Exxon, Qatar in talks over U.S shale gas deal

exxonmobil

Oil giant, Exxon Mobil Corp is in talks with Qatar over a possible deal that could see the country investing in the company’s U.S. shale gas resources.

The Wall Street Journal on Tuesday, citing sources, reported that the deal could take the shape of a joint venture in which Qatar, through state-owned Qatar Petroleum could partner or invest in future wells with Exxon’s XTO Energy subsidiary, the newspaper said on.wsj.com/2HoPiyj.

It added that no deal had been finalized yet and talks could collapse. The newspaper did not say how much Qatar was planning to invest in XTO Energy.

If the deal takes shape as described, it would be the first time a Middle Eastern country invested significantly in a U.S. shale-related project.

Exxon, which is targeting Qatar for additional investments in liquefied natural gas (LNG) projects, already partners with Qatar Petroleum in Cyprus and Brazil.

Exxon spokeswoman, Rebecca Arnold, declined to comment on the newspaper’s report. A representative for Qatar Petroleum was not immediately available to comment.

Mohammed Saleh Al Sada, Qatar’s Minister of Energy and Economy, declined to comment on the newspaper’s report when asked by Reuters at an industry event in India.

Qatar’s Emir, Sheikh Tamim bin Hamad al-Thani, is set to meet U.S. President Donald Trump in Washington on Wednesday.

The shale revolution in the United States has not only seen a huge rise in crude production, but also in gas output. Exxon, already the second-largest U.S. natural gas producer, said earlier this year it is aiming to triple production in the Permian Basin of West Texas and New Mexico to 600,000 barrels of oil equivalent per day by 2025.

For Qatar, which is locked in a dispute with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, the move could help broaden its investments outside the Middle East.

Qatar is one of the smallest producers of the Organization of the Petroleum Exporting Countries and also one of the most influential players in the global LNG market due to its annual production of 77 million tonnes, cementing its position as the world’s largest LNG supplier. 

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