Course: Oil and Gas managementLeonidas Eleftheriadis, Athanasios Pitatzis, Kantartzis ApostolosKavala 2015
MSc Oil and Gas Technology
Eastern Macedonia and Thrace Institute of TechnologySchool of Engineering TechnologyDepartment of Petroleum & Natural Gas Technology
NOCs – IOCs Relationship
Presentation’s Contents• Introduction• Some facts about NOCs – IOCs• Main Hypothesis• China Shale Gas Sector Case
Study• Mexico O&G Industry Case Study • Conclusion
IntroductionIOCs:• 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
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
Evolution of global upstream industry
Source: Ernst & Young
Some facts about NOCs – IOCs
Main Hypothesis• Our main hypothesis is the
cooperation of the NOCs and IOCs in NOCs’ home countries
China Shale Gas Sector Case Study
Source: U.S. Energy Information Administration
1115/7299=15, 2%
Some facts about China Energy Sector
Natural Gas DemandNatural Gas Supply
China NOCs focus on Shale Gas development
China NOCs and IOCs cooperation on China Shale Gas sector
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
Energy reform could increase Mexico’s long-term oil production by 75%
Some facts about Mexico Energy Sector
Mexican Oil ProductionMexican Natural Gas production
Quick take on the new energy sector in Mexico
The new Mexico Oil and Gas Blocks
Future investments on Mexican Energy sector
Source: International
Monetary Fund
Win - Win Situation • PEMEX – IOCs cooperation is
feasible because this effort lead the two parties in a win – win situation.
• 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
Gas Demand
Qatar LNG Prospect
Qatar partnership and alliances Qatar’s advantages• Geographical position and gas
reserves
ExxonMobil advantages• global functional organisation• strong cash flow• diverse experience
Qatar partnership and alliances
NOCs on decline, IOCs diversify performance for 2013
Conclusion • The future for IOCs and NOCs is
likely one in which they will both compete and co-operate
Any questions?