Posted on January 07, 2011

Qatar Petroleum (QP) and ExxonMobil Barzan Limited, an affiliate of American ExxonMobil Corporation, signed today a number of joint agreements pertaining to the launching of Barzan Gas Company. The estimated total cost of the project will be around US$8.6billion or QR31billion. The agreement was signed by on behalf of QP by HE the Deputy Prime Minister and Minister of Energy and Industry Abdullah bin Hamad Al Attiyah, and on behalf of ExxonMobil Corporation by Senior Vice President of Exxon Mobil Corporation Andy Swiger.

Speaking at the signing ceremony, HE the Deputy Premier said: "It is with great pleasure that we celebrate with you, today, the launching of the Barzan Gas Company. The Barzan Gas Company is being established for the very important task of setting-up a mega gas project based on production from the North Field, for Supplying gas mainly to the domestic market. This project will play a critical and strategic role in sustaining the high growth rate of the Qatari economy."
"Under the wise leadership of HH the Emir Sheikh Hamad bin Khalifa AI Thani, we have witnessed an impressive rise in the economic growth of Qatar."

The fast and massive development of our oil and gas sector is one of a kind. Last month, we celebrated the achievement of our LNG's industry target capacity of 77 million tons per annum, which is a great accomplishment which will provide the world with a clean and reliable source of energy for many years to come, Al Attiyah added.

"The Barzan project is being set-up in partnership with our valuable partner, ExxonMobil. This project will further strengthen our successful partnerships with ExxonMobil in the LNG ventures in RasGas and QatarGas and the Alkhaleej Gas projects. The estimated total cost of the project will be around 8.6 billion US dollars or 31 billion Qatari Riyals."
HE the Deputy Prime Minister said that RasGas has been chosen by QP to be the developer and operator of this project. "RasGas has world-class management and professional teams that have proven, time and again, that they can effectively manage the development of projects in the specified time and within budget, and professionally operate such world-class complex energy projects," he added.

The Barzan project is scheduled to come on stream in 2014 just in time to meet the accelerating local gas demand. This project will supply about 1.4 billion standard cubic feet per day of sales gas to the domestic market. A major portion of the gas will be used by the power and water generation sector. When you convert all the products from this project into Barrel of oil equivalent it will produce more than 300, 000 Barrel of oil equivalent per day which is very significant. "I would like to announce that the letters of award for the Onshore and the Offshore EPC contracts have been issued to JGC of Japan and Hyundai Heavy Industries of South Korea, respectively who have won the contracts as part of competitive bidding by several world class contractors," Al Attiyah said.

In addition to the power and industrial sector, several mega infrastructure projects have recently been started in Qatar, and will be completed within the next 10 years. These include the new airport and seaport, education city, medical city, hospitality ventures, railway project, several real estate ventures. And the most important event we in Qatar are very proud of hosting is the 2022 Football World Cup. All these projects will increase the demand for gas.
Therefore, it is only prudent that we should be laying the foundation of the Barzan project Now.
When Barzan starts production we will have achieved our target of producing plateau of 23 billion standard cubic feet of gas per day from the North Field; which is equal to producing 4.2 million barrels of oil equivalent per day from this single field, and more than 5 million barrels of oil equivalent when you add the crude oil production, which makes Qatar one of the largest net oil and gas exporters in the World, well into the future.

With the completion of this phase of the planned North Field development it is only prudent that the moratorium on further development of the field remain in-place until after2014 as announced previously, in order to protect our North Field reservoirs and support the long term sustainable development of the state Qatar.

Last but not least; I would like to thank all involved from Qatar Petroleum, ExxonMobil, and RasGas who have worked very hard to advance the Barzan Project. Without their dedication, commitment and teamwork it would not have been possible to launch a project of such strategic significance to Qatar. I wish the team all the success in the execution of this strategic project.
For his part, Saad Sherida Al Kaabi, director of oil and gas at Qatar Petroleum, said they had been working hard to reach this important end since the signing of the memorandum of understanding between ExxonMobil and Qatar Petroleum in 2007.
He said that the project is a joint venture between Qatar Petroleum with 93 percent, and Exxon Mobil which owns 7 percent in it, adding that Barzan project will play an important role in boosting national economic growth.
He lauded the efforts undertaken by HE the Deputy Prime Minister and Minister of Energy and Industry Abdullah bin Hamad Al Attiyah in the development of oil and gas industry in Qatar.

Senior Vice President of ExxonMobil Corporation Andy Swiger said: "The Barzan project represents another step in our long and successful relationship with Qatar Petroleum. This new domestic gas project will support the economic growth of Qatar and will create and deliver sustainable long-term benefits for the Qatar community."

The Barzan project will be located in Ras Laffan Industrial City and will be operated by RasGas Company Limited to produce and process gas from Qatar's North Field to supply sales gas to power stations and industries in Qatar, ethane to the petrochemical industry in Qatar, and associated liquid hydrocarbons for sale into local and international markets.  The Barzan project is expected to supply 1.4 billion cubic feet per day of gas with first gas flow planned for 2014.