By OGJ editors
HOUSTON, Mar. 24 -- Occidental Petroleum Corp. and Abu Dhabi investment firm Mubadala Development Co. have signed an interim agreement with National Oil & Gas Authority of Bahrain for further development of Bahrain field.
Under this agreement, Oxy, Mubadala, and NOGA will form a joint operating company to implement a development plan to increase the field's oil and gas production.
In this interim phase, Oxy and Mubadala retain exclusive rights to finalize negotiations on a 20-year development and production-sharing agreement (DPSA) for the field. Negotiations are expected to conclude by the end of April.
Capital investment in the project is expected to be $1.5 billion on a gross basis over the initial 5 years of the DPSA with additional investments thereafter. The development plan is expected to increase production to more than 100,000 b/d of oil and boost gas production capacity above 1.5 bcfd.