By Tom Arnold
Mubadala Development Company, the investment arm of the Abu Dhabi government, has signed a deal with US oil and gas firm Occidental Petroleum Corporation (Oxy) aiming to produce more than 100,000 barrels of oil per day through the development of an oil field in Bahrain, Oxy said on Sunday.
The development and production sharing agreement between Mubadala Oil & Gas, a business unit of Mubadala, and Oxy with the National Oil and Gas Authority of Bahrain (NOGA) involved the formation of a joint operating company to oversee the project.
Oil production from the field is expected to more than double to around 75,000 barrels per day within five years, reaching a peak level of more than 100,000 barrels per day after that, Oxy said in a release.
Gas production capacity is expected to surge to over 2.5 billion cubic feet per day from the current level of 1.7 billion cubic feet per day, under the field development plan, it said.
Development activities will commence immediately, Oxy said.
Mubadala’s net share of production is predicted to grow from approximately 18,500 barrels of oil equivalent per day (BOEPD) in 2010 to 37,000 BOEPD within five years. The company’s net reserve additions are estimated to be 300 million barrels of oil equivalent over the life of the project.
From approximately 28,000 BOEPD in 2010, Oxy’s net share of production is expected to swell to 56,000 BOEPD within five years. For Oxy, net reserve additions over the life of the project are estimated to be 450 million barrels of oil equivalent.
Oxy, the fourth largest US oil and gas company, based on equity market capitalisation, will hold a 48-percent interest in the DPSA, with Mubadala holding a 32 percent interest and a subsidiary of NOGA holding the remaining 20 percent.
Mubadala Oil & Gas pursues acquisition, exploration and development opportunities in the Middle East, North and West Africa, and Central and Southeast Asia.
Source: Arabianbusiness.com
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