In Qatar, state-owned QP is squeezing international oil companies (IOCs) on terms for their concessions when they come up for renewal, converting production sharing agreements (PSAs) into joint ventures (JVs) that give the IOCs less equity oil (MEES, 18 January). Oxy’s 105,000 b/d Idd al-Shargi concession is due for renewal in 2019.
QP’s upstream chief, Saad Sherida al-Kaabi is the brains behind replacing IOCs’ PSAs when they expire, with JVs. The new contracts will be more favorable for QP, which signaled tougher terms for IOCs in 2011 when it awarded ExxonMobil only a 7% stake in the Barzan 1.4bn cfd North Field development. Oxy got a further warning in November last year when Total signed up for a much tougher JV than its PSA that expires next year. Mr al-Kaabi, a key decision maker, was behind the moratorium on new gas developments in the North Field until a study into its depletion was completed. IOCs dubbed him “Mr Moratorium.” (CONTINUED - 573 WORDS)