At the 2012 Oil & Money Conference, energy experts heard from Qatar Petroleum International's CEO, Nasser Al-Jaidah discuss his opinions on the impacts of unconventional oil and gas on IOCs and NOCs relationships. This presentation explores how unconventional oil and gas can have an impact on IOCs and NOCs as well as the benefits to these relationships.

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Impacts
of Unconventional Oil & Gas
on IOC-NOC Relationships
Nasser Al-Jaidah
CEO
Qatar Petroleum International (QPI)

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A Well-Established Bottom Line
Global gas demand growth outlook is strong – some estimate
~ 40% growth by 2025
Developing country population growth and energy intensity
leading this growth
New resources needed, and IOC/NOC in unconventional is a
mutually beneficial source

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Shift To Unconventional Resources
NOCs
Increased share of global hydrocarbon portfolio
Historically produced from upper portion of resource triangle with
less complexity and lower cost
Need to move to more complex resources like unconventional over
time, but limited NOC experience

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Expertise of IOCs, Independents
in Unconventional Oil & Gas
International oil companies (IOCs) and independents have
experience in finding and exploiting unconventional resources
This IOC experience positions them well for cooperation with
NOCs in unconventional oil, with mutual benefit, including
continuing their historical role as technology transfer leaders

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Independents and Service Companies early entrants in
unconventional gas
Tight gas, shale gas, and coal-bed methane
These Service Companies helped to develop technologies
needed to exploit unconventional (eg. Drilling, fracturing
techniques)
IOCs have a decade or more of investment experience in
tight/shale gas, esp in the US

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What NOCs Offer
NOCs:
Financial capacity required for unconventional
Infrastructure (eg shipping, delivery point access) needed to
optimize returns and growth
Market access to optimize delivery sources and demand points for
consumer and NOC/IOC benefit - arbitrage

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Competitive Advantages of IOCs
Project and risk management, in addition to technology and
know how
Application of disciplined approach to optimize design,
procurement and construction – spend for the right reasons at
the right time
Strong ability to define and match new products to meet
demands of specific markets

8. IOC/NOC Cooperation in
Unconventional – Mutual Benefits
How do IOCs benefit?
Access to low cost capital
Access to low cost
infrastructure and synergies
Enhanced market access
How do NOCs benefit?
Access to technology
Access to IOC learning
curve effects
Value generation through
optional supply sources and
growth
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Ultimately, markets benefit through effective and economically
sustainable sources of supply to meet global demand.

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Unconventional – NOC Opportunity
The prospect of new large scale resource may be perceived as
a potential threat
Combine effective partnership with IOCs, and disciplined investment
turns unconventional into an NOC opportunity
Qatar uniquely positioned to contribute and participate in
this IOC/NOC partnership in unconventional oil and gas
Capital, shipping/infrastructure, market arbitrage, and historical
partnership/commitment focus

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To Sum up
Unconventional resource development will play an
increasing role in meeting global energy demand
NOCs should embrace the challenges and opportunities
associated with the exploitation of promising
unconventional resources
Massive infrastructure challenge, and NOC/IOC
partnership is a natural and effective method to meet
this challenge

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Thank You !