Oil & Gas

According to reports, Qatar Energy Company and Shell recently signed an agreement. Under the agreement, Qatar Energy will deliver 18 million barrels of crude oil per year to the supermajor, marking the first time ever that Qatar Energy has signed a five-year crude oil sales agreement.

Beginning in January 2024, Qatar Energy will begin supplying up to 18 million barrels per year of Qatari onshore and offshore crude oil to Shell International Oriental Trading Company of Singapore, a subsidiary of Shell.

The crude oil supply agreement is the latest between Qatar Energy and Shell, which have a long-term strategic partnership through several joint investments in the energy industry, including Qatar Energy’s large LNG expansion project in Qatar.

Qatar Energy President and CEO Al-Kaabi said: “This agreement further strengthens Qatar Energy’s relationship with Shell, which is not only a reliable off-taker of crude oil, but also a major customer and strategic partner of Qatar Energy. "

The two companies have a long-term strategic partnership through several joint investments in the energy industry, including Qatar Energy’s large-scale LNG expansion project in Qatar. In 2023, Qatar Energy and Shell also signed two long-term LNG agreements. The 27-year agreement determines to supply Qatar LNG to the Netherlands starting in 2026, when Qatar's first export expansion projects are expected to come online.

Under the sales and purchase agreement, Qatar and Shell will deliver up to 3.5 million tonnes of LNG per year to the Gate LNG terminal in the Port of Rotterdam, Qatar said in October 2023.

Shell is a minority partner in some of Qatar's major expansion projects. The UK-based supermajor has a 6.25% and 9.375% share in the expansion projects in the East and South Blocks of the Northern Field, respectively.

In October 2023, Qatar launched the world's largest liquefied natural gas project, the Northern Oilfield Expansion Project, which will increase its export capacity by 48 million tons per year by 2027. "By 2029, when all our projects are up and running, 40% of all new LNG entering the market will come from Qatar Energy," Al-Kaabi said.

Shell, the oil giant, chose to return to the main line of oil and gas and focus on acquiring and developing oil and gas assets. Not only Shell, more and more oil giants have greater confidence in the oil and gas business.