Qatar Petroleum: Building on Foundations to be a Global Energy Leader
As the leading national organization entrusted with the development of the hydrocarbon resources, Qatar Petroleum has achieved major steps in implementing the vision of His Highness the Emir, Sheikh Hamad Bin Khalifa Al-Thani. Such vision aims at ensuring the optimal utilization of the country's resources by establishing oil and gas related projects that export environmentally friendly products for the world’s markets thus diversifying sources of national income to maintain Qatar’s development and prosperity.
With the strong support of His Highness the Emir and the diligent efforts of Qatar Petroleum’s employees, the year 2003 witnessed continued success on the gas projects development side. New long term supply agreements continued to be developed for Qatari gas along with the design and construction of giant LNG plants, tankers, receiving terminals and other related infrastructure projects necessary to underpin the large gas exports requirements. This high level of activities unprecedented in the country’s history has provided new job opportunities for Qatari citizens and increased the participation of the local companies in the economic activities.
Qatar Petroleum has also achieved major milestones in concluding important agreements to establish GTL plants with major international oil and gas companies and expand existing facilities and projects in various areas.
Our success in developing energy projects relying on our natural gas resources did not stop us from pursuing our more traditional oil exploration and production activities. During 2003, several production-sharing agreements were signed with a number of companies for the exploration and development of the oil potential in the State of Qatar, while QP undertook extensive work to upgrade facilities and increase the recoverable oil reserves in existing fields.
Qatar Petroleum is proud to have been able to create a healthy partnership environment and attract a large number of leading international companies with very advanced technology and substantial financial strength with whom we committed to joint efforts and engage in mutually beneficial long-term relations.
In the crude oil sector, recoverable reserves increased by 40% and sustainable production capacity was raised from 400,000 bpd in 1991 to about 800,000 bpd in 2003.
With more than 900 trillion cubic feet of reserves in the giant North Field, natural gas is a major pillar of the economy of our country. Qatar’s production of LNG is expected to reach, by the year 2010, around 65 million tons per annum, up from the current 18 mtpa.
With the closing of 2003, Qatar has undoubtedly established itself as the “World Gas-To-Liquids Capital”. In December 2003, His Highness Sheikh Tamim Bin Hamad Al-Thani, the Heir Apparent, laid, the foundation stone for the Oryx GTL Project, the Middle East’s first gas-to-liquids plant, in Ras Laffan Industrial City.
Several other GTL projects and expansions are under various stages of development in Qatar with international energy companies such as Shell, ConocoPhillips, ExxonMobil, Sasol, ChevronTexaco and Marathon. The estimated total production of the upcoming GTL projects if implemented is expected to exceed 800,000 bpd of environmentally friendly liquid fuels.
Another major outlet for our natural gas is pipeline exports such as the Dolphin Project which will allow the long term supply of two billion cubic feet of gas per day via sub-sea pipelines to our neighbors in the United Arab Emirates. This cross border initiative is beneficial to the people of the region and is a fine example of energy and industrial cooperation between brotherly GCC countries.
Our aim in the petrochemical sector is to consolidate Qatar’s position as one of the major international hubs for the petrochemical industries based on gas feedstock from our North Field. In addition we are also developing the Al Khaleej Gas (AKG) project to satisfy the needs of our own industrial development. This project will have the capacity to allow sales to the Gulf region as well.
The strategic plans of Qatar Petroleum also include programs of active motivation and encouragement of the private sector to invest in industries that consume and transform the various petrochemical products manufactured locally and convert them into finished industrial products thus adding value and benefiting from the available synergies and favorable business environment.
The emergence of Industries Qatar in 2003 came as a blessing from His Highness to enable all Qataris to be partners in the economic development the country is witnessing.
In pursuing such ambitions, Qatar Petroleum has also been keen to adhere to its “Commitment to Excellence”. The principle has been guiding our approach to business and our drive to promote Qatar as a reliable partner. In line with this strong and genuine commitment to excellence in performance and in serving society, QP complied with stringent local and international environmental regulations, and adopted technology which not only protects the environment but also optimizes production and yields high quality, value-added products that meet internationally accepted standards, and that are competitive in the world’s markets.
Health and safety management and adequate risk control are therefore of prime importance in the execution of the QP projects.
QP continued in 2003 to play a significant role in organizing and hosting international and regional conferences on energy related subjects and advancement of technologies. The choice of Qatar to host such major events is due, among other reasons, to the fact that most of the world-class energy players have strong business relations with Qatar. We had the privilege to host and organize four major international events in 2003 where energy decision makers and experts came from around the world to deliberate and exchange ideas on oil and gas current and future issues and prospects.
I would like to conclude by saying that Qatar is proud to have contributed to the rapid development of the oil and gas industries during the last year, and we pledge to maintain this high standard of commitment and excellence.
For more information visit http://www.qp.com.qa
Dr. Mohammed Bin Saleh Al-Sada
Minister of Energy & Industry
Chairman & Managing Director, Qatar Petroleum