ConocoPhillips became the first US energy giant to join a Qatari project to develop the Northeast Field, the world’s largest gas field, on Monday.
With this deal, ConocoPhillips will be the third company to join the Qatari project, after France’s Total Energies and Italy’s Eni.
In this regard, the Minister of Energy of Qatar, Saad Sherida Al-Kaabi, explained at a press conference that “ConocoPhillips’ share in the Northeast field expansion project is 3.1%, which is half the share of the French company and the share of the Italian company itself, has not yet disclosed transaction amount.
The joint venture between ConocoPhillips and state-owned Qatar Energy Company is 27 years, with Al-Kaabi confirming that he expects production from the North Field to continue for more than 50 years.
Al-Kaabi pointed out that price, “efficiency” and the ability to provide access to new markets were the main factors that determined the choice of companies.
For his part, US company president Ryan Lance praised the deal, saying it would be “the best in the world.”
According to Agence France Presse, the North East field project includes the expansion of the offshore North field, which is the largest natural gas field in the world, which Qatar shares with Iran, where the project is estimated to cost about $28 billion.
This includes about 10% of the world’s known natural gas reserves, according to Qatar Energy Company.
It is worth noting that the project is scheduled to start production in 2026, as this will help Qatar increase its LNG production from 77 million tons to 110 million tons per year.
Qatar is expected to announce new partners in the coming days.