Identifier
Created
Classification
Origin
08DOHA586
2008-08-18 12:21:00
CONFIDENTIAL
Embassy Doha
Cable title:
QATAR PETROLEUM'S INCREASING CONFIDENCE AND
how-toVZCZCXRO2941 PP RUEHDE RUEHDIR DE RUEHDO #0586 2311221 ZNY CCCCC ZZH P 181221Z AUG 08 FM AMEMBASSY DOHA TO RUEHC/SECSTATE WASHDC PRIORITY 8142 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
C O N F I D E N T I A L DOHA 000586
SIPDIS
E.O. 12958: DECL: 08/17/2018
TAGS: ENRG EPET EINV QA
SUBJECT: QATAR PETROLEUM'S INCREASING CONFIDENCE AND
RESOURCES LEAVE LESS FOR FOREIGN COMPANIES
REF: A. DOHA 286
B. 2007 DOHA 1069
Classified By: Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and
(d).
--------------
(C) KEY POINTS
--------------
-- Qatar Petroleum (QP) is increasingly interested in a
larger share of future oil and gas projects, though still
incapable of operating without major assistance from
international oil companies (IOCs).
-- ExxonMobil would like to see QP take a greater management
role in joint ventures, but Qatar has not worked out the
right incentives to recruit and retain top quality locals or
foreigners.
------------
(C) COMMENTS
------------
-- QP's increasing financial resources and confidence are
leaving less room for IOCs (see reftels). But major players
like ExxonMobil will continue to be able to pick and choose
which projects provide the right kind of incentives. For
example, the company pulled out of a planned Gas-to-Liquids
(GTL) project with QP after the expectation that ExxonMobil
would pay 100 percent of the capital costs proved unfeasible.
-- The Amir and Energy Minister Abdullah Al-Attiyah recognize
the crucial role IOCs played in turning Qatar from an
under-performing minor oil producer into a world leader in
natural gas. The IOCs have bee rewarded accordingly. As a
new generation of Qataris assume management at QP, however,
they will be less inclined to be generous and increasingly
try to squeeze every last riyal out of future deals.
END KEY POINTS AND COMMENTS.
C O N F I D E N T I A L DOHA 000586
SIPDIS
E.O. 12958: DECL: 08/17/2018
TAGS: ENRG EPET EINV QA
SUBJECT: QATAR PETROLEUM'S INCREASING CONFIDENCE AND
RESOURCES LEAVE LESS FOR FOREIGN COMPANIES
REF: A. DOHA 286
B. 2007 DOHA 1069
Classified By: Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and
(d).
--------------
(C) KEY POINTS
--------------
-- Qatar Petroleum (QP) is increasingly interested in a
larger share of future oil and gas projects, though still
incapable of operating without major assistance from
international oil companies (IOCs).
-- ExxonMobil would like to see QP take a greater management
role in joint ventures, but Qatar has not worked out the
right incentives to recruit and retain top quality locals or
foreigners.
--------------
(C) COMMENTS
--------------
-- QP's increasing financial resources and confidence are
leaving less room for IOCs (see reftels). But major players
like ExxonMobil will continue to be able to pick and choose
which projects provide the right kind of incentives. For
example, the company pulled out of a planned Gas-to-Liquids
(GTL) project with QP after the expectation that ExxonMobil
would pay 100 percent of the capital costs proved unfeasible.
-- The Amir and Energy Minister Abdullah Al-Attiyah recognize
the crucial role IOCs played in turning Qatar from an
under-performing minor oil producer into a world leader in
natural gas. The IOCs have bee rewarded accordingly. As a
new generation of Qataris assume management at QP, however,
they will be less inclined to be generous and increasingly
try to squeeze every last riyal out of future deals.
END KEY POINTS AND COMMENTS.
1. (C) During an August 14 introductory call by the
Ambassador, ExxonMobil-Qatar President and CEO Alex Dodds
assessed the near-term future of foreign energy companies
operating in Qatar as bright but colored by an increasingly
self-confident and capital-rich QP which is interested in a
larger share of future projects. However, QP is still run
like a small-time outfit (Energy Minister and QP Chairman
Al-Attiyah gets involved in minutia) and is
organizationally-incapable of executing the leadership's
vision.
2. (C) QP has seven to eight capable Qataris in senior
positions, but their portfolios are stove-piped and outside
players like ExxonMobil often must take the lead in
coordinating policies and projects. Ultimately, Dodds would
like to see QP take a greater lead in running and
contributing to joint ventures with IOCs, thereby providing
greater efficiencies for ExxonMobil's shareholders. At the
same time, he worried that the GOQ doesn't fully realize the
need to augment residency and financial incentives to recruit
and retain the right kind of people.
LeBaron
SIPDIS
E.O. 12958: DECL: 08/17/2018
TAGS: ENRG EPET EINV QA
SUBJECT: QATAR PETROLEUM'S INCREASING CONFIDENCE AND
RESOURCES LEAVE LESS FOR FOREIGN COMPANIES
REF: A. DOHA 286
B. 2007 DOHA 1069
Classified By: Classified By: Amb. Joseph LeBaron, reasons 1.4 (b) and
(d).
--------------
(C) KEY POINTS
--------------
-- Qatar Petroleum (QP) is increasingly interested in a
larger share of future oil and gas projects, though still
incapable of operating without major assistance from
international oil companies (IOCs).
-- ExxonMobil would like to see QP take a greater management
role in joint ventures, but Qatar has not worked out the
right incentives to recruit and retain top quality locals or
foreigners.
--------------
(C) COMMENTS
--------------
-- QP's increasing financial resources and confidence are
leaving less room for IOCs (see reftels). But major players
like ExxonMobil will continue to be able to pick and choose
which projects provide the right kind of incentives. For
example, the company pulled out of a planned Gas-to-Liquids
(GTL) project with QP after the expectation that ExxonMobil
would pay 100 percent of the capital costs proved unfeasible.
-- The Amir and Energy Minister Abdullah Al-Attiyah recognize
the crucial role IOCs played in turning Qatar from an
under-performing minor oil producer into a world leader in
natural gas. The IOCs have bee rewarded accordingly. As a
new generation of Qataris assume management at QP, however,
they will be less inclined to be generous and increasingly
try to squeeze every last riyal out of future deals.
END KEY POINTS AND COMMENTS.
1. (C) During an August 14 introductory call by the
Ambassador, ExxonMobil-Qatar President and CEO Alex Dodds
assessed the near-term future of foreign energy companies
operating in Qatar as bright but colored by an increasingly
self-confident and capital-rich QP which is interested in a
larger share of future projects. However, QP is still run
like a small-time outfit (Energy Minister and QP Chairman
Al-Attiyah gets involved in minutia) and is
organizationally-incapable of executing the leadership's
vision.
2. (C) QP has seven to eight capable Qataris in senior
positions, but their portfolios are stove-piped and outside
players like ExxonMobil often must take the lead in
coordinating policies and projects. Ultimately, Dodds would
like to see QP take a greater lead in running and
contributing to joint ventures with IOCs, thereby providing
greater efficiencies for ExxonMobil's shareholders. At the
same time, he worried that the GOQ doesn't fully realize the
need to augment residency and financial incentives to recruit
and retain the right kind of people.
LeBaron