Prime Minister and Interior Minister, HE Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani, this week launched the Qatar Petroleum (QP) Localization Program for Services and Industries in the Energy Sector or ‘TAWTEEN’ – an initiative to enhance localising the sector’s supply chain and expanding the small and medium enterprises base. The Prime Minister also launched the initiative’s electronic website, which will act as an important link to the various components of the energy sector’s supply chain.
The launch was part of a dedicated conference and exhibition held with large participation from government bodies and entities, energy sector companies, and a wide spectrum of service providers and supporting industries. Activities of the two-day event are designed to present a unique opportunity for private sector companies to know more about the initiative, and about the incentives it offers to guarantee effective participation in the energy sector’s supply chain and to generate high quality job opportunities.
In his opening speech, Minister of State for Energy Affairs, and President and CEO of Qatar Petroleum, HE Saad Sherida Al Kaabi, said the programme comes as part of QP’s dedicated efforts for the advancement of Qatar. He cited their efforts to optimise Qatar’s natural resources and highlighted their recent achievements, which included cutting operational cost by QAR4 billion annually and their most recent decision to invest more than US$10 billion in the Golden Pass LNG export facility in Sabine Pass, Texas.
As part of our national duty to develop the industry in Qatar and to promote self-reliance, we saw the need to localise many of the supporting industries in our sector to help enhance our independence as well as support the private sector through TAWTEEN.’
He said that the programme provides local alternatives to exports, a value of between QAR8 and QAR9 billion a year, and which would raise GDP by about 1.6%.
TAWTEEN is made up of two parts. The first is creating 100 new investment opportunities within the energy sector where QP and its companies will offer incentives and offtake guarantees according to the programme guidelines. The second part is an In-Country Value policy, which rewards suppliers and contractors who execute their contracts and agreements by maximising local content.
The launch ceremony witnessed the signing of agreements with leading international companies – Baker Hughes, a GE company, and Schlumberger, who recently celebrated 70 years of presence in Qatar. The total value of contracts with the two companies reached QAR9 billion. Al Kaabi said these new opportunities will give an important momentum to the programme objectives, which also target adding QAR15 billion of in-country economic investment value to the local economy.
Also on the sidelines of the launch ceremony, Nakilat and McDermott signed a deal to form a joint-venture company that will provide offshore and onshore fabrication services in Qatar. The new company will help increase productivity levels at Nakilat’s Erhama Bin Jaber Al Jalahma Shipyard. The project will also provide a range of new services that will support the construction, maintenance, repair and refurbishment of offshore and onshore structures, and all types of vessels.
A number of QP senior officials presented their overviews during the opening of the TAWTEEN conference. Fifteen of the biggest energy sector companies are taking part in the TAWTEEN programme to provide greater support to the oil and gas industry, and reinforce Qatar’s position as a leading, reliable, and trustworthy supplier of clean energy and high quality hydrocarbon products to the world.
For updates and more information about Qatar Petroleum and TAWTEEN, visit tawteen.com.qa.