Qatar Petroleum
Encyclopedia
Qatar Petroleum is a state owned petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

 company in Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

. The company operates all oil and gas activities in Qatar, including exploration, production, refining, transport, and storage. QP's Chairman Abdullah Bin Hamad Al-Attiyah
Abdullah Bin Hamad Al-Attiyah
Abdullah bin Hamad Al-Attiyah is the Deputy Prime Minister of Qatar and the head of the Emir's court. He is the chairman of Qatar Petroleum and a board member of Al-Sadd Sports Club....

, is also the head of the Ministry of Energy and Industry and, as of April 2007, the Deputy Prime Minister
Deputy Prime Minister
A deputy prime minister or vice prime minister is, in some counties, a government minister who can take the position of acting prime minister when the prime minister is temporarily absent. The position is often likened to that of a vice president, but is significantly different, though both...

 of Qatar. QP’s operations are therefore directly linked with state planning agencies, regulatory authorities, and policymaking bodies. Together, revenues from oil and natural gas amount to 60% of the country’s GDP. Currently it is the third largest oil company in the world by oil and gas reserves.

History

After World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

 and the collapse of the Ottoman Empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...

, Qatar fell within the British sphere of influence and the first onshore oil concession in Qatar was awarded in 1935 to British Petroleum's predecessor, the Anglo-Iranian Oil Company (AIOC). Because of its obligations under the Red Line Agreement
Red Line Agreement
The Red Line Agreement is the name given to an agreement signed by partners in the Turkish Petroleum Company on July 31, 1928. The aim of the agreement was to formalize the corporate structure of TPC and bind all partners to a self-denial clause that prohibited any of its shareholders from...

, AIOC transferred the concession to an associate company of the Iraq Petroleum Company
Iraq Petroleum Company
The Iraq Petroleum Company , until 1929 called Turkish Petroleum Company , was an oil company jointly owned by some of the world's largest oil companies, which had virtual monopoly on all oil exploration and production in Iraq from 1925 to 1961...

, Petroleum Development (Qatar) Ltd. (PDQ), which would operate the concession. PDQ was later renamed the Qatar Petroleum Company (QPC). In October 1938, Dukhan No. 1 was spudded and was yielding 5,000 barrels of oil per day by January 1940. However, World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 delayed development until 1947 and the first crude exports occurred in 1949. The first offshore concessions were granted in 1949 to two U.S. companies, the Superior Oil Company
Superior Oil Company
Superior Oil Company was an independent American oil company that is now part of ExxonMobil. Superior Oil was founded in 1921 in Coalinga, California by William Myron Keck, also founder of the W. M. Keck Foundation....

 and the Central Mining & Investment Co. In 1952, the Shell Company-Qatar
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

 (SCQ) acquired exploration rights to most offshore territory. In 1960, the Idd Al-Shargi and Maydan Mahzam fields were discovered. The largest offshore field, Bul Hanine, was discovered in 1970 and came onstream in 1972. Qatar Petroleum was created in 1974 following the government's nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 of the oil sector. In 1973, the state took a 25% stake in onshore concessions of QPC and offshore concessions of SCQ. Early in 1974, the state increased its share in both companies to 60%. In 1976, QP took full control of QPC's onshore concessions and SCQ's offshore activities the following year.

In 1991, Qatar Petroleum initiated an upgrade program for oil production facilities. The program included bringing the Diyab structure (Dukhan) online and enhanced oil recovery
Enhanced oil recovery
Enhanced Oil Recovery is a generic term for techniques for increasing the amount of crude oil that can be extracted from an oil field...

 (EOR), particularly at the Dukhan field. QP expects to boost capacity at Dukhan from 335000 oilbbl/d in 2006 to 350000 oilbbl/d in 2008. QP is carrying out similar work at several smaller fields, including the offshore Bul Hanine and Maydam Mahzam. Prospects for new discoveries are limited. QP carried out much exploration activity during the early 1980s but exploration declined as the oil glut of the mid-1980s gathered pace. Since then, QP has encouraged foreign operators to apply for exploration licenses. Although the number of wells drilled grew significantly towards the end of the 1980s, there was little success. Most new E&P is done offshore by international oil companies, including ExxonMobil, Chevron, and Total. While substantial E&P is underway, there have not been any major oil discoveries in Qatar during the last decade. Most anticipated new oil production will come from Maersk Oil
Maersk Oil
Maersk Oil is a Danish oil and gas company owned by the A. P. Moller-Maersk Group. The company was established in 1962 when Maersk Group was awarded a concession for oil and gas exploration and production in the Danish sector of the North Sea...

