Occidental Petroleum (Oxy) and Mubadala Development are pulling out of the joint partnership firm — Tatweer Petroleum — that has managed Bahrain Field operations since 2009
Both companies have reached an agreement with the Bahraini authorities, which will take control of the joint operating company. The move will happen at the end of June, according to a statement by Mubadala Petroleum.
“The time is now right to transfer full responsibility for the asset into Bahraini hands. Arrangements have been made for a smooth transition and we are confident the field will continue to be developed to the benefit of the people of Bahrain by Tatweer,” a spokesperson for the company commented.
According to analysts, the termination of the partnership will allow Oxy to raise funds and help reorient itself for the low oil environment. The break up will also help Bahrain, which is scheduled to take over the venture. The takeover of the field is expected to allow Bahrain to increase crude oil production and export.
Bahrain, which is not a member of OPEC, is the smallest oil producer in the region. The country has been seeking to expand output capacity at the wholly owned Bahrain field to 100,000 bpd by the end of the decade.
