Financial Times: Global interest in QP projects: "Oil majors struggling to replace their energy reserves have been competing hard to gain access to Qatar's natural gas reserves, the third-largest in the world. Following a flurry of deals announced earlier this year, the country has now declared a moratorium on new projects.: “Analysts said Shell would be the most affected. The Anglo-Dutch group has a stake in only one project and could ill-afford a reduction in its holdings after being forced to scale back its reserve figures last year. Shell declined to comment.” (ShellNews.net) 12 May 05
By Thomas Catan in London
Published: May 12 2005
State-owned Qatar Petroleum is in talks with several international oil companies hoping to buy multi-billion-dollar stakes in its liquefied natural gas projects, officials say.
Oil majors struggling to replace their energy reserves have been competing hard to gain access to Qatar's natural gas reserves, the third-largest in the world.
Following a flurry of deals announced earlier this year, the country has now declared a moratorium on new projects. However, it is privately seeking new partners in its existing LNG projects to gain access to new markets and diversify away from ExxonMobil, its largest joint-venture partner.
"If they add value and the partners agree, there are provisions in all of our agreements [to take on additional partners]," said Ali Al- Hammadi, chief operating officer of QP subsidiary Qatargas. "We've been approached by some companies. But it's too early to say who."
New partners would be likely to dilute shareholdings by existing partners - ExxonMobil, Royal Dutch/Shell and ConocoPhillips.
Analysts said Shell would be the most affected. The Anglo-Dutch group has a stake in only one project and could ill-afford a reduction in its holdings after being forced to scale back its reserve figures last year. Shell declined to comment.
Companies have been seeking such an opportunity since February, when France's Total paid $12.8bn for a 16.7 per cent stake in one of the two liquefaction "trains" that form part of Qatargas 2. The project, a $12.8bn joint venture between QP and ExxonMobil, was due to supply up to one-fifth of the UK's gas. But QP wanted the option to divert part of its LNG production to European and US markets in the event of a gas supply glut in the UK.
Wayne Harms, president of ExxonMobil Qatar, said it was possible that additional partners could come into the project.
"I think Qatargas 2 will look at anything that adds value to the project," he said. "If somebody comes with an idea that adds value to the project then we're going to look at it and think about it and if it makes sense we'll do it."
QP is seeking partners that can provide access to new markets for its LNG, such as the US east coast, China and Singapore. Analysts mentioned companies such as Anadarko of the US - which plans to build a new LNG terminal in Canada - and Norway's Statoil.
"If you assume that the opportunity set in Qatar is limited up to a point in time, the last hope is to get a stake in somebody else's project," said Frank Harris, at Wood MacKenzie, the energy consultancy.
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