Total, Qatar form joint venture for offshore oil

DOHA, Qatar, June 28 (UPI) -- French energy company Total said Tuesday it would send its best talent to Qatar to help advance production at an offshore oil field through a new joint venture.

Total signed an agreement with Qatar Petroleum to take on a 30 percent stake in a concession covering the offshore al-Shaheen field. Qatar Petroleum maintains operatorship and a 70 percent stake in a field producing about 300,000 barrels of oil per day.

"This is an important recognition of Total's technical and commercial competence, and the Group will deploy its best technical expertise and experienced teams to this field," Total Chairman and CEO Patrick Pouyanne said in a statement.

The state-owned Qatari company last year extended invitations to leading international oil and gas companies to help develop its al-Shaheen oil field. Through the agreement, Qatar Petroleum sets up a company, North Oil Co., with Total to operate the field.

The collaboration comes as energy companies start to look for joint opportunities for field development as lower crude oil prices diminish the prospects of a go-it-alone strategy. State-owned entities like Qatar Petroleum may be feeling the impacts as well. In May, Moody's Investors Service said the drop in crude oil prices, off more than 50 percent since the middle of 2014, has undermined the economy and finances for members of the Gulf Cooperation Council: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.

Qatar Petroleum CEO Saad Sherida al-Kaabi said teaming up with Total meant his company was able to move ahead with al-Shaheen development in a way that ensures the best possible return for the country.

"The strong and serious technical and financial offers we have received during an industry downturn is a true testament to Qatar's attractiveness reflected by its natural resources, safe investment climate, and for being such a great place to live in," he said in a statement.

In production for more than two decades, al-Shaheen accounts for about 40 percent of Qatari oil production.