Arab News reported that the US oil giant Occidental Petroleum Corporation and Mubadala Development Company recently signed a 20 year development production sharing agreement with Bahrain's National Oil and Gas Authority for further development of the Bahrain oilfield.

Mr Abdulhussien Bin Mirza chairman of NOGA said that "This is a milestone agreement for Bahrain as Oxy and Mubadala will invest some USD 15 billion in Bahrain's oldest oilfield which first started production in 1932."

Mr Bin Mirza said that "The agreement, called the Bahrain Field Phased Development Project, was immediately approved by the Cabinet following the signing. The agreement will now go to the Council of Representatives and Shura Council for approval followed by a Royal Decree from the king."

He said that "Bahrain, as its part of the agreement, will continue to enjoy ownership rights of the existing production of oil and gas from this field. There is a share of 70:30% between the NOGA and the investors for any additional output over the next 20 years."

Mr Mirza said that the DPSA would add a new dimension to the existing production capacity of oil and gas from Bahrain field.

(Sourced from Arab Times)