* Merger to save country QR2bn in annual operating costs
The merger of Qatargas and RasGas will save the country QR2bn in operating costs annually, Qatar Petroleum president and CEO, Saad Sherida al-Kaabi said. The new entity, which is called Qatargas, started operations on January 1.
This follows the successful completion of its integration with RasGas, which was announced in December 2016.
Before the merger, Qatargas and RasGas were already the world's two biggest LNG producers.
The combined company will handle all of Qatar’s 77mn tonnes of LNG export capacity annually sold through a mix of joint venture agreements with oil majors including ExxonMobil and Shell.
Current Qatargas CEO Sheikh Khalid bin Khalifa al-Thani has been appointed as the CEO of the new Qatargas.
Qatargas CEO Sheikh Khalid bin Khalifa al-Thani
"This integration is an integral part of Qatar Petroleum's vision to become one of the best national oil and gas companies in the world, with roots in Qatar and a strong international presence, al-Kaabi said.
“Our aim was to integrate the two companies’ resources and capabilities to create a truly unique global energy operator in terms of size, service and reliability. We also aimed to create higher value for our stakeholders, and enhance the competitive position of the Qatari gas industry.
“As of the first of January 2018, all the ventures that were operated by Qatargas and RasGas are now operated by the new ‘Qatargas’, which is the result of the integration of two great energy centres of excellence.”
Senior Qatari officials attending the press conference
“Today, I am pleased to announce that we have accomplished our objective with great success, and on time. Qatargas will be the single entity exporting Qatari LNG to the world, under a one shared vision, one management system, and one work culture.”
Asked whether the foreign shareholders of pre-merger Qatargas and RasGas would be on board the new entity, al-Kaabi told Gulf Times that “everybody is in the new company.”
Al-Kaabi extended “sincere thanks and appreciation to all the buyers of Qatari gas around the world for their trust and confidence in Qatar Petroleum and in the State of Qatar, assuring them that Qatar will do its utmost to ensure the continued safe and reliable LNG delivery to their friendly countries.”
He also took the opportunity to thank all management teams from Qatar Petroleum, its international partners, Qatargas, and RasGas, for their contributions in creation of the new Qatargas.
QP said, “The integration process will continue to focus on providing enhanced service, reliability, efficiency and effectiveness, as well as strengthening operations groups, which remained unimpacted by the integration, as the highest priority was given to ensuring safe, seamless and risk-free business continuity.”