Qatar Petroleum (QP) has said it has not stopped any long term projects and is looking towards expansion to better position it internationally, according to its top official.
Moreover, the country's oil and gas behemoth, which will soon join the Oil and Gas Climate Initiative (OGCI) for better environment, is seeking a "reasonable" carbon dioxide pricing as part of clean development mechanism (CDM).
"In QP we have not stopped any long-term projects that are on our plans. Actually we are going to be expanding and we are looking for QP to be present internationally in a much bigger way," QP president and chief executive Saad Sherida al-Kaabi told the 9th International Petroleum Technology Conference (IPTC), which got underway in Doha yesterday. However, he did not elaborate on the expansion strategy. His statement comes at a time when global oil prices are its multi-year lows and that in June this year; QP had announced the completion of "right-sizing" of its expatriate workforce as part of its reorganisation.
"We are very much determined to look at the long-term goal," he said, addressing the first CEO Plenary Session of IPTC.
Saudi Aramco chief executive Amin H al-Nasser said although oil prices, which are now 60% lower year-on-year, is affecting the industry; the current demand-supply imbalance is all set to "stabilise and adjust".
The oil market have seen additional 2.2mn barrels supplies in the past years; but this year the scene is different with no additional supplies forthcoming and hence "the gap will be closing", which will see "adjustments" to the price going forward, starting by 2016, he said.
On the issue of cleaner environment, al-Kaabi said QP - along with other partners such as Centrica, ENI, E.On Ruhrgas, Gazprom Export, GDF Suez, Royal Dutch Shell and Statoil - had conducted a study which found that switching from coal to gas power could save European nations €450bn in cutting the carbon dioxide emission levels by 80% by 2050.
Highlighting that more support is needed from the global governments; he said carbon dioxide price was "reasonable" and there was value for carbon sequestration when QP applied for CDM for its projects.
The Al Shaheen Oil Field Gas Recovery and Utilisation project was registered on May 29, 2007, which is the first registered CDM project activity within the Gulf Cooperation Council.
CDM is one of the flexible mechanisms defined in the Kyoto Protocol that provides for emissions reduction projects which generate certified reduction units which may be traded in the emissions market.
The Kyoto Protocol to the UN Framework Convention on Climate Change aims at reducing emissions of greenhouse gases in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. It was adopted on December 11, 1997 in Kyoto, Japan, and entered into force on February 16, 2005.
However, "it is not economical to do (at present)", he said, adding "I hope that Paris will come up with something that is feasible for people to go and invest in."
Highlighting that the three interconnected pillars of sustainability is economic growth, social progress and environmental awareness; al-Kaabi said hence partnership is needed with all the stakeholders.
He said QP will very soon join the OGCI, which enables the oil and gas industry to work together to deliver practical solutions to climate risks and better environment for the future.
OGCI has been focusing on three key areas: role of natural gas, carbon reduction instruments and tools, and long term solutions.