total E&P Congo through its subscription to a 15% share capital increase of this company.

The participation reinforces Qatar’s commitment to invest in Africa and illustrates Congo’s willingness to welcome Qatar as a new partner.

Furthermore, thanks to its subscription to the capital of Total E&P Congo, QPI will contribute to the company’s significant investment programme in Congo, specifically the Moho North project.

In March, 2010 Total and QPI had signed a MoU for strategic co-operation in Africa. It will further build-on the well-established partnership with QPI and will strengthen Total’s commitment to proceed with the development of the Congolese Petroleum Industry.

“This is one of the major deals signed by QPI this year. It will certainly open a new era of co-operation between Congo and Qatar and we are happy to be a part of the Moho North project,” Michel said.

Reported by: Caye Global News, Gulf Times


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