 (Denmark), which operates the Al Shaheen field. Maersk reached an agreement with Qatar Petroleum in December 2005, under which the company intends to drill more than 160 production and water injection wells and establish three offshore platforms. The total oil production from Al Shaheen is planned to be gradually increased from 240000 oilbbl/d at the beginning of 2006 to 525000 oilbbl/d by the end of 2009. When completed, Qatar would have more than 1100000 oilbbl/d in crude production capacity.

Pipelines, exports and refineries

QP operates Qatar’s oil pipeline network, which transports supplies from oil fields to the country’s lone refinery and export terminals. QP operates an expansive offshore pipeline network that brings crude oil from offshore oil fields to Halul Island, where oil can be processed for export. Onshore, most oil is sent to Umm Said for refining or export. Qatar has three primary export terminals: Umm Said, Halul Island, and Ras Laffan. Qatar typically exports around 600000 oilbbl/d of crude and about 20000 oilbbl/d of refined petroleum products. Most exports go to Asia, with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 as the single largest receiver (about 380000 oilbbl/d of crude in 2006). In the international market, the major customers are Emirates National Oil Company (ENOC), Glencore
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...

, Bakri Trading, Vitol
Vitol
The Vitol group is an energy trading company founded in Rotterdam in 1966. Vitol operates worldwide and, along with Glencore and Trafigura, is one of the world's top three crude oil traders. Vitol's headquarters are located in Rotterdam, the Netherlands and Geneva, Switzerland...

, Mitsui
Mitsui
is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...

 and ITOCHU
ITOCHU
, until 1992 "C. Itoh" in English, is a Japanese general trading concern based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It has a common origin with Marubeni Corporation. Itochu is a Fortune 500 company.-History:...

.

Refining is carried out by the National Oil Distribution Company (NODCO), a subsidiary of QP established in 1968. Qatar's first refinery was built in Umm Said in 1953. A second refinery was completed in 1974. By the early 1980s, growth in local consumption was such that Qatar began importing refined products. In 1983, a 50000 oilbbl/d refinery came online at Umm Said. Currently, Umm Said has a refining capacity of 137000 oilbbl/d. QP is also building another refinery, which will have the capacity to run 146000 oilbbl/d of condensate. Marketing and commercial aspects for the export of the Refinery Products are entirely controlled by the Qatar Petroleum Marketing Directorate.

Dolphin Project

Qatar Petroleum is part of the Dolphin Gas Project
Dolphin Gas Project
The Dolphin Gas Project is the natural gas project of the United Arab Emirates, Qatar and Oman. It is the GCC's first cross-border refined gas transmission project and the largest energy-related venture ever undertaken in the region.-History:...

, which connects the natural gas networks of Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...

, the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

, and Qatar with the first cross-border natural gas pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....

 in the Persian Gulf region. The project is being developed by Dolphin Energy
Dolphin Energy
Dolphin Energy is a gas company of Abu Dhabi, United Arab Emirates. It was established in March 1999 by the Government of Abu Dhabi. As of today, Dolphin Energy is owned by Mubadala Development Company, on behalf of the Government of Abu Dhabi, , Total S.A...

, a consortium owned by Mubadala Development on behalf of the Abu Dhabi
Abu Dhabi
Abu Dhabi , literally Father of Gazelle, is the capital and the second largest city of the United Arab Emirates in terms of population and the largest of the seven member emirates of the United Arab Emirates. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western...

 government (51%), Total (24.5%), and Occidental Petroleum
Occidental Petroleum
Occidental Petroleum Corporation is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America...

