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Q4 2022

www.fitchsolutions.com

Qa
Qatar
tar
Oil & G
Gas
as R
Report
eport
Includes 10-year forecasts to 2031
Qatar Oil & Gas Report | Q4 2022

Contents
Key View............................................................................................................................................................................................ 5

SWOT .................................................................................................................................................................................................. 7
Oil & Gas SWOT .............................................................................................................................................................................................................................. 7

Industry Forecast........................................................................................................................................................................... 8
Upstream Exploration................................................................................................................................................................................................................. 8
Upstream Projects ....................................................................................................................................................................................................................11
Upstream Oil Production.........................................................................................................................................................................................................12
Upstream Gas Production.......................................................................................................................................................................................................16
Refining ..........................................................................................................................................................................................................................................20
Refined Fuels Consumption ...................................................................................................................................................................................................23
Gas Consumption.......................................................................................................................................................................................................................26
Oil Trade..........................................................................................................................................................................................................................................28
Gas Trade........................................................................................................................................................................................................................................32

Industry Risk/Reward Index ....................................................................................................................................................39

Middle East And North Africa Upstream Oil & Gas Risk/Reward Index .................................................................................................................39
Middle East And North Africa Downstream Oil & Gas Risk/Reward Index ...........................................................................................................48
Qatar Upstream Oil & Gas Risk/Reward Index.................................................................................................................................................................58
Qatar Downstream Oil & Gas Risk/Reward Index...........................................................................................................................................................60

Market Overview..........................................................................................................................................................................62
Energy Market Overview..........................................................................................................................................................................................................62
Oil & Gas Infrastructure ............................................................................................................................................................................................................64

Competitive Landscape.............................................................................................................................................................67

Company Profile...........................................................................................................................................................................69
QatarEnergy (QE) ........................................................................................................................................................................................................................69

Regional Overview.......................................................................................................................................................................74
Middle East And North Africa Oil & Gas Overview..........................................................................................................................................................74

All information, analysis, forecasts and data provided by Fitch Solutions Group Limited is for the exclusive use of subscribing persons or organisations (including those
using the service on a trial basis). All such content is copyrighted in the name of Fitch Solutions Group Limited and as such no part of this content may be reproduced,
repackaged, copied or redistributed without the express consent of Fitch Solutions Group Limited.

All content, including forecasts, analysis and opinion, has been based on information and sources believed to be accurate and reliable at the time of publishing. Fitch
Solutions Group Limited makes no representation of warranty of any kind as to the accuracy or completeness of any information provided, and accepts no liability
whatsoever for any loss or damage resulting from opinion, errors, inaccuracies or omissions affecting any part of the content.

THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 3
Qatar Oil & Gas Report | Q4 2022

Oil & Gas Glossary........................................................................................................................................................................86

Oil & Gas Methodology...............................................................................................................................................................87

fitchsolutions.com 4
Qatar Oil & Gas Report | Q4 2022

Key View
Key View: Qatar's natural gas production and exports are poised for strong growth in 2022, spurred by elevated gas prices and
increased energy use on the back of the global economic recovery. We forecast production increasing by 3.0%, to reach 179.2bcm.
Over the long term, gas production is set to increase to support Qatar's North Field Expansion project - a major planned expansion
of the country's LNG export capacity. We expect that an FID for the North Field South project is likely to occur in the coming
quarters. High gas prices and an expectation for strong global gas demand over the coming decade will help spur investment into
expanding the country's liquefaction capacity. Strengthening economic activity will support oil and gas consumption throughout
H222 in particular, as the FIFA World Cup prompts businesses to expand operations and output in anticipation of a large increase in
tourism-driven demand.

HEADLINE FORECASTS (QATAR 2020-2026)

Indicator 2020e 2021e 2022f 2023f 2024f 2025f 2026f

Crude, NGPL & other liquids prod, 000b/d 1,759.7 1,815.0 1,821.8 1,829.9 1,838.0 1,896.5 1,989.0

Dry natural gas production, bcm 171.4 174.0 179.2 182.8 182.8 204.7 229.2

Dry natural gas consumption, bcm 40.5 39.4 41.3 42.2 42.6 43.0 43.4

Refined products production, 000b/d 741.9 745.6 749.3 753.1 756.8 760.6 764.4

Refined products consumption & ethanol, 000b/d 295.3 301.2 310.2 313.4 316.5 319.6 322.8

Brent, USD/bbl 43.21 70.95 105.00 100.00 88.00 88.00 85.00

e/f = Fitch Solutions estimate/forecast. Source: National sources, Fitch Solutions

Latest Updates And Key Forecasts

• Qatar's large-scale proven hydrocarbons resource base is providing limited incentives to invest in exploration activities. We do
not expect to see exploration substantially picking up before the end of our long-term forecast period, as most of the drilling will
continue to focus on development rather than on exploration.
• We have recently slightly revised our near-term forecast for Qatar's crude oil, NGL and other liquids production upwards and now
expect growth of 0.4% in 2022 to reach 1.82mn b/d, owing to higher oil prices spurring production. Additionally, redevelopment
works are underway at some of the country's largest oil fields, which will help to offset rising decline rates over the coming years.
However, we do not expect significant growth in Qatar's crude oil and condensates total liquids output until the North Field
Expansion project comes online from 2025 onwards, which will push total output to 2.06mn b/d in 2028 as the project ramps
up.
• Qatar's refined fuels production is forecast to grow by 1.0% in 2022, to total approximately 749,320b/d. Over the coming years,
refined fuel production in Qatar will be driven by the Ras Laffan refinery expansion, although GTL plants will remain a core part of
Qatar's refining capacity. We are forecasting a slight uptick in the country's refined fuel production our long-term forecast period,
reaching 783,730b/d in 2031.
• An expectation for strong real GDP growth and an expansion in business activity will drive Qatar's refined fuels consumption in
2022, during which we are forecasting a 3.0% growth, to reach 310,000b/d. The 2022 FIFA World Cup in November 2022 is set
to increase domestic economic activity, offering further support to fuels demand. We expect refined fuels demand to register
steady but subdued increases throughout our long-term forecast period to the end of 2031, averaging 1.2% per annum, driven
by private consumption growth and an expanding construction sector.
• The positive growth now expected in Qatar's oil production over 2022 will see the country's net crude oil export volumes
increase by 0.3%, to 1.07mn b/d. The expectation that the North Field Expansion project will come online in late 2025 will see
net crude and condensate exports peaking at 1.29mn b/d in 2028, before declining moderately again. We forecast net exports
of refined products to remain largely flat over the next decade, reaching 444,000b/d in 2031, increasing only slightly from our
forecast of 439,000b/d in 2022, owing to largely stable refinery utilisation rates.
• Elevated gas prices and the global economic recovery spurring increased energy use will ensure Qatar's natural gas output
registers positive growth in 2022. We forecast production increasing by 3.0%, to reach 179.2bcm. Over the long term, gas
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 5
Qatar Oil & Gas Report | Q4 2022

production is set to increase to support Qatar's North Field Expansion project - a major planned expansion of the country's LNG
export capacity. We expect that an FID for the North Field South project is likely to occur in the coming quarters. High gas prices
and an expectation for strong global gas demand over the coming decade will help spur investment into expanding the
country's liquefaction capacity.
• The key project is the North Field Expansion project. The USD28.75bn North Field East project marks the first phase of the
project and includes the development of four LNG trains, which each have a capacity of 7.8mtpa and are set to come online in
2025, raising total capacity to 110mtpa. QatarEnergy (QE) selected in 2022 five partners for the project, all of which are major
international oil players: Eni, ConocoPhillips, ExxonMobil, Shell and TotalEnergies. The second phase will be the North Field
South expansion, which will add two further trains, increasing LNG export capacity to a total of 126mtpa by 2027, up from
77mtpa as of 2022. This second phase however has not yet been FIDed.
• QE’s LNG supply contracts are typically indexed to oil and gas prices, meaning the company has hugely benefitted from the
record high oil and gas prices seen from late 2021 onwards. The CEO of QE and Qatar's minister of State for Energy, Saad al-
Kaabi, indicated in October 2021 that Qatar had allocated all of its available output to its customers, having diverted additional
LNG volumes between either the East and West depending on market dynamics.
• Gas consumption will increase by 5.0% in 2022, totalling 41.3bcm, fuelled by a strengthening macroeconomic environment and
robust household consumption. In particular, electricity demand in the country, which is a major growth driver of gas
consumption, will remain high on the back of renewed economic activity. Gas consumption will accelerate over the course of the
year as the upcoming 2022 FIFA World Cup prompts businesses to expand operations and output in anticipation of a large
increase in tourism-driven demand. Over the longer term, the limited project pipeline of new gas power facilities and the
government's increased focus on renewable energy will dampen gas consumption growth across the country.
• Qatar's gas exports are forecast to grow by 2.4% in 2022, to stand at 137.8bcm. QE has benefitted from record high gas prices
seen in recent quarters, which will incentivise further investment into new liquefaction capacity in the country. There has been a
flurry of interest from Europe in Qatari LNG over H122, as European markets seek to reduce their heavy reliance on Russian gas,
though competition from Asian importers will remain strong. QE has confirmed plans for a massive 49.0mtpa (63.6%) expansion
of its liquefaction capacity starting in 2025. This will see Qatar regain its position as the largest exporter of LNG globally.

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Qatar Oil & Gas Report | Q4 2022

SWOT
Oil & Gas SWOT
SWOT Analysis
Strengths • The world's third-largest proven conventional gas reserves.
• Exporter of large volumes of oil.
• Natural gas production costs are among the lowest in the world, enabling some of the most cost-effective
LNG and GTL facilities globally.
• Produces copious amounts of condensate alongside its gas, offering high-quality and low-cost refining
feedstock.
• Remains partially open to foreign investment in its upstream segment.

Weaknesses • Crude oil production has been slipping in recent years, with minimal prospects for a substantial increase.
• The last major oil discovery was in 1994, making any significant growth in crude oil production unlikely in the
medium term.
• Gas potential beyond the North Field is limited.
• Oil revenues will see downside pressure as energy prices struggle to return to historic highs.

Opportunities • Integration of RasGas and Qatargas should provide cost-saving efficiencies, allowing Qatar to maximise
synergies.
• Removal of the North Field drilling moratorium opens up new potential to boost gas output.
• North Field Expansion project will cement Qatar's status as the largest exporter of LNG globally.
• Ongoing exploration activity could open up new offshore oil and gas resources.
• Enhanced or improved oil recovery could extend the production life of oil fields.
• Improving tensions between Qatar and the GCC could lead to looser import and export restrictions.
• Record high spot LNG prices expected to last over the near term will incentivise investment into new
liquefaction capacity in Qatar.

Threats • Rising competition with renewables, will threaten hydrocarbon production over the long term.
• Hub indexation on US LNG contracts could push some oil-linked Qatari contracts away from key consumers
in Europe and Asia.

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Qatar Oil & Gas Report | Q4 2022

Industry Forecast
Upstream Exploration
Key View: Qatar's existing large-scale proven hydrocarbons resource base is providing limited incentives for investment in
exploration activities. We do not expect to see exploration substantially picking up before the end of our forecast period in 2031, as
most of the drilling continues to focus on development rather than on exploration.

Latest Updates

• Despite the stronger oil and gas price environment seen in 2022 and improving market conditions (and notably increased
European demand for Qatari gas as Europe attempts to reduce Russian gas intakes), we expect exploration activity in Qatar's
upstream to remain limited. The bulk of exploration activity is expected to focus on the appraisal phase of the North Field South
development.
• There has been little evidence of a significant ramp-up in exploration activity in recent years. As of July 2022, Baker Hughes
reports 11 active rigs in Qatar, with five focused on oil-directed activities and six on gas. This number is relatively stable since
mid-2021.

Structural Trends

The substantial existing resource base in Qatar has meant little new exploration has been required over recent years, with activities
instead focusing on brownfield drilling. EIA's 2021 data put Qatar's oil reserves at 25.0bn bbl and its natural gas reserves at 23.9tcm.
While its crude reserves are sizeable, natural gas and associated liquids account for a larger share of the country's deposits. It has
the world's third-largest dry natural gas reserves, after Russia and Iran.

The North Field holds the vast majority of Qatari gas reserves, as well as liquids in the form of condensate and NGLs. The
government enforced a drilling moratorium on the field from 2005 to 2017, in order to allow time to evaluate the potential impact
on the reservoir from a higher volume of production. In April 2017, the government announced that the bulk of its evaluations had
been completed and that the moratorium was lifted.

There has been little evidence of a significant ramp-up in exploration activity in recent years. As of July 2022, Baker Hughes reports
11 active rigs in Qatar, with five focused on oil-directed activities and six on gas. This number is relatively stable since mid-2021.

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Qatar Oil & Gas Report | Q4 2022

Large Reserves Base Undercuts Impetus For Exploration

Qatar - Crude Oil, mn bbl & Natural Gas Reserves, bcm

e/f = Fitch Solutions estimate/forecast. Source: EIA, Fitch Solutions

As with other markets in the region, Qatar is planning to test its unconventional resource base. While unconventionals hold
substantial resource potential, these types of reservoirs are typically more technically and commercially challenging to
extract. QE lacks expertise in this area, but farm-ins to unconventional acreage abroad could help to overcome this. In June 2018,
the company took a 30.0% stake in ExxonMobil Exploration Argentina and Mobil Argentina - ExxonMobil's local affiliates in
Argentina. The companies hold seven licenses in the Vaca Muerta shale play, meaning that QE could benefit from knowledge
transfers.

The geology in Qatar remains untested and hundreds of wells will need to be spud to characterise the local reservoirs and establish
commercial viability. Tapping the unconventional resources in the North Field would benefit from existing infrastructure, but other
significant barriers above ground - notably water scarcity - remain. QE would likely rely on the involvement of foreign and private
players to spur exploration and development activities, which may require domestic pricing and regulatory reform.

The bulk of the exploration focus is likely to remain on conventional, near-field prospects. The North Field offers a vast resource to
tap, and increasingly sophisticated seismic and other technologies could help unlock additional resources in and around the giant
reservoir. Overall, given the scale of the discovered resource base, it is unlikely that exploration activity will pick up dramatically over
the duration of long-term forecast period.

QatarEner
atarEnergy
gy TToo Continue Expanding Its Int
International
ernational FFootprint
ootprint

QE’s international exploration portfolio grew significantly in 2021 and we expect its overseas expansion to continue throughout
2022 and beyond. A bond prospectus released in July 2021, which detailed QE’s plan to spend approximately USD59.1bn in capital
expenditure in the 2021-2025 period, highlighted increasing the company’s international footprint as a key area of planned
spending. QE is targeting exploration and production assets across the Americas, North and Sub-Saharan Africa, as well as the
Middle East, with much interest directed in acquiring offshore exploration acreage. The most recently announced acquisition came
in December 2021, with QE signing agreements with Shell to farm-in to two offshore exploration blocks in Egypt. Additionally, in
October 2021, QatarEnergy signed a farm-in agreement with ExxonMobil Canada for a 40.0% participating interest in licence EL
1165A, marking the company's first entry into offshore Canada. QE made a further move into Egypt in March 2022 by signing a
farm-in agreement with ExxonMobil, for a 40% working interest in the contractor’s share in the North Marakia Offshore Block.

We expect the Sub-Saharan Africa region to remain a key target for QE’s international growth strategy, owing to the availability of
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 9
Qatar Oil & Gas Report | Q4 2022

exploration acreage in key frontier markets. Qatar has displayed a strong interest in markets across Sub-Saharan Africa, particularly
in South Africa and Namibia. Unfavourable oceanic conditions and ultra-deep-water acreage in both Namibia and South Africa has
historically meant exploration is of high-risk, high-cost nature. However, both countries possess substantially underexplored acreage
and we expect recent discoveries will help to de-risk future exploration activity in these frontier markets, increasing the appeal for
investors like QE.

In July 2021, QE signed three farm-in deals with TotalEnergies for three offshore exploration blocks in South Africa. These are
additional to the 20.0% stake QE holds in TotalEnergies’ highly prospective Block 11B/12B, which contains the Brulpadda and
Luiperd discoveries currently under appraisal. In April 2021, QE entered into an agreement with Shell to become a partner in two
exploration blocks in Namibia's ultra-deep water. Under the agreement, QE will hold a 45.0% interest in the PEL 39 exploration
licence in Block 2913A and Block 2914B. In August 2020, QE entered into its first exploration acreage in Angola by farming into
TotalEnergies' Block 48 with a 30.0% stake. This comes after the acquisition of new acreage in May 2020, when QE entered into a
farm-in agreement with TotalEnergies to acquire a 45.0% stake in blocks CI-705 and CI-706 in the Ivorian-Tano Basin, offshore Côte
d'Ivoire.

