DOHA Atlantic Richfield Co. has put its Qatari upstream oil interests up for sale, the Middle East Economic Survey ,MEES, reported Monday. Arco operates Qatar's offshore Al-Rayyan oil field and the adjoining block 11 exploration tract under production-sharing agreements with the state-owned Qatar General Petroleum Corp. The Los Angeles-headquartered oil company holds a 27.5 percent stake in the two concessions along with Canada's Gulfstream Resources, Britain's BG and Germany's Wintershall and Preussag Energie. BG and Wintershall are also selling their stakes in Al-Rayyan and block 11, said MEES, which is published in Nicosia, Cyprus. Arco, BG and Wintershall have held discussions with companies interested in acquiring the assets, the weekly newsletter said.

The remaining shareholders in the consortium have the right of first refusal over equity which is offered for sale by any of the five partners, it said. Gulfstream Resources is considered a possible buyer of all or part of Arco's Al-Rayyan stake, MEES said. MEES cited low oil prices and capital spending pressures within the oil companies as reasons for the sale, but noted that relationships within the consortium haven't always been smooth.

Al-Rayyan produces an estimated 25,000 barrels a day. The field has been in operation since 1996. The 25-year exploration and production agreement for block 11 was signed with Qatar General Petroleum Corp. in 1997, MEES said. It said the companies won't be divesting a third consortium asset for gas - a concession in Qatar's giant north field. (AP)