Exxon Mobil Corp. is in a "strong position" to negotiate with Qatar an agreement on the North Field Expansion development plan, the world's largest LNG project, vice president Neil A. Chapman said Oct. 4.

State-controlled producer Qatar Petroleum (QP) is expected to announce its partners for the nearly $30 billion project next year.

Exxon is hopeful it will be successful in its bid to participate in the expansion with its long-term partner QP, Chapman said at an online conference. But the U.S. producer could also accelerate investments in Guyana, in the Permian and other projects elsewhere that are also competitive in terms of cost of supply, he said.

"We have options around the world that are all very, very competitive," Chapman said at a panel organized by the Energy Intelligence Forum. "We are very fortunate to be in that position, quite frankly."

QP made an investment decision alone and is trying to negotiate better contract terms as the country has become less financially dependent on oil majors. The company is seeking to partner with the oil majors to share the financial risk.

Exxon Mobil is part of Qatar's existing LNG production together with Royal Dutch Shell, TotalEnergies and ConocoPhillips. Chevron Corp and Italian producer ENI have also made bids. 

Comments