Occidental, Mubadala Set to End Bahrain Oil Venture Next Month

  • Bahrain state oil companies to take over venture at end June
  • Companies agreed to boost output at field discovered in 1932

Occidental Petroleum Co. and Abu Dhabi investor Mubadala Development Co. are pulling out of a partnership to produce crude and natural gas at one of the Middle East’s oldest oil fields.

Bahrain will take control of the Tatweer Petroleum venture at the end of June, Mubadala Petroleum, a subsidiary of the investment company, said in an e-mailed statement Thursday. Tatweer Petroleum has achieved “significant advances” since 2009 when the partners agreed to the offshore Bahrain Field, according to the statement.

Bahrain, the smallest oil producer in the Persian Gulf, pumps most of its crude from a field it shares with Saudi Arabia, the world’s largest exporter. The country has been seeking to expand output capacity at the wholly owned Bahrain Field, discovered in 1932, to 100,000 barrels a day by the end of the decade. The field produced 50,581 barrels a day in 2015, according to Bahrain’s National Oil & Gas Authority.

Bahrain’s NOGA, the energy ministry, its state refiner and state fuel supply company will form a committee to decide management of the deposit, NOGA said in its 2015 annual released in March. Officials at Occidental in Abu Dhabi weren’t immediately for comment.

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