ExxonMobil jumps on GTL train

16 July 2004
Qatar Petroleum (QP)and ExxonMobil Qatar GTL, a subsidiary of the US' ExxonMobil Corporation, signed on 14 July a heads of agreement (HoA) for an integrated gas-to-liquids (GTL) project at Ras Laffan. Worth about $7,000 million, the deal provides for 154,000 barrels a day (b/d) of GTL capacity to be built, to create the largest single GTL project in the world. The announcement is the latest in a string of agreements between QP and international oil majors for GTL schemes (MEED 26:4:04).

The HoA sets out the fiscal terms for the project, which will be executed under a development and production sharing agreement (DPSA) such as the one signed by Qatar Shell GTL, a subsidiary of the Royal Dutch/Shell Group, for a similar project six days earlier (see below). The DPSA will run for 25 years from the start-up of production, scheduled for 2011. ExxonMobil will contribute 100 per cent of capital costs and is due to drill an appraisal well by the end of 2004 to supplement completed preliminary front-end engineering and design (FEED) studies.

The plant will deploy ExxonMobil's proprietary AGC 21 GTL technology. The plant's products will consist of about 50 per cent low-sulphur diesel and 20 per cent lube base stocks, with naphtha and associated products making up the remainder. ExxonMobil has extensive interests in Qatar and is a shareholder in the upstream Al-Khaleej development (AKD) project in the North field, phase 1 of which is under way. In June, a statement of intent was signed with QP to conduct a feasibility study into a worldscale ethane-based derivatives complex at Ras Laffan. ExxonMobil is also a shareholder in the state's two liquefied natural gas (LNG) companies (MEED 2:7:04).

As well as the Shell venture, QP is also undertaking GTL projects with the US' ConocoPhillips, South Africa's Sasoland a joint venture of Sasol and the US' ChevronTexaco Corporation.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications