Recently, Occidental Petroleum Corp. (OXY) entered into a partnership to develop oil and natural gas fields in Bahrain. Occidental along with partners Mubadala Development Company (Mubadala) and the National Oil and Gas Authority of Bahrain (NOGA) formed a new joint operating company, Tatweer Petroleum-Bahrain Field Development Company, which will serve as the operator for the Bahrain field.
The company will operate under the Development and Production Sharing Agreement signed in April 2009 by all three partners, approved by the parliament of Bahrain in May 2009 and ratified by His Majesty King Hamad bin Isa Al Kalifa. Tatweer Petroleum will begin start operations in the Bahrain field immediately. The operating team would include individuals from the Bahrain Petroleum Company (Bapco), Occidental and Mubadala employees and few local employees.
Oil and natural gas production from the Bahrain field is expected to peak at 100,000 barrels per day and 2.5 billion cubic feet per day, respectively. As per the production agreement, Occidental holds a 48% stake, Mubadala holds 32% and NOGA holds the remaining.
The partnership is a win-win for both companies. For Occidental, Tatweer Petroleum is a key element in its growth strategy in the Middle East. For Mubadala, such joint operations are progress on its ambition to include Enhanced Oil Recovery projects as one of the key pillars of its investment strategy in the region.
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