Qatar Petroleum is set to raise its crude oil production by another 30,000 barrels per day (bpd) immediately following OPEC's easing of output restrictions.
"We will produce about 30,000 bpd extra immediately and we will try to stay within the boundaries of what we agreed to. We do not have a huge capacity to grow beyond 50,000 bpd to 70,000 bpd," QP President and Chief Executive Officer Saad Sherida al Kaabi told Bloomberg TV on Tuesday.
Qatar currently produces 600,000 bpd in May, down from 620,000 bpd in April, according to the latest S&P Global Platts OPEC survey.
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OPEC on Saturday finalised an agreement with its 10 non-OPEC allies, led by Russia, to increase output by 1 million bpd from May production levels to help reduce prices and prevent a supply shortage, in a significant reversal of OPEC's strategy of curbing output over the past 18 months. OPEC produced 31.90 million bpd in May.
With several members unable to raise their production due to underinvestment or economic difficulties, Kaabi said he expected OPEC's 15 members to add 600,000-800,000 bpd in real terms to the market.
The new individual oil production caps will be set by a six-country monitoring committee chaired by Saudi Arabia and Russia, which was due to meet in September.
On being asked if China agrees to buy more LNG from the United States following the trade war, what kind of opportunity does it offer to US and Qatar, Kaabi said ,"I think energy should be kept away from the trade war if it is called as clean energy should be made available to all mankind. My advice is to leave it (energy) as will make us more competitive than the US if energy is included in the trade war.
"But we think the demand growth in the world needs everybody to be part of that energy mix and Qatar is the largest LNG supplier and Australia is also quite large and growing. We have already announced to grow our LNG business from 77 million tonnes to 100 million tonnes. We are also investing in the US to have additional LNG that comes out of the US," Kaabi added.
In reply to another question regarding IEA's report that the US could become the biggest LNG supplier if all their projects will come online and the competition it will give to Qatar, Kaabi said,"If you look at the growth around the world and the requirement for the cleanest fossil fuel whether its China, India or all the growing countries, there is need for everybody to produce more gas to cope with the requirements of the future. So, I think there is enough to go around and I think everybody should grow and to have a good supply to cater to the growing demand," Kaabi said.
Asked if the trade war has made any effect on partnerships between US firms and Qatar in the gas business, Kaabi said,"Out of the 14 trains producing 77 million tonnes LNG, Qatar has partnership with Exxon Mobil in 12 trains, one with ConocoPhillips and only in one train we have partnership with Shell. Our partnership is with the US firms are very strong and solid and will survive till 2030 with the contract we have in place," Kaabi added.
