Collaboration between state-owned Qatar Petroleum and Total a French energy tycoon is in place to develop Al Shaheen oil field. This would be a 25 year joint venture between the two companies.
The launch of North Oil Company would take place on Tuesday. In the company 30% stake is from Total while 70% stake is from QP.
The location of this site would be 80km off the coast of Qatar on the north east side. The largest oil field would lie over the North Field. The contract of this oil field was announced in the previous year and now the launch is announced as Qatar faces its worst crisis.
As Saudi Arab along with other Gulf countries has closed ties with Qatar, the country has lost its strong political, diplomatic and economic power. The charges placed on the country related to Islamic extremism are denied by Qatar. In the phase of isolation, this oil field launch has been announced by the country. Also Qatar Petroleum announced that it would raise the production of its natural gas by 30% till 2024.
Sheikh Abdullah Bin Saoud al-Thani, Central bank Governor spoke to the US media and informed them that Qatar has $340 billion in reserves to fight the current crisis.
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This contract is also significant as it has come at a time where Saudi Arab and UAE were building pressure on companies to either do business with Qatar or them.