Occidental Petroleum Corporation (Oxy) on Tuesday teamed up with Abu Dhabi-based Mubadala and the National Oil and Gas Authority of Bahrain (Noga) to form a new joint operating company for running an oil and natural gas field in Bahrain.

The company, Tatweer Petroleum-Bahrain Field Development Company, will operate under the development and production sharing agreement signed in April 2009 by all the three partners, approved by the Bahraini parliament in May 2009 and ratified by His Majesty King Hamad bin Isa Al Kalifa, said a statement from Occidental.

Tatweer Petroleum will begin production and development activities immediately with its team largely comprising individuals from the Bahrain Petroleum Company (Bapco), in addition to employees from Oxy and Mubadala. The company also plans to hire additional local employees.

'We are delighted to be part of this new joint operating company, Tatweer Petroleum. We believe the further development of the Bahrain Field will greatly benefit Bahrain and its citizens,' said Dr Ray R. Irani, chairman and chief executive officer of Occidental.

'Tatweer Petroleum further expands our presence in the region and is a key element of our growth strategy for the Middle East,' he noted.

'We are pleased to begin joint venture operations with our partners,' said Khaldoon Khalifa Al Mubarak, chief executive officer and managing director, Mubadala Development Company.

'This investment is aligned with Mubadala Oil and Gas's ambition to include Enhanced Oil Recovery projects as one of the key pillars of its investment strategy in the Mena region.'

'The development and production sharing agreement with Occidental and Mubadala represents a paradigm shift for the oil industry in Bahrain,' said Dr Abdul Hussain Bin Ali Mirza, Minister of Oil and Gas Affairs and Chairman of Noga.

'The revitalization of one of the longest producing oil fields in the world is the cornerstone for fueling the economic diversification plans set by the political leadership in Bahrain and will bring added prosperity and opportunity to the whole nation,' he added.-TradeArabia News Service