Qatar Economic Review 2006(September) - QNB

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3.Key Economic Sectors3.1 The Oil SectorThe State of Qatar conducts its principal oil operations through State-owned Qatar Petroleum (QP),which manages Qatar’s oil, gas, fertiliser, petrochemicals and refining enterprises in Qatar and abroad.The Government’s oil policy has the twin aim of replenishing proven reserves within currently producingfields and identifying additional new reserves. Qatar’s oil reserves as at December 2005 stood at 27.0billion barrels (Table 3.1). Qatar’s oil reserves have substantially risen over the past seven years, from3.7 billion barrels in 1999 to 27.0 billion barrels as at December 2005. Given an average production of715,000 barrels per day (bpd) over the past five years, proven reserves would last approximately 103years.Table 3.1Qatar - Proven OilReserves(Billion barrels) Dec. 2005Crude Oil 4.3Condensates 22.7Total 27.0Source: Qatar Petroleum.QP has in its new five-year plan (2006 - 2010), budgeted an overall QR 204 billion for projects in crudeoil, natural gas, gas-to-liquids, refining, petrochemicals, industrial cities and others (Table 3.2).Table 3.2QP Five Year Plan(2006 - 2010)ProjectsQR BillionCrude Oil 8.5Natural Gas 122.0GTL & Refining 40.0Petrochemicals 17.0Industrial Cities and Others 16.5Total 204.0Source: Qatar Petroleum.QP has embarked upon an investment programme with the intention of expanding oil production fromits onshore and offshore fields from the current 834,000 bpd, to around 900,000 bpd by year-end2008 (Table 3.3).Table 3.3Qatar’s Current Crude OilProduction and ProjectedField (bpd) Operator Current ProductionDec. 2005Projected ProductionDec. 2008Dukhan QP 340,000 350,000Bul Hanine QP 70,000 50,000Maydan Mahzam QP 35,000 35,000Idd Al-Shargi North Dome Occidental 90,000 105,000Idd Al-Shargi South Dome Occidental 10,000 15,000Al-Shaheen Maersk Oil 220,000 270,000Al-Khaleej TotalFinaElf 38,000 36,000Al-Rayyan Anadarko 16,000 14,000Al-Karkara QPD -- 10,000El-Bunduq BOC 15,000 15,000Total 834,000 900,000Source: Qatar Petroleum.KEY ECONOMIC SECTORS 14
QP ProductionQP produces oil on its own account from one onshore and two offshore fields and from other fieldsthrough Exploration/Development and Production Sharing Agreements (EPSAs/DPSAs) with majorinternational partners (Fig 3.1).QP operates exclusively the Dukhan Field, which is Qatar’s oldest and largest field. The field comprisesof three reservoirs for crude oil and one reservoir for non-associated gas. The Dukhan Field is Qatar’sonly onshore field and has estimated reserves in excess of 2 billion barrels of oil, equivalent to around 18years’ production at present production levels. QP also produces offshore crude oil for its own accountfrom two fields within Qatar’s territorial waters: Maydan Mahzam and Bul Hanine, which currently haveproduction capacities of 35,000 bpd and 70,000 bpd. QP’s oil production accounted for 53% of Qatar’stotal oil production as at December 2005.Exploration/Development and Production Sharing Agreements (EPSAs/DPSAs)Qatar’s total oil exploration area is divided into twenty two hydrocarbon “blocks” covering a total surfacearea of 43,426 square kilometres. Since the early 1990s, QP has entered into a number of EPSAs/DPSAs. Under an EPSA agreement the contractor is granted the right to explore for oil in the relevantblock and, if oil is discovered, to develop the fields. Under a DPSA agreement the contractor is requiredto cover appraisal and development of already discovered structures or further development of existingfields. Key aspects of major EPSAs/DPSAs include the following ventures:Idd Al Shargi (Offshore)Occidental Petroleum has been exploring, operating and developing both the North Dome of this fieldsince 1994 when it signed a DPSA with QP, and the South Dome since December, 1997 following aseparate DPSA. Occidental aims to increase production of Idd Al Shargi Field (for both North and SouthDomes) from the current production of 100,000 bpd, to 120,000 bpd by 2008.Al Shaheen Field - Block 5 (Offshore)The development of this field is based on extensive use of horizontal drilling and water injection,applying state-of-the-art technology developed by Maersk Oil. QP signed a deal with Maersk Oil Qatarin early 2001 to further develop the field at an estimated cost of $1.2 billion. The development plan sawproduction capacity increase to the current 220,000 bpd. QP and Maersk further in April 2004 signed onEPSA for an extention area of Block 5, located Northwest of the Al-Shaheen Field. Further to this, a newdevelopment plan was signed in March 2006 which will double current production levels.Al Khaleej Field - Block 6 (Offshore)TotalFinaElf Qatar operates this field under a DPSA with QP. Production at this field reached 38,000 bpdas at year-end 2005.Al Rayyan Field (Offshore)Anadarko Petroleum Corporation currently operates the field with a 92.5% stake, along with MarubeniCorporation with a 7.5% stake. BP was the field operator until June 2002, when Anadarko acquired itsstake in Blocks 11,12 & 13. Production from this field is currently at 16,000 bpd.Al Karkara Field (Offshore)Qatar Petroleum Development Company (QPD) operates the field under a DPSA signed with QP in 2003.QPD is a Japanese consortium (Cosmo Oil Co., Nissho Iwai Corp., and United Petrleum DevelopmentCo.). Production at this field started in the first quarter of 2006.KEY ECONOMIC SECTORS 15
Page 1: HEAD OFFICEQatar National Bank SAQ,
Page 5 and 6: Sovereign Ratings: State of QatarQa
Page 8 and 9: Economically Active Population by G
Page 10 and 11: 2. The Economy of QatarQatar’s ec
Page 12 and 13: The Non-Oil and Gas SectorThe Non-O
Page 16 and 17: Blocks 1, 3, 4, 7 and 14 (Offshore)
Page 18 and 19: 3.2 The Natural Gas SectorQatar’s
Page 20 and 21: 2. Qatar Liquefied Natural Gas Comp
Page 22 and 23: QatargasTable 3.10LNG Summary (Mtpa
Page 24 and 25: Al Khaleej Gas ProjectA Development
Page 26 and 27: Qatar Steel Company (QASCO)QASCO is
Page 28 and 29: Ras Laffan Ethylene Cracker (RLEC)T
Page 30 and 31: The other leading educational insti
Page 32 and 33: Table 4.2Weightage on the ConsumerP
Page 34 and 35: Qatar’s principal export items in
Page 36 and 37: In 2005, Qatar’s main import trad
Page 38 and 39: 6. Monetary PolicyThe monetary mana
Page 40 and 41: 7. Banking SectorThe Qatari banking
Page 42 and 43: TABLE 7.2Balance Sheets of Qatari B
Page 44 and 45: The Services sector recorded a grow
Page 46: 2005/06 BudgetPreliminary data on g
Page 49 and 50: The DSM market capitalisation decli
Page 51 and 52: 11. Investment IncentivesQatar welc
Page 53 and 54: 12. Qatar National BankQatar Nation
Page 55 and 56: 1APPENDIXQatar Statistical SummaryT
Page 58: QNB Branches and OfficesHead Office

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