The Strategist

Qatar Petroleum to cut costs by 30%

05/22/2020 - 02:55

Qatar’s state-owned oil and gas company Qatar Petroleum (QP) intends to cut costs by about 30% amid falling oil and gas prices, said the company’s head Saad al-Kaabi.

Jasper Morse via flickr
Jasper Morse via flickr
"We are going through a budget review... In June, we will be somewhere within 30% to reduce costs, capex and operating costs," Reuters quoted al-Kaabi as saying. Along with this, he noted that the company still adheres to plans to significantly increase the production capacity of liquefied natural gas (LNG) by the middle of the decade.

Qatar currently has facilities for the production of 77 million tons of LNG per year and plans to increase them to 110 million tons by 2024. At the end of last year, QP announced a decision to increase LNG production by 60%, up to 126 million tons per year by 2027.

At the end of April, the media reported citing sources that QP intends to cut staff and costs due to a sharp drop in demand for gas and oil.

Qatar Petroleum controls all components of the Qatar oil sector, including exploration, production, refining, transportation and storage.