Dubai to take control of offshore oil resources
NEW YORK (Reuters) - A unit of ConocoPhillips
Starting April 2, Dubai Petroleum Establishment will be responsible for operating the oilfields, instead of ConocoPhillips unit Dubai Petroleum Co., and for all future business related to the production of oil and gas in Dubai.
Dubai oil will continue to be freely traded in the international oil market under contracts established by the government and by Dubai Petroleum Establishment, a new entity wholly owned by the government of Dubai.
More than forty years after the consortium was formed, "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," said Abdulla Abdul Karim, Dubai government representative, in a statement.
Dubai Petroleum Co., wholly owned by ConocoPhillips
No details were immediately available on the financial impact this decision will have on the non-Dubai partners. The consortium dates back to 1961.
"DPC will do its part to successfully facilitate the handover of the operations to the government," Bill Arnold, president, Dubai Petroleum Company, said in a statement.
A ConocoPhillips spokesman was not immediately available to comment.
ConocoPhillips shares closed trading at $68.52 on Friday.