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Qatar Oil & Gas Report | Q4 2022

Upstream Projects
KEY UPSTREAM PROJECTS
Block Field Name Companies Status Type Of Project Terrain

Qatar/ Al-Bunduq Bunduq Oil Company (100%) Production Oil Offshore

UAE

Block 7 Idd El Shargi, South Dome QatarEnergy (100%) Production Oil Offshore

Block 7 Idd El Shargi, North Dome QatarEnergy (100%) Production Oil Offshore

Block 12 Al-Rayyan QatarEnergy (100%) Production Oil Offshore

Block 8 Maydan Mahzam QatarEnergy (100%) Production Oil Offshore

Block 9 Dukhan (Khatiyah, Fahahil, Jaleha/ QatarEnergy (100%) Production Oil & Gas Onshore
Diyab)

Block 1 SE Al-Karkara, A-Structure (North/South) Qatar Petroleum Development Japan Production Oil Offshore

North North Field Qatargas (100%) Production Gas & Offshore

field condensate

Block 5 Al Shaheen TotalEnergies (30%), QatarEnergy Production Oil Offshore

(70%)

Block 6 Al Khalij TotalEnergies (40%), QatarEnergy Production Oil Offshore

(60%)

Block 8 Bul Hanine QatarEnergy (100%) Redevelopment Oil Offshore

Block 4 - PetroChina (40%), Engie (60%) Exploration Oil & gas Offshore

Block 3 - Government of Qatar Suspended Oil & gas Offshore

Block D - - Suspended Gas Offshore

Block 4N Al Radeef - Relinquished Gas Offshore

Block 11 - - Relinquished Offshore

Source: Fitch Solutions

fitchsolutions.com 11
Qatar Oil & Gas Report | Q4 2022

Upstream Oil Production

Key View: We have recently slightly revised our near-term forecast for Qatar's crude oil, NGL and other liquids production upwards
and now expect growth of 0.4% in 2022 to reach 1.82mn b/d, owing to higher oil prices spurring production. Additionally,
redevelopment works are underway at some of the country's largest oil fields, which will help to offset rising decline rates over the
coming years. However, we do not expect significant growth in Qatar's crude oil and condensates total liquids output until the North
Field Expansion project comes online from 2025 onwards, which will push total output to 2.06mn b/d in 2028 as the project ramps
up.

Latest Updates

• We have recently slightly revised our near-term forecast for Qatar's crude oil, NGL and other liquids production upwards this
quarter. We now expect growth of 0.4% in 2022 to reach 1.82mn b/d, owing to higher oil prices spurring production at the
country's existing fields. However, we maintain that depleting reserves and rising decline rates at some of Qatar's largest oil
assets will keep a lid on output growth over the coming years.
• While Qatar will prioritise the expansion of its giant North field (which will yield some condensates production), it will continue to
invest in the redevelopment/expansion works at some of its large offshore oil fields. This is especially so given the surge in oil
prices, which will likely see the country revive key expansion plans on the back of better field economics.
• This is notably the case with the third phase of the Bul Hanine field revamp. Originally planned in 2014 with the two other phases
of the field redevelopment program, the third phase was shelved in 2017. However, with high oil and gas prices the project is
making a comeback. Early 2022, QE awarded Fugro a technical services contract aimed at de-risking the further development
of the Bul Hanine field and the Maydan Mahzam field, which both offshore. In April 2022, it was reported UK contractor Wood
Group was awarded the front-end engineering and design studies for the project.
• The North Oil Company (NOC), a joint venture of TotalEner
otalEnergies
gies and QatarEnergy (QE), is progressing with its Gallaf offshore
project, which is a phased approach to further develop the Al-Shaheen field, the country's largest oil producing asset. The project
involves multiple offshore platforms and associated subsea infrastructure. In July 2021, NOC awarded a contract worth
USD635mn to South Korea's Daewoo Shipbuilding & Marine Engineering to deliver a fixed offshore production platform to
boost crude oil production from the Al-Shaheen field, Construction is expected to be completed by H223.
• Over the long term, crude and condensates output will be boosted by the progressive ramping up of the North Field expansion
project, slated to come online in 2025. This will add a total 260,000b/d of condensates over multiple phases once the project is
completed in 2027.
• Both the North Field expansion and further development of the Al Shaheen field will help offset the loss of oil production
expected in the coming years.
• Our data shows Qatar's crude oil and condensates total liquids output, including NGLs, grew by 2.3% in 2021, reaching 1.82mn
b/d, from 1.76mn b/d in 2020. The Barzan project, which came online in 2020, is contributing approximately 30,000b/d of
condensates to the country's overall output.

fitchsolutions.com 12
Qatar Oil & Gas Report | Q4 2022

Oil And Gas Fields

Qatar – Map Of Oil & Gas Fields

Source: Qatar Petroleum, Fitch Solutions

Structural Trends

The largest producing crude oil fields in Qatar are Al-Shaheen, Dukhan, Idd Al-Sharghi, Bul Hanine, Al Khalij, Maydan Mahzam, Al-
Bunduq, Al-Rayyan, and Al-Karkara/A-Structure. Except for the onshore Dukhan field, they are all located offshore.

Qatar's Exit From OPEC

Qatar left OPEC in January 2019. We believe this decision was largely a political one, with Qatar wishing to distance itself from an
organisation heavily dominated by Saudi Arabia. Tensions in the GCC flared up in 2017, when Saudi Arabia, the UAE and Bahrain
(along with Egypt) severed diplomatic ties with Qatar and imposed a land, sea and air blockade on the country. Under these
conditions, cooperation with Saudi Arabia in OPEC became more fraught.

As of 2022, our Country Risk team believes that these ties have been improving in recent months, with Saudi Arabia, the UAE, Egypt
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 13
Qatar Oil & Gas Report | Q4 2022

and Bahrain’s looking to strengthen and repair ties with Qatar. Nevertheless, Qatar will continue to simultaneously maintain an
independent foreign policy over the medium term.

The long-term outlook for crude and condensates production is mixed. Production depends on maturing oilfields, which are at risk
from rising decline rates and depleting reserves. However, redevelopment works are underway at various stages on a number of
fields, including Dukhan, Bul Hanine, Al Shaheen, Al Khalij and Maydan Mahzam.

• The onshore Dukhan field is wholly operated by QE. A multi-year enhanced infill drilling project commenced in 2016 (Enhanced
Water Flood Project), seeking to maximise recovery and maintain a stable plateau production at 175,000b/d. Drilling is expected
to continue with five active drilling rigs until 2027. QE is also planning a pilot carbon dioxide-water alternating enhanced oil
recovery project, which will verify the technology to recover additional oil. If successful, the pilot project will be implemented
across the entire Dukhan oil field.
• Redevelopment of the Bul Hanine oil field aimed to raise production to 95,000b/d by 2020 (compared with an average of 32,200
b/d in 2017) and to extend the productive life of the field by 25 years. A major fabrication project was successfully completed in
November 2019 as part of phase B of QE's redevelopment plan. QE, the field operator, announced plans to redevelop the field in
2014, aiming for a total of 150 new wells to be drilled by 2028. Oil produced will be sent onshore to Halul Island for exports, and
approximately 900MMscf/d (9.3bcm/y) of sour natural gas will be extracted and sent to a new gas treatment plan in Messaied via
a 150km subsea pipeline.
• Plans for the third phase of the Bul Hanine revamp is underway. Originally planned in 2014 with the other phases of the field
redevelopment programme (see above), the rhird phase was shelved in 2017. However, with high oil and gas prices the project is
making a comeback, with industry reports highlighting the project's front-end engineering and design stage is making progress
as of 2022. Early 2022, QE awarded Fugro a technical services contract aimed at de-risking the further development of the Bul
Hanine field and the Maydan Mahzam field, both offshore. In April 2022, it was reported UK contractor Wood Group was
awarded the front-end engineering and design studies for the project.
• Al Shaheen, Qatar's largest oil field, is operated by the North Oil Company - a JV between TotalEnergies (30.0%) and QE
(70.0%). The company plans to optimise production through further phase developments. The first phase, which started in 2017,
included drilling 56 wells, with two further phases planned by the end of 2022. Production at Al Shaheen averaged 270,000b/d
in 2020. In July 2021, the North Oil Company awarded a contract worth USD635mn to South Korea's Daewoo Shipbuilding &
Marine Engineering to deliver a fixed offshore production platform to boost crude oil production from the Al-Shaheen field,
which is the country's largest oil producing asset. Construction is expected to be completed by H223.
• Al Khalij is currently operated by TotalEnergies (40.0%) and QE (60.0%), with 60 wells and an offshore complex of eight
platforms. Output averaged 22,000b/d in 2017. Development work as part of the Al-Khalij Phase-4 project has reportedly begun,
to spud new wells and improve water separation at the processing station, in order to optimise oil production at the field.
• A feasibility study for the redevelopment of the QE-operated Maydan Mahzam field has been launched. In 2017, production at
the field averaged 22,700b/d.
• QE is currently implementing the remaining Optimised Phase 5 Full Development Field Plan to increase recovery at the Idd El-
Sharghi North Dome (ISND). QE is also working on Phase 6+ plans for both ISND and ISSD. In October 2019, QE assumed
operatorship of the Idd El Sharghi offshore fields, consisting of ISND and Idd El-Sharghi South Dome (ISSD), following the expiry
of Occidental Petroleum's offshore licences. The crude oil production rate for ISND was around 61,700b/d in 2019, while
ISSD produces around 9,300b/d.

Should these developments progress as planned, they will help stabilise and potentially increase crude production over the 10-year
forecast period. Other relevant information about Qatari oil fields includes:

• Production at the Al-Bunduq oil field, operated by the Bunduq Oil Company, was slightly under 12,000b/d in 2017.
• The Al-Karkara, A-North and A-South fields, located within Block 1 South East and operated by Qatar Petroleum
Development Japan, have a combined production of below 10,000b/d of light oil and are nearing their end-of-life.

fitchsolutions.com 14
Qatar Oil & Gas Report | Q4 2022

Condensates From North Field Expansion Project Driving Long-Term Growth

Qatar - Oil Production Forecast (2020-2031)

f = Fitch Solutions forecast. Source: EIA, Fitch Solutions

The main upside to production stems from the planned rise in gas production and the production of associated liquids, as
condensates and NGLs make up the bulk of Qatar's liquid output (according to data from QE, Qatar produced around 564,590b/d
of crude oil in 2020).

The government has announced plans to expand its LNG export capacity from 77mtpa to as high as 126mtpa by 2027. Previously,
QE had targeted 110.0mtpa by 2024, though we note that the additional construction of two more LNG mega trains will both
increase liquefaction capacity and the time to completion. Traditionally, gas produced by Qatar has had a high liquid content, which
implies significant gains to liquids production as gas output is expanded. Notably, the North Field expansion project is expected to
add some 260,000b/d of condensates to the country's output when completed.

The delayed Barzan field, started up in 2020, will develop the country's North Field gas reserves. Production estimates for Barzan - a
USD10.4bn greenfield gas project extracting gas from the North Field, executed by RasGas (a JV of Qatargas and ExxonMobil) -
indicate a significantly lower liquid yield. In addition to 1.4bcf/d of natural gas (Phase 1), Barzan will produce about 30,000b/d of
field condensate and supply up to 6,000tonnes/d of ethane to the petrochemical industry.

OIL PRODUCTION (QATAR 2020-2025)

Indicator 2020 2021 2022f 2023f 2024f 2025f

Crude, NGPL & other liquids prod, 000b/d 1,759.7 1,815.0 1,821.8 1,829.9 1,838.0 1,896.5

Crude, NGPL & other liquids prod, % y-o-y 1.3 3.1 0.4 0.4 0.4 3.2
f = Fitch Solutions forecast. Source: EIA, Fitch Solutions
OIL PRODUCTION (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Crude, NGPL & other liquids prod, 000b/d 1,989.0 2,044.3 2,063.0 2,046.0 2,029.3 2,012.8

Crude, NGPL & other liquids prod, % y-o-y 4.9 2.8 0.9 -0.8 -0.8 -0.8
f = Fitch Solutions forecast. Source: EIA, Fitch Solutions

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Upstream Gas Production

Key View: Elevated gas prices and the global economic recovery spurring increased energy use will ensure Qatar's natural gas
output registers positive growth in 2022. We forecast production increasing by 3.0%, to reach 179.2bcm. Over the long term, gas
production is set to increase to support Qatar's North Field Expansion project - a major planned expansion of the country's LNG
export capacity. We expect that an FID for the North Field South project is likely to occur in the coming quarters. High gas prices and
an expectation for strong global gas demand over the coming decade will help spur investment into expanding the country's
liquefaction capacity.

Latest Updates

• We forecast Qatar's natural gas output increasing by 3.0% in 2022, to reach 179.2bcm, supported by high gas prices fuelled by
rising geopolitical tensions stemming from Russia's invasion of Ukraine, combined with the global economic recovery spurring
increased energy use.
• The key project is the North Field Expansion project. The USD28.75bn North Field East project marks the first phase of the
project and includes the development of four LNG trains, which each have a capacity of 7.8mtpa and are set to come online in
2025, raising total capacity to 110mtpa. QatarEnergy selevted in 2022 five partners for the project, all of which are major
international oil players: Eni, ConocoPhillips, ExxonMobil, Shell and TotalEnergies. The second phase will be the North Field
South expansion, which will add two further trains, increasing LNG export capacity to a total of 126mtpa by 2027, up from
77mtpa as of 2022. This second phase however has not yet been FIDed.
• QE’s LNG supply contracts are typically indexed to oil and gas prices, meaning the company has hugely benefitted from the
record high oil and gas prices seen from late 2021 onwards. The CEO of QE and Qatar's Minister of State for Energy, Saad al-
Kaabi, indicated in October 2021 that Qatar had allocated all of its available output to its customers, having diverted additional
LNG volumes between either the East and West depending on market dynamics.
• Saad al-Kaabi announced in February 2021 that QE has taken the FID on phase one of the North Field Expansion project to raise
Qatar’s LNG production capacity from 77.0mpta to 110.0mtpa by 2025. The North Field East (NFE) project marks the first phase
of the expansion and includes the development of four LNG mega-trains, which have a capacity of 7.8mtpa.
• Key EPC contracts concerning the NFE project, which include the construction of the four mega LNG trains, were awarded in
February 2021 to a Chiyoda Technip JV and Saipem. In mid-2022, ExxonMobil, TotalEnergies, Shell, Eni and ConocoPhillips
were selected as partners in the project. 20-25% of the total offtake of the field is expected to be with ExxonMobil, Shell, and Total
Energies with each one having a 25% stake in joint ventures with QE, each for an LNG train. ConocoPhillips and Eni are expected
to share the offtake of the fourth LNG train.
• In January 2022, QE awarded a contract to McDermott for EPCI works on the overall North Field Expansion Project. McDermott
will provide 13 unmanned wellhead platform topsides - eight for the North Field East project and five for the North Field South
development.
• In 2019, QE announced development plans for the North Field South (NFS) expansion, which will see two additional LNG mega-
trains developed (in addition to the four to be developed at North Field East) in order to increase Qatar's LNG production capacity
to 126mtpa by 2027. The NFS expansion awaits FID, though QE targets the two new 7.8mtpa trains for completion by the end of
2027. We expect an FID on NFS could come in the coming quarters. High gas prices and an expectation for strong global gas
demand over the decade will help spur investment into expanding the country's liquefaction capacity. The sharp fall in Russian
pipeline imports and European diversification away from Russian gas will also act as a strong source of market demand over the
coming years.
• Qatar's vast natural gas resources and market-leading low liquefaction cost should see upstream gas production remain
buoyant even with threats from new LNG production globally.

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Structural Trends

Qatar produces natural gas from the supergiant gas-condensate North Field, the ownership of which is shared with Iran (Iranian
name: 'South Pars'). The North Field is the largest natural gas field in the world, with estimates from the EIA of in-place reserves
totaling 1,800trn cu ft of gas and some 50bn bbl of condensates.

The delayed Barzan field started up in 2020, with the first train commencing operations in April 2020, followed by the second train
in November 2020. QE reported train productions in 2020 were limited due to pipeline installation work set to be complete in 2021.
Our data shows Qatar's natural gas production grew by 1.5% in 2021, supported by the new capacity from the Barzan field.

The USD10.4bn Barzan project was initially launched in 2007 by RasGas, a joint venture between Qatargas and ExxonMobil. The
greenfield development is aimed at extracting more gas resources from the supergiant North Field. The project has faced repeated
and severe delays due to a number of technical issues, including an explosion on a trunk pipeline and a major leak in a pipeline
upstream. Costs escalated from original estimates of USD8.6bn. Further expansions are planned - phases 2 and 3 are respectively
planned to produce 2.0bcf/d and 2.5bcf/d when completed, thus adding another 46bcm combined capacity - though these are
not factored into our long-term forecast for the time being.

Elevated Gas Prices Incentivising Production

We forecast Qatar's natural gas output increasing by 3.0% in 2022, to reach 179.1bcm, supported by high gas prices and the global
economic recovery spurring increased energy use. QE’s LNG supply contracts are typically indexed to oil and gas prices, meaning
the company has hugely benefitted from the record high oil and gas prices seen since late 2021. The CEO of QE and Qatar's Minister
of State for Energy, Saad al-Kaabi, indicated in October 2021 that Qatar had allocated all of its available output to its customers,
having diverted additional LNG volumes between either the East and West depending on market dynamics.

As of 2022, escalating geopolitical tension resulting from the Russian invasion of Ukraine, in addition to increasing Russian gas
supply cuts to Europe, continue to drive global spot LNG prices upwards. At the Gas Exporting Countries Forum held in Doha on
February 22 2022, the Qatari Energy Minister noted that it will be ‘almost impossible’ for either Qatar or any country to fully replace
Russian gas volumes to Europe amid rising Russia-Ukraine tensions. How long prices stay at the current elevated level is highly
contingent on the fast-moving Russia-Ukraine crisis, as well as the new wave of western sanctions on Russia and retaliatory
response from Russia.

Spot rates should recede from current record levels as global supply fundamentals begin to normalise in line with the pace of
demand recovery, although should still remain elevated in comparison to prior years as decarbonisation efforts drive greater
appetite for gas. Global LNG spot prices had already reached record highs in 2021, with key driving factors including strong demand
from Asia, lower than average inventories in Europe and a reluctance from Russia to export additional volumes of gas to European
markets.

