"The signing of the new agreement comes as the original concession agreement expired on March 8, 2018".
"We are delighted to sign this concession agreement, which will ensure the continued development and operation of the Al-Bunduq oil field for many years to come", Saad Sherida al-Kaabi, president and CEO of QP, said on Tuesday.
An official source from the UAE Supreme Petroleum Council was quoted by the state news agency WAM as saying that the Bunduq field, due to its geographical location, is shared between the Emirate of Abu Dhabi and Qatar.
The signing of the deal is symbolic as Qatar has been isolated by a group of neighbouring countries and former allies, including the United Arab Emirates, for the past nine months in a rancorous political, diplomatic and economic dispute. Qatar denies the accusation.
STATE-owned Qatar Petroleum announced today it has signed a deal with Abu Dhabi to operate a shared offshore oil field, despite a bitter diplomatic rift between the Gulf neighbours. It has been operated via a concession with a Japanese consortium for over four decades.
The source added: "There is no commercial or trading relationship being established between the UAE and Qatar by the extension of this concession".
Qatar supplies the UAE with natural gas through the Dolphin pipeline which pumps around 2 billion cubic feet of gas per day.
The Al-Bunduq offshore oilfield started production in 1975.
United, which fully owns Bunduq Company, is held by a consortium of Japanese shareholders including Cosmo (45%), JX Nippon (45%) and Mitsui (10%).
The United Arab Emirates confirmed the contract had been renewed with the Japanese operators of the Al-Bunduq field but said it had not had any contact or dealings with Qatar on the issue. All comments are subject to editorial review.