/Qatar Economic Forum/ Minister of State for Energy Affairs: ExxonMobil is a Partner in NFE Expansion Project

Doha, June 21 (QNA) - HE Minister of State for Energy Affairs Eng. Saad bin Sherida Al Kaabi revealed that QatarEnergy has chosen ExxonMobil as the fourth partner in the North Field East (NFE) expansion project, considering that the weak investment in the energy sector is the main reason for the high prices.
In a session on ensuring energy for all within the activities of the "Qatar Economic Forum, Powered by Bloomberg," His Excellency pointed out the need for countries to take into account the issue of taxes levied on companies through formulas that ensure a balance in this field, given that the profits achieved by companies represent their investments in the medium and long terms. He pointed out that the rise in oil prices by about 50 percent in 2022 to the levels of about USD110 a barrel, is mainly due to the repercussions of the Ukrainian-Russian war, which increased pressure on the market, which is struggling to increase production quickly enough to deal with economies recovering from the COVID-19 pandemic.
For his part, HE Deputy Chairman and Chief Executive Officer of Kuwait Petroleum Corporation Sheikh Nawaf Saud Al-Sabah said that his country has started its first steps to develop oil and gas production at sea, noting that the Al Zour refinery will enter production at the end of 2022.
He stated that Kuwait can pump more oil if necessary into the market in response to the requests of its customers, adding that European buyers are asking for more refined oil from Kuwait, in anticipation of starting the full operation of the Al Zour refinery.
He explained that the global oil demand is still high, so far, despite the outbreak of crises in separate regions of the world, noting that this indicates the continuation of the gradual recovery of the global economy from the repercussions of the COVID-19 pandemic.
Chairman and CEO of ExxonMobil Darren Woods pointed out that oil markets may remain tight for a period of three to five years, largely due to the lack of investment since the beginning of the pandemic, and it is likely that it will take time until Oil companies can "catch up" with the investments needed to ensure there is sufficient oil supply.
QatarEnergy announced that it has selected ExxonMobil as a partner in the North Field East (NFE) expansion project.
HE Minister of State for Energy Affairs, the President and CEO of QatarEnergy Saad bin Sherida Al Kaabi and the Chairman and CEO of ExxonMobil Darren Woods signed the partnership agreement on Tuesday.
The American company will acquire a 6.25 percent stake in the NFE project, which is expected to start operating in early 2026 and the expansion of investment in LNG in Qatar will increase the country's production capacity to 110 million tons per annum (MTPA), in line with the increased global demand for this type of clean energy.
The agreement stipulates a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ExxonMobil will hold the remaining 25% interest. The new JV will own 25% of the entire NFE project, which includes four mega LNG trains with a combined LNG capacity of 32 MTPA.
In his remarks, HE Minister Al Kaabi said, "Today, we are signing a partnership agreement with ExxonMobil, our strategic and long-term partner, with whom we have enjoyed successful and fruitful relations in Qatar and across the globe. This is primarily due to the mutual trust and confidence between both parties, and to the State of Qatar's safe and stable investment climate." HE Minister Al Kaabi added, "We look forward to working closely with ExxonMobil to implement this world-scale project, and to live up to our commitment to power lives with cleaner energy in every corner of the world for a better tomorrow for all." On his part, Mr. Darren Woods said, "ExxonMobil's scale, unique capabilities, and expertise will contribute to enhancing the North Field's LNG production capacity, helping to meet the world's growing demand for energy while supporting a lower-emissions future." "This is an important milestone in our longstanding relationship with the State of Qatar and QatarEnergy, which continue to advance their global LNG leadership," Woods concluded. (QNA)