Oil & Gas industry in Qatar

Contents:-
Introduction

Oil Industry
Oil history
Major Oil fields
Crude Oil production
Oil reserves
Main operating Companies
Oil exports

Gas Industry
Natural Gas reserves
Major Gas fields
Natural Gas production
Natural Gas exports

Oil refinery

Petrochemical Industry

Terminals

Pipe lines
Crude Oil pipe lines
Natural Gas pipe lines

Reference

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 Oil & Gas industry in Qatar

Introduction:

 Qatar state is located in the Middle West coast of Arabian Gulf and
covers an area of 11,437 sq km.

 The census at the end of year 2004 was estimated 840,290. Wafts and
its capital is AL-DOHA.
 The ethnic groups in Qatar are: Arab (40%), Pakistani (18%), Indian
(18%), Iranian (10%) and others (14%).
 Qatar gained full Independence from United Kingdom in September 3,
1971.
 Qatar remains dependent on the revenue it earns from oil &gas
exports.
 Qatar is one of OPEC ORGANIZATION members.

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 Oil & Gas industry in Qatar

 Major cities are Doha, Al Wakrah, Alkhor, Mesaieed, Madinat Al-

Shamal, Dukhan, and Shahaniya.
 Qatar has proven recoverable oil reserves of 15.2 billion barrels. With
total reserves of gas estimated 910 trillion cubic feet, at the end of 2004.
 OPEC Crude Oil Production Quota (Jan- 2004): 700,000 Bbl/d (not
including condensate).

Oil Industry

Qatar has proven recoverable oil reserves of 15.2 billion barrels. 

The onshore Dukhan (Qatar’s largest producing oil field) located along
the west coast of the peninsula; Qatar is crude oil has gravities in the
(24 - 41 oAPI) range.

Oil history:

 In 1931 the angle –Persian oil company (BRICH-PET) (BP) began

carrying out a detailed geological survey of the country (Birch- pet)
renamed to Qatar-pet (QP).
 In 1935 Qatar is granted concession explore for oil.
 DUKHAN 1, the first exploration well was drilled in Oct, 1938 then
followed by other two wells.
 The 2nd. World war caused to plug all the three wells with
production of 40,000 B/d then resumed production in the end of 1947.
 In. Dec, 1949 the first shipment was made from the terminal Umm said.
 In 1952 the shell company of Qatar acquired the off shore concession,
then oil was struck at (Idd-shargi) in May 1960.
 In 1960 the 2nd offshore field was discovered (Maydan Mahzan).
 In 1969 the maritime boundary with Abu dabi had demarcated, and they
agreed that the two states have an equal interest of a formation structure
called AL-Bunduq field.

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 Oil & Gas industry in Qatar

 In 1973 Qatar was signed an agreement with to foreign oil companies

(QP) and Shell oil of Qatar.
 In 1976 Qatar General Petroleum Corporation (QGPC) was terminated
production sharing agreement with Winter shall.
 In 1978 Qatari government announced its decision to terminate its
offshore production-sharing agreement with Holkar Company.
 In 1980 the exploration activity was given a boost and again started to
encourage foreign oil companies.
 In Nov, 1984 Qatar Gas Company was established.
 In 1985 the first new agreement was signed with Standard Oil Company
Ohio (Sohio).
 In 1987 (BP) took over the concession when it raised its holding in
Sohio to 100% , after drilling six wells relinquished the tract in 1989.
 In the period of time between (1990-2000) several new fields are
discovered, that they are (Al-Khalij, Al- Shaheen, Al-Rayaan, (ISSD).
 In 1995 Qatar tented to increase its reserves by singing anew (EPSA)
Agreements with foreign companies.
 In 2004 Gulf drilling international company was established, in which
(QP) 60% interest and Japan drilling company had 40%.

Major oil fields

On shore field:
- Dukhan field:
 It was discovered in 1935 and located on the west coast of Qatari
peninsula and covered 2000-sq km and started production in 1947.
 It is consist of three main oil reservoirs and one non associated gas
reservoir (Khatiyah, Fahahil, Jaleha and Khuff).
 Its remaining reserves are estimated 2.27 MMM Bbl.
 It’s daily producing 335,000. Bbl/d of crude oil with (42 oAPI) and
approximately 1.1% of sulfur content.
 Its crud oil transported through pipelines to Mesaieed port about
100Km east of Dukhan.