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Qatar's Gas Output Set To Soar

Qatar - Natural Gas Production Forecast (2020-2031)

f = Fitch Solutions forecast. Source: JODI, Fitch Solutions

Over the longer term, gas production is set to increase to support a major planned expansion of the country's LNG export capacity.
A lifting of the drilling moratorium on the North Field will pave the way to raise production to meet additional export demand. Two
major projects for the field have been announced since the ban was lifted:

• The North Field Sustainability Project is targeting to maintain current levels of production at the field. The project will be
executed in several phases, and QE regularly announced the award of major contracts for the project over 2019. The project
involves the installation of several new wellhead platforms as well as other facilities in the southern part of the field to maintain
gas output.

• The USD28.75bn North Field Expansion Project will seek to develop the southern part of the field, with first gas expected late
2025. This is reflected in our forecasts by a 33.0% growth spike between 2025 and 2027. The NFE project marks the first phase
of the expansion and includes the development of four LNG mega-trains, which have a capacity of 7.8mtpa. The project will add
approximately 47.5bcm to natural gas production capacity. The project will also incorporate greenhouse gas reduction
measures, including carbon capture and storage facilities, solar power generation and waste heat recovery.

LNG Capacity Expansion: Through the North Field Expansion Project, QE plans to increase Qatar’s natural gas liquefaction
capacity from 77.1mtpa currently to 110.0mtpa by 2025 and 126mtpa by 2027. In 2019, QE announced development plans for the
NFS expansion, which will see two extra LNG mega-trains developed in order to increase Qatar's LNG production capacity to
126mtpa by 2027. The NFS expansion awaits FID, though QE targets the two new 7.8mtpa trains for completion by the end of 2027.
We expect an FID on NFS is likely to occur in the coming quarters. High gas prices and an expectation for strong global gas demand
over the decade will help spur investment into expanding the country's liquefaction capacity.

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GAS PRODUCTION (QATAR 2020-2025)

Indicator 2020 2021 2022f 2023f 2024f 2025f

Dry natural gas production, bcm 171.4 174.0 179.2 182.8 182.8 204.7

Dry natural gas production, bcm, % y-o-y 0.6 1.5 3.0 2.0 0.0 12.0

Dry natural gas production, % of domestic consumption 423.4 442.0 433.6 433.6 429.3 476.0
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions
GAS PRODUCTION (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Dry natural gas production, bcm 229.2 243.0 257.6 258.9 261.5 258.8

Dry natural gas production, bcm, % y-o-y 12.0 6.0 6.0 0.5 1.0 -1.0

Dry natural gas production, % of domestic consumption 527.9 554.0 581.4 578.6 578.6 567.1
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions

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Refining
Key View: Qatar's refined fuels production is forecast to grow by 1.0% in 2022, to total approximately 749,320b/d. Over the coming
years, refined fuel production in Qatar will be driven by the Ras Laffan refinery expansion, although GTL plants will remain a core part
of Qatar's refining capacity. We are forecasting a slight uptick in the country's refined fuel production our long-term forecast period,
reaching 783,730b/d in 2031.

Latest Updates

• We forecast refined fuels production to total approximately 749,320b/d in 2022 and increase slightly over our long-term forecast
period to reach 783,730b/d in 2031.
• Sasol
Sasol's 33,000b/d Oryx GTL refinery is expected to achieve a full-year utilisation rate of 85.0-90.0% in FY22 (July 1 2021 to June
30 2022), due to a planned shutdown.
• In September 2020, QatarEner
atarEnergy
gy announced it had commenced the supply of ultra-low sulphur diesel from the QE refinery,
meaning all diesel sold in Qatar is to the highest specification.
• A JV between QatarEnergy and Chevron Phillips Chemical awarded a lump-sum contract to Consolidated Contractors
Company in June 2022 for early site work at the Ras Laffan Petrochemical Project. The project is expected to start production by
the end of 2025.

Structural Trends

The QE refinery (formerly QP refinery), located at Mesaieed Industrial City, was built in 1958 and, following an upgrade in 2001,
processes both crude oil and condensates, with a total refining capacity of 137,000b/d. Around 80,000b/d of Dukhan crude oil and
57,000b/d of North Field condensate is processed at the refinery. In September 2020, QE announced it had commenced the
supply of ultra-low sulphur diesel from the QE refinery, meaning all diesel sold in Qatar is to the highest specification.

The Ras Laffan refineries are located in Ras Laffan Industrial City. The facility operates to impressive standards having recently
marked 10 years of running with zero Lost Time Injuries. Phase one of the refinery, Laffan Refinery 1 (LR1), came onstream in late
September 2009, adding 146,000b/d to the country's refining capacity. The second phase, Laffan Refinery 2 (LR2), came online in
December 2016, taking the overall refining capacity of the facility to 292,000b/d. The plant processes condensate from the North
Field and has an output capacity of 60,000b/d of naphtha, 53,000b/d of jet fuel, 24,000b/d of gas oil, and 9,000b/d of liquefied
petroleum gases (LPG). Shareholders in LR1 are: QatarEnergy (51%), TotalEnergies (10%), ExxonMobil (10%), Cosmo (10.0%),
Idemitsu (10.0%), Mitsui (4.5%) and Marubeni (4.5%). The shareholders of LR2 are QE (84.0%), TotalEnergies (10.0%), Cosmo
(2.0%), Idemitsu (2.0%), Mitsui (1.0%) and Marubeni (1.0%).

Nameplate crude and condensate refining capacity in Qatar is 429,000b/d as of mid-2022. However, refined fuels production is
much higher than existing refining capacity thanks to the country's two GTL facilities, which also produce large volumes of refined
products. The GTL facilities and the large volume of condensates processed skew the yield towards the high-value top end of the
barrel. The natural gas production stream contains a significant amount of LPG, which adds to refined fuels production total.

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GTL Facilities Driving Refined Fuels Production

Qatar - Refining Capacity Forecast (2020-2031)

e/f = Fitch Solutions estimate/forecast. Source: EIA, Fitch Solutions

GTL

Apart from its two conventional refineries, Qatar also has a 33,000b/d GTL plant known as Oryx, operated by synthetic oil specialist
Sasol. The South Africa-based firm reportedly had plans to treble the capacity of the site, potentially taking it to more than
100,000b/d using gas from the Al Khalij field. However, no progress has yet been made on the project, with Sasol appearing to put
greater focus on its other international GTL projects. High gas prices to date could further delay such a project, given gas remains
the feedthrough product, and a high price differential between gas prices and final refined product prices (produced by the GTL
plant) must be achieved to guarantee the viability of such a plant over the longer term.

In addition, the larger Shell-operated Pearl GTL plant has the capacity to produce 140,000b/d of petroleum products including
ultra-clean diesel and naphtha. The first train started up in 2011 and the facility reached full capacity at the end of 2012. The Pearl
facility also produces some 120,000b/d of ethane. The plant is currently the world's largest GTL facility and is notable as the first GTL
facility to integrate upstream natural gas production with the downstream conversion facility.

REFINING CAPACITY AND REFINED PRODUCTS PRODUCTION (QATAR 2020-2025)

Indicator 2020e 2021e 2022f 2023f 2024f 2025f

Crude oil refining capacity, 000b/d 429.0 429.0 429.0 429.0 429.0 429.0

Crude oil refining capacity, % y-o-y 0.0 0.0 0.0 0.0 0.0 0.0

Crude oil refining capacity, utilisation, % 172.9 173.8 174.7 175.5 176.4 177.3

Refined products production, 000b/d 741.9 745.6 749.3 753.1 756.8 760.6

Refined products production, % y-o-y 0.5 0.5 0.5 0.5 0.5 0.5

Refined products production & ethanol, 000b/d 741.9 745.6 749.3 753.1 756.8 760.6

Refined products production & ethanol, % y-o-y 0.5 0.5 0.5 0.5 0.5 0.5
e/f = Fitch Solutions estimate/forecast. Source: QP, JODI, Fitch Solutions

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REFINING CAPACITY AND REFINED PRODUCTS PRODUCTION (QATAR 2026-2031)

Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Crude oil refining capacity, 000b/d 429.0 429.0 429.0 429.0 429.0 429.0

Crude oil refining capacity, % y-o-y 0.0 0.0 0.0 0.0 0.0 0.0

Crude oil refining capacity, utilisation, % 178.2 179.1 180.0 180.9 181.8 182.7

Refined products production, 000b/d 764.4 768.2 772.1 775.9 779.8 783.7

Refined products production, % y-o-y 0.5 0.5 0.5 0.5 0.5 0.5

Refined products production & ethanol, 000b/d 764.4 768.2 772.1 775.9 779.8 783.7

Refined products production & ethanol, % y-o-y 0.5 0.5 0.5 0.5 0.5 0.5
f = Fitch Solutions forecast. Source: QP, JODI, Fitch Solutions

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Qatar Oil & Gas Report | Q4 2022

Refined Fuels Consumption

Key View: An expectation for strong real GDP growth and an expansion in business activity will drive Qatar's refined fuels
consumption in 2022, during which we are forecasting a 3.0% growth, to reach 310,000b/d. The 2022 FIFA World Cup in November
2022 is set to increase domestic economic activity, offering further support to fuels demand. We expect refined fuels demand to
register steady but subdued increases throughout our long-term forecast period to the end of 2031, averaging 1.2% per annum,
driven by private consumption growth and an expanding construction sector.

Latest Updates

• We estimate that refined fuels consumption in Qatar will total approximately 310,000b/d in 2022, an increase of 3.0% y-o-y. The
country's recovery from the global pandemic will be sharp and sustained, with forecasts for GDP growth of 4.3% in 2022, which
according to our Country Risk team marks the strongest reading since 2014. They note that higher hydrocarbon prices will also
boost real GDP growth, and net exports and private consumption will also rise, especially during the FIFA World Cup tournament
in November and December 2022, which will provide secondary tailwinds to economic growth.
• Downside risks to our near-term refined fuels consumption forecast lie in rising inflationary pressures which lead to negative
consequences on purchasing power. Our Country Risk however does highlight that the Qatar Central Bank (QCB) will likely hike
its overnight lending rate (main policy rate) less aggressively than the US Federal Reserve to maintain a relatively low cost of
lending to allow firms to prepare for the World Cup. However, they still expect to see an acceleration in headline inflation from
2.3% in 2021 to 4.7% in 2022, which will have an impact on private consumption and could translate into slightly lower refined
fuels consumption in 2022 and 2023 than currently expected.
• Over the longer term, we expect refined fuels demand to register steady but subdued increases throughout our long-
term forecast period to the end of 2031, averaging 1.2% per annum, driven by private consumption growth and an expanding
construction sector.

Structural Trends

We estimate that refined fuels consumption in Qatar will total approximately 310,00b/d in 2022, an increase of 3.0% y-o-y. The
country's recovery from the global pandemic will be sharp and sustained, with forecasts for GDP growth of 4.3% in 2022, which
according to our Country Risk team marks the strongest reading since 2014. They note that higher hydrocarbon prices will also
boost real GDP growth, and net exports and private consumption will also rise, especially during the FIFA World Cup tournament in
November and December 2022, which will provide secondary tailwinds to economic growth.

The hosting of the FIFA World Cup in 2022 should further increase domestic economic activity as will the expansion of the oil and
gas industry as LNG export investment ramps up to the mid-decade. This renewed activity should push fuels consumption higher
over 2022 before falling back to trend growth levels of 1.0% per year.

We estimate that refined fuels consumption in Qatar totaled approximately 301,000b/d in 2021, an increase of 2.0% y-o-y, as the
country began its recovery from the Covid-19 pandemic. In 2020, Qatar's economic growth deteriorated due to the outbreak of
Covid-19 and the social distancing measures subsequently introduced by the authorities to contain the virus. These included the
suspension of public transport, a ban on public gatherings, and the closure of schools and non-essential businesses in mid-March,
and all served to hit business activity, private consumption and investment.

More specifically, we estimated that the construction and tourism industries to be the hardest-hit. Under the directives of the emir,
the government postponed QAR30.0bn (USD8.2bn) in capital projects – a bid to contain pressures on the budget in the face of
collapsing oil prices – implying a pronounced drop in capital spending. A government-imposed international flight ban – introduced

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Qatar Oil & Gas Report | Q4 2022

as part of the social distancing measures in mid-March 2020 – prompted a sizeable decline in tourist arrivals in the same year, as
real GDP growth contracted by 2.2%.

Healthy Outlook For Fuels Demand

Qatar - Refined Fuels Consumption Forecast (2020-2031)

e/f = Fitch Solutions estimate/forecast. Source: EIA, Fitch Solutions

Aside from the recovery from Covid-19, the non-hydrocarbon sector of the economy will enjoy a boost from the raft of large-scale
infrastructure projects currently underway in preparation for the 2022 FIFA World Cup, which will offer some support to fuels
demand over the coming years.

Our refined fuels consumption forecast is also supported by a rising demand for vehicles in Qatar. Our Autos team forecasts average
annual growth of 3.4% in new vehicle sales over our forecast period to the end of 2031. Demand for new vehicles will be driven by a
recovering economy and rising incomes over the long term.

The main risk to our forecast stems from the potential for more aggressive fuel subsidy reform to move domestic prices in line with
international norms. However, the government has shown little appetite for this type of reform and, given its comfortable fiscal
position, any further reforms will likely remain gradual, posing limited disruption to demand.

Another short-term downside risks to our refined fuels consumption forecasts lie in rising inflationary pressures which lead to
negative consequences on purchasing power. Our Country Risk however does highlight that the QCB will likely hike its overnight
lending rate (main policy rate) less aggressively than the US Federal Reserve to maintain a relatively low cost of lending to allow firms
to prepare for the World Cup. However, they still expect to see an acceleration in headline inflation from 2.3% in 2021 to 4.7% in
2022, which will have an impact on private consumption and could translate into slightly lower refined fuels consumption in 2022
and 2023 than currently expected.

REFINED PRODUCTS CONSUMPTION (QATAR 2020-2025)

Indicator 2020e 2021e 2022f 2023f 2024f 2025f

Refined products consumption, 000b/d 295.3 301.2 310.2 313.4 316.5 319.6

Refined products consumption, % y-o-y 0.5 2.0 3.0 1.0 1.0 1.0
e/f = Fitch Solutions estimate/forecast. Source: EIA, Fitch Solutions

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Qatar Oil & Gas Report | Q4 2022

REFINED PRODUCTS CONSUMPTION (QATAR 2026-2031)

Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Refined products consumption, 000b/d 322.8 326.1 329.3 332.6 336.0 339.3

Refined products consumption, % y-o-y 1.0 1.0 1.0 1.0 1.0 1.0
f = Fitch Solutions forecast. Source: EIA, Fitch Solutions

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Qatar Oil & Gas Report | Q4 2022

Gas Consumption
Key View: Gas consumption will increase by 5.0% in 2022, totalling 41.3bcm, fuelled by a strengthening macroeconomic
environment and robust household consumption. In particular, electricity demand in the country, which is a major growth driver of
gas consumption, will remain high on the back of renewed economic activity. Gas consumption will accelerate over the course of
the year as the upcoming 2022 FIFA World Cup prompts businesses to expand operations and output in anticipation of a large
increase in tourism-driven demand. Over the longer term, the limited project pipeline of new gas power facilities and the
government's increased focus on renewable energy will dampen gas consumption growth across the country.

Latest Updates

• We forecast gas consumption increasing by 5.0% y-o-y in 2022, totaling 41.3bcm, fuelled by a strengthening macroeconomic
environment and robust household consumption. The upcoming 2022 FIFA World Cup will prompt businesses to expand
operations and output in anticipation of a large increase in tourism-driven demand, supporting the country's consumption of
gas.
• We estimate electricity demand in the country, which is a major growth driver of gas consumption to return on renewed
economic activity. Gas accounts for 97.7% of total electricity generation in Qatar.
• The delayed Barzan gas project came online in 2020, which will help support domestic gas consumption over the near term,
meaning growth will remain positive.
• By the end of our forecast period in 2031, natural gas consumption will total 45.6bcm. We note that, over the longer term, the
limited project pipeline of new gas power facilities and the government's increased focus on renewable energy will dampen gas
consumption growth in the country.

Structural Trends

We forecast gas consumption increasing by 5.0% y-o-y in 2022, totalling 41.3bcm, fuelled by a strengthening macroeconomic
environment and robust household consumption. Additionally, the upcoming 2022 FIFA World Cup will prompt businesses to
expand operations and output in anticipation of a large increase in tourism-driven demand, supporting the country's consumption
of gas.

We expect that the electricity demand, which is a major growth driver of gas consumption, will return on renewed economic activity.
Gas accounts for 97.7% of total electricity generation in Qatar. The delayed Barzan gas project started up in 2020, which will help
support domestic gas consumption over the near term, meaning growth will remain positive.

Across the forecast period, we believe consumption will increase with the levels of supply whilst maintaining an upward overall
trajectory. These main growth drivers are supported by a growing population and developing infrastructure and industrial sectors.

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Steady Growth In Demand

Qatar - Gas Consumption Forecast (2020-2031)

e/f = Fitch Solutions estimate/forecast. Source: GECF, JODI, Fitch Solutions

Gas consumption growth will decelerate from 2024, increasing by an annual average of 1.0% between 2024 and 2031. While rising
electricity demand in the country will support gas consumption growth over the longer term, the limited project pipeline of new gas
power facilities and the government's increased focus on renewable energy will dampen gas consumption growth.

