The market for oil and gas upstream in Qatar is expected to grow at a CAGR of more than 1% during the forecast period of 2020 – 2025. Factors such as increasing oil and gas production are expected to boost the demand for the Qatar oil and gas upstream market during the forecast period. However, the decreasing consumption of oil is expected to impede the growth of the sector.

  • Qatar is a significant exporter of natural gas to the world. Most of the oil and gas producing fields of the country are situated in the Persian Gulf. The gas basins, including the South Pars field, are located to the north of the country and are produced by both Iran and Qatar.
  • New studies have revealed that the North Field’s productive layers extend well into Qatari land in Ras Laffan, which may pave the way for a new Natural gas production project in the north of Qatar and act as an opportunity for the market players.
  • An increase in the country’s natural gas production is expected to drive the market in the forecast period. The country has vast reservoirs of oil and gas that may be used to boost the growth in the sector.



Key Market Trends

Offshore to Dominate the Market

  • The South Pars is a natural-gas condensate field located in the Persian Gulf. It is by far the world’s largest natural gas field, with ownership of the field shared between Iran and Qatar. The natural gas field provides the most significant share of natural gas production in the country.
  • In 2019, Qatargas have awarded McDermott International a substantial contract for engineering, procurement, construction and installation (EPCI) for expansion of the North Field offshore facilities in Qatar. Many new projects are expected to be initiated in the forecast period, which is expected to make the export of natural gas more profitable and thereby contribute to the growth of the upstream market.
  • The oil production remained stagnant at 78.5 million tonnes in 2017 – 2018 period. The country’s oil consumption increased by 3.5%, year on year, to 12.2 million tons (mt), in 2018 from 11.8 mt in 2017. The increase in oil consumption in the country is expected to provide some growth in the sector.
  • Hence, the offshore segment is expected to dominate the market due to the position of the oil and gas reservoirs in the country, and the significant investments being made into the offshore oil and gas field projects.



Increasing Gas Production to Drive the Market

  • Production of natural gas increased in the country, by 1.8%, to 150.9 million tonnes of oil equivalent in 2018 from 148.2 Million tonnes oil equivalent, in 2017. The increase in the production of natural gas is expected to positively impact the upstream sector.
  • Qatar held an estimated 24.7 trillion cubic meters of proved natural gas reserves in 2018. Most of the country’s proved gas reserves are held offshore. The country has among the largest reserves of natural gas, accounting for 12.5% of the established global reserves. The successful exploitation of reserves is likely to provide growth to the market.
  • Qatar has been among the largest producer of natural gas in the region, and is expected to increase its natural gas production further in the forecast period. However, intricate ties between Iran and Saudi Arabia and its direct impact on the Persian Gulf is a cause of concern for the government of Qatar.
  • The Qatar oil and gas industry is expected to grow slightly in the forecast period due to an increase in oil and gas production in the region.



Competitive Landscape

The Qatar oil and gas upstream market is moderately consolidated. The major companies include Qatargas Operating Company Limited, Qatar Petroleum, ConocoPhillips Company, Exxon Mobil Corporation, and Total S.A.

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