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OT:Dubai to Control Offshore Oilfields


HOUSTON (AP) — The government of Dubai will assume control of its offshore oilfield operations next year under a deal announced Sunday.


ConocoPhillips said its Middle East unit Dubai Petroleum Co. will cede control of the fields to the government's Dubai Petroleum Establishment effective April 2, 2007. The state will then be in charge of all offshore oil and natural gas production.


Dubai Petroleum Co. is wholly owned by ConocoPhillips and part of the DPC/Dubai Marine Areas Limited consortium involving interests from France's Total SA, Spain's Repsol YPF, German's RWE Dea AG, a subsidiary of RWE AG and Wintershall AG, a subsidiary of BASF AG.


DPC first produced oil in 1969 and has been operating four large offshore oil fields, according to the company's Web site.


"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."


The relation between the consortium and the Dubai government dates to 1961.


"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," said Abdulla Abdul Karim, Dubai government representative.


"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."






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