Energy

Shell, China's CNPC sign Qatar gas deal

(Agencies)
Updated: 2010-05-17 09:45

DOHA, Qatar - Royal Dutch Shell, China National Petroleum Corp (CNPC) and Qatar Petroleum (QP) signed a 30-year deal on Sunday for gas exploration and production in Qatar, the holder of the world's third-largest gas reserves.

Officials signed the agreement under which Shell, as operator, will hold a 75 percent equity stake, with CNPC holding the remainder.

The 30-year deal, which includes a five-year exploration period, covers onshore and offshore exploration for natural gas and its production in Qatar Block D, which covers an area of more than 8,000 square kilometers close to the industrial city of Ras Laffan, a statement said.

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Qatar has the world's third-largest gas reserves and aims to start producing around 5 million barrels of oil equivalent per day in 2014, up from current output of 2.7 million boepd.

Qatar's Oil Minister Abdullah al-Attiyah, speaking during Sunday's signing, said Qatar was in talks over the supply of 7 million tons of liquefied natural gas (LNG) to China and four million tons of LNG to India, in addition to earlier agreements.

QP said on Thursday it agreed to supply UNIPEC, a wholly owned affiliate of China's Sinopec Corp, Qatar Marine Crude Oil (QMCO) and Al-Shaheen (ALS) for one year, starting in July.

Attiyah said the latter agreement was for the supply of 30,000 barrels per day of crude oil.

The supply agreement is an addition to an existing contract between the two parties for supplying Qatar Marine and Qatar Land crude oils, QP said.