Qatar- QP continues to expand global footprint

Doha: During this challenging year, Qatari LNG continued to flow to all markets. Despite the pandemic, Qatar continued to strengthen and expand its cooperation with all its existing long-term partners as well as with new partners across the world, providing security and diversity of LNG supplies. 

Qatar Petroleum (QP) continued its march to strengthen its position in global LNG market by expanding its footprints in foreign markets. 

In April, QP announced the start of the development drilling campaign for the North Field East Project, or NFE (previously known as the North Field Expansion Project).

In the same month, it announced that it had entered into an agreement to reserve LNG ship construction capacity in China to be utilized for Qatar Petroleum's future LNG carrier fleet requirements, including those of its ongoing North Field expansion projects.

The agreement was entered into between Qatar Petroleum and Hudong-Zhonghua Shipbuilding Group (Hudong), a wholly owned subsidiary of China State Shipbuilding Corporation Limited.

Pursuant to the agreement, a significant portion of Hudong's LNG ship construction capacity will be reserved for Qatr Petroleum through the year 2027.

In May, QP entered into three farm-in agreements to acquire about 30 percent of Totals participating interest in blocks 15, 33 and 34 located in the Campeche basin, offshore Mexico. In the same month, QP entered into a farm-in agreement with Total to acquire a 45% participating interest in blocks CI-705 and CI-706, located in the Ivorian-Tano basin, offshore the Republic of Côte d'Ivoire.

The two blocks cover an area of approximately 3,200 square kilometers, and present multi-target hydrocarbon prospects in water depths ranging from 1,000 to 2,000 meters, 35 kilometers from shore and about 100 kilometers from nearby Foxtrot, Espoir and Baobab fields.

Next month in June, QP entered into three agreements to reserve LNG ship construction capacity in the Republic of Korea to be utilized for Qatar Petroleum's  future LNG carrier fleet requirements, including those for the ongoing expansion projects in the North Field and in the United States.

Under the agreements, the 'Big 3 Korean shipyards - Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) - will reserve a major portion of their LNG ship construction capacity for Qatar Petroleum through the year 2027.

In August, QP entered into a farm-in agreement with Sonangol, the national oil company of Angola, and Total to acquire a 30% participating interest in Block 48, located in the ultra-deep waters offshore Angola.

The block, with a drill ready opportunity covers an area of approximately 3,600 square kilometers, and is expected to be drilled as part of a 2020-2021 drilling program.

Next month in October, QP booked 7.2 million tonnes per annum of LNG receiving and storage capacity for 25 years in Europe's largest LNG import terminal. QP's subsidiary and the UK's National Grid Grain LNG entered into a long-term agreement yesterday for LNG storage and regasification capacity.

The 25-year agreement will enable the Qatar Petroleum affiliate to utilise the Isle of Grain LNG receiving terminal in Kent from mid-2025, by subscribing to the equivalent of up to 7.2 million tonnes per annum of the terminal's future throughput capacity. 

In the same month, QP announced that it discovered a new gas/condensate in the Luiperd prospect, located in Block 11B/12B, in the Outeniqua Basin, 175 kilometers off the southern coast of South Africa.

This was the second significant discovery in Block 11B/12B, which is being explored by Qatar Petroleum and its partners, Total (operator), CNR International, and Main Street. In February 2019, an important gas condensate discovery in the Brulpadda prospect was announced, marking a major milestone for a new play in South Africa.

Last month, QP started operations of QP Trading LLC (QP Trading), as its dedicated LNG trading arm. Wholly owned by Qatar Petroleum and based in Doha, QP Trading is mandated to build a globally diversified portfolio of the third party and equity LNG. In addition, QP Trading will manage the price risk exposure of its portfolio through physical and derivatives trading.

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