Qatar Petroleum said on March 30 it would take full ownership of its Qatargas 1 LNG plant when its 25-year contract with international investors including Exxon Mobil Corp. and Total SE expires next year.
The decision not to extend the contracts for the country’s first-ever LNG processing plan came as Qatar Petroleum (QP), the world's top LNG producer, prepares to vastly expand its capacity in the coming years with foreign investment.
Qatargas 1, established in 1984, has an annual capacity of 10 million tonnes of LNG. It is a joint venture between QP, which holds a 65% stake with Total (10%), Exxon Mobil (10%), Marubeni Corp. (7.5%) and Mitsui & Co. Ltd. (7.5%).
Qatar Petroleum said in a statement it would not renew agreements with the companies when they expire on Dec. 31, 2021.
“As a result, Qatar Petroleum will become the sole owner of 100% of the QG1 assets and facilities on 1 January 2022.”
International energy companies had previously hoped that partnerships with QP on existing LNG production facilities, known as trains, would be extended, albeit at different terms, analysts at Credit Suisse said in a note.
“QP had previously not indicated its approach for awarding the post-2021 contract. Now we know that when existing licenses expire, QP appears to plan without partners,” Credit Suisse said.
Recommended Reading
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
Hess Pushes Shareholders to Vote in Favor of $53B Chevron Merger
2024-04-01 - Hess Corp.’s board is unanimously recommending its shareholders vote in favor of the proposed $53 billion all-stock merger with Chevron Corp., according to Chevron’s March 28 Securities and Exchange Commission filing.
Exxon Signals Potential Counter Offer for Hess’ Guyana Assets
2024-03-07 - Exxon Mobil has filed a contract arbitration claim related to Chevron’s proposed purchase of Hess Corp.’s interests in the Stabroek Block offshore Guyana.
Chevron CEO Talks Guyana M&A, Exxon Dispute
2024-03-19 - Chevron Corp. CEO Mike Wirth said during CERAWeek by S&P Global that California’s company’s plan to acquire Hess Corporation, and specifically its 30% interest in the Guyana offshore Stabroek Block, was an important deal as well as good one.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.