 (24.5%). The Dolphin Project made significant progress in 2006. Construction was completed on all the project’s upstream and downstream components by year-end except the gas processing plant located at Ras Laffan. A company spokesperson announced in March 2007 that it tested receiving and distribution facilities in the U.A.E., and expected to begin operations in June 2007. The 260 miles (418.4 km) long Dolphin Energy Pipeline currently sends 400 MMcfd of natural gas supplies from the North field to markets in the U.A.E and Oman.

Gas-to-liquids

GTL projects received significant attention in Qatar the last several years, and Qatar’s government originally set a target of developing 400000 oilbbl/d of capacity by 2012. However, cancellations and delays substantially lowered this. In February 2007, ExxonMobil canceled its Palm GTL project, which was slated to produce 154000 oilbbl/d. The company will instead develop the Barzan Gas Project, scheduled to supply 1.5 Bcf/d by 2012. The Oryx GTL plant is a joint venture of QP and Sasol-Chevron GTL, and has a 34000 oilbbl/d capacity. The plant was commissioned in June 2006, but technical problems prevented the consortium from loading the first export until April 2007. In February 2007, Royal Dutch Shell held a groundbreaking ceremony for its Pearl GTL
Pearl GTL
Pearl GTL is a gas to liquids project based in Ras Laffan, Qatar. It will convert natural gas into liquid petroleum products. When constructed, it will be the largest GTL plant in the world.-Technical features:...

 Project. The Pearl plant will be 51%-owned by QP, though Shell will operate the project with a 49% stake. The facility is expected to use natural gas feedstock to produce 140000 oilbbl/d of GTL products. The project will be developed in phases, with 70000 oilbbl/d capacity expected by 2010 and a second phase expected in 2011. The Pearl project will be the first integrated GTL operation in the world, meaning it will have upstream production integrated with the onshore conversion plant.

Qatar Petrochemical Company

Qatar was the first Persian Gulf state to build its own petrochemical industry. The Qatar Petrochemical Company (QAPCO) was established in 1974 as a joint venture between QP (84%) and CdF (Chimie de France) and began production of ethylene, low density polyethylene, and sulfur in 1981. In August 1990, QP's interest in QAPCO was reduced to 80%, with the remaining 20% split equally between Enimont (Italy), and Elf Aquitaine
Elf Aquitaine
Elf Aquitaine was a French oil company which merged with TotalFina to form TotalFinaElf. The new company changed its name to Total in 2003...

 (France) through its Atochem subsidiary. The importance of reliable gas supplies was demonstrated in the early years of QAPCO, which were marred by shortages of ethane feedstock arising from fluctuations of associated gas production along with movements of oil pricec. QAPCO's facilities consist of an ethylene plant producing 525,000 metric tons per annum (MTPA), two low density polyethylene (LDPE) plants with 360,000 MTPA and a sulphur plant with 70,000 MTPA. Shareholders are now Industries Qatar (80%) and Total Petrochemicals (20%).

Qatar Fertiliser Company

The Qatar Fertiliser Company (QAFCO) was founded in 1969 as a joint venture between the Qatari government, Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...

 Norway, Davy Power and Hambros Bank, to produce ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...

 and urea
Urea
Urea or carbamide is an organic compound with the chemical formula CO2. The molecule has two —NH2 groups joined by a carbonyl functional group....

. The company is now owned by Industries Qatar (75%) and Yara International
Yara International
Yara International ASA is a Norwegian-based chemical company. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of dry ice, nitrates, ammonia, urea and other nitrogen-based chemicals....

 (25%). QAFCO inaugurated its first plant in 1973 with a design daily capacity of 900 tons of ammonia and 1000 tons of urea. The QAFCO complex in Mesaieed City comprises four completely integrated trains; each train is made up of two units, one for production of ammonia and the other for urea, besides a urea formaldehyde
Formaldehyde
Formaldehyde is an organic compound with the formula CH2O. It is the simplest aldehyde, hence its systematic name methanal.Formaldehyde is a colorless gas with a characteristic pungent odor. It is an important precursor to many other chemical compounds, especially for polymers...

 unit. QAFCO total annual production capacity now is 2.0 MMT of ammonia and 2.8 MMT of urea, making QAFCO the world’s largest single site producer of urea. A new plant expansion is scheduled to be completed in early 2011 (QAFCO 5), using Snamprogetti and Haldor Topsoe
Haldor Topsoe
Haldor Topsøe is a Danish catalyst company. The company was founded in 1940 by Dr. Haldor Topsøe. The company also develops process technology for petroleum refining, ammonia production, methanol production, and other industries....

 design. The increase in ammonia production will be 4600 metric ton/day.

