Production at the northeastern As-Sarah oilfield has drop by 50,000 bpd due to local protests in the town of Jakhira. The protestors accuse the National Oil Corporation (NOC) of failing to fulfill promises on local development projects and employment opportunities. The NOC has refused to engage with local concerns till production resumes. The NOC has demanded an explanation from the German firm Wintershall, who holds the concession agreement for the area, saying they were not consulted by the group when it ceased production. The NOC suggest the protests were intended to block the implementation of new contract terms. According to Reuters:
Sanalla said on Thursday that the new agreement would place “extensive corporate social responsibility and environmental obligations on Wintershall”. “Wintershall will not continue to produce oil under different terms from every other international oil company working in the country. If it wishes, the new agreement will be finalised very soon,” he said.
A contract dispute earlier in the year with the NOC saw Wintershall shutdown output till an interim deal was established in June.
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