Qatar’s Policy on Joint Gas Field with Iran

2024/11/25 | Economy, interview, top news

Strategic Council Online – Interview: A senior energy expert considered the increase in gas extraction from the joint field with Iran to be in line with Qatar’s maximum exploitation of hydrocarbon resources and greater connection to international markets.

In an interview with the Strategic Council on Foreign Relations website about the gas policies of Iran and Qatar in recent years and Doha’s decision to increase gas extraction from the joint gas field, Fereydoun Barkeshli stated: The gas policies of the Islamic Republic of Iran and Qatar in the past four years, more or less like the years before, have been subject to specific parameters. First, both countries have adopted independent gas policies. Despite numerous meetings and conferences, both countries have acted independently in exploration, extraction, and exploitation operations. Second, both countries have set their policies based on maximum extraction.

It is obvious that, within the framework of this policy, the Qatari side is in a better position to attract foreign investment, concession contracts, and joint ownership with international companies. Gas export agreements are concluded for 20 years or more.

He said: Iran has not been able to compete equally under the sanctions and lack of access to financial resources and technology. On the other hand, Qatar produces gas for export. Gas exporting contracts are generally twenty years or more. As a result, the Qataris have established structural and long-term ties with international companies. Gas production is different from oil. Gas production is the result of a long and stable relationship.

This senior energy expert continued: In the first decades of the development of the South Pars fields and phases, Iran’s goal was to export gas to Europe via a pipeline via Turkey. The gas transmission and supply pipeline to Turkey was built and operated in this regard. The Asian gas pipeline was also negotiated to transport Iranian natural gas to Pakistan and India. Russia has always been concerned about Iran’s policy of exporting natural gas to Europe. Moscow was ready to cooperate in transporting Iranian gas to Pakistan and India to dissuade Iran from looking to Europe.

Regarding Iran’s goals for extracting from the joint gas field with Qatar, he stated: “The principles of the Islamic Republic of Iran’s gas policy are based on one-third of production for export, one-third for injection into worn-out and old oil fields to boost and increase pressure, and one-third for domestic consumption.”

Emphasizing that Iran has extensive and more historical international experiences in the oil sector than in the gas sector, Barkeshli stated: “Unfortunately, Iran was alien and unfamiliar with gas diplomacy. International pressures, sanctions, and lack of international investment prevented Iran from playing an active role in the gas sector. In the 1980s and 1990s, there was a belief that Iran should have a gas ministry instead of an oil ministry. Regarding calorific value, the volume of Iranian gas exceeds that of the country’s oil. However, due to the same factors mentioned, Iran avoided paying attention to export markets. Iran’s gas industry is operating at minimal economic efficiency, and we consume gas as the most expensive energy in the world.”

Regarding Iran’s position on Qatar’s increase in gas extraction from the joint field, this senior energy expert stated: Qatar, like other countries in the Persian Gulf region, has concluded that Middle Eastern oil and gas have a twenty-year process ahead of them. From 2045 onwards, there will be no significant future for gas and oil in the global market. Therefore, Qatar and other countries in the region are in a situation where the maximum exploitation of their hydrocarbon resources is high. Consequently, gas resources must be connected to international markets.

He continued: Connecting gas resources to global markets leads to a structure of mutual security between the producer and the exporter, which increases the security factor of the country of origin because gas security for the consumer is a priority.

Barkeshli said: A set of economic, political, and security factors encourage Qatar, under the umbrella of international support, to pursue maximum production. Meanwhile, Iran is facing neglect or perhaps confusion regarding the joint gas and oil fields with its neighbors. This issue is also seen in the fields shared with Saudi Arabia, Kuwait, and Iraq. There are also unresolved issues with our neighbors in the Caspian Sea.

Referring to international treaties that have been drafted regarding the issue of shared oil and gas fields between countries, he clarified: It should be noted that the main structure of shared gas fields is such that procrastination or delay in exploitation by one of the parties leads to greater extraction by the other party, which is generally difficult to prove or determine the extent of the other party’s violation. Therefore, the fact that Iran cannot or is unwilling to extract more from this field will not prevent Qatar from extracting more.

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