Qatar Petroleum plans to merge two petrochemical units in its latest consolidation of businesses, as the world’s fourth-biggest oil and natural gas producer seeks to trim costs in its domestic operations and expand internationally, Times of Oman reported.
According to Kallanish Energy, the state-run company will meld the operations of Qatar Vinyl, part of Mesaieed Petrochemical Holding, into Qatar Petrochemical, a unit of Industries Qatar QSC. In addition, Qatar Petroleum owns 74.2% of Mesaieed and 51% of Industries Qatar, both listed on the Qatar Stock Exchange.
The company’s CEO, Saad Sherida Al Kaabi, said shareholders “will directly benefit from this integration as it reduces the operating cost and enhance the profitability of both companies.” The merger will begin in March and be completed in 2017 through a service-agreement arrangement, QP said.
Furthermore, Qatar Petroleum is also merging its two LNG units this year: Qatar Liquefied Gas and Ras Laffan Liquefied Natural Gas. In Late February, Qatar officially inaugurated a new refinery in Ras Laffan, the $1.5b Laffan Refinery 2 (LR2), which has a capacity to refine 146,000b/d of condensate from the North Field.