Qatar has set an ambitious renewable energy goal, which is to have 20.0% of its total power generation needs covered by solar
power by 2030. Over time, Qatar has the potential to establish itself as a solar hub within the Gulf states and is investing in several
different solar power initiatives, including solar desalination plants, solar-powered manufacturing plants and large-scale solar power
plants, which will help to build up the necessary infrastructure to develop a strong solar power sector. This expansion of renewables
generation risks lower gas consumption during the forecast period.

GAS CONSUMPTION (QATAR 2020-2025)

Indicator 2020 2021e 2022f 2023f 2024f 2025f

Dry natural gas consumption, bcm 40.5 39.4 41.3 42.2 42.6 43.0

Dry natural gas consumption, % y-o-y -2.5 -2.8 5.0 2.0 1.0 1.0
e/f = Fitch Solutions estimate/forecast. Source: EIA, Qatar Petroleum, Fitch Solutions
GAS CONSUMPTION (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Dry natural gas consumption, bcm 43.4 43.9 44.3 44.7 45.2 45.6

Dry natural gas consumption, % y-o-y 1.0 1.0 1.0 1.0 1.0 1.0
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions

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Oil Trade
Key View: The positive growth now expected in Qatar's oil production over 2022 will see the country's net crude oil export volumes
increase by 0.3%, to 1.07mn b/d. The expectation that the North Field Expansion project will come online in late 2025 will see net
crude and condensate exports peaking at 1.29mn b/d in 2028, before declining moderately again. We forecast net exports of
refined products to remain largely flat over the next decade, reaching 444,000b/d in 2031, increasing only slightly from our forecast
of 439,000b/d in 2022, owing to largely stable refinery utilisation rates.

Crude Oil

Latest Updates

• In 2022, we now expect export volumes to increase by 0.3%, to 1.07mn b/d, owing to positive growth in Qatar's oil production,
supported by a stronger oil price environment.
• Thereafter, we expect crude and condensates exports to remain mostly stable until the four trains of the North Field Expansion
project successively come online from 2024/2025 onwards. The Barzan gas project, which came online in late 2020, is also
offering a small boost to current condensates exports.
• Net crude oil and condensate exports will sharply rise to 1.14mn b/d in 2025 and then to 1.22mn b/d in 2026, up from 1.08mn
b/d in 2024. This will reflect the North Field Expansion project coming online in late 2025. This positive growth in exports will
continue till 2028, during which exports will peak at 1.29mn b/d before declining moderately again until the end of our forecast
period in 2031.

Structural Trends

Qatar primarily exports its crude and condensates to Asian markets, with Japan, China, Singapore and India all ranking among the
country's top importers in 2021. Qatar has three main crude oil grades: Qatar Land, Qatar Marine and Al Shaheen. Qatar Marine is a
lighter crude with a high sulfur content, while Qatar Land is a lighter crude with a lower sulfur content. The Al Shaheen blend is
slightly heavier, though with a high sulfur content.

Qatar exports condensates in the form of its two flagship condensate grades: the Deodorized Field Condensate (DFC) and the Qatar
Low Sulphur Field Condensate (QLSC). The Ras Laffan refinery primarily uses DFC as it is the more popular feedstock for condensate
splitters. QLSC is very similar to DFC in most properties and usages except for a higher naphtha content.

Asian Downstream Players Hungry For Qatari Condensate

The re-imposition of US sanctions on Iran has made it difficult for foreign companies to access Iranian South Pars
condensate. Although we deem it likely that sanctions will eventually be lifted over the coming years, investors have proved
reluctant to invest in Iran, even post-sanctions. Due to this lack of investment, prospects for gas and condensates capacity growth in
the country are relatively bleak and are unlikely to prove sufficient to meet rising global demand for petrochemicals production,
even once sanctions are lifted. We, therefore, estimate that this will leave a gap in the market, that Qatar is well-positioned to fill.

As the long-term viability of other replacement grades (such as Norwegian condensate, which is sweet while South Pars is a sour
condensate) is questionable, Qatar remains one of the only suppliers of suitable ultra-light crude oil. Qatar’s DFC and QLSC are
crucial grades used both in petrochemical crackers and also as feedstock to naphtha splitters. The country currently produces close
to 1mn b/d of condensates and LPG, supplying a number of Asian markets as Iranian grades' availability has dwindled.

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South Korea, which was the biggest importer of Iranian condensate before the reimposition of sanctions on Iran, halted all imports
in May 2019 after US sanctions waivers expired. In 2018, South Korea reportedly bought and tested as many as 23 different types of
condensate from 15 countries as possible substitutes for Iranian condensate, as the country's splitters are designed to process low-
sulfur condensate from Qatar and Iran that produce no residue and have a bigger yield for heavy naphtha. This provided potential
for Qatar to benefit from a bigger share of exports to South Korea in recent years, though according to data from TradeMap, Qatar's
market share of South Korea's crude and condensate imports has stayed steady, at a level of approximately 5.8% in both 2019 and
2020. Once sanctions on Iran are lifted, we expect trade between South Korea and Iran to resume, which might lessen the need for
Qatari condensates.

North Field Expansion To Boost Exports

Qatar - Crude & Condensates Export Forecast (2020-2031)

e/f = Fitch Solutions estimate/forecast. Source: EIA, Fitch Solutions

CRUDE OIL NET EXPORTS (QATAR 2020-2025)

Indicator 2020e 2021e 2022f 2023f 2024f 2025f

Crude & other liquids net export, 000b/d 1,017.8 1,069.4 1,072.4 1,076.8 1,081.2 1,135.9

Crude & other liquids net export, % y-o-y 1.9 5.1 0.3 0.4 0.4 5.1
e/f = Fitch Solutions estimate/forecast. Source: EIA, Qatar Petroleum, Fitch Solutions
CRUDE OIL NET EXPORTS (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Crude & other liquids net export, 000b/d 1,224.6 1,276.0 1,291.0 1,270.1 1,249.5 1,229.1

Crude & other liquids net export, % y-o-y 7.8 4.2 1.2 -1.6 -1.6 -1.6
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions

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Qatar Oil & Gas Report | Q4 2022

Refined Fuels

Latest Updates

• Qatar's refined products exports are expected to decline slightly in 2022, by 1.2%, to 439,000b/d. This is due to rising domestic
consumption limiting the availability of exports, though we expect the global recovery in air travel will lead to an uptick in
demand and output for Qatari jet fuel over the coming quarters.
• We forecast net exports of refined products to remain largely flat over the next decade, reaching 444,000b/d in 2031, increasing
only slightly from our forecast of 439,000b/d in 2022, owing to largely stable refinery utilisation rates.
• Export growth will remain minimal in the coming years, as weaker demand globally and increased domestic consumption lowers
the export outlook.

Structural Trends

The bulk of the output at the Ras Laffan refinery is naphtha and jet fuel. Naphtha production is largely targeted at Asian markets that
have large petrochemicals sectors. Jet fuel will more likely find customers in regional markets throughout the Middle East. We expect
the global recovery in air travel will lead to an uptick in demand and output for Qatari jet fuel over the coming quarters.

Tasweeq, Qatar's state-run oil marketing firm, reduced its condensate exports by a third (20 cargoes a month instead of 30 cargoes
a month previously) in early 2017, when a new splitter at the facility started operating, enabling Qatar to process larger volumes
domestically and displace condensates exports with exports of higher value-added refined products.

We forecast net exports of refined products to remain largely flat over the next decade, reaching 444,000b/d in 2031, from our
forecast of 439,000b/d in 2022, owing to largely stable refinery utilisation rates. For 2022, we estimate a slight decrease in Qatar's
refined products exports, of 1.2%, due to higher domestic consumption curbing the availability of exports. Export growth will remain
minimal in the coming years, as weaker demand globally and increased domestic consumption lowers the export outlook.

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Exports To Remain Largely Flat

Qatar - Refined Fuels Export Forecast (2020-2031)

e/f = Fitch Solutions estimate/forecast. Source: EIA, QatarEnergy, Fitch Solutions

REFINED FUELS NET EXPORTS (QATAR 2020-2025)

Indicator 2020e 2021e 2022f 2023f 2024f 2025f

Refined products net exports, 000b/d 446.6 444.4 439.1 439.7 440.4 441.0

Refined products net exports, % y-o-y 0.5 -0.5 -1.2 0.1 0.1 0.1

Refined products net exports, USDbn 6.9 11.3 13.6 13.4 13.2 13.7
e/f = estimate/forecast. Source: EIA, Qatar Petroleum, Fitch Solutions
REFINED FUELS NET EXPORTS (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Refined products net exports, 000b/d 441.6 442.2 442.8 443.3 443.9 444.4

Refined products net exports, % y-o-y 0.1 0.1 0.1 0.1 0.1 0.1

Refined products net exports, USDbn 13.6 13.6 13.6 13.6 13.6 13.6
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions

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Gas Trade
Key View: Qatar's gas exports are forecast to grow by 2.4% in 2022, to stand at 137.8bcm. QE has benefitted from record high gas
prices seen in recent quarters, which will incentivise further investment into new liquefaction capacity in the country. There has
been a flurry of interest from Europe in Qatari LNG over H122, as European markets seek to reduce their heavy reliance on Russian
gas, though competition from Asian importers will remain strong. QE has confirmed plans for a massive 49.0mtpa (63.6%) expansion
of its liquefaction capacity starting in 2025. This will see Qatar regain its position as the largest exporter of LNG globally.

Latest Updates

• Data from GIIGNL for 2021 show that Asian importers continue to dominate the market for Qatari LNG, with 73% of Qatar's LNG
exports heading to Asia in 2021. South Korea, India and Mainland China all rank among the country's top importers, and we
expect gas demand from these consumers to remain strong over the decade.
• QatarEnergy (QE)’s LNG supply contracts are typically indexed to oil and gas prices, meaning the company has hugely
benefitted from the record high oil and gas prices seen in recent quarters.
• Competition for LNG cargoes amid a tight global gas market has enabled Qatar to use its significant gas resources to deepen its
ties with the West, reflected by a flurry of interest from Europe in Qatar’s LNG over recent quarters. Following Russia’s invasion of
Ukraine, we are expecting a deepening energy partnership with Europe and Qatar, as markets located in the former desperately
try to lock down alternative sources of gas and diversify away from Russian supplies. Qatar is one of the world’s largest gas
producers and has plans to massively expand its LNG export capacity from 2025 through its North Field Expansion project. In
May 2022, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani began a state visit to Europe, which included visits to Germany, the UK
and Spain – markets which are all trying to delink their interdependence on Russian energy.
• In March 2022, the European Commission formally closed an antitrust investigation into QE's 20-year LNG supply contracts. The
investigation was opened in 2018 to investigate whether QE's long-term supply agreements with European importers had
breached EU antitrust rules by hindering the development of a single gas market in the EU. The closure of the investigation
supports the likelihood of QE pursuing more long-term LNG supply agreements in Europe over the coming years.
• We expect to see an uptick in Qatar’s market share in the European gas sector over the coming years, though Europe’s low-
carbon energy ambitions will keep a lid on regional LNG demand growth over the long term. Asia’s already pronounced reliance
on Qatari LNG, will ensure Doha continues to pursue a balanced foreign policy approach with regards to its gas exports, despite
its blossoming energy relations with Europe.
• QE has reaffirmed its commitment to a 49.0mtpa (63.6%) expansion of its liquefaction capacity starting in 2025. In February
2021, the president and CEO of QE announced the FID on phase one of the North Field Expansion project to raise Qatar’s LNG
production capacity from 77.0mpta to 110.0mtpa by 2025. EPCI contracts were also awarded in February 2021, a delay from the
initial expectation of the end of 2020. The North Field East (NFE) expansion project will greatly increase exports over the longer
term. Phase two, which is the North Field South (NFS) expansion, will see two extra LNG mega-trains developed in order
to increase Qatar's LNG production capacity to 126mtpa by 2027. The NFS expansion awaits FID, though QE targets the two new
7.8mtpa trains for completion by the end of 2027. We expect an FID to be reached in H222.
• In December 2021, QE's affiliate Qatar Liquified Gas Company Limited entered into a long-term SPA with S&T
International Natural Gas Trading Company for the supply of 1.0mtpa of LNG to China over a 15-year period starting in late
2022. In July 2021, QE signed a 10-year SPA with Shell for the supply of 1.0mtpa of LNG to China. This follows an agreement
announced in March 2021, when QE signed a 10-year SPA with Sinopec for the supply of 2.0mtpa to China from 2022. QE has
supplied over 62mtpa of LNG to China since 2009, and we expect China’s demand for Qatari LNG to continue throughout the
decade.
• The delayed Barzan field came online in 2020, which will increase natural gas production capacity and support gas exports in the
years ahead.

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Structural Trends

Qatargas and RasGas (both wholly owned by QE) were merged under Qatargas in early 2018. Each operates seven trains, with a
total combined LNG export capacity of 77.1mtpa, or roughly 106.0bcm.

Qatar is going to invest to increase this to as much as 126.0mtpa by 2027 to meet a projected improved global demand for LNG in
the mid-2020s. QE announced that the expansion, which will be fueled by increased natural gas production from the North Field,
will involve the construction of six new liquefaction trains.

The Barzan field came online in 2020, increasing natural gas production capacity to support total output. We expect that global
economic output will grow in 2022, as the Covid-19 pandemic begins to wane and growth returns globally. This will ensure a strong
demand for gas, from which Qatar stands to benefit. However, we note that downside risks to global growth remain significant -
including the geopolitical impact of Russia-Ukraine tensions.

Given QE's aim to significantly raise capacity through its North Field Expansion project, we believe both gas production and exports
will continue to grow beyond 2025, with gas exports peaking at 216.0bcm in 2030 before trailing off slightly to reach 213.0bcm in
2031.

Qatar To Remain A Leading LNG Exporter

Qatar - Gas Net Export Forecast (2020-2031)

e/f = estimate/forecast. Source: EIA, Fitch Solutions

New-Build Trains Over De-bottlenecking

The first phase includes the development of four new 7.8mtpa LNG mega-trains, extending by a further two by 2027. Initially, we
had expected this capacity growth to come from a mixture of de-bottlenecking work at existing mega-trains combined with two
new-build production trains. However, feasibility studies reportedly highlighted challenges with undertaking such work in a
somewhat congested environment surrounded by operating LNG facilities. The risks associated with de-bottlenecking in such an
environment and the downtime in production required to undertake upgrades are now thought to hold negligible cost savings over
a new-build train.

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In May 2018, Japan-based Chiyoda was awarded the front-end engineering and design contract for the LNG trains. Further capacity
addition was announced in September 2018, with plans to add a fourth train in 2025, once the first three trains are online. QE is now
moving forward with the expansion plans, with the award of several major contracts - including packages for the construction of the
LNG mega-trains, storage, loading and export facilities, LNG carriers, amid others - for the NFE announced over the last months.

Expansion Programme To Increase Export Capacity By 43%

Qatar - LNG Export Capacity By Train, mtpa (2015-2026)

f = Fitch Solutions forecast. Source: QatarEnergy, Fitch Solutions

A similar expansion programme already took place in the 2009-2011 period. Rasgas added trains 6 and 7 (both 7.8mtpa) in August
2009 and February 2010 respectively. Qatargas also undertook a three 7.8mtpa train expansion adding trains 5, 6 and 7 in
September 2009, December 2010 and February 2011 respectively. We envisage a similar time frame for the roll-out of new trains,
likely with a six-month gap between the start-up of each.

While other major LNG projects have failed to take off over recent years, Qatar holds a significant cost advantage largely due to the
prolific North Field, from where feedgas for the LNG facilities is delivered. Collaboration with oil majors will also support both project
financing and securing offtake by selling a portion of gas into majors' portfolios, two issues that have limited final investment
decisions in recent years. Qatar has previously offered 30.0-35.0% equity stakes in its LNG trains. ExxonMobil, in particular, has a
strong relationship having equity stakes in 12 of Qatar's 14 existing trains, with ConocoPhillips, TotalEnergies and Shell are also
present in some. The construction of four new trains (as opposed to debottlenecking) also offers the country an opportunity to
expand its relationships with more IOCs, and potentially those with established access to growing LNG import markets.

Notable absentees include BP and Chevron, both of which could be interested in Qatar given the low cost of gas production from
the North Field. TotalEnergies has also voiced interest in North Field projects (it used to hold the licence of the South Pars Phase 11
project in the Iranian part of the gas field, but has now been replaced by China National Petroleum Corporation after it officially
withdrew in August 2018 due to the failure to obtain a US sanctions waiver).

QE has received bids from international oil and gas companies for a stake of up to 30.0% in the North Field East
expansion project. QatarEnergy selected in 2022 five partners for the project, all of which are major international oil players: Eni,
ConocoPhillips, ExxonMobil, Shell and TotalEnergies. The second phase will be the North Field South expansion, which will add two
further trains, increasing LNG export capacity to a total of 126mtpa by 2027, up from 77mtpa as of 2022. This second phase
however has not yet been FIDed. The expansion plans offer an attractive opportunity for large oil companies to develop their
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 34
Qatar Oil & Gas Report | Q4 2022

position in the LNG market and grow their natural gas portfolios.

Qatar has been successful in tapping into some of the fastest-growing LNG markets over recent years. In 2020, Qatari LNG
dominated imports of Bangladesh, Pakistan, Thailand, India and Taiwan. Qatar exported 71.1bcm of LNG to the Asia Pacific region in
2020, the main recipient being India with 14.6bcm, followed by South Korea with 12.9bcm.

