Qatar Petroleum, the state run energy company in the country with the world’s third largest gas reserves, is calling for bids for offshore exploration to be submitted early in 2011, people familiar with the auction said.
Bids for rights to explore for gas off the coast of the Arabian Gulf state in an area called block A are due on January 9, said two of the people, who declined to be identified by name because they weren’t authorized to speak on the matter. Offers are due in early January, a third person with knowledge of the bidding procedure said.
An official for Qatar Petroleum said he didn’t know about the deadline and could not immediately comment.
Qatar, the world’s biggest exporter of liquefied natural gas, plans to increase gas output to 23 billion cubic feet a day by 2014 to boost exports and provide fuel for domestic industries and power plants.
The country has offered exploration rights to three companies over the past two years. A joint venture between Royal Dutch Shell and China National Petroleum Corp signed a 30 year exploration and production sharing agreement in May for an area called block D, Cnooc Ltd of Hong Kong signed a 25-year agreement with Qatar Petroleum in August 2009 to search for gas in a separate offshore block.
Qatar expects by early next year to increase its annual capacity for exporting liquefied natural gas to 77 million tons, equivalent to about 3.75 trillion cubic feet of pipeline gas, with the completion of its final planned liquefaction plant.
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