ConocoPhillips' Qatargas 3 Qatar liquefied natural gas project is on budget and on schedule despite rising costs for building energy projects and tight supplies of raw materials, a senior executive said.
Mike Stice, president of ConocoPhillips in Qatar, said Qatargas 4, a joint venture between Qatar Petroleum and Royal Dutch Shell, was also on track. 'Higher costs and rising prices have affected everybody in the industry,' Stice said on the sidelines of an energy conference in Doha.
'But I'm pleased to say that both these projects are on track, on schedule and within budget.'
Stice also said the gas to liquid projects that Conoco was looking at remain a possibility, despite Exxon recently dropping a similar project due to spiralling cost.
'Nothing is off the table,' he said.
'Conoco would look at the project again when Qatar raises the moratorium on new gas projects from its north fields,' he added.
Qatar has frozen all new gas projects until 2012 to assess reserves at its vast North Field.
Stice said the projects had stayed on track due to accurate initial cost forecasts and early purchases of raw materials and supplies for construction.
Rapidly rising fees for oil service contractors, labour supplies and raw materials have strained the budgets of big energy projects around the world.
In February, rising costs forced Exxon Mobil to drop plans to build the world's largest gas-to-liquids project in Qatar.
The number of projects that Qatar is building simultaneously as it boosts output from its massive North Field, the largest reservoir of pure gas in the world, has further tightened supplies and fanned costs. The Qatargas 3 LNG train is due on line in November 2009, he said.
The $5 billion project will have an LNG capacity of 7.8 million tonnes per year.
ConocoPhillips has a 30 per cent stake in the project while the rest belongs to Qatar Pteroleum. Qatargas 4 is due online in 2010. Shell has a 30 per cent stake in the project, initially worth $7 billion. TradeArabia
Mike Stice, president of ConocoPhillips in Qatar, said Qatargas 4, a joint venture between Qatar Petroleum and Royal Dutch Shell, was also on track. 'Higher costs and rising prices have affected everybody in the industry,' Stice said on the sidelines of an energy conference in Doha.'But I'm pleased to say that both these projects are on track, on schedule and within budget.'
Stice also said the gas to liquid projects that Conoco was looking at remain a possibility, despite Exxon recently dropping a similar project due to spiralling cost.
'Nothing is off the table,' he said.
'Conoco would look at the project again when Qatar raises the moratorium on new gas projects from its north fields,' he added.
Qatar has frozen all new gas projects until 2012 to assess reserves at its vast North Field.
Stice said the projects had stayed on track due to accurate initial cost forecasts and early purchases of raw materials and supplies for construction.
Rapidly rising fees for oil service contractors, labour supplies and raw materials have strained the budgets of big energy projects around the world.
In February, rising costs forced Exxon Mobil to drop plans to build the world's largest gas-to-liquids project in Qatar.
The number of projects that Qatar is building simultaneously as it boosts output from its massive North Field, the largest reservoir of pure gas in the world, has further tightened supplies and fanned costs. The Qatargas 3 LNG train is due on line in November 2009, he said.
The $5 billion project will have an LNG capacity of 7.8 million tonnes per year.
ConocoPhillips has a 30 per cent stake in the project while the rest belongs to Qatar Pteroleum. Qatargas 4 is due online in 2010. Shell has a 30 per cent stake in the project, initially worth $7 billion. TradeArabia
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