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 Oil & Gas industry in Qatar

Off shore fields:

1) Idd al-Shargi field:

1.a) North Dome field (ISND):
 It was discovered in 1960 by Shell Company.
 It’s operating company Occidental Petroleum Qatar Company.
 It located 95. Mile east of Qatar northern tip.
 It’s currently production is about 120,000. Bbl/d.
1.b) South Dome field (ISSD):
 It was discovered in Sep .1997.
 It located 15.Mile from (ISND).
 It started producing in Nov, 1999.
 It’s currently producing around 17,000. Bbl/d.
 It’s recoverable reserve between (200-300) MM Bbl.

2) Maydan Mahzam field:

 It was discovered in 1964, and then came on stream in the year
after.
 It’s located in a cluster about 80 km eastern coast of the Qatari
peninsula.
 It’s currently producing 60,000. Bbl/d.
 It’s operating company (QP).
3) Bul Hanine field:
 It was discovered in 1964, and started production in 1973.
 Current production is around 100,000 Bbl/d
 Bul Hanine holds approximately 700 MM Bbl of recoverable
reserves.

 Its operating company is Qatar petroleum (QP).

4) Al-Shaheen field:
 It was discovered in 1990, and started production in 1994...
 Its Current production is around 240,000 Bbl/d.
 It Located in Block-5 about 43 miles off Qatar's northeastern coast.

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 Oil & Gas industry in Qatar

 Al-Shaheen produces heavy (27.5 oAPI) oil with 2.45% sulfur

content. 
 Al-Shaheen, operated by Maersk Oil Qatar of Denmark.
 Its recoverable reserves are estimated 780 MM Bbl.
5) Al-Rayyan field:
 The field came on stream on 1996, producing 10,000.bbl/d of heavy
oil.
 Its Current production is around 70,000. Bbl/d with oil of (24 oAPI,
3.4% sulfur).
 It’s operating company Anadarko Petroleum.

6) AL-khalij field:
 It was discovered in 1991, and started production in 1997.
 It located along Qatari maritime border with Iran.
 Its operating company ELF Aquitaine Qatar company (TOTAL).
 Its current production is 80, 000.bbl/d, of (28o API), with 1% sulfur.
 The oil is piped to Halul Island.
 Its recoverable reserves are estimated 200-300.MM bbl with
(28 API).
o

7) EL-Bunduq field:
 It was discovered in 1972, and started production in 1976.
 It located along Qatari maritime border with Abu Dhabi.
 Its current production is 15,000.bbl/d.
 It’s operating company Al Bunduq Company.
 Its recoverable reserves are estimated 260 MM Bbl.

8) AL-Karakara and A structure:

 It started production in 1998.
 Its current production is 10,000 Bbl/d of (29 API).
 Its operating company is Qatar petroleum (QP).

 Its recoverable reserves are estimated 42.6MM bbl.

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Oil & Gas industry in Qatar

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Oil & Gas industry in Qatar

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 Oil & Gas industry in Qatar

Crude oil production :-

Qatar’s oil production was estimated 770,000.bbl/d in early 2005,
down slightly from 800,000. Bbl/d in the final months of 2004, its OPEC
quota is 713,000. Bbl/d in mid-March 2005 and its crude oil production
capacity is 1,050,000.bbl/d in the end of 2005.

Crude Oil Production

800
Production(Mbbl\d)

700
600
500
400
300
200
100
0
1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Year
Crude Oil Production

Oil reserves in Qatar:

In 1995 Qatar’s policy aimed at increasing the oil production and
locating additional oil reserves, to accomplish this the government had
improved the terms of exploration and production sharing agreements
(EPSA) , for that the foreign oil companies are used to exploring for oil
and drilling new wells in producing fields.
The government policy is clearly in the period “between” (1999-2005) in
the next figure.

