Qatars latest offshore Oil field to come onstream is al-Khalij. Production began in March 1997, after five years of exploration and appraisal work, at an initial rate of 6,000 bbl/d. Al-Khalij is located in Block-6, along Qatars maritime border with Iran, and to the east of the North Field. Development of the field had been delayed since 1991 as Elf Aquitaine Qatar, the fields Operator, sought improved production sharing terms from Qatar Petroleum (formerly QGPC). TotalFinaElf (the result of mergers between the three French oil majors, including Elf Aquitaine) completed a capacity expansion in mid-2004 that brought the fields total production capacity to 80,000 bbl/d. Al-Khalij produces a medium/sweet (28º API) oil with about 1 percent sulphur. The oil is piped to Halul Island for processing and transportation. TotalFinaElf holds a 100% interest in the 25-year PSA, with an option for a five-year extension, having acquired ENIs 45% equity stake in May 2002.