UAE denies Qatar oilfield deal claims

UAE denies Qatar oilfield deal claims
Photo for illustrative purposes only.
Published: 14 March 2018 - 1:10 a.m.
By: Jonathan Sheikh-Miller

The UAE's Supreme Petroleum Council has refuted claims that a concession has been awarded to Qatar Petroleum (QP) with regard to the offshore Al Bunduq oilfield in Abu Dhabi, in the midst of the ongoing diplomatic dispute between the two nations.

Reuters had previously reported, citing a statement on QP’s website, that the Abu Dhabi Supreme Petroleum Council, the Abu Dhabi National Oil Company, Japan’s United Petroleum Development Company and Bunduq Company Limited had penned an agreement.

But the UAE’s state news agency WAM quoted an official source at the Supreme Petroleum Council as saying that no concession was awarded to Qatar Petroleum.

The source stated: "The Bunduq field, due to its geographical location, is shared between the emirate of Abu Dhabi and Qatar. It has been operated via a concession with a Japanese consortium for over four decades.

"This concession was recently extended by each respective government to the Japanese consortium with no direct communication or engagement between the two states."

The source added: "There is no commercial or trading relationship being established between the UAE and Qatar by the extension of this concession."

QP's president and CEO, Saad Sherida Al Kaabi is reported to have said: "We are delighted to sign this concession agreement, which will ensure the continued development and operation of the Al-Bunduq oil field for many years to come."

In June 2017, the UAE along with Saudi Arabia, Egypt and Bahrain cut off diplomatic and economic ties with Qatar while accusing it of aiding militant groups.

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