CERAWEEK: QP CEO Looks Forward to ExxonMobil ‘Definitive’ North Field Partnership

30% stake in Phase 1 expansion to be awarded in six months

Launch of phase 2 in nine months, says Kaabi

Launch of a sustainability study to reduce emissions

Dubai –
Qatar Petroleum will announce the international companies it has selected for Phase 1 of its north field expansion project over the next six months, its CEO said on March 2, strongly hinting that ExxonMobil could be one winning bidders.

“We look forward to ExxonMobil definitely being one of our partners,” QP Chairman and CEO Saad al-Kaabi told the CERAWeek by IHS Market conference, while speaking to a panel with CEO of QP. ExxonMobil, Darren Woods. “There is a process that has been going on for some time, there will be tenders for international companies to participate in 30% of the project.”

Woods did not respond directly to Kaabi’s comments.

The long-awaited award of contracts to international companies was delayed for a few months due to the pandemic, and also because QP wanted to ensure there is certainty over capital costs, said Kaabi, who is also Minister of Energy of Qatar.

QP and ExxonMobil have joined forces on several projects, notably on the first LNG facilities in Qatar, as well as on the Golden Pass LNG terminal in Texas.

QP plans to increase domestic LNG production by 64% by 2024 through the two-phase North Field expansion project, which will increase Gulf State capacity from 77 million t / year to 126 million t / year by 2027. Once completed, Qatar should regain its status as the world’s leading LNG exporter.

The first phase of the expansion will cost $ 28.75 billion, making it one of the largest energy projects in the world, and bringing Qatar’s LNG production to 110 tonnes / year by the fourth quarter of 2025 , the company recently said. The field, which Qatar shares with Iran, is the largest offshore gas field in the world.

Work on the second phase of the project – known as North Field South – will begin in nine months, Kaabi said.

In the past two weeks, QP has awarded two engineering, supply and onshore construction contracts for Phase 1, including for the four LNG megatrains and the expansion of LNG storage and loading facilities. in the industrial town of Ras Laffan.

Find buyers

Meanwhile, QP is working to secure markets for the additional cargoes of LNG it will produce. Last week, the company signed major long-term supply agreements with Bangladesh and Pakistan.

“We recently signed a few contracts and are working on many more,” Kaabi said. “Our buyers were reluctant to embark on long-term projects because it was a buyer’s market for a while. LNG’s growth trajectory will force some buyers to consider security of supply.”

QP is also embarking on a sustainability strategy focused on reducing fugitive methane emissions, as well as carbon storage and sequestration, he said, with the company aiming to capture 7-9 million tonnes / year of CO2 and sequester it by 2027. The CO2 will be used for enhanced oil recovery.