1. Introduction: Qatar currently produces 77 mtpa of Liquefied Natural Gas (LNG), which dwarfs the 24 mtpa production of 2nd placed Indonesia. Production started as recently as 1997, compared to the several decades that other LNG producers have been in operation. This paper will review the key policy factors that have been responsible for Qatar's success story including leadership vision, efficient utilization of International Oil Companies’ (IOCs) expertise and technology, and a conducive hydrocarbons policy.

2. Qatar-Country Brief

GDP trend, population

3. Qatar National Vision (QNV): Impact on the Energy Sector

The QNV envisages that Qatar's hydrocarbon resources would be subject to cautious development in order to safeguard the interest of future generations, and there would be greater focus on non-hydrocarbon industries.

4. Hydrocarbon Legislation

The Permanent Constitution of Qatar establishes the state's sovereignty over the ownership of its resources.

5. Qatar's Gas and LNG Sector


* Qatar LNG Projects, 1997-2011

* Global LNG production by country

* Qatar LNG production trend

6. Analysis of Development & Fiscal Agreements (DFAs) and Production Sharing Agreements (EPSAs/DPSAs)

The DFA is joint venture between Qatar Petroleum and an IOC. Most LNG (and gas) agreements are structured as such, due to the strategic nature of Qatar's gas sector and the gigantic North Field, as well as the sophisticated liquefaction technology involved in LNG projects. The two main LNG joint ventures are RasGas and Qatargas. Most of the country's oil contracts have been awarded on the EPSA and DPSA basis, which do not have any state equity participation unlike the gas DFAs. These allow for exclusive grant of rights to explore and produce petroleum.

8. Conclusion:Qatar has kept a stable and prospective hydrocarbon regime that has attracted investors. The state wisely diversified its partnerships to include capable oil majors to spread the risks and to create a better bargaining position when negotiating fiscal terms, and preferred long-term Sale & Purchase Agreements with customers to safeguard future revenues. Through careful collaboration with IOCs and balanced bilateral contracts, the focus was on a win-win scenario for the investor and the government.


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