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 Oil & Gas industry in Qatar

Proven Crude Oil Reserves

16,000
14,000
Reserves(MMbbl)

12,000
10,000
8,000
6,000
4,000
2,000
0
1980 1985 1990 1995 2000 2005

Year
Proven Crude Oil Reserves

Main Operating Companies in Qatar:

Patriotism companies Foreign companies
Anadarko Petroleum
Qatar Petroleum : exploration,
Chevron Texaco
production, refining.
Maersk
Marubeni
Mitsui
Qatar Liquefied Gas Company
MOL
(Qatargas)
Occidental
OMV
Ras Laffan (LNG) Company Phillips Petroleum
(Rasgas) :production and marketing of TotalFinaElf
liquefied natural gas (LNG) British Petroleum

 Oil Exports:-

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 Oil & Gas industry in Qatar

Qatar exports almost all of its oil production to Asia , with Japan by
far its largest customer. In 2004, net oil exports totaled 1,023,000 barrels
per day (bbl/d). During this period, Qatar produced 1,068,000 bbl/d of
liquids (including crude oil, natural gas liquids, and condensate), up from
964,000 bbl/d in 2003.
 This figure below shows us the crude oil exports :-

Crude Oil Exports

1,000
900
800
700
Export ( Mbbl/d)

600
500
400
300
200
100
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Year
OPEC Estimation OAPEC Estimation

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 Oil & Gas industry in Qatar

Crude Oil Export by Destination

600
Export (Mbbl/d)

500
United
400 States
ASIA AND
300 PACIFIC
Japan
200

100

0
1980 1985 1990 1995 2000 2005

Year

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 Oil & Gas industry in Qatar

Gas industry:-

NATURAL GAS RESERVES:-

Proven natural gas reserves of Qatar’s 910 trillion cubic feet (Tcf),
Qatar’s natural gas resources rank third in size behind Russia’s and
Iran’s. Most of Qatar’s natural gas is located in the offshore North Field,
where represent (98.9%) of total reserves, which is the largest known
non-associated natural gas field in the world.

Qatar Gas Reserves

1,000
900
800
Reserves (Tcf)

700
600
500
400
300
200
100
0
1980 1985 1990 1995 2000 2005
Year

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 Oil & Gas industry in Qatar

Major Gas fields:-

Onshore Dukhan field:-

The field contains an estimated 5 Tcf of associated gas from (Arab C

and Arab D structure), and 0.5 Tcf of non-associated gas from Khuf
structure.
 In addition to this, facilities for injection of North Field gas into
Khuff Reservoir, Injection of lean gas into Arab D gas cap and
water injection into the main oil reservoirs of Arab C and Arab D
for pressure maintenance are also operated on continuous basis in
Dukhan.
 Arab D gas cap recycling plant to process 800 million standard
cubic feet per day (MMSCFPD) of Arab D Cap Gas and recover
38,000 BPD of stabilized condensate and 750 Tons per day (TPD) of
NGL was commissioned in 1998.
 The main products are exported to various internal and external
customers where:-
 Condensates is exported to Refinery in Mesaieed
 Arab D NGL is exported to NGL-4 at Mesaieed

Offshore Gas fields:-

 Qatar produces from Small associated gas fields also are contained
in the Id al-Shargi, Maydan Mahzam, Bul Hanine, and al-Rayyan
fields with proven reserves of 4.5Tcf.

 The North Field (NGF) :-

The North Field was discovered in 1971, and it is recognized
to be one of the world's largest non-associated gas fields and
covered 6000-sq km with total reserves of 900Tcf of non-associated
gas, representing 20% of the world's gas reserves.
QP started to develop the north gas field by establishing in 1987 the
first phase installations, which were completely operational in 1991,
The NGF is a major source of investment in the field of gas

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 Oil & Gas industry in Qatar

production and gas downstream industries due to the concentration

of vast quantities of gas in one area, and to the favorable weather
and geographical conditions that make production easier and less
costly compared to other areas in the world.
Its currently production 800MMscf/d of raw gas in 2004, the
country's daily exports of gas reached 23 million tons.

Natural Gas Production:-

As we will see in the next figure the natural gas production is equal
to the country consumption until 1996, where the North field development
are completed, that cause obvious increase of gas production.