Increased Focus On New, Fast-Growing Markets

Qatar - Share Of LNG Imports By Market, %

Note: May include territories, special administrative regions, provinces and autonomous regions. Source: GIIGNL, Fitch Solutions

Targeting New LNG Markets In Asia

Qatar's LNG exports remain largely unaffected by political tensions in the Gulf. The country’s export destinations are well diversified
with Europe remaining a key trade partner. However, higher prices of liquefied natural gas in Asia, supported by growing demand for
natural gas in the region, will continue driving global export dynamics. As part of efforts to reduce pollution in urban areas, Asia's
demand for cleaner-burning natural gas is set to increase in the coming years. With low production costs and spare capacity, Qatar
remains well placed to meet rising demand in the face of competition for market share in the region from the US, Russia and
Australia.

Qatar remains well-positioned to continue being a leading supplier of LNG to global markets supported by low production costs and
the presence of necessary infrastructure. Also, Qatar's strategic location, giving the country access to potential export markets, will
support Doha's ambitious plans and help expand its presence in Asia.

However, we note some Asian key demand centres, such as Japan and South Korea, are planning to diversify their LNG imports over
the coming years, with greater volumes of the fuel supplied by the US. As a result of growing competition, Qatar may also see
increasing pressures from the demand side, as LNG buyers may want to renegotiate long-term contracts to reflect the changing
price dynamics.

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Increasing Focus On Asia

Qatar - LNG Exports By Region, % (2021 vs 2017)

Source: GIIGNL, Fitch Solutions

With the increasing demand for natural gas, Asia will continue being a focal point of competition for market share over our forecast
period. We do not expect Qatar’s position as a key LNG player in the region to be challenged in the coming years, though Doha is set
to face increasing competition from Australia’s LNG supplies, following the completion of the Wheatstone, Prelude and
Ichthys LNG export projects.

China has approximately 13.45mtpa of existing and future long-term contracts with Australia, and 12.4mtpa contracted with Qatar.
In December 2021, QE's affiliate Qatar Liquified Gas Company Limited entered into a long-term SPA with S&T International Natural
Gas Trading Company for the supply of 1.0mtpa of LNG to China over a 15-year period starting in late 2022. In July 2021, QE signed
a 10-year SPA with Shell for the supply of 1.0mtpa of LNG to China. This follows an agreement announced in March 2021, when QE
signed a 10-year SPA with Sinopec, for the supply of 2.0mtpa to China from 2022. QE has supplied over 62mtpa of LNG to China
since 2009, and we expect China’s demand for Qatari LNG will continue throughout the decade. Having already been the largest
importer of gas, in 2021 China overtook Japan as the world's largest importer of LNG - a situation we had deemed highly likely to
occur.

An overall trend towards oversupply has resulted in low prices of LNG in Asia, with greater capacity to buy, China's demand could be
higher-than-anticipated providing opportunities for exporters, like Qatar, to increase their market share. Not only are China’s LNG
imports forecast to grow throughout the decade, but China is also steering its national energy mix towards clean energy sources,
which bodes well for Qatar’s LNG. Qatar is set to outshine some of its LNG competitors by simultaneously achieving a lower carbon
footprint in production - its NFE project will implement a carbon capture and storage system, which will limit CO2 emissions from
natural gas liquefication and storage.

Despite the rising competition, Qatar continues to strike substantial LNG supply contracts in Asia. In July 2021, QE announced the
signing of a 20-year LNG contract with South Korea's KOGAS, for the supply of 2.0mtpa to South Korea from 2025. KOGAS
currently buys 9.0mtpa from Qatar though long-term contracts. This followed an announcement earlier in July that QE had signed a
15-year agreement to supply 1.25mtpa of LNG to the CPC Corporation in Taiwan from January 2022.

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Competition For Market Share Intensifies

Various Markets - LNG Volumes Exported To Asia In 2021 By Market, mtpa

Source: GIIGNL, Fitch Solutions

Even with challenges and increasing competition in the region, Qatar's position in Asia will remain dominant. With the planned
expansion of LNG capacity in Qatar, the country will increasingly focus on new emerging LNG markets in the region. As a result of
growing demand for gas in Pakistan and Bangladesh and rising consumption in more established markets, such as India and
Thailand, we are expecting to see greater volumes of LNG supplies delivered to these less traditional but faster-growing demand
centres in Asia.

Europe Looks To Qatari LNG, Though Competition With Asia Remains Fierce

As of 2022, Europe has been facing an ongoing energy crisis and incredibly tight gas supplies have led to extremely high gas prices
in recent quarters. This has been aggravated by escalating geopolitical tensions between Russia and Ukraine in Q122, given
Europe’s reliance on gas exports from the former and fears that geopolitical escalations will lead to a supply interruption through
Ukraine, since it transits approximately 25.0% of Russia’s total daily gas exports to Western Europe. As a result of Europe’s heavy
reliance on Russian gas, as well as the need for additional supplies to alleviate rising gas prices, there is a growing determination
from Europe to secure additional volumes of gas from alternative sources – including LNG from Qatar.

At the Gas Exporting Countries Forum held in Doha on February 22 2022, the Qatari Energy Minister noted that it will be ‘almost
impossible’ for neither Qatar or any country to fully replace Russian gas volumes to Europe amid rising Russia-Ukraine tensions. The
comments were made only a few days prior to Russian President Vladimir Putin launching a full-scale invasion of Ukraine on
February 24 2022, which sent gas prices skyrocketing. Since the majority of Qatar’s LNG deliveries are tied up in medium- or long-
term contracts with buyers located in Asia, Qatar can do little to help alleviate the record-high LNG prices in Europe registered over
recent months. However, we note that Qatar's plans to massively expand its LNG export capacity by 2025 provides an opportunity
for Europe to ensure the future security of its gas supply through long-term SPAs. Germany is an example of a EU market that is
turning to Qatar for gas. In March 2022, Germany's economy minister held talks with Qatar's emir and signed a long-term energy
partnership for LNG supply and in May 2022, it was reported in local media that Doha plans to start supplying LNG to Germany as
early as 2024.

In March 2022, the European Commission formally closed an antitrust investigation into QE's 20-year LNG supply contracts. The
antitrust case had been open since 2018 and was assessing whether QE’s supply agreements had been breaching EU antitrust rules
by hindering the free flow of gas within the European Economic Area. EU officials have not confirmed that the suspension of the
investigation was linked to Europe’s ongoing energy crisis, however, we note that the timing is significant given recent events and
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

fitchsolutions.com 37
Qatar Oil & Gas Report | Q4 2022

signifies a willingness from Europe to attract additional LNG supplies from Qatar. We expect that the closure of the investigation
supports the likelihood of QE pursuing more long-term LNG supply agreements in Europe over the coming years.

GAS NET EXPORTS (QATAR 2020-2025)

Indicator 2020 2021e 2022f 2023f 2024f 2025f

Dry natural gas net exports, bcm 130.9 134.6 137.8 140.6 140.2 161.7

Dry natural gas net exports, % y-o-y 1.6 2.8 2.4 2.0 -0.3 15.3

Dry natural gas net exports, USDbn 27.0 46.8 50.7 52.5 53.7 64.3

Pipeline gas net exports, bcm 26.9 27.6 30.8 33.6 33.2 31.7

Pipeline gas net exports, % y-o-y 17.0 2.4 11.8 8.9 -1.3 -4.5

Pipeline gas net exports, % of total 20.6 20.5 22.4 23.9 23.7 19.6

LNG net exports, bcm 104.0 107.0 107.0 107.0 107.0 130.0

LNG net exports, % y-o-y -1.7 2.9 0.0 0.0 0.0 21.5

LNG net exports, % of total gas exports 79.4 79.5 77.6 76.1 76.3 80.4
e/f = Fitch Solutions estimate/forecast. Source: EIA, Qatar Petroleum, Fitch Solutions
GAS NET EXPORTS (QATAR 2026-2031)
Indicator 2026f 2027f 2028f 2029f 2030f 2031f

Dry natural gas net exports, bcm 185.8 199.1 213.3 214.1 216.3 213.2

Dry natural gas net exports, % y-o-y 14.9 7.2 7.1 0.4 1.0 -1.4

Dry natural gas net exports, USDbn 73.9 79.3 84.9 85.2 86.1 84.8

Pipeline gas net exports, bcm 30.8 34.1 38.3 39.1 41.3 38.2

Pipeline gas net exports, % y-o-y -2.7 10.8 12.1 2.2 5.5 -7.4

Pipeline gas net exports, % of total 16.6 17.1 17.9 18.3 19.1 17.9

LNG net exports, bcm 155.0 165.0 175.0 175.0 175.0 175.0

LNG net exports, % y-o-y 19.2 6.5 6.1 0.0 0.0 0.0

LNG net exports, % of total gas exports 83.4 82.9 82.1 81.7 80.9 82.1
f = Fitch Solutions forecast. Source: EIA, Qatar Petroleum, Fitch Solutions

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Industry Risk/Reward Index

Middle East And North Africa Upstream Oil & Gas Risk/Reward Index
Key View: With the largest resource base in the world, the Middle East and North Africa offers substantial investment rewards but
requires a tolerance for risk. Restrictions on foreign participation, unfavourable fiscal and licensing terms, and a high level of
operating risk undermine below ground rewards and limit the region's upstream potential.

High Risks Mar Potential Rewards

MENA - Upstream Risk/Reward Heat Map

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Main Regional Features & Latest Updates

• Despite holding the largest resource and production base on average of any region globally, the Middle East and North Africa
(MENA) only marginally outperforms the global average (50.0), with an Upstream RRI of 53.8 dragged down by a weak risk
profile.
• The region outperforms the global average in Industry Rewards at 68.2, reflecting the scale of its hydrocarbon resources and
strong forecast production growth. However, a heavy state dominance in the sector undercuts its score for Country Rewards.
• Upstream Country and Industry Risks are elevated across the region due to a mix of uncertain economic and political conditions,
complex legal and bureaucratic environments, and broader operational challenges. In addition, high tax rates and unattractive
contractual structures increase the investment risk in most markets.
• The region's production is facing heavy constraints in the near term, due to the combination of the OPEC+ production cut deal
and the cutbacks in spending stemming from the pandemic-induced rout in oil prices. However, the long-term fundamental
outlook remains bright, reflecting the scale of the region's resource base and its advantaged position along the global cost
curve.
• The UAE has eclipsed Saudi Arabia to take pole position in the index, reflecting its open investment climate, greater competitive
diversity, a healthy project pipeline and renewed exploration efforts.
• As with the downstream sector, the region's worst performers are Libya, Yemen and Tunisia. Poor security environments are
major barriers to investment in the former, whereas for Tunisia the main drag is a lack of domestic resource and production
potential.

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GCC Offers Low Risk, High Reward

MENA - Upstream Risk/Reward Snapshot

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

GCC Retains Its Crown

The UAE outperforms Saudi Arabia on most indicators, supported by a more open and diverse competitive landscape, a more
attractive climate for investment and more favourable fiscal and licensing terms. A smaller reserves and production base weigh to
the downside, the market scores for favourably on growth. We expect a continued high level of compliance with the OPEC+
production cut deal, but the UAE has a strong pipeline of projects awaiting development, offering large opportunities for growth
over the long term. In addition, regulatory reforms and a spate of recent licensing rounds has improved the prospects for
exploration, as the market recovers post-Covid.

Saudi Arabia ranks in second place, despite the sharp curbs on its production imposed under the OPEC+ production cut deal. Saudi
Arabia is leading the cuts and will likely maintain the strongest level of compliance over course of the deal. That said, the roll off of
cuts over 2021 gives some scope for oil production growth, as do the kingdom's plans to raise its production capacity from 12.0mn
b/d to 13.0mn b/d. The major Hawiyah and Haradh and Tanajib gas projects are also boosting the prospects for hydrocarbons
growth over the medium term. More generally, the kingdom boasts a favourable risk/reward profile, reflecting large proven reserves,
a consistent discovery rate, a positive long-term production trajectory and well-developed infrastructure. Risks above ground are
limited, but the state's monopoly of the sector severely constrains investment.

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Strong Industry Rewards Support Saudi Ranking

Saudi Arabia, UAE & Regional Average - Upstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Qatar - which sits fourth in our index - is, along with the UAE and Saudi Arabia, among those markets best-placed to weather the
current down cycle, not least due to its low production cost base and ample fiscal reserves. After Oman, Qatar boasts the most
attractive risk profile in the region, while plans for a major expansion of its LNG export infrastructure are also bolstering the potential
rewards. The country now plans to raise domestic liquefaction capacity to 126.0mtpa by 2027 - an increase of 64%.

Oman's risk profile supports a middling ranking in the table, but it will continue to underperform the wider GCC due to a below-
average reserves base and limited prospects for production growth. Kuwait also suffers in the rankings, sitting just one place above
Oman, despite a far larger reserves and production base and greater scope for growth. While its rewards profile is the stronger of the
two, heavy state ownership of assets and a relatively poor fiscal and licensing structure weigh heavily to the downside, as does the
country's lack of exploration and low discoveries rate.

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Kuwait Risks, Oman Rewards Hamper Performance

Oman, Kuwait & Regional Average - Upstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Egypt Lingers In Sixth

Egypt fell sharply in the upstream table in 2020. A collapse in global oil prices will undercut upstream spending in the country,
driving a year-on-year decline in oil production. While gas production growth will remain positive, the post-FID projects pipeline will
roll off over the next few years and the prospects for new FIDs have been damaged by current market dynamics. The country enjoys
a diverse competitive landscape, attractive licensing and fiscal terms and prospective offshore resources, which should help draw
back investment over the medium term. However, elevated political, economic and operational risks continue to weigh on its
RRI score overall. That said, the market remains the bright spot in North Africa and faces significantly lesser cutbacks to spending
and output than neighbouring Algeria.

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Egypt Underperforming Its Potential

Egypt & Regional Average - Upstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Both Iran And Iraq Face Rising Risks

Iraq has a strong rewards profile, representing among the largest reserve base globally and strong below-ground prospects for
growth. However, the country hosts among the most unattractive licensing regimes of any market globally, which - combined with
heightened political, economic and operational risks - continues to curb inward investment. The global oil price collapse
will severely exacerbate these underlying issues and, following a substantial cut to production in 2020, we are forecasting a further
year-on-year decline in the country's crude output in 2021, as international players limit their spending. The recovery from the
Covid-19 pandemic and OPEC+ deal will support growth in the medium term, but 2030 output is forecast to remain broadly on par
with the levels seen in 2019.

Iran is also a relatively risky market for investment in global terms and is struggling under the added weight of US nuclear-related
sanctions. This is preventing full monetisation of its sizeable and low-cost oil and gas reserves base. Given the existing sanctions in
place, the oil price collapse has arguably had less of an impact on Iran's upstream sector than in most other markets. That said,
further restrictions on the state's ability to spend provides downside risk. The election of Joe Biden in the US presidential elections in
November 2020 has, however, improved the outlook. Relations between Washington and Tehran look likely to thaw, paving the way
to a rollback of secondary sanctions over 2022 and 2023 and the return of sanctioned barrels to market. Strong production growth
prospects and large discoveries made over recent years have helped move Iran into third position in the rankings.

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Elevated Risks Dampen Potential Reward

Iran, Iraq & Regional Average - Upstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

North Africa Lags The Region

North Africa chronically underperforms in our Upstream Risk/Reward Index, but due to varying reasons. Tunisia underperforms the
region in terms of resource base and production growth potential, offsetting the benefits of a relatively attractive fiscal and licensing
regime. Both Yemen and Libya are experiencing domestic conflicts, which severely impact the political, economic and
operational risk scores and heavily depress production growth outlooks, in spite of sizeable reserves bases. A ceasefire was agreed
to in Libya in August 2020, which has lifted production back above 1.0mn b/d. However, the risk of renewed production outages
remains extremely high.

In Algeria, large oil and gas resources and ongoing hydrocarbons reforms hold some upside to investment as oil prices recover.
However, the dominance of state-owned Sonatrach, elevated political risks and a bloated bureaucracy rank among a host of
ongoing risks to businesses above ground. Moreover, in current market conditions, the market is among those most vulnerable to
the pullback in global spending. In light of a maturing asset base, we expect significant acceleration in underlying decline rates over
the coming years, with little scope for greenfield additions to offset these losses.

