The government of Dubai and Dubai Petroleum Company (DPC) announced a joint agreement that will change the operating arrangements for Dubai offshore oilfields. Effective April 2007, DPC will end its role as operator, marking the end of Dubai's first offshore oil concession and the beginning of a new phase in which the Emirate of Dubai will directly control its offshore oil resources.
DPC is wholly owned by ConocoPhillips [NYSE:COP] and part of the DPC/Dubai Marine Areas Limited ("DUMA") consortium involving interests from Total (France), Repsol YPF (Spain), RWE Dea AG, a subsidiary of RWE AG (Germany) and Wintershall AG, a subsidiary of BASF (Germany).
"Our relationship with the DPC/DUMA consortium was established in 1961," said Abdulla Abdul Karim, Dubai government representative. "This relationship has served Dubai well over the years and we are grateful to ConocoPhillips, Total, Repsol YPF, RWE Dea and Wintershall for the role they have played in building the new Dubai. Forty years later, it is clear that production will now far outlast the period of the concession agreement, and all parties agree that it is appropriate to initiate a transition of operatorship to the government at this time and to begin a new era."
"DPC would like to thank the government of Dubai for the unique opportunity we have had to be involved in the growth and success that Dubai has experienced over the last 40 years," said Bill Arnold, president, Dubai Petroleum Co. "DPC will do its part to successfully facilitate the handover of the operations to the Government."
Dubai oil will continue to be freely traded in the international oil market under contracts established by the Government and Dubai Petroleum Establishment (DPE), a new entity wholly owned by the government of Dubai. Effective 2 April 2007, DPE will be responsible for operating the oilfields and for all future business related to the production of oil and gas in Dubai.
Source: ConocoPhillips
Recommended Reading
Exclusive: Why Family Offices Favor ‘Lower-Risk’ Oil, Gas Investments
2024-11-22 - Evan Smith, Stephens’ senior vice president for investment banking, describes growth in the company’s network of family offices, specifically those investing in the energy sector, in this Hart Energy Exclusive interview.
Energy Sector Sees Dramatic Increase in Private Equity Funding
2024-11-21 - In a 10-day period, private equity firms announced almost $20 billion in energy funding. Is an end in sight for the fossil fuel capital drought?
Expand Energy Announces $500MM Tender Offer for 2026 Notes
2024-11-20 - Expand also issued a conditional notice of redemption for all of its outstanding 8.375% Senior Notes due 2028.
Vistra to Offer Senior Notes for Equity Interest Repayment
2024-11-19 - Vistra Corp. said the proceeds from the offer will be used toward an early payout for the installment purchase of Avenue Capital Management II’s interest in Vistra Vision.
US Energy Secretary Nominee Chris Wright Champions Energy at DUG GAS
2024-11-19 - President-elect Donald Trump's energy secretary nominee Chris Wright championed energy's role in bettering human lives earlier this year on stage at Hart Energy’s DUG GAS Conference and Expo.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.