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 Oil & Gas industry in Qatar

Gas Production
2,000

1,800

1,600

1,400

1,200 Gross Production

Marketed Production
(B cf/d)

1,000
Flaring
800 Reinjection
Shrinkage
600

400

200

0
1980 1985 1990 1995 2000 2005

Natural Gas Exports:-

Due to the development projects in North field are completed ,and
The LNG Plant’s downstream Train 1 is completed ,then the first
condensate cargo exported in Sep 1996,and more development projects
happened that caused to increase exports .and Currently Qatar has two
liquefied natural gas (LNG) exporters: Qatar LNG Company (Qatar gas);
and Ras Laffan LNG Company.

Qatar costumers for gas products are Japan, Korea, Indian and American
companies and it has signed short and long-term agreements to ship LNG
to a number of other markets including Spain, Turkey, Italy, France and
the UK .

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 Oil & Gas industry in Qatar

Natural Gas Exports

900

800

700

600
B SCF/Year

500

400

300

200

100

0
1997 1998 1999 2000 2001 2002 2003 2004 2005
Natural gas exports

Oil refinery:-
Qatar possesses a single refinery in Umm said which has now
capacity of 137,000. Bbl/d, and operated by the National Oil Distribution
Company (Nodco) a wholly –owend subsidiary of QGPC and consist of
two plant:-
1. Umm said 1: - it was built in 1950 with capacity 680 bbl/d, 1960 with
capacity of 13,000 Bbl/d.
2. Umm said 2:- it was built in 1983 with capacity 50,000 Bbl/d.
The two plants are operated now as a single unite, and in 2002 a major
expansion project at Umm said refinery was completed boosting capacity
from (62,000 - 137,000) bbl/d.
The annual product of petrol in 2003 mounted to 1707.7 tons, the product
of liquefied petrol gas was 130.000 tons, the product of diesel was
965,000 tons and of fuel oil 439,000 tons.

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 Oil & Gas industry in Qatar

Qatr's capacity and production of refined products

160

140

120
M bbl/d

100

80
Capacity
60 Production
40

20

0
1980 1985 1990 1995 2000 2005

Qatar Refined Products

50
40
(Mbbl/d)

30
20
10
0
1980 1985 1990 1995 2000 2005

Year
Gasoline Kerosene

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 Oil & Gas industry in Qatar

Petrochemical Industries:-

Chemical Fertilizers Industry (QAFCO)

Established in 1969 is shared by Qatar Petroleum (75%) and

Norsk Hydro of Norway (25%). The fertilizers complex comprises two
ammonia and two urea-producing plants. Production at the two plants
started in 1973 and 1979 respectively.

The plant's expansion project, QAFCO-3, which was inaugurated in

1997 has a daily design output capacity of 3800 tons of ammonia, 4850
tons of urea and 2000 tons of high quality granular urea.
The new expansion project, QAFCO-4, is designed to have a daily
output capacity of 2000 tons of ammonia, 3200 tons of urea and
65 ton of Formaldehyde since 2004.

The company produced 1442 thousand tons of ammonia and 1780

thousand tons of urea in 2003.

Petrochemical Industry (QAPCO)

It was established in 1974 as a joint venture between QP (80%),
the French company Elf Atochem (10%) and the Italian company
Enichem (10%).

The petrochemical complex started production in 1981 from three main

production units. An expansion project, started in 1994 and
commissioned in 1996, raised the annual output capacity of the
complex to 525 thousand tons of ethylene, 360 thousand tons of low-
density polyethylene (LDPE) and 70 thousand tons of sulfur.

By the year 2003, the annual production of QAPCO stood at 525

thousand tons of ethylene and 380.5 thousand tons of polyethylene; and
increased by 45.8 thousand tons of sulfur.

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 Oil & Gas industry in Qatar

Qatar Chemical Company Ltd. (Q-Chem)

Qatar Chemical Company Ltd. (Q-Chem) was founded in 1998 as
a joint venture between QP (51%) and Chevron Phillips Petroleum
(49%). The complex was inaugurated in 2003 with a design annual
output capacity of 500 thousand tons of ethylene. In 2003, the
company's product of high density polyethylene and hexane mounted to
141,900 tons and 14,600 tons respectively.

