• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 5 hours Shale profitability
  • 5 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 8 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 12 hours A little something for all you Offshore swabbies
  • 15 hours New designs will reduce transport fuels consumption
  • 32 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 26 mins Europe: The Cracks Are Beginning To Show
  • 12 hours Let's shut down dissent like The Conversation in Australia
  • 6 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 20 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 16 hours Democrats and Gun Views
  • 3 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 14 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
Shale Stocks Surge On Major Jump In Oil Prices

Shale Stocks Surge On Major Jump In Oil Prices

US shale drillers saw their…

The Hottest Tech Stocks For 2020

The Hottest Tech Stocks For 2020

The tech bubble is far…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Danish Maersk Could Lose Qatar’s Biggest Oil Field

Al Shaheen Qatar offshore rig

The Qataris are putting their Shaheen oilfield up for tender, leaving Denmark’s AP Moller-Maersk—the operator of the field since 1992—out in the cold and prompting the company to finally concede that it may lose this concession.

Al Shaheen is Qatar’s largest oil field, with an estimated daily output of 300,000 barrels a day, accounting for some 40 percent of the country’s total daily oil production, but the production contract with Qatar expires next year.

Last year, Qatar launched a tender for the oilfield, which was an unexpected move for Maersk; but only now is the Danish company conceding that it risks losing the tender process, and losing the field.

Related: Why Oil Prices Will Likely Drop Below $40 Soon

At the time, Qatar Petroleum president and CEO Saad Sherida Al-Kaabi explained the move as the country’s desire to seek out the best technological solutions for the field’s development combined with the best financial return to the state. It was a thinly veiled snub.

The bottom line, according to the Qataris, is apparently that they want to increase daily output in this field to 500,000 bpd, and Maersk may not be able to do this.

Officially, Maersk CEO Nils Smedegaard Andersen has conceded the agreement may not be renewed next year.

Related: A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie

"On Qatar, yes, we are in a tender process. That means, that there is a risk that we will lose Qatar but we don't feel that that should induce us to go out and do something dramatic on the M&A activity to replace volumes," Andersen told investors.

He also added Qatar may announce the result of the tender in the second half of this year.

Analysts pointed out Qatar Petroleum’s announcement to invite international companies to compete against Maersk in a tender mirrored the Danish’s inability to negotiate an extension of the contract behind closed doors.

Exxon Mobil and Royal Dutch Shell are said to have joined the completion, along French Total SA.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play