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Above-Ground Risk Overwhelms Potential Rewards

Algeria, Libya & Yemen - Upstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

MENA UPSTREAM RISK/REWARD INDEX

Industry Country Industry Country Regional Global
Rewards Risks RRI
Rewards Rewards Risks Risks Rank Rank

UAE 91.3 46 73.2 57.7 82.6 62.7 72.1 1 4

Saudi Arabia 91.8 33.3 68.4 49 77.3 54.7 67.1 2 8

Iran 95.5 24.2 67 43.9 31.7 41.5 64.4 3 11

Qatar 70.1 48.4 61.4 60.1 73.2 62.8 61.6 4 13

Iraq 79.9 33.8 61.4 32.3 20.3 29.9 58.3 5 21

Egypt 67 43 57.4 46.6 49.2 47.1 56.4 6 24

Kuwait 69.9 25.4 52.1 49.6 70.9 53.8 52.2 7 28

Oman 50.1 42.3 47 66.2 67.8 66.5 48.9 8 39

Algeria 62.4 26.8 48.1 43.2 30.8 40.7 47.4 9 44

Libya 73.4 18.1 51.3 6.5 12.2 7.6 46.9 10 47

Tunisia 30 50.5 38.2 65.4 34.7 59.2 40.3 11 56

Yemen 36.6 17.4 28.9 42.3 2.8 34.4 29.5 12 70

Regional
68.2 34.1 54.5 46.9 46.1 46.7 53.8 ~ ~
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA UPSTREAM INDUSTRY REWARDS

Oil Gas Discoveries Hydrocarbon Hydrocarbon Production Industry
Reserves Reserves Rate Production Growth Rewards

UAE 91.5 90.1 97.2 91.5 85.9 91.3

Saudi Arabia 98.6 91.5 97.2 97.2 74.6 91.8

Iran 95.8 98.6 97.2 95.8 90.1 95.5

Qatar 81.7 97.2 15.5 90.1 66.2 70.1

Iraq 94.4 85.9 51.4 88.7 78.9 79.9

Egypt 59.2 70.4 91.5 74.6 39.4 67

Kuwait 93 74.6 15.5 84.5 81.7 69.9

Oman 69 56.3 15.5 69 40.8 50.1

Algeria 78.9 84.5 51.4 80.3 16.9 62.4

Libya 87.3 69 51.4 64.8 94.4 73.4

Tunisia 32.4 22.5 33.1 19.7 42.3 30

Yemen 63.4 52.1 15.5 16.9 35.2 36.6

Regional
78.8 74.4 52.7 72.8 62.2 68.2
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

MENA UPSTREAM COUNTRY REWARDS

State Asset Ownership Competitive Landscape Infrastructure Integrity Country Rewards

UAE 32.4 9.9 95.8 46

Saudi Arabia 2.8 1.4 95.8 33.3

Iran 9.9 4.2 58.5 24.2

Qatar 36.6 12.7 95.8 48.4

Iraq 47.2 8.5 45.8 33.8

Egypt 59.9 54.9 14.1 43

Kuwait 2.8 0 73.2 25.4

Oman 47.2 33.8 45.8 42.3

Algeria 20.4 14.1 45.8 26.8

Libya 2.8 5.6 45.8 18.1

Tunisia 47.2 66.2 38 50.5

Yemen 32.4 19.7 0 17.4

Regional Average 28.5 19.2 54.5 34.1

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA UPSTREAM INDUSTRY RISKS

Royalties Income Tax Licence Type Bureaucratic Environment Legal Environment Risk Industry Risks

UAE 28.9 1.4 71.1 94.4 93 57.7

Saudi Arabia 9.9 9.2 71.1 70.4 84.5 49

Iran 90.8 66.9 4.2 36.6 21.1 43.9

Qatar 69 26.8 50 74.6 80.3 60.1

Iraq 90.8 26.8 0 19.7 23.9 32.3

Egypt 90.8 14.1 50 50.7 27.5 46.6

Kuwait 19 90.8 1.4 63.4 73.2 49.6

Oman 90.8 5.6 71.1 77.5 85.9 66.2

Algeria 69 66.9 12.7 26.8 40.8 43.2

Libya 14.1 2.8 12.7 0 2.8 6.5

Tunisia 69 66.9 50 78.9 62 65.4

Yemen 90.8 95.1 12.7 11.3 1.4 42.3

Regional Average 61.1 39.4 33.9 50.4 49.7 46.9

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

MENA UPSTREAM COUNTRY RISKS

Long-Term Economic Short-Term Long-Term Political Short-Term Political Operational Country
Risk Index Economic Risk Index Risk Index Risk Index Risk Index Risks

UAE 64.8 64.8 90.1 95.8 90.1 82.6

Saudi
80.3 85.2 50.7 81.7 83.1 77.3
Arabia

Iran 23.9 14.1 32.4 43.7 38 31.7

Qatar 52.1 50.7 78.9 88.7 84.5 73.2

Iraq 21.1 43 9.9 8.5 19.7 20.3

Egypt 50.7 47.9 46.5 48.6 50.7 49.2

Kuwait 70.4 74.6 69 84.5 63.4 70.9

Oman 32.4 40.8 84.5 85.9 81.7 67.8

Algeria 29.6 34.5 38.7 14.1 33.8 30.8

Libya 12.7 25.4 0 7 14.1 12.2

Tunisia 8.5 7 74.6 25.4 46.5 34.7

Yemen 2.8 4.2 4.2 0 2.8 2.8

Regional
37.4 41 48.3 48.7 50.7 46.1
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Please Note: Our Risk/Reward Indices are updated frequently; as a result, scores in this section may not match scores in the rest of
the report.

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Middle East And North Africa Downstream Oil & Gas Risk/Reward Index
Key View: Middle East and North Africa's Downstream Rewards scores are supported by positive demographics, a strong demand
profile and a large, modern refining sector, although fuel subsidies and heightened risks in several markets weigh on overall
performance.

GCC Leads The Region

MENA - Downstream Risk/Reward Heat Map

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Main Regional Features & Latest Updates:

• Middle East And North Africa (MENA)'s Downstream Oil & Gas Risk/Reward Index (RRI) stayed broadly flat this quarter at 53.1,
continuing to outperform the global average of 50.0.
• The region significantly outperforms in the Industry Rewards category (59.6), reflecting a large and an increasingly modern
refining sector, wide availability of domestic crudes and a strong fuel demand outlook.
• The region underperforms in every other category, dragged down by elevated logistical and operational risks, the continued
prevelance of fuel subsidies and unstable political and economic environments in some markets.
• Saudi Arabia and the UAE are among the region's top performers, supported by lower risk factors, more advanced refining
sectors and advantaged access to low-cost feedstock.
• Iran has held to third position in the rankings this quarter, reflecting continued growth in the country's refining sector and the
positive impact of progressive fuel price liberalisation. Qatar shares these dynamics, but has slipped from second place to fifth,
reflecting our expectations for weaker fuel demand growth in the wake of Covid-19.
• Yemen, Tunisia and Libya are the key laggards in our MENA Downstream RRI, reflecting ageing and under-utilised refining
sectors, small domestic demand pools and unstable political and economic backdrops.

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North African Markets Struggling To Compete

MENA - Downstream Risk/Reward Snapshot

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

GCC Markets Outperform

MENA’s Downstream RRI scores are supported by strong Industry Rewards due to a large and growing regional fuels market,
substantial refining capacity and ample supplies of domestic crude. However, the region sharply underperforms the global average
in terms of Industry Risks (34.2 versus a global average of 50.0), largely because of the existence of fuel subsidies and elevated
logistical risks. Further fuel price liberalisation could boost the region's score over the coming years, although in many markets the
scope for further reform is limited in the near term.

There is a marked division in MENA between the Middle Eastern countries at the top of the table and the North African markets,
which fall to the bottom. Saudi Arabia and the UAE are among the outperformers, supported by modern and efficient refining
facilities that surpass domestic demand needs. Although heavy state dominance in the sector weighs on Country Rewards, overall
risks in these markets are also substantially lower than the regional average, reflecting broad stability in the countries' political,
economic and operating environments. One notable exception is Saudi Arabia’s Long-Term Political Risk score (42.9), which
is relatively low, betraying a fragility in investor sentiment towards the country's long-term business environment.

Qatar and Kuwait enjoy much of the same advantages of Saudi Arabia and the UAE, but their position in the rankings (fifth and
sixth respectively) suffer from the smaller size of their domestic fuels markets and weaker prospects for growth. Kuwait also suffers a
generally more challenging business environment and, relatedly, extremely limited foreign and private participation in the
downstream sector.

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GCC Offers Favourable Mix Of Risk And Return

Saudi Arabia, UAE, Qatar, Kuwait & Regional Average - Downstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Iran has risen to third place in the index, although its risk/reward profile is mixed. The country outperforms the wider region in terms
of both Industry and County Rewards, reflecting a large and growing refining sector and ample domestic crude feedstock. A vast
and growing population paints a healthy picture for demand, while the anticipated rollback of US secondary sanctions under a
Biden presidency holds substantial risk to the upside. That said, the downstream sector is heavily dominated by the state, with little
scope for wider private and foreign participation, even post-sanctions. The investment climate compares poorly both regionally and
globally, and economic and political risks are elevated.

Egypt and Iraq have strong rewards profiles, supported by large populations with a high demand for fuels, ample domestic crude
supplies and substantial refining capacity, although infrastructure in both markets is in need of upgrading and capacity utilisation
is low. Risks in both Egypt and Iraq are elevated by both global and regional standards, and this weighs on their performance overall.

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Iran Downstream A Mixed Bag

Iran, Iraq, Egypt & Regional Average - Downstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Yemen, Tunisia And Libya Remain Laggards

The MENA region as a whole is dragged down by the under-performance of Yemen and Libya, both of which have highly unstable
political and security landscapes. Significant investment will be needed to restore damaged infrastructure, and we note that this
investment is unlikely to materialise in the near future, with both countries ranking among the worst globally in terms of political
and operational risks. The two countries score an average of 2.2 out of 100.0 in our Short- and Long-Term Political Risk
indices. Tunisia is also a major laggard in the region. Politically it is more stable than both Libya and Yemen, although it faces some
significant economic pressures. All three markets have limited and low complexity refining capacity, high levels of logistical risk and
relatively small domestic fuel demand pools.

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Outage Risks, Low Complexity Weigh On Performance

Libya, Tunisia, Yemen & Regional Average - Downstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Sitting at the middle of the table are a mix of markets. Oman and Bahrain have attractively low levels of investment risk (by regional
standards), but have more limited domestic crude production, smaller refining sectors and thinner domestic fuels markets. That
said, refining capacity expansions could offer a boost to their standing in the table over the coming years. The situation in Algeria is
almost the reverse of that in Oman and Bahrain. The fuels market is large and growth prospects are strong and the country has
substantial refining capacity and large volumes of domestic crude supply. However, a poor investment climate characterised by high
levels of political, operational and logistic risk weigh heavily to the downside.

Mixed Risk/Reward Profiles Weigh On Middle Rankings

Oman, Bahrain & Algeria - Downstream Risk/Reward Index

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA DOWNSTREAM RISK/REWARD INDEX

Industry Country Industry Country Regional Global
Rewards Risks RRI
Rewards Rewards Risks Risks Rank Rank

Saudi Arabia 84.9 43.4 72.5 31.3 68.6 50 70.2 1 3

UAE 80.1 33.9 66.2 40.7 76.9 58.8 65.5 2 6

Iran 75.4 49.5 67.6 22 26.3 24.1 63.2 3 11

Iraq 69.6 63.2 67.7 23.6 16.9 20.3 63 4 12

Qatar 69.1 37 59.5 62.6 64.9 63.8 59.9 5 20

Kuwait 68 24 54.8 35.4 62.6 49 54.2 6 36

Egypt 49.9 70.1 56 29.1 41.3 35.2 53.9 7 37

Algeria 59.2 50.7 56.6 25.3 26 25.6 53.5 8 38

Oman 55.7 42.3 51.7 61.5 60.3 60.9 52.6 9 40

Bahrain 47.2 27.3 41.2 48.4 53.8 51.1 42.2 10 66

Yemen 37.4 53.3 42.1 12.1 2.2 7.1 38.6 11 73

Tunisia 35 41.2 36.9 47.3 28.9 38.1 37 12 80

Libya 43.8 27.7 39 5.5 9.9 7.7 35.8 13 84

Regional
59.6 43.4 54.7 34.2 41.4 37.8 53.1 ~ ~
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA DOWNSTREAM INDUSTRY REWARDS

Domestic Fuel Regional Theoretical

Refining Utilisation Life Span Of Industry
Fuel Demand Fuel Net Crude
Capacity Rates Infrastructure Rewards
Demand Growth Demand Exports

Saudi Arabia 94.5 70.3 93.4 68.1 70.9 97.3 100 84.9

UAE 80.2 53.8 74.7 86.8 70.9 97.3 96.7 80.1

Iran 91.2 68.1 89 67 70.9 48.9 92.3 75.4

Iraq 72.5 40.7 67 89.6 70.9 48.9 97.8 69.6

Qatar 54.9 100 54.9 17.6 70.9 97.3 87.9 69.1

Kuwait 82.4 61.5 63.7 25.3 70.9 78.6 93.4 68

Egypt 69.2 29.7 70.3 50 12.1 48.9 69.2 49.9

Algeria 65.4 79.1 61.5 64.8 12.1 48.9 82.4 59.2

Oman 60.4 37.4 48.4 42.9 70.9 48.9 81.3 55.7

Bahrain 52.7 65.9 16.5 41.2 70.9 48.9 34.1 47.2

Yemen 34.1 19.8 23.1 51.6 70.9 1.6 60.4 37.4

Tunisia 19.8 44 31.9 39 12.1 39 59.3 35

Libya 53.8 17.6 47.3 89.6 12.1 1.6 84.6 43.8

Regional
63.9 52.9 57.1 56.4 52.8 54.3 80 59.6
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA DOWNSTREAM COUNTRY REWARDS

State Asset Ownership Population Population Growth Country Rewards

Saudi Arabia 2.7 60.4 67 43.4

UAE 26.9 29.7 45.1 33.9

Iran 8.8 84.6 54.9 49.5

Iraq 40.1 64.8 84.6 63.2

Qatar 30.8 9.9 70.3 37

Kuwait 2.7 12.1 57.1 24

Egypt 51.1 86.8 72.5 70.1

Algeria 17 65.9 69.2 50.7

Oman 40.1 15.4 71.4 42.3

Bahrain 2.7 5.5 73.6 27.3

Yemen 26.9 52.7 80.2 53.3

Tunisia 40.1 36.3 47.3 41.2

Libya 2.7 24.2 56 27.7

Regional Average 22.5 42.2 65.3 43.4

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA DOWNSTREAM INDUSTRY RISKS

Logistics Risk Fuel Subsidies Industry Risks

Saudi Arabia 61.5 1.1 31.3

UAE 69.2 12.1 40.7

Iran 42.9 1.1 22

Iraq 26.4 20.9 23.6

Qatar 76.9 48.4 62.6

Kuwait 40.7 30.2 35.4

Egypt 50.5 7.7 29.1

Algeria 29.7 20.9 25.3

Oman 63.7 59.3 61.5

Bahrain 75.8 20.9 48.4

Yemen 3.3 20.9 12.1

Tunisia 35.2 59.3 47.3

Libya 7.7 3.3 5.5

Regional Average 44.9 23.5 34.2

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

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MENA DOWNSTREAM COUNTRY RISKS

Long-Term Economic Short-Term Long-Term Political Short-Term Political Operational Country
Risk Index Economic Risk Index Risk Index Risk Index Risk Index Risks

Saudi
71.4 77.5 42.9 76.9 71.4 68.6
Arabia

UAE 56 56 81.3 94.5 86.8 76.9

Iran 19.8 11.5 27.5 37.4 30.8 26.3

Iraq 16.5 36.8 8.8 6.6 16.5 16.9

Qatar 44 44 68.1 88.5 72.5 64.9

Kuwait 61.5 64.8 60.4 83.5 52.7 62.6

Egypt 42.9 41.8 38.5 41.2 41.8 41.3

Algeria 25.3 30.2 32.4 13.2 27.5 26

Oman 27.5 35.2 73.6 84.6 70.3 60.3

Bahrain 17.6 25.3 46.2 79.7 76.9 53.8

Yemen 2.2 3.3 3.3 0 2.2 2.2

Tunisia 6.6 5.5 64.8 22 37.4 28.9

Libya 9.9 22 0 5.5 11 9.9

Regional
30.9 34.9 42.1 48.7 46 41.4
Average

Note: Scores out of 100; higher score = more attractive market. Source: Fitch Solutions

Please Note: Our Risk/Reward Indices are updated frequently; as a result, scores in this section may not match scores in the rest of
the report.

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Qatar Upstream Oil & Gas Risk/Reward Index

Key View: Qatar has maintained fourth position in our MENA Upstream Risk/Reward Index this quarter, significantly
outperforming both the global and regional averages. The lifting of the drilling moratorium on the North Field and plans for
significant expansion of the country's LNG export capacity should continue to support Qatar's high ranking, although some of its
regional peers are set to register higher hydrocarbon growth.

RRI Matrix Breakdown

Qatar & MENA - Upstream Risk/Reward Index By Component

Note: Scores out of 100, where a higher score = a more attractive market. Source: Fitch Solutions

Global And Regional Ranks

• Regional rank (out of 12): 4th

• Global rank (out of 72): 11th

Key Features And Latest Updates

• Ranked fourth position in our Middle East and North Africa (MENA) Upstream Risk/Reward Index, Qatar outperforms both the
regional and global average score.
• The country’s large gas reserves base and position as a major producer ensures that Qatar’s Industry Rewards profile is positive.
Furthermore, a lifting of the drilling moratorium on the North Field and plans for significant expansion of the country's
LNG export capacity has boosted Qatar's performance in the index. However, its discovery rate is very low, which weighs on the
country's overall score for Industry Rewards.
• Qatar’s Country Rewards score is dampened by high state asset ownership rates and limited diversity in the competitive
landscape. Hydrocarbon-related infrastructure is well developed and efficient, however, offering some support to the outlook.
• Qatar's favourable bureaucratic environment and low legal environment risk level support a high Industry Risks score of 62.1,
only surpassed by Oman regionally.
• Relative political and economic stability, low operating risks and a strong rule of law support Qatar's elevated Country Risks score.
We at Fitch Solutions forecast economic activity in Qatar to accelerate over the coming quarters, buoyed by Qatar's reopening of
its economy and elevated oil and gas prices spurring domestic production. However, our Country Risk team highlight that the
country's positive macroeconomic performance forecast for 2022 is largely dependent on the ability to attract approximately on
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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million tourists for the FIFA World Cup in November 2022. Lower-than-expected tourist arrival numbers would weigh on Qatar's
economic growth forecasts and, in turn, on Qatar's Country Risks score over the coming quarters.

