nocs–iocs relationships
TRANSCRIPT
![Page 1: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/1.jpg)
Course: Oil and Gas managementLeonidas Eleftheriadis, Athanasios Pitatzis, Kantartzis ApostolosKavala 2015Course Supervisor: N.C. Kokkinos
MSc Oil and Gas Technology
Eastern Macedonia and Thrace Institute of TechnologySchool of Engineering TechnologyDepartment of Petroleum & Natural Gas Technology
NOCs – IOCs Relationship
![Page 2: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/2.jpg)
Presentation’s Contents
• Introduction• Some facts about NOCs – IOCs• Main Hypothesis• Mexico O&G Industry Case Study• Qatar LNG Project • Conclusion
![Page 3: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/3.jpg)
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
![Page 4: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/4.jpg)
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
![Page 5: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/5.jpg)
Evolution of global upstream industry
Source: Ernst & Young
![Page 6: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/6.jpg)
Some facts about NOCs – IOCs
![Page 7: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/7.jpg)
Main Hypothesis
• Our main hypothesis is the cooperation of the NOCs and IOCs in NOCs’ home countries
![Page 8: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/8.jpg)
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
![Page 9: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/9.jpg)
Energy reform could increase Mexico’s long-term oil production by 75%
![Page 10: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/10.jpg)
Some facts about Mexico Energy Sector
Mexican Oil ProductionMexican Natural Gas production
![Page 11: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/11.jpg)
Quick take on the new energy sector in Mexico
The new Mexico Oil and Gas Blocks
![Page 12: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/12.jpg)
Future investments on Mexican Energy sector
Source: International
Monetary Fund
![Page 13: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/13.jpg)
Win - Win Situation
• PEMEX – IOCs cooperation is feasible because this effort lead the two parties in a win – win situation.
![Page 14: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/14.jpg)
• 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
![Page 15: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/15.jpg)
Gas Demand
![Page 16: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/16.jpg)
Qatar LNG Prospect
![Page 17: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/17.jpg)
Qatar partnership and alliances
Qatar’s advantages• Geographical position and gas
reserves
ExxonMobil advantages• global functional organisation• strong cash flow• diverse experience
![Page 18: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/18.jpg)
Qatar partnership and alliances
![Page 19: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/19.jpg)
NOCs on decline, IOCs diversify performance for 2013
![Page 20: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/20.jpg)
Conclusion
• The future for IOCs and NOCs is likely one in which they will both compete and co-operate
![Page 21: NOCs–IOCs relationships](https://reader033.vdocuments.site/reader033/viewer/2022052602/55c398a4bb61ebd5718b45ab/html5/thumbnails/21.jpg)
Any questions?