Qatar Chemical Company

The Qatar Chemical Company (Q-Chem
Q-Chem
Q-Chem is an ab initio computational chemistry software program. Q-Chem can perform a number of general quantum chemistry calculations, including Hartree-Fock, density functional theory , coupled cluster , configuration interaction and other advanced electronic structure methods...

) is a Qatari company owned by Qatar Petroleum (QP) and Chevron Phillips Chemical International Qatar Holdings LLC (CPCIQ). QP owns 51 percent of Q-Chem and CPCIQ owns 49 percent. The Q-Chem facility is a world-class integrated petrochemical plant capable of producing high-density polyethylene (HDPE) and medium-density polyethylene (MDPE), 1-hexene
1-Hexene
1-Hexene is an organic compound with the formula CH2CHC4H9. It is an alkene that is classified in industry as higher olefin and an alpha-olefin, the latter term meaning that the double bond is located at the alpha position, endowing the compound with higher reactivity and thus useful chemical...

, and other products. Over US $1 billion was invested to engineer, construct, and commission the Q-Chem facility, which began operations in late 2002. The Q-Chem complex in Mesaieed Industrial City comprises an ethylene
Ethylene
Ethylene is a gaseous organic compound with the formula . It is the simplest alkene . Because it contains a carbon-carbon double bond, ethylene is classified as an unsaturated hydrocarbon. Ethylene is widely used in industry and is also a plant hormone...

 unit (capable of producing 500,000 metric tons per annum (mtpa)), a polyethylene
Polyethylene
Polyethylene or polythene is the most widely used plastic, with an annual production of approximately 80 million metric tons...

 facility (capable of 453,000 mtpa), and a 1-hexene unit (capable of 47,000 mtpa). Q-Chem assets also include a sulfur recovery and solidification unit, a bagging and storage warehouse, a nitrogen unit, a water treatment plant, seawater cooling system, dock facilities and various administrative buildings.

Other subsidiaries

  • Qatar Vinyl Company (QVCb) - 25.5%; other shareholders are QAPCO, Hydro
    Norsk Hydro
    Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...

    , Arkema)
  • Qatar Liquefied Gas Company Ltd.
    Qatargas
    Qatargas is the world's largest liquefied natural gas company. It annually produces and supplies the globe with 42 million metric tons of LNG from across its four ventures . It is headquartered in Doha, Qatar, and maintains its upstream assets in Ras Laffan, Qatar...

     (Qatargas; other shareholders are ExxonMobil
    ExxonMobil
    Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...

    , Total
    Total S.A.
    Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...

    , Mitsui
    Mitsui
    is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...

    , Marubeni
    Marubeni
    is a Japanese trading company, one of the largest general trading companies in Japan.-Offices:*Head Office - 4-2, Otemachi 1-chome, Chiyoda, Tokyo, Japan*Head Office -20-6, Shiba 5-chome, Minato, Tokyo, Japan...

    )
  • RasGas Companies
    RasGas
    RasGas Company Limited is a liquefied natural gas producing company in Qatar. It is the second-biggest LNG producer in the world after Qatargas. RasGas operates seven LNG trains located in Ras Laffan Industrial City.-Operations:...

     (70%; 30% is owned by ExxonMobil)
  • Qatar Fuel Additives Company Ltd (QAFAC; other shareholders are OPIC Middle East Corporation, International Octane Limited and LCY Investments Corp)
  • Qatalum
    Qatalum
    Qatalum is 50-50 joint venture aluminium smelter project between Qatar Petroleum and Norsk Hydro. It will be the largest aluminium plant ever launched. It is located in Mesaieed, Qatar. It will have a capacity in the first phase of 585,000 tonnes of primary aluminium, all to be shipped as value...

    - 50-50 joint venture between Qatar Petroleum and Norsk Hydro
    Norsk Hydro
    Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...

  • ASTAD - Project Management
  • Fereej Real Estate Company QSC - Property investment, Facilities management and PM Services
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