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Qatar expands its energy spending abroad

03rd February 2014

Qatar Petroleum has expanded its energy portfolio by buying oil and gas fields from Brazil to the Congo due to the continued moritorium on its North Field gas reservoir

The North Field has been placed on a moratorium in 2005 and may remain until 2015

Qatar Petroleum International has purchased oil and gas fields from Brazil to the Congo based on the producer’s concern regarding fewer energy developments at home, particularly over the country’s biggest gas reservoir, the North Field, reported Bloomberg.

The North Field has been placed on a moratorium in 2005 and may remain until 2015, because of the of the Qatari government’s concern that the natural gas reserves were being developed too quickly, which could ruin its long-term production potential.

Qatar Petroleum International’s (QPI) recent USD 1bn purchase of 23 per cent of the Parque das Conchas oilfield offshore Brazil from Royal Dutch Shell is the latest of three foreign deals in the past year.

It also acquired 15 per cent of Total’s Exploration and Production’s Congo unit in December, inserting USD 1.6bn.

Tom James, a Dubai-based managing director at Navitas Resources Ltd, an adviser on energy and commodity markets told Bloomberg that “Qatar is buying stuff because they’ve got money to spend: It’s called diversification.”

The stake in Parque das Conchas, known as BC-10, is QPI’s first deal in South America.

Qatar Petroleum’s chief executive officer, Nasser al-Jaidah, also revealed, “BC-10 demonstrates our commitment to expanding our strategic and international investments globally.”

The Ministry of Development Planning and Statistics has estimated in a report that Qatar’s economic growth will slow to 4.6 per cent in 2014 due to ageing oil fields contracts and stabilizing gas production.

Philippe Dauba-Pantanacce, a senior economist at Standard Chartered, said in a phone interview with Bloomberg, “The purchase in Brazil is really a general strategy to simply put to work the money they have outside their economy, which is very small. They do have an expertise in energy, they have knowhow.”

 

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