NOCs–IOCs relationships
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This document summarizes a course on oil and gas management. It introduces international oil companies (IOCs) and national oil companies (NOCs), and hypothesizes that cooperation between the two is beneficial. It then provides two case studies: Mexico opened its oil industry to foreign investment in 2013 after decades of a state monopoly, and Qatar partners with IOCs like ExxonMobil for liquefied natural gas projects due to Qatar's large reserves and the company's experience. The conclusion is that IOCs and NOCs will both compete and cooperate in the future.
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NOCs–IOCs relationships
- 1. Course: Oil and Gas management Leonidas Eleftheriadis, Athanasios Pitatzis, Kantartzis Apostolos Kavala 2015 Course Supervisor: N.C. Kokkinos MSc Oil and Gas Technology Eastern Macedonia and Thrace Institute of Technology School of Engineering Technology Department of Petroleum & Natural Gas Technology NOCs – IOCs Relationship
- 2. Presentation’s Contents • Introduction • Some facts about NOCs – IOCs • Main Hypothesis • Mexico O&G Industry Case Study • Qatar LNG Project • Conclusion
- 3. Introduction IOCs: • The term “international oil companies (IOCs)” is referring to companies which compete across borders • The acronym “IOCs” is also used for the “integrated oil companies”, meaning companies which compete in every sector of the oil and gas value chain, from the upstream segment to the midstream and downstream ones
- 4. NOCs • Unlike the IOCs, the NOCs are governmentally controlled and they usually manage a country’s hydrocarbons resources. • Having been given the privilege to the domestic reserves, the aim of the NOCs is, differently than the IOCs, not monetization, but: • serving the national interests, • supporting the local economies and • even protecting the territorial environments
- 5. Evolution of global upstream industry Source: Ernst & Young
- 6. Some facts about NOCs – IOCs
- 7. Main Hypothesis • Our main hypothesis is the cooperation of the NOCs and IOCs in NOCs’ home countries
- 8. Mexico O&G Industry Case Study • Until 2013 Petroleos Mexicanos (Pemex – Mexico NOC) was 75- year monopoly in Mexico oil and gas industry since 1938 when the company was created • The December of 2013 the Mexico’s congress approved a legislation which liberate and open the Mexico oil and gas sector to foreign companies and allow foreign investments. • The last decade the oil production in Mexico continuing to decline from 3.85 million bbl/d in 2004 to 2.90 million barrels per day (bbl/d) of total liquids in 2013
- 9. Energy reform could increase Mexico’s long-term oil production by 75%
- 10. Some facts about Mexico Energy Sector Mexican Oil ProductionMexican Natural Gas production
- 11. Quick take on the new energy sector in Mexico The new Mexico Oil and Gas Blocks
- 12. Future investments on Mexican Energy sector Source: International Monetary Fund
- 13. Win - Win Situation • PEMEX – IOCs cooperation is feasible because this effort lead the two parties in a win – win situation.
- 14. • Gas demand expected to double • Increased demand from Asia and Middle- East • Electricity generation accounting 45% according to IEA • Domestic production covers 60% of demand • LNG will cover more than 20% of imports • China, India, Taiwan and Japan the main LNG importers Gas Demand
- 15. Gas Demand
- 17. Qatar partnership and alliances Qatar’s advantages • Geographical position and gas reserves ExxonMobil advantages • global functional organisation • strong cash flow • diverse experience
- 19. NOCs on decline, IOCs diversify performance for 2013
- 20. Conclusion • The future for IOCs and NOCs is likely one in which they will both compete and co-operate
- 21. Any questions?