CERAWEEK: QP CEO looks forward to ExxonMobil 'definitely' partnering on North Field

Dubai — Qatar Petroleum will be announcing the international companies it has selected for the Phase 1 of its North Field Expansion project in the next six months, its CEO said March 2, hinting strongly that ExxonMobil may be one of the winning bidders.

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

Woods did not directly respond to Kaabi's comments.

The much anticipated contract awards to international companies have been delayed a few months because of the pandemic, and also because QP wanted to ensure there is certainty on capital costs, said Kaabi, who also serves as Qatar's energy minister.

QP and ExxonMobil have partnered on several projects, including on Qatar's first LNG facilities, as well as the Golden Pass LNG terminal in Texas.

QP is planning to increase its domestic LNG production by 64% by 2024 via the two-phase North Field expansion project, which will take the Gulf state's capacity from 77 million mt/yr to 126 million mt/yr by 2027. When complete, 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 anywhere, and boost Qatar's LNG production to 110 mt/year by Q4 2025, the company recently said. The field, which Qatar shares with Iran, is the world's largest offshore gas field.

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

In the past two weeks, QP has awarded two onshore engineering, procurement and construction contracts for Phase 1, including for the four LNG megatrains and expansion of LNG storage and loading facilities within Ras Laffan Industrial City.

Finding buyers

Meanwhile, QP is working to secure markets for the additional cargoes of LNG it will be producing. In the last week, the company inked major long-term supply deals with Bangladesh and Pakistan.

"We recently signed a couple of contracts and are working on many more," Kaabi said. "Our buyers have shied into going into long-term projects because it was a buyers' market for some time. Growth trajectory of LNG will force some buyers to consider security of supply."

QP is also embarking on a sustainability strategy focused on reducing fugitive methane emissions, and carbon capture storage and sequestration, he said, with the company aiming to capture 7 million to 9 million tons/yr of CO2 and sequestering it by 2027. Some of the CO2 will be used for enhanced oil recovery.