Maersk Oil says will probably be leaving Qatar after shedding the contract to function the nation’s largest producing offshore oil discipline.

The information comes as state-owned Qatar Petroleum introduced Tuesday that it chosen French oil main Total as its parter for the longer term growth of the enormous Al-Shaheen oil discipline. Maersk Oil has operated the sphere since 1992 below a 25 12 months manufacturing sharing settlement set to run out in July 2017.

The lack of the contract is seen as a serious blow to Maersk Oil simply days after its mother or father, Denmark’s A.P. Moller-Maersk, named container transport head Soren Skou as group CEO amid talks that the group could also be break up up into separate firms.

SEE ALSO: Loss of Qatari Oil Contract Piles Pressure on Maersk Profits

Qatar Petroleum launched the aggressive tender for the contract for the longer term growth of Al-Shaheen in July 2015, inviting a quantity worldwide oil firms to take part.

“Maersk Oil presented a highly competitive technical and commercial proposition based on more than 20 years of technical knowledge and experience working with the Al Shaheen field,” says CEO in Maersk Oil, Jakob Thomasen.

In an announcement saying Total because the winner of the tender, Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum, thanked Maersk Oil for his or her “significant efforts and valuable contribution in managing Al-Shaheen field during the past quarter of a century and for the offer they have presented,” and inspired their participation in future alternatives in Qatar.

Maersk Oil will proceed to function the Al-Shaheen discipline till the top of its present license in July 2017.

Under QP’s settlement with Total, the 2 will arrange a three way partnership Qatari-based firm named North Oil Company that can develop and function the Al-Shaheen discipline for a interval of 25 years starting instantly upon expiration of the settlement with Maersk Oil. The new firm can be 70% owned by QP and 30% by Total.

Maersk Oil mentioned that below the phrases supplied by Qatar Petroleum, a minority shareholding for Maersk Oil within the new three way partnership would have create solely a “marginal impact on the Maersk Group earnings” within the years forward.

“Maersk Oil is growing as a result of improved operating performance and with major projects like Culzean in the UK and Johan Sverdrup in Norway, we continue adding new production through to the end of the decade. We will continue to deliver in the years ahead based on a strong operational performance and cost focus and ensure that our major projects are executed on time and on budget,” added Jakob Thomasen.

Al-Shaheen oil discipline is situated within the Persian Gulf about 50 miles off the coast of Qatar within the North Gas Field. It is among the many world’s largest oil fields and at the moment produces round 40% of Qatar’s crude oil, at round 300,000 barrels per day.