QP to restructure in wake of sliding oil prices

QP Bul HanineQP recently declared plans to invest over US$11bn in the re-development of the existing Bul Hanine offshore oil field located about 120 km to the east of the Qatari coastline. (Image source: Qatar Petroleum)Qatar Petroleum (QP) has announced that it will declare its restructuring plan in the coming months to adapt to the drop in oil prices

Qatar Petroleum International (QPI) CEO Nasser Khalil Al-Jaidah said, “The restructure comes at the right time, with low oil prices a great motivation for the institution to be more capable of facing challenges in the upcoming years by getting rid of all burdens that accumulated during the previous period.”

Earlier this year, QP had said that it would absorb QPI into its structure, a move suggesting authorities want to consolidate the industry after the price drop, Reuters reported.

Al-Jaidah added that the demand for OPEC oil is likely to improve, as prices below US$100 will hinder the growth of shale oil. “The coming period will witness an improvement in prices but they will not reach US$100,” he revealed.

The QPI’s international projects were currently being evaluated in terms of geopolitics, prices and ‘current challenges’, the CEO said, giving no further details.

“Qatar Petroleum, the world’s biggest producer of LNG, will benefit from lower oil prices as it restructures the company by “shedding added costs that have accumulated in the past.”

QPI was formed in 2007 as the foreign investment arm of the firm. Over the last few years, it has created 10 joint ventures in the USA, UK, Italy, Singapore, Egypt and elsewhere.

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