Qatar-focused operators to spend up to $10 billion in 2021
Almost $10 billion in capital expenditure (CAPEX) will be spent by Qatar-focused operators on gas projects between 2018 and 2021 with Qatar Petroleum driving a majority of the production.
Almost $10 billion in capital expenditure (CAPEX) will be spent by Qatar-focused operators on gas projects between 2018 and 2021 to ensure that country’s production will remain around 18.1 billion cubic feet per day (bcfd) in 2021, according to GlobalData.
Qatar Petroleum will drive Qatar’s gas production with 62.1% share of all the production in 2021. Exxon Mobil Corporation and Total SA follow with 23.8 and 3.5%, respectively. Qatar has two key upcoming gas projects, Barzan, which will be producing by 2021 and North Field Expansion. Qatar Petroleum will lead in greenfield gas projects, with participation in both projects.
Ali Al-killidar, Oil and Gas Analyst at GlobalData said, "Qatar is expected to spend $9.9 billion as capex on conventional gas projects between 2018 and 2021, with spending topping in 2021 at $3.0 billion. Average full cycle capex per barrel of oil equivalent (boe) for Qatar gas projects is $3.56. Shallow water projects have an average full cycle CAPEX of $3.58 per boe, while the single onshore gas project needs $3.31 per boe in capital investments. New gas projects average $1.39 per boe in CAPEX."
Shallow water projects require a gas price of $1 per thousand cubic feet (mcf) for the development to break even.
– Edited from a GlobalData press release by CFE Media.
Original content can be found at Oil and Gas Engineering.