Irving, Texas, United States
Qatar Petroleum and Exxon Mobil Corporation (NYSE:XOM) announced today that Qatar Petroleum has offered participation in the Barzan gas project and rights for participation in all future phases of the project to ExxonMobil Middle East Marketing Ltd. (ExxonMobil). In parallel with these discussions, the two entities have collectively decided not to progress the Gas to Liquids (GTL) project and instead to pursue the development of the Barzan Project in the North Field.
The initial phase of the Barzan project will supply domestic gas to meet the State of Qatar's infrastructure and industry growth. Qatar Petroleum and ExxonMobil have agreed to form a joint venture to oversee the project development.
"The Barzan Project is a very important strategic project for Qatar," said H.E. Abdullah bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and Industry and Chairman of Qatar Petroleum. "We welcome ExxonMobil as our partner in the Project".
Stuart McGill, Senior Vice President of Exxon Mobil Corporation, said, "We understand that the Barzan Project is a priority for the State of Qatar. We are pleased to have been the only international oil company selected to participate in the Barzan Project and look forward to continuing our successful partnership with Qatar Petroleum."
Qatar Petroleum and ExxonMobil have signed a Statement of Participation Principles for the Barzan Project and a Heads of Agreement (HOA) for all future phases of the Barzan Project. It is expected that the initial phase of the Barzan Project will yield about 1.5 billion cubic feet per day of sales gas with the startup anticipated in the year 2012.
CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including production rates and sales volumes, cost efficiencies, project plans, schedules, and costs, and commercial arrangements could differ materially due to changes in long-term oil and gas price levels or other market conditions affecting the oil and gas industry; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; the outcome of commercial negotiations; and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com). References to volumes of oil, gas, and resources include quantities of oil and gas that are not yet classified as proved reserves but that we believe will be produced in the future.
CONTACT: Qatar Petroleum Abdullah Al Kuwari, 974-494-6601 or ExxonMobil Jeanne Miller, 713-656-4376
CONTACT: Qatar Petroleum Abdullah Al Kuwari, 974-494-6601 or ExxonMobil Jeanne Miller, 713-656-4376
Source: Business Wire (Business Wire India)