Qatar Fuel Additives Company (QAFAC)

Established in 1999 in Mesaieed, QAFAC is a shareholding
between QP (50%), Chinese Petroleum Corporation CPC (20%), Lee
Chang Yung Chemical Industry Corporation (15%) and International
Octane Ltd (15%). The project is designed to produce 832.5 thousand
tons of methanol liquid and 610 thousand tons of MTBA annually.
In 2002, production level reached about 772 thousand tons of methanol
liquid and 576 thousand tons of MTBA.

Terminals and Vessels :-

Oil products &gas in Qatar are shipped from three terminals
which they are:-

1) Umm Said Terminal:-

Umm Said (Mesaieed) is twenty miles (45km) south of Doha, the
capital, and is the site of Qatar's original downstream industries.

On the December, 1949 the first crude oil shipment was loaded at
Mesaieed. Since that date, the port of Mesaieed has grown steadily
from solely a crude loading terminal to a moderate sized port
handling oil products, liquefied gases, chemicals, fertilizer, bulk and
general cargoes. The Port is currently visited by around 1100 vessels
(2002).
The storage capacity of the terminal is 275,000.tons from 16 storage
tanks and operated by (QP) company.

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 Oil & Gas industry in Qatar

2) Halul Island:-
The island is over (80km) east of the Qatar eastern coast with an area
of 1.5 square kilometers, serves mainly the three offshore fields of
Idd-Shargi, Maydan Mehzam and BulHanine fields, completed in
1965
The island is home to 11 large crude oil storage tanks, with a total
capacity of 5 million barrels, crude oil pumping facilities, power
generation and water desalination plants. Oil is blended and exported
from Halul to customers’ oil tankers moored offshore. In 2003, 108
commercial tankers were loaded at Halul.

3) Ras Laffan:-
Ras Laffan Industrial City (RLC) is located 80 kms north east of
Doha, covering 106 square kilometers, and became full operational in
1996 with LNG export capacity of 30MM metric tons per annum.

Flow of vessels in Rass Laffan port:-

Total
Type Year

1996 1997 1998 1999 2000 2001 2002 2003 2004

LNG 39 70 112 183 217 234 248 307

1 1411
Condensate 4 23 28 56 71 84 81 84 110 541
2 236
General Cargo 46 31 1 1 3 47 41 64

Sulphur 0 0 2 2 9 10 12 15 22 72

 Qatar gas also is responsible for the transportation of LNG between

Ras Laffan and Japan, where most of the buyers are located. A total
fleet of ten purpose-built LNG vessels, each with a capacity of4.8 MM
cubic feet, is currently in operation

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 Oil & Gas industry in Qatar

 Qatar gas has selected names of the LNG vessels to reflect the main
cities and areas in Qatar.
 Al Zubarah
 Al Rayyan
 Al Wajbah
 Broog
 Al Kho
 Al Wakrah
 Zekreet
 Doha
 Al Bidda
 Al Jasra
 Dukhan

Pipe Lines:-

1) Crude oil pipe lines:

Table (1), Crude Oil Pipe line

Crude Oil Pipelines in Qatar

Length,
From To Operator Diameter, Inches
Miles
Umm
Umm Bab QGPC 67 16/20
Said
Idd El Sharghi Halul QGPC 2 X 13 20,12
Maydan Mehzam Halul QGPC 10 14
Bul Hanin Halul QGPC 27 20
Dukhan Messaied QGPC 60 24/16/20
Alkhaleej Halul QGPC 29,28 20,12

2) Gas Pipe lines:

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 Oil & Gas industry in Qatar

Table (2), Gas Pipe line

Gas Pipelines in Qatar

Length, Diameter,
From To Operator
Miles Inches
Fahahil
Umm Said QGPC 56 20
Reinj.Compress.
Umm Said Point"B" Power Stat. QGPC 28,29,29 30,24,24
Idd El
Umm Said QGPC 75 24
Sharghi
Fahail Point "B" Plant QGPC 28 24
Point "B" Umm Said QGPC 28 24
Point "B" Power Station QGPC 29 18
Dukhan Messaied QGPC 60 24/16/20

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Oil & Gas industry in Qatar

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 Oil & Gas industry in Qatar

References

1) Arab Oil &Gas Directory.

2) Organization of Arab Petroleum Exporting Countries (OAPEC).
3) Links
 WWW.OPEC.com
 WWW.QP.com
 WWW.EIA.com
 WWW.QatarGas.com

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