QGPC and Mobil Sign Gas Agreement in Qatar

7 December 1998

QGPC and Mobil Sign Gas Agreement in Qatar

    DOHA QATAR--Dec. 5, 1998--Mobil Corp. announced Saturday that its affiliate, Mobil Oil Qatar Inc., and Qatar General Petroleum Corporation (QGPC) have signed a Heads of Agreement (HOA) finalizing terms for development of the Enhanced Gas Utilization (EGU) Project.
    Mobil will be the contractor under the production sharing agreement expected to be executed in early 1999. The HOA follows a Memorandum of Understanding (MOU) for the project signed in November 1997.
    The EGU project will produce gas from Qatar's North Field and ultimately deliver more than one billion cubic feet per day of gas sales primarily to power, petrochemical and other industrial developments at Ras Laffan Industrial City and elsewhere in Qatar.
    In addition to gas sales, the project also will produce condensate, propane, butane and ethane for export or feedstock to refinery and petrochemical ventures in Qatar.
    QGPC and Mobil will now focus on joint marketing activities. Preliminary engineering studies are complete, and more detailed front-end engineering will continue in 1999. The project will be constructed in phases to match demand with initial gas sales planned for 2002.
    The Qatargas project is on production, supplying sales commitments of 6 million tons annually (MMTA) to Japan. RasGas will start-up in mid-1999 to supply sales contracts of 4.8 MMTA to Korea.