Qatar announced on Sunday that it had chosen the French hydrocarbon giant TotalEnergies as the first foreign partner to develop the largest natural gas field in the world, and, ultimately, to allay Europe's energy fears.
“I am pleased to announce the selection of TotalEnergies as the first partner in the North Field East (NFE) project,” Qatari Energy Minister Saad Sherida Al-Kaabi told a press conference in Doha. .
The French oil and gas group will take a 6.25% stake in the project as part of a joint venture with QatarEnergy (QE), the Qatari hydrocarbon giant, said TotalEnergies CEO Patrick Pouyanne in the Qatari capital. .
The NFE is part of the offshore North Field expansion project, the world's largest natural gas field that Qatar shares with Iran.
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The North Field accounts for about 10% of the world's known natural gas reserves, according to QE.
These reserves extend under the sea into Iranian territory, where the Islamic Republic's efforts to exploit the South Pars field are hampered by international sanctions.
According to Minister Al-Kaabi, other agreements will be announced "in the near future".
Start of production in 2026
Exxon Mobil, Shell and ConocoPhilips are in the running to participate in the expansion of the project that Qatar initially wanted to finance alone, industry sources told AFP.
The stake of foreign oil and gas giants is expected to be about 25% in the project, which is expected to cost more than $28 billion and increase production by more than 60% by 2027, according to QE.
The Qatari energy minister, who also heads QE, said production would start in 2026 and expansion was "on track".
Qatar is one of the main producers of liquefied natural gas (LNG) in the world, along with the United States and Australia.
European leaders have scrambled to the Gulf emirate in recent months, seeking alternatives to Russian gas, amid war in Ukraine, which has given new impetus to LNG projects.
On Saturday, Tanzania signed a framework agreement with British and Norwegian giants Shell and Equinor on a $30 billion project, providing for a final investment decision by 2025 and start of operations in 2029-2030.