Qatar Petroleum and ExxonMobil Sign GTL Agreement

State of Qatar and ExxonMobil Qatar have entered into a Heads of Agreement for approximately $7 billion, Gas-to-Liquid project, which would be the world's largest single, fully integrated GTL project. The facility would be built at the Ras Laffan Industrial City in Qatar.

The Production Sharing Agreement term will be 25 years from the start of production, which is expected to commence in 2011.

ExxonMobil will design, construct and perform all petroleum operations in connection with the GTL project. This includes the rights to develop and produce gas, associated liquids and other hydrocarbons in sufficient quantities to meet the 154,000 barrels per day capacity of the GTL plant. Approximately half of the plant's production will be for sulfur-free diesel (less than 10-15 ppm), about 20 percent will be in high-quality lube base stocks, with the remainder in naphtha and other associated products.

ExxonMobil will drill an appraisal well for the GTL project this year, and will supplement the extensive preliminary front-end engineering and design (pre-FEED) undertaken earlier. FEED is expected to begin upon execution of the DPSA.

The plant will adopt ExxonMobil's patented AGC-21 GTL technology, which is a proprietary, highly effective, three-step process for converting natural gas to high-quality transportation fuel, lubricants basestocks and petrochemical feedstocks. ExxonMobil has invested more than $600 million in GTL research during the past two decades, and holds in excess of 3,500 U.S. and international patents or patents pending relating to this technology.

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Added to site on 14/07/04

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