Outperforming In MENA
Qatar & MENA - Country & Industry Risks & Rewards

Note: Scores out of 100, where a higher score = a more attractive market. Source: Fitch Solutions

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Qatar Downstream Oil & Gas Risk/Reward Index

Key View: Qatar comes in again at fifth place this quarter on our Middle East and North Africa (MENA) Downstream Oil & Gas/
Reward Index, outperforming both the regional and global average scores. The widespread availability of low-cost feedstock and
Qatar’s advanced refining sector cements the country’s favourable position. However, Qatar's score is weighed down by its small
population and weak domestic demand for refined fuels.

RRI Matrix Breakdown

Qatar & MENA - Downstream Risk/Reward Index By Component

Note: Scores out of 100, where a higher score = a more attractive market. Source: Fitch Solutions

Global And Regional Ranks

• Regional rank (out of 13): 5th

• Global rank (out of 92): 15th

Key Features And Latest Updates

• Qatar has maintained its position in our Risk/Reward Index, ranking fifth. Its score is weighed down by weak domestic demand
for refined fuels. Nevertheless, its advanced refining sector and widespread availability of low-cost feedstock mean the
country continues to outperform both the regional and global average RRI score.
• Qatar’s Industry Rewards score is positive, supported by excellent refinery utilisation rates. The country holds a large, modern and
highly utilised downstream sector, fuelled by ample domestic resources. Its score is weighed down by limited domestic fuels
demand, though we expect to see an uptick in demand over the quarters, driven by the opening up of Qatar's economy and the
lifting of restrictions on movement which sought to curb the spread of Covid-19.
• Qatar's Country Rewards is dampened by its small population and relatively heavy state presence in the ownership of assets.
• Qatar has the highest-scoring Industry Risks profile of the MENA region, underpinned by its notably high Logistics Risks score.
This reflects the ease of transport for feedstock supply, fuels distribution and import/export flexibility in Qatar.
• Relative political and economic stability, low operating risks and a strong rule of law support Qatar's elevated Country Risks
score. However, a more volatile oil price environment poses significant downside risk to Qatar's Short-Term and Long-Term
Economic Risk scores, given the country's overreliance on hydrocarbon exports. That said, the strong hydrocarbon boom of the
last several years means that Qatar is relatively well placed to survive any period of lower oil and gas prices, as the government
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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Qatar Oil & Gas Report | Q4 2022

has a vast amount of accumulated wealth.

Low Risk, High Reward

Qatar & MENA - Country & Industry Risks & Rewards

Note: Scores out of 100, where a higher score = a more attractive market. Source: Fitch Solutions Downstream Risk/Reward Index

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Market Overview
Energy Market Overview
Key Legislation

The Natural Resources Law (Law No. 3) of 2007 regarding the exploitation of natural resources and its source regulates all aspects of
the oil and gas industry.

Other key pieces of legislation include:

• Decree Law No. 4 of 1977 on Preserving Oil Wealth

• Decree-Law No. 10 of 1974 on the Establishment of Qatar Petroleum (and its amendments)
• Decree Law No. 30 of 2002 Law of Environmental Protection
• Law No. 8 of 2004 concerning Protection of the Maritime Facilities of Petrol and Gas
• Decree Law No. 15 of 2007 concerning the Organization of Marketing and Sale of Regulated Products Outside the State of Qatar
(Tasweeq Law)

Regulatory Bodies

The Ministry of Energy and Industry regulates Qatar's oil and natural gas policy, with the Emir of Qatar having ultimate discretion.
QatarEnergy (QE) is entrusted to manage and develop all of Qatar's hydrocarbon resources.

State Involvement

The oil and gas sector is state-controlled, with QE responsible for exploration and production. The National Oil Distribution is in
charge of refining and distribution. Qatargas is responsible for the production and marketing of LNG. In 2018, QE completed the
merger of its two subsidiaries, Qatargas and RasGas, into Qatargas. The state controls virtually all aspects of the energy sector, sets
policies and determines domestic pricing. QE itself accounts for 50.0% of national oil production and almost 40.0% of gas volumes.
QE is even more dominantly involved in the downstream industry.

Fiscal Regime

QATAR - UPSTREAM TAX REGIME

Corporate Royalties Fees And Bonuses Resource Export Import Duties
Income Tax Duties
Tax

35-55% Payable on the total sales under a Development Payable under a PSC at signature na na Customs duty of
and Fiscal Agreement (DFA) with the rate(s) set and based on production targets. 5.0% applies on
by each DFA. Not for PSCs. No bonuses for DFAs all imports.

na = not available. Source: EY 2021 Tax Guide, Fitch Solutions

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Licencing Regime

QATAR - CONTRACTS AND LICENCING REGIME

Main Contract State Local Content Domestic Supply Stabilisation Arbitration
Type Participation Requirement Requirement Clause

PSC Yes Yes - under the Preference for local na Yes - under Qatari law (Art. 190 of the
terms of goods and services Code of Civil and Commercial Procedure)
Qatarisation

Development and Yes Yes - under the Preference for local na Yes - under Qatari law (Art. 190 of the
Fiscal Agreement terms of goods and services Code of Civil and Commercial Procedure)
Qatarisation

na = not available. Source: EY 2021 Tax Guide, Fitch Solutions

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Oil & Gas Infrastructure

Oil Refineries

Qatar has one crude oil refinery and a double condensate splitter, both of which are owned by QatarEnergy (QE). Its first facility is
predominantly a crude oil processor, which takes the output from the onshore Dukhan field, but also 57,000b/d of condensate. The
Ras Laffan facilities are pure condensate splitters. Given the majority of feedstock is condensate, Qatar has a very high output of
light products, in particular, LPG, naphtha, diesel and jet fuel.

In September 2020, QE announced the start of the upgraded diesel hydro-treating at their primary refinery located in Mesaieed
Industrial City. The upgraded unit will provide ultra-low sulphur diesel to the domestic market, meeting the stringent Euro 5
specifications.

REFINERIES IN QATAR
Refinery Capacity (b/d) Owner Completed Details

QatarEnergy 137,000 QatarEnergy Modernised in 2001 80,000b/d crude oil, 57,000 b/d condensate

Ras Laffan I 146,000 QatarEnergy 2009 Condensate refinery

Ras Laffan II 146,000 QatarEnergy 2016 Condensate refinery

Total capacity 429,000

Source: QatarEnergy, Fitch Solutions

GTL

Qatar's large low-cost gas reserves have made it a world leader in GTL. The country has two GTL facilities, the smaller 33,000b/d
Oryx facility, jointly developed with Sasol, and the 140,000b/d Pearl GTL plant with Shell. Pearl GTL also produces 120,000b/d of
ethane in addition to the 140,000b/d of diesel and jet fuel products.

GTL PLANTS IN QATAR

Facility Capacity (b/d) Owner Completion date

Oryx 33,000 QE, Sasol 2007

Pearl 140,000 Royal Dutch Shell 2012

Source: Fitch Solutions

LNG Terminals

Qatar has two large-scale LNG projects comprising seven liquefaction trains each. The country's nameplate send-out capacity
currently stands at approximately 77.1mtpa of liquefaction capacity.

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LNG TERMINALS IN QATAR

Facility Train Capacity (mn tpa) Companies

Qatargas I 1 3.2 QE (100%)

Qatargas I 2 3.2 QE (100%)

Qatargas I 3 3.2 QE (100%)

Qatargas II 4 7.8 QE (70%), ExxonMobil (30%)

Qatargas II 5 7.8 QE (70%), ExxonMobil (18.3%), TotalEnergies (16.7%)

Qatargas III 6 7.8 QE (68.5), ConocoPhillips (30%), Mitsui (1.5%)

Qatargas IV 7 7.8 QE (70%), Shell (30%)

RasGas I 1 3.3 QE (63%), ExxonMobil (25%), Kogas (5%), LNG Japan (3%)

RasGas I 2 3.3 QE (63%), ExxonMobil (25%), Kogas (5%), LNG Japan (3%)

RasGas II 3 4.7 QE (70%), ExxonMobil (30%)

RasGas II 4 4.7 QE (70%), ExxonMobil (30%)

RasGas II 5 4.7 QE (70%), ExxonMobil (30%)

RasGas III 6 7.8 QE (70%), ExxonMobil (30%)

RasGas III 7 7.8 QE (70%), ExxonMobil (30%)

Total 77.1

Source: QatarEnergy, Fitch Solutions

QE has plans to increase liquefaction capacity from 77.1mtpa currently to as high as 110.0mtpa in a phased development. Capacity
growth will be led by the expansion of production from the North Field.

In the first phase of the expansion, Qatar plans to develop four new LNG trains in order to raise capacity to around 110.0mtpa.
Initially, we had expected the 23mtpa of capacity growth to come from a mixture of de-bottlenecking work at existing mega-trains
and two new-build production trains. However, feasibility studies reportedly highlighted challenges with undertaking work in a
somewhat congested environment surrounded by operating LNG facilities.

The risks associated with de-bottlenecking in such an environment and the downtime in production required to undertake
upgrades are now thought to hold negligible cost savings over a new-build train. In May 2018, Japan-based company Chiyoda was
awarded the FEED contract for the LNG trains. Further capacity addition was announced in September 2018, with plans to add a
fourth train around 2025 once the first three trains are online. February 2021 saw the FID made on the NFE expansion, with the
awarding of EPCI contracts to the Chiyoda and Technip JV as well as Saipem for the offshore work. In April 2022, QE awarded a major
engineering, procurement and construction contract worth over USD600mn for the North Field Expansion Project to a joint venture
of Tecnicas Reunidas (70%) and Wison Engineering (30%), which marks a final significant milestone for its large-scale LNG
expansion project. The contract is expected to last for 48 months and will expand the sulfur-handling, storage and loading facilities
at Ras Laffan Industrial City. In mid-2022, ExxonMobil, TotalEnergies, Shell, Eni and ConocoPhillips were selected as partners in
the project. 20-25% of the total offtake of the field is expected to be with ExxonMobil, Shell and TotalEnergies with each one having
a 25% stake in joint ventures with QE, each for an LNG train. ConocoPhillips and Eni are expected to share the offtake of the fourth
LNG train.

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Gas Pipelines

Qatar has one 182km subsea gas export pipeline through which it supplies the UAE and Oman. The pipeline is owned and operated
by Dolphin Energy, a JV between UAE's state-owned Mubadala Development Company (51.0%), France-
based TotalEnergies (24.5%) and US-based Occidental Petroleum (24.5%).

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Competitive Landscape
Competitive Landscape Summary

QatarEnergy (QE), via its subsidiaries, dominates the Qatar oil and gas sector, but there is a fair amount of foreign ownership by
Middle Eastern standards. Foreign companies are the most prominent in the more technically challenging areas, such as LNG and
GTL, though QE holds a majority stake in its partners. Among the international oil majors, ExxonMobil has a substantial footprint in
the LNG sector, with TotalEnergies and Shell also present. Shell and South Africa's Sasol are key partners in the GTL facilities.

QE has retained 100% ownership of its downstream sector, though has opened some of its upstream for international
investment. QE, however, remains dominant, controlling the majority of operations.

• TotalEnergies holds a 30.0% stake in the 300,000b/d Al Shaheen oil field, as well as a 40% operated stake in the smaller Al
Khalij field, which produced a little over 20,000b/d of crude oil in 2018.
• ExxonMobil holds a stake in the USD10.4bn Barzan greenfield gas development project, aimed at extracting more resources
from the supergiant North Field. The project was launched in 2007 by RasGas, a JV between Qatargas and ExxonMobil. From
January 2018, RasGas and Qatargas were merged into a single entity, Qatargas.
• PetroChina and Engie (formerly GDF Suez) are jointly conducting exploration activities in block 4, with respective interests of
40.0% and 60.0%.
• The Al-Bunduq oil field is operated by the Bunduq Oil Company, owned by United Petroleum Development Company
(100%), which is a Japanese JV of Cosmo (45.0%), JX Nippon (45.0%) and Mitsui (10.0%).
• The Al-Karkara oil field (and the A-Structure) is operated by Qatar Petroleum Development Japan, a subsidiary of Japanese
firm Cosmo.
• QatarEnergy became the 100% owner of the Qatargas Q1 LNG project on 1 January 2022, following the March 2021
announcement that it would not renew the Qatargas LNG Company Limited (QG1) joint venture between QE (65.0%) and
TotalEnergies (10.0%), ExxonMobil (10.0%), Marubeni (7.5%) and Mitsui (7.5%). The relevant JV agreements expired on 31
December 2021, upon which QE became the sole owner of QG1 assets and facilities.
• In October 2019, QE took over operations of the ISND and ISSD, previously held by Occidental Petroleum.

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QATAR'S 77MTPA OF LNG CAPACITY BY TRAIN

Facility Train Capacity (mtpa) Companies

Qatargas I 1 3.2 QE (100%)

Qatargas I 2 3.2 QE (100%)

Qatargas I 3 3.2 QE (100%)

Qatargas II 4 7.8 QE (70%), ExxonMobil (30%)

Qatargas II 5 7.8 QE (70%), ExxonMobil (18.3%), TotalEnergies (16.7%)

Qatargas III 6 7.8 QE (68.5), Conoco (30%), Mitsui (1.5%)

Qatargas IV 7 7.8 QE (70%), Shell (30%)

RasGas I 1 3.3 QE (63%), ExxonMobil (25%), Kogas (5%), LNG Japan (3%)

RasGas I 2 3.3 QE (63%), ExxonMobil (25%), Kogas (5%), LNG Japan (3%)

RasGas II 3 4.7 QE (70%), ExxonMobil (30%)

RasGas II 4 4.7 QE (70%), ExxonMobil (30%)

RasGas II 5 4.7 QE (70%), ExxonMobil (30%)

RasGas III 6 7.8 QE (70%), ExxonMobil (30%)

RasGas III 7 7.8 QE (70%), ExxonMobil (30%)

Under Construction

NFE Train 1 8 8.2

NFE Train 2 9 8.2

NFE Train 3 10 8.2

NFE Train 4 11 8.2

Source: Qatargas, Fitch Solutions

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Company Profile
QatarEnergy (QE)

Latest Updates

• QatarEnergy selected in 2022 five partners for the project, all of which are major international oil
players: Eni, ConocoPhillips, ExxonMobil, Shell and TotalEnergies. The second phase will be the North Field South expansion,
which will add two further trains, increasing LNG export capacity to a total of 126mtpa by 2027, up from 77mtpa as of 2022. This
second phase however has not yet been FIDed.
• In April 2022, QatarEnergy (QE) awarded a major engineering, procurement and construction (EPC) contract for the North Field
Expansion (NFE) Project to a joint venture of Tecnicas Reunidas and Wison Engineering, which marks a final significant milestone
for its large-scale LNG expansion project.
• QE took FID on the North Field East Project in February 2021 and EPCI contracts were awarded to Chiyoda, Technip and Saipem.
Previously, the minister of State for Energy Affairs, the president and CEO of QatarEnergy, announced in May 2020 that the
company is 'going full steam ahead' with the NFE to raise Qatar’s LNG production capacity from 77.0mtpa to 110.0mtpa by 2025
and 126.0mpta by 2027. Total cost of the development is anticipated to be USD28.75bn with Saipem's EPCI contract was
reported to approximately USD1.7bn.
• The second phase of the NFE project will be the North Field South Project, which will boost LNG output further to 126mpta by
2027 utilising two 8.0mpta trains. Appraisal activities are continuing and FID is expected in the coming years.
• In March 2022, the European Commission formally closed an antitrust investigation into QE's 20-year LNG supply contracts. The
investigation was opened in 2018 to investigate whether QE's long-term supply agreements with European importers had
breached EU antitrust rules by hindering the development of a single gas market in the EU.
• On February 4 2022, state-owned National Petroleum Corporation of Namibia (NAMCOR) announced a light oil discovery at the
Shell-operated Graff-1 deep-water exploration well in Block 2913A, in which QE holds a 45.0% non-operated interest. The exact
volumes of the discovery have not yet been disclosed by the project partners, though the confirmation of a commercial
discovery less than a year after QE farmed-in to the block in April 2021 would mark a clear step in the right direction for Qatar’s
international strategy.
• QE became the 100% owner of the Qatargas Q1 LNG project on 1 January 2022, following an announcement in March 2021 that
it would not renew the Qatargas LNG Company Limited (QG1) joint venture between QE (65.0%) and TotalEnergies
(10.0%), ExxonMobil (10.0%), Marubeni (7.5%) and Mitsui (7.5%). The relevant JV agreements expired on 31 December 2021,
upon which QE became the sole owner of QG1 assets and facilities.
• In October 2021, Qatar Petroleum announced it was changing its name to QatarEnergy to reflect a new strategy focusing on
energy efficiency and environmentally friendly technology.
• According to a bond prospectus released in July 2021, QE's planned capex is projected to reach USD82.5bn in the 2021-2025
period. This figure includes planned spending by the company's subsidiaries and joint venture - QE's share is estimated to be
USD59.1bn.
• QatarEnergy’s recently created subsidiary QP Trading has been purchasing terminal capacity across Europe in 2020. The access
to LNG facilities will allow Qatar to import LNG to those countries and then to sell natural gas directly into those markets if need
be or keep LNG on hand for immediate delivery on a spot basis. The emergence of QP Trading will help ensure that Qatari LNG
remains best positioned to profit from its low cost of production and wider market access across both long-term contracts and
spot basis pricing.
• QE announced in April 2020 that it entered into an agreement to reserve LNG ship construction capacity in China to be utilised
for QE’s future LNG carrier fleet requirements, including those of its ongoing North Field expansion projects. The agreement was
entered into between QE and Hudong-Zhonghua Shipbuilding Group, a wholly-owned subsidiary of China State Shipbuilding
Corporation. Pursuant to the agreement, a significant portion of Hudong's LNG ship construction capacity will be reserved for
QatarEnergy through the year 2027.
• In March 2020, QE announced that it has entered into a binding agreement to acquire Yara’s 25% stake in Qatar Fertiliser
Company (QAFCO). The transaction will mark the conclusion of a successful, long-standing partnership. Since its establishment
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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as a joint venture company in 1969, QAFCO has become the world’s largest single-site urea producer, representing a significant
percentage of the world’s traded urea volumes. Prior to this transaction, QAFCO was owned by Industries Qatar with a 75.0%
share and Yara of Norway with a 25.0% share.

