Qatar Petroleum launches energy sector localization program - Tawteen

Photo: Saad Sherida Al-Kaabi, president CEO Qatar Petroleum.

QATAR -- His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, the Prime Minister and Interior Minister, launched Qatar Petroleum’s Localization Program for Services and Industries in the Energy Sector “Tawteen” – an initiative to enhance localizing the sector’s supply chain and expand the small and medium enterprises base.

His Excellency the Prime Minister also launched the initiative’s electronic website, which will act as an important link to the various components of the energy sector’s supply chain.

The launch was part of a dedicated conference and exhibition held with a large participation of official bodies and entities, energy sector companies, and a wide spectrum of service providers and supporting industries. Activities during the 2-day event are designed to present a unique opportunity for private sector companies to know more about the initiative, and about the incentives it offers to guarantee effective participation in the energy sector’s supply chain and to generate high quality job opportunities.

In his opening speech, His Excellency Mr. Saad Sherida Al-Kaabi, minister of state for energy affairs, the president and CEO of Qatar Petroleum, said this program comes as part of Qatar Petroleum’s dedicated efforts for the advancement of our country under the leadership of His Highness Sheikh Tamin bin Hamad Al Thani, the Amir of the State of Qatar.

His Excellency reviewed Qatar Petroleum’s efforts towards optimizing Qatar’s natural resources, higher efficiency and returns, and growth and expansion. He also highlighted its recent decisions and achievements, which included cutting operational cost by $1.04 billion (4 billion Qatari Riyal) annually, adopting a strategy to raise Qatar Petroleum’s production output from 4.8 MMboe/y to 6.5 MMboe/y, raising Qatar’s LNG production from 77 MMty to 110 MMty by 2024, developing a new world-scale Petrochemicals Complex with the largest ethane cracker in the Middle East, and Qatar Petroleum’s most recent decision to invest more than $10 billion in the Golden Pass LNG export facility in Sabine Pass, Texas.

His Excellency Mr. Al-Kaabi said, “As part of our national duty to develop the industry in Qatar and to promote self-reliance, we saw the need to localize many of the supporting industries in our sector to help enhance our independence as well as support the private sector through Tawteen.”

His Excellency said, “This program provides local alternatives to exports, with a value of between $2.13 billion and $2.40 billion (8 billion and 9 billion Qatari Riyals) a year, which would raise GDP by about 1.6%.” He added that “Tawteen is made up of two parts. The first is creating 100 new investment opportunities within the energy sector. In this effort, Qatar Petroleum and its companies will offer incentives and offtake guarantees according to the program’s guidelines. The second part is an In-Country Value policy, which rewards suppliers and contractors who execute their contracts and agreements by maximizing local content.”

The launch ceremony witnessed the signing of three agreements with leading international companies with a total value of $2.4 billion (9 billion Qatari Riyals). This will give an important momentum to the program’s objectives, which target adding $4 billion (15 billion Qatari Riyals) of in-country economic investment value to the local economy, which reflects investor confidence in the Qatari economy.

Qatar Petroleum and Baker Hughes, a GE company, signed a memorandum of understanding designed to help create new opportunities to expand its presence, and to enhance its operations through continued investment in technologies and services in the years to come. The agreement would also help strengthen the oil and gas supply chain in Qatar and boost the skills of Qatari talent in the industry.

Qatar Petroleum also signed a memorandum of understanding with Schlumberger, which recently celebrated 70 years of presence in Qatar. The agreement will help increase the footprint of Schlumberger, which plans to expand its current operations in Zikreet, open a new integrated base facility in Ras Laffan by the end of 2019, and establish a Center of Efficiency in the Free Zone to be used as a regional maintenance center.

Also on the sidelines of the launch ceremony, Nakilat and McDermott signed an agreement to form a joint-venture company providing offshore and onshore fabrication services in Qatar. The new company will help increase productivity levels at Nakilat’s Erhama Bin Jaber Al Jalahma Shipyard and developing local construction capabilities meet the increasing demand for the construction of offshore and onshore structures. This project will provide a range of new services that will support the construction, maintenance, repair and refurbishment of offshore and onshore structures, and all types of vessels.

A number of Qatar Petroleum senior officials presented overviews during the opening of the conference on Tawteen and the opportunities it offers to the various stakeholders, as well as the In-Country Value policy designed to maximizing local content. They also discussed plans to develop strategic sectors that would help attract investments in Qatar and create more business for small and medium enterprises.

15 of the biggest energy sector companies are taking part in “Tawteen” in what will provide greater support to the oil and gas industry, and will reinforce the State of Qatar’s position as a leading, reliable, and trustworthy supplier of clean energy and high quality hydrocarbon products to the world.

Qatar Petroleum is working with various government authorities and stakeholders to facilitate the provision of the required infrastructure and for the creation of appropriate policies, regulations and incentives to attract local and international companies to establish operations in Qatar. It is also coordinating with other stakeholders to help facilitate the development of new industries in the energy sector in order to ensure they acquire the capacity for greater competitiveness and financial sustainability.

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