Image: Top ten gas projects in Qatar in terms of remaining capex/boe ($). Credit: Upstream Analytics.
Over $9.9bn in capital expenditure (capex) will be spent by Qatar-focused operators on gas projects over the next four years to ensure that country’s production will remain around 18.1 billion cubic feet per day (bcfd) in 2021, according to GlobalData. Conventional gas projects will be the only source of gas production in Qatar between 2018 and 2021.
Qatar Petroleum will drive Qatar’s gas production with 62.1% share of all the production in 2021. Exxon Mobil Corporation and Total SA follow with 23.8% and 3.5% respectively. Qatar has two key upcoming gas projects, Barzan and North Field Expansion, of which Barzan will be producing by 2021. Qatar Petroleum will lead in greenfield gas projects, with participation in both the projects.
Qatar is expected to spend $9.9bn as capex on conventional gas projects during 2018 to 2021, with spending topping in 2021 at $3bn. Average full cycle capex per barrel of oil equivalent (boe) for Qatar gas projects is $3.56. Shallow water projects have an average full cycle capex of $3.58 per boe, while the single onshore gas project needs $3.31 per boe in capital investments. New gas projects average $1.39 per boe in capex.
Shallow water projects require a gas price of $1 per thousand cubic feet (mcf) for the development to break even.