By Rania El Gamal, Dmitry Zhdannikov and Eric Knecht
DOHA, Sept 9 (Reuters) - Qatar has shortlisted internationaloil firms for a stake in its expanded North Field megaproject,Qatar Petroleum's chief executive told Reuters, but may stillchoose to go it alone unless majors offer it significant value.
The expansion of tiny but gas-rich Qatar's liquefied naturalgas (LNG) facilities, already the world's largest, is one of theenergy sector's most lucrative projects, and the world's top oiland gas majors have been racing to secure a stake.
Invitations to bid were sent out last month and the resultis due to be announced in the first quarter of 2020, Saadal-Kaabi, who is also minister of state for energy, said - ifQatar decides to go with partners at all.
"We like the partnership model for many benefits. Butbecause we don't need the partners, what's going out isbasically a set of criteria that we have, to demonstrate to uswhat added value we get for Qatar if you come in," said Kaabi.
"Maybe they can give us something outside," he said,referring to LNG assets outside its domestic market.
QP wants to lift its LNG production to around 110 milliontonnes per annum from today's 77 mtpa over the next five yearsby building four new production facilities.
Speaking from his office in Doha, Kaabi told Reuters thatwith the remaining contracts for its completion set to beawarded by the end of 2019, it was now asking a shortlist ofmajors to bid for a stake in the completed project.
He did not say how large a slice of the asset would be onoffer, and declined to comment on which companies had beenshortlisted.
Total, Exxon Mobil, Shell, andItaly's Eni have all offered QP stakes in prize assetsabroad in a bid to secure a stake in the project.
Those assets, from stakes in sought-after exploration blocksto partnerships in petrochemical facilities, have helpedtransform QP into a significant international player in top gasand oil provinces from Mexico to Mozambique.
Although it says it is confident it can go it alone ondeveloping its LNG resources, finding a home for all the extrasupply it is expecting to come online is something oil majorscan offer significant help with.
Qatar sees another 33 million tonnes of LNG flowing fromthe new facilities in 2024, and it will also need buyers foranother 35 million tonnes as existing contracts expire over thenext five years.
Kaabi declined to elaborate on the criteria that could helpland partners a stake.
UPPING THE ANTE
He said QP's decision to self-finance the project, tenderfor its construction, and drill appraisal wells before offeringpartners a chance to buy in was part of a strategy to up theante on what majors must now offer Qatar for a piece of its topasset.
A recently drilled appraisal well produced double the yieldthat was expected, a potentially good omen for what lies ahead,said Kaabi.
"It means we have a great project with great reserves, andthe North Field is very prolific."
But the super-wealthy country also faces significantchallenges. Global LNG demand is flagging due among other thingsto the U.S.-China trade war at a time supply from competitorslike Australia, the United States and Russia is rising.
Mounting tensions between the West and Iran in the Gulf mayalso affect the country's ability to ship out gas, while aneconomic embargo by its neighbours could hurt regional sales.
Kaabi said QP would seek more long-term LNG supply deals,including in Europe, after it last month signed an agreement forunloading services at Belgium's Zeebrugge LNG Terminal, securingits full capacity through 2044.
"We're going to do more in Europe - you're going to see," hesaid.
QP also expects to sign at least one upstream block in theUnited States - typically exploration rights or a field indevelopment - before year-end as it looks to capitalise on its$10 billion Golden Pass LNG export terminal in Texas.
The terminal, a joint venture with Exxon Mobil, is seencoming online in 2024.
Despite the slew of assets acquired over the past year,Kaabi said QP remains hungry for more upstream explorationblocks around the world.
"Anywhere you find the hottest beds in the world, you'll seeus there," he said.(Reporting by Rania El Gamal, Dmitry Zhdannikov and EricKnecht; Editing by Jan Harvey)
