NORTH GAS FIELD

           Qatar Liquefied Natural Gas Project
           Ras Laffan Port



Sitting on 6% of the world's natural gas reserves, Qatar is considered to be one of the five countries in the world with the biggest natural gas reserves. This huge wealth is concentrated in the North Gas Field, the largest single non-associated field in the world, with recoverable reserves of about 380 trillion cubic feet and total gas in place exceeding 500 trillion cubic feet. The field, discovered in 1971, lies mainly offshore to the north east of Qatar's peninsula under water depths ranging between 15 and 70 meters, covering an area of some 6000 square kilometers.

In view of the large reserves of this field and the qualities of gas as a clean, safe and sustainable source of energy, Qatar Petroleum (QP) has worked out a phased strategic plan to develop the field and optimize the exploitation of its resources with the aim to realize additional financial returns by exporting gas both as liquefied (LNG) by tanker and natural gas by pipelines and setting up new industries and a modern terminal at Ras Laffan.

The first phase of this massive project was inaugurated in 1991 with initial daily output capacity of 800 million cubic feet set aside to meet the needs of local domestic consumption and industries, and 50,000 barrels of condensate and liquids earmarked for export. The total export capacity of gas amounted to about 18 million tons per day. The average daily production of gas reached 1482 million cubic feet in 1998.

Qatar Liquefied Natural Gas Project

This project aims at producing 6 million metric tons of liquefied natural gas annually for export to Japan, as well as 50,000 barrels per day of condensate. QATAR GAS Company manages this project.

The first and second shipments of LNG were exported to Japan in 1997. The first provided 135,000 cubic meters for Chubu company, while the first shipment of exported condensates carried 55,000 metric tons to the USA.

The Company also concluded a US $ 40 million deal to export about 500,000 tons of liquefied natural gas and condensate to the American market for one year.

In 2000, the Company was able to sell 6.75 million tons of LNG and its daily production of condensate reached 48,000 tons.

Ras Laffan Liquefied Natural Gas Project

Ras Laffan Liquefied Gas Company (RASGAS) was established in 1993 to produce 5 million metric tons of LNG annually, and 34,000 barrels of condensate on daily basis. The foundation stone of this massive US $ 3.3 billion project was laid down in 1997 and His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar inaugurated it in 1999. The shareholders of the Company are QP (63%), Exxon Mobil of the USA (25%), Korea Gas Corporation (KOGAS) of South Korea (5%), Itochu of Japan (4%) and Nissho Iwai of Japan (3%).

During 2000, RASGAS sold 3.91 million tons of LNG, most of which went to South Korea, and produced 27,000 barrels of condensate on daily basis. The first shipment of the Company's exports took 500,000 barrels of condensate to South Korea in 1999, and starting from that year the annual output capacity of the facility has increased to 10 million metric tons of LNG.

An initial agreement was signed with KOGAS to increase its LNG purchases from 2.4 million metric tons to 4.8 million metric tons annually for 25 years.

RASGAS signed an agreement with Petronet Co. of India to supply India with 5.7 million metric tons of LNG for 25 years starting from 2003.

The company also signed an initial agreement to supply the Indian Daction Bharat Consortium (DBEC) with 2.6 million metric tons of LNG annually for twenty years starting from 2003.

Within the framework of the Company's ambitious strategy to increase its output capacity, two maintenance and expansion contracts worth more than US $ 200 million were signed by RASGAS and Nuovo Pigonne of Italy to increase the annual production of QATAR GAS from 7.7 million tons to 9.2 million tons by the year 2005.

Ras Laffan Port

H.H. Sheikh Hamd Bin Khalifa Al Thani, the Emir of the State of Qatar inaugurated Ras Laffan Port in 1997. Construction of the project, costing US $2 billion, started in 1992, and was completed in 1996. Since then the facility was ready for export operations of condensate and LNG.

The port has two LNG berths, two berths for loading liquid products and petrochemicals, two dry cargo container and general container berths and a heavy load berth. There is also a control tower, administration buildings and other facilities. The number of exported LNG shipments from Ras Laffan amounted so far to 40.

The other new industrial projects, which will be constructed in Ras Laffan City, will include a refinery for condensate, other gas liquefaction plants and a pipeline for exporting gas to the neighboring countries.

Dolphin Project

For further economic integration among the Arabian Gulf countries, a document of basic principles was signed in March 1999 between QP and DOLPHIN ENERGY LTD, owned almost totally by Trade Exchange Program Bureau of the UAE. The agreement defined the partnership aiming to export gas in quantities ranging between 300,000 and 600,000 cubic feet from Qatar to the UAE and Oman for 25 years and to produce on daily basis 35,000 barrels of condensate and 19,000 barrels of liquefied associated gas.

The amount of gas exported to Oman and Pakistan will be later increased. It is worth mentioning that in 2000 Qatar and UAE discussed exporting from Qatar to UAE 3.2 billion cubic feet of gas per day for a cost ranging from US $ 8 billion to US $ 10 billion.

The agreement prescribes that Dolphin dig 16 wells, build a production unit and transport gas to Ras Laffan where the company will have built a gas treatment plant, in which condensate, sulfur, natural gas liquids and liquefied petroleum gas are to be extracted. According to the agreement, QP gets the extracted products while Dolphin gets the dry gas through an 800 km long pipeline extending to Al Taweela in Abu Dhabi. Dolphin will undertake all the cost and gas shipments are expected to reach Al Taweela in 2004 or early in 2006.