Qatar Petroleum (QP) announced that it will be merge both state-owned firms RasGas and Qatargas into a single entity as the Gulf state responds to continued low oil prices.
The combined entity of Qatar's number one and two LNG producers respectively will see all of the ventures currently being operated by both entities.
Saad Sherida Al-Kaabi, President and CEO of Qatar Petroleum made the announcement on Sunday a press conference. He said: “the integration aims to create a truly unique global energy operator in terms of size, service and reliability”.
He told reporters that the integration of the activities of these two energy firms means that upon completion, there will be a single expanded and enhanced operating entity, named Qatargas, that will operate all of Qatar’s LNG ventures.
“The collective resources, talents, and capabilities of two global leaders will be joined to create an even more effective and efficient organization to uphold the best interest of Qatar, our customers, and our shareholders,” the President and CEO of Qatar Petroleum said
He added: "Of course as an outcome of this cost reduction will be realised, it will make us more competitive in the market."
The integration process is planned to start immediately and is expected to be completed within the next 12 months. Al-Kaabi stated that the existing operations groups within both companies will not be impacted at all by the merger.