SWOT Analysis
Strengths • Owner of the North Field gas resource and third largest gas resources by country in the world.
• Condensate refineries produce large LPG and naphtha cuts - highly desired products.
• Largest LNG producer through the consolidated Rasgas/Qatargas.
• Well diversified across crude, products, LNG, GTL and petrochemical sales.
• Low-cost producer of all products.
• Newly signed long-term term sale and purchase agreements.

Weaknesses • Limited ultimate resource base.

• Heavy state ownership of assets, limiting operational freedom.
• Rising investment requirement.

Opportunities • Considerable untapped gas production potential, large areas of under-explored territory.
• LNG debottlenecking and expansion potential.
• Rising domestic energy consumption.
• Well-established partnerships with IOCs, supporting investment and marketing.
• Withdrawal from OPEC from January 2019 removed limits on output.
• Ties with GCC countries have improved opening the door to increased trade and normalised relations.
• New strategy focusing on energy efficiency and environmentally friendly technology.
• Expansion of international footprint will diversify its portfolio and business operations.

Threats • Increasing competition in global LNG supply will limit income.

• Increased competition from renewables, will threaten hydrocarbon production over the long term.

Company Overview

QE (formerly Qatar Petroleum) is active in all segments of the energy chain and participates in all major oil and gas developments
throughout Qatar. The firm's exploration and production activities are centred on the onshore Dukhan oil field and the offshore Bul
Hanine and Maydan Mahzam oil fields.

The state firm also holds stakes in seven offshore fields that are being developed under production sharing agreements. Gas
resources are centred on the giant North Field. Through Qatargas, it is the largest LNG producer in the world, with a capacity of
77mtpa, which is due to rise to 110mtpa by the mid-2020s. In addition, QE operates all of the country's 429,000b/d crude oil
refining capacity.

International Footprint

QE is actively seeking to expand its international footprint by acquiring stakes in exploration acreage across different basins. To
maintain its LNG export dominance over key competitors such as the USA and Australia, Qatar is both seeking to reduce costs
domestically - as illustrated by the recent merger of RasGas and Qatargas - and expand overseas through joint ventures with
international oil companies. QE is targeting exploration and production assets across the Americas, North and Sub-Saharan Africa,
as well as the Middle East, with much interest directed in acquiring offshore exploration acreage.

QE's international exploration portfolio grew significantly over 2021 and we expect its overseas expansion to continue throughout
2022 and beyond. In April 2021, QE entered into an agreement with Shell to become a partner in two exploration blocks in
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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Namibia's ultra-deep water. In October 2021, QE signed a farm-in agreement with ExxonMobil Canada for a 40.0% participating
interest in licence EL 1165A, marking the company's first entry into offshore Canada.

On February 4 2022, state-owned NAMCOR announced a light oil discovery at the Shell-operated Graff-1 deep-water exploration
well in Block 2913A, on which QatarEnergy holds a 45.0% non-operated interest. The exact volumes of the discovery have not yet
been disclosed by the project partners, though the confirmation of a commercial discovery less than a year after QE farmed-in to
the block in April 2021 would mark a clear step in the right direction for Qatar’s international strategy.

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QATARENERGY FLESHING OUT INTERNATIONAL EXPLORATION PORTFOLIO

Market Block QE Stake (%) Partners Date acquired Status Terrain

Sonangol (30%), TotalEnergies

Angola 48 30 20-Aug Exploration Deepwater
(40%, op)

MLO-113,
Argentina MLO-117, 30 ExxonMobil (70%) 19-Apr Exploration Deepwater
MLO-118

CAN-107,
Argentina 40 Royal Dutch Shell (60%) 19-Apr Exploration Offshore
CAN-109

Brazil Tita 36 ExxonMobil (64%, op) 18-Sep Exploration Offshore

ExxonMobil (40%, op), Petrobras

Brazil 789, 753 30 18-Mar Exploration Offshore
(30%)

Brazil 536, 547 36 ExxonMobil (64%, op) 18-Mar Exploration Offshore

Alto de
Cabo
Brazil 25 Shell (55%, op), CNOOC (20%) 17-Oct Exploration Offshore
Frio-
Oeste

Canada EL 1165A 40 ExxonMobil (60%) 21-Oct Exploration Offshore

Cyprus Block 10 40 ExxonMobil (60%, op) 17-Jan Discovery Deepwater

Shell (43%, op), BHP (30%),

Egypt Block 3 17 Tharwa Petroleum Company 21-Dec Exploration Offshore
(10%)

Shell (21%, op), Mubadala (27%),

Egypt Block 4 17 BHP (25%), Tharwa Petroleum 21-Dec Exploration Offshore
Company (10%)

North
Egypt 40 ExxonMobil (60%, op) 22-Mar Exploration Offshore
Marakia

15,33
Mexico 30 TotalEnergies 20-May Exploration Various depths
and 34

Tarfaya
Permit
Morocco 30 Eni (45%, op), ONHYM (25%) 19-Mar Exploration Shallow water
(12
blocks)

Eni (34%, op), ENH (15%), Sasol

Mozambique A5-A 25.5 19-Mar Exploration Deepwater
(25.5%)

ExxonMobil (50%, op), ENH (20%),

Mozambique A5-B 10 18-Dec Exploration Deepwater
Rosneft (20%)

ExxonMobil (50%, op), ENH (20%),

Mozambique Z5-C 10 18-Dec Exploration Deepwater
Rosneft (20%)

ExxonMobil (50%, op), ENH (20%),

Mozambique Z5-D 10 18-Dec Exploration Deepwater
Rosneft (20%)

TotalEnergies (40%, op), Impact

Namibia 2913B 30 19-Aug Exploration Offshore
Oil&Gas, 20%), NAMCOR (10%)

Namibia 2912 28.33 TotalEnergies (37.78%), Impact 19-Aug Exploration Offshore

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Market Block QE Stake (%) Partners Date acquired Status Terrain

Oil&Gas (18.89%), NAMCOR(15%)

Namibia PEL39 45 Shell (45%, op), NAMCOR (10%) 21-Apr Exploration Offshore

Oman 52 30 Eni (55%,op), OOCEP (15%) 17-Nov Exploration Deepwater

TotalEnergies (45%, op), CNR

South Africa 11B/12B 25 18-Feb Discovery Deepwater
(20%), Main Street (10%)

11A,
Kenya L11B, 25 Eni (41.2pc), TotalEnergies (33.3) 19-Jul Exploration Onshore
L12

Orinduik,
Guyana 25 TotalEnergies, Tullow, Repsol 19-Jul Exploration Offshore
Kanuku

Note: Some acquisitions remain subject to customary approvals. Source: QatarEnergy, Fitch Solutions

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Regional Overview
Middle East And North Africa Oil & Gas Overview
Key View: Despite near-term pressures on supply from weaker oil prices, voluntary production cuts and US sanctions, the Middle
East and North Africa will be a key driver of global supply growth over the coming decade as producers ramp up investment to
monetise the region's vast resource base. Oil will dominate supply across the forecast period, but gas will gain ground as
governments increasingly target the development of their domestic resources. Gas demand will grow strongly in line with supply,
while oil demand is set to recover following multi-year declines, supported by positive demographic and macro fundamentals.

To highlight the key themes that inform our Middle East and North Africa (MENA) oil and gas forecasts, we have compared countries
on the basis of the following key indicators:

• Oil production
• Oil consumption
• Refining capacity
• Gas production
• Gas consumption

Our MENA coverage includes Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria,
Tunisia, the UAE and Yemen.

Oil Production: GCC Set For Revival

Production in the near term will be steered by the OPEC+ production cut deal. Under this deal, OPEC+ participating producers
removed 9.70mn b/d of supply from the market over May to July 2020, falling to 7.70mn b/d over August to December. In line with
the initially agreed production schedule, the cuts were set to fall to 5.80mn b/d from January 2021 and remain in place until April
2022. However, at their December meeting, the group opted to alter their approach. Output was increased by 500,000b/d in
January and held steady across February to April, excluding exemptions for Russia and Kazakhstan. In addition, Saudi Arabia enacted
an additional voluntary cut of 1.0mn b/d. The group has since returned 350,000b/d in May, 350,000b/d in June and 441,000b/d in
July, while Saudi Arabia has unwound its own voluntary cut. Headline compliance with the deal remains strong, but tensions have
resurfaced between the UAE and Saudi Arabia. At their July 2021 meeting, the group failed to reach an agreement on a proposal to
increase supply by 400,000b/d a month over August to December and extend the deal beyond April 2022. The baseline used to
evaluate the UAE's production quota is far below its current capacity and the country has refused to sign on to an extension, until
the baseline is revised. There is scope for compromise on both sides and we believe that an agreement will be reached to preserve
the deal. Nevertheless, cohesion has frayed and there are rising risks of a deal collapse, or an exit from the group by the UAE.

The longer-term outlook is strongly bullish. Oil prices are set to remain relatively subdued over the coming years and this will
maintain fiscal pressures on many governments in the region. National oil companies have significantly reduced capex in response -
although we expect to see a recovery in spending this year - and a number of projects in the development pipeline have been
subject to delays. Despite these headwinds in the near term, we forecast MENA production to grow by 8.33mn b/d over 2021 to
2030, a rise of 27.7%. The GCC will be the main engine of growth, adding 4.76mn b/d (23.2%) over the 10-year forecast period. The
Middle East ex-GCC will increase its output by 2.84mn b/d (40.2%), although the bulk of this reflects the return of sanctioned barrels
in Iran, rather than new additions to the market. North Africa will see its production grow by 726,000b/d (29.9%), largely reflecting
the normalisation of output in Libya in the wake of the 2020 conflict.

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MENA Production Ripe For A Bounce

MENA - Crude, Condensate & NGL Production (2019-2030)

f = Fitch Solutions forecast. Source: JODI, OPEC, national sources, US Energy Information Administration, Fitch Solutions

Saudi Arabia has been investing heavily to maintain production capacity of 12.00mn b/d and now plans to increase its capacity to
13.00mn b/d. Capacity additions will likely be staggered over several years, although it is unclear which projects will contribute to
the growth. As a renewed and deeper downturn in prices crowds out supply further up the cost curve, we expect the kingdom to
keep a larger share of its spare capacity in play over the long term and we forecast 2.24mn b/d additional supply in 2030, versus
2020, with significant upside risk to the forecast.

Our outlook on the UAE is also bright, supported by a large discovered resource base, renewed exploration efforts and a growing
role for foreign and private players. For the emirates, we forecast gains of around 1.61mn b/d over the forecast period. Kuwait is also
set for substantial growth, adding 966,000b/d over the next 10 years. The Kuwaiti government has moderated its ambitious targets
for production, pushing back its 4.00mn b/d target from 2020, to at least 2025 and potentially as far back as 2040, and pulling their
outlook more closely in line with our own. A significant chunk of this growth is being supplied by the restart of the Neutral
Partitioned Zone (500,000b/d), shared with Saudi Arabia and the return of barrels cut under the OPEC+ production cut agreement.

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GCC Poised For Growth

MENA - Selected Markets Net Change In Crude, Condensate & NGL Production, '000b/d (2021f-2030f)

f = Fitch Solutions forecast. Source: OPEC, national sources, US Energy Information Administration, Fitch Solutions

Middle Eastern production outside of the GCC is dominated by Iran and Iraq, both of which face major headwinds. For Iraq, we
forecast growth of 691,000b/d. However, this largely reflects the recovery of output after the pandemic fades and the OPEC+ deal is
unwound. In fact, we forecast production to be only 52,000b/d higher in 2030, than it was in 2019. The country has vast potential
below ground, but is being help back by unattractive fiscal and licensing terms and fiscal constraints on the government. Iran is the
second largest growth market, behind Saudi Arabia, adding 2.17mn b/d over the forecast period. These are the barrels that have
been lost under US nuclear-related sanctions and should be restored over the coming years, as sanctions are rolled back.
Negotiations have struggled to progress in the near term, but we continue to view a nuclear accord as the most likely outcome
under a Biden presidency. Production gains above pre-sanctions levels will likely be limited, due to the National Iranian Oil
Company's strained finances, the reluctance of foreign players to enter the market and strong competition for capital globally.

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North Africa Continues To Lag

MENA - Net Change In Crude, Condensate & NGL Production, '000b/d

f = Fitch Solutions forecast. Source: JODI, national sources, OPEC, US Energy Information Administration, Fitch Solutions

The outlook on North Africa is mixed. Libyan production soared in late 2020, following the signing of a ceasefire agreement in
August, which allowed force majeure to be lifted on key fields and export infrastructure. The formation of a unity government has
further improved prospects for production, providing a measure of political stability and tempering the risk of renewed conflict. The
Libyan National Oil Corporation (NOC) aims to increase production from around 1.20mn b/d currently, to 2.10mn b/d by 2025.
However, substantial capital investments will be required to repair infrastructure and restore output, which the NOC cannot fund
itself. Foreign and private players are unlikely to commit sufficient investments to make up the difference and, in our view, the NOC's
targets are likely to be missed. Our outlook on Algeria is bearish, with the sector heavily reliant on state-owned Sonatrach, which
has struggled to contain decline rates on its major maturing assets, and which has slashed its capex in response to the oil price
collapse. The hydrocarbons reforms enacted in November 2019 have moderately improved the prospects for foreign investment in
the longer term, but a fuller recovery in prices will likely also be needed. Egypt - a bright spot in the gas sector - is facing long run
declines, as its fields age and with a lack of crude discoveries to offset natural depletion. The prospective resource base is largely
gaseous, though condensates and NGLs offer some upside to oil supply.

Refined Fuels Consumption: Covid-19 A Bump In The Road

2020 saw a sharp drop in refined fuels demand, with consumption in the MENA region declining by 8.5% y-o-y, according to our
estimates. Low oil prices have heaped fiscal pressures onto many governments in the region and depressed economic activity in
both the oil and non-oil sectors. This, alongside intermittent curbs on population mobility, drove a sharp drop in refined fuels
demand, However, lockdown restrictions were eased over the second half of the 2020, and a rising price environment, vaccine
rollouts, increased mobility and economic repair will lead to a normalisation of regional demand, with consumption exceeding its
pre-pandemic levels by 2022.

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Covid-19 A Bump In The Road

MENA - Refined Fuels Consumption (2019-2030)

e/f = Fitch Solutions estimate/forecast. Source: JODI, OPEC, national sources, US Energy Information Administration, Fitch Solutionse/f = Fitch Solutions estimate/forecast.
Source: OPEC, National Sources, US Energy Information Administration, Fitch Soluti

The medium-term outlook is generally bright, as the region emerges from the global pandemic and the current downcycle in oil
prices. Following the last oil price collapse in 2014, many countries enacted wide-ranging subsidy reform and this (combined with
domestic economic woes) triggered a multi-year downturn in fuels demand. We do not expect to see further major subsidy reforms
in most markets, which was a key barrier to growth during the last oil price recovery. Demand growth will be fairly broad-based
across the Middle East and Africa, although Iran will dominate in volume terms. In large part this reflects the anticipated rollback of
secondary sanctions under a Biden administration in the US, paving the way for significant growth in the domestic economy.

Demand Growing Across The Region

MENA - Net Change In Crude, Condensate & NGL Production, '000b/d (2021f-2030f)

f = forecast. Source: Fitch Solutions

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The long-run fundamentals of the region are bullish, not least due to the region's young demographic, rising mobility and a
constructive passenger vehicles sales outlook. The overall economic growth outlook is also healthy and points to robust and rising
demand in the road freight, aviation, marine and industrial sectors. In addition, refining, petrochemicals and other energy-intensive
industries are set for strong growth (in line with ongoing economic diversification efforts) and will offer up new sources of liquids
demand. We forecast MENA refined products consumption to increase by 2.70mn b/d (33.9%) over the next 10 years, reaching
10.68mn b/d by 2030.

MENA is also relatively less exposed than most other region's to the ongoing low-carbon energy transition. Climate-related policies
are relatively underdeveloped in most markets and economic activity will likely remain heavily carbon- and emissions-intensive over
the coming decade. Our data show average annual fuels demand growth of 3.0%, 3.0% and 2.7% in the GCC, the Middle East ex-
GCC and North Africa respectively, over 2021-2030. This compares favourably with both the developed (0.4%) and global (1.8%)
growth rates forecast over the same period and is on par with the emerging market growth rate (3.0%).

Demand Growing Across The Board

MENA - Net Change In Refined Fuels Consumption, '000b/d (2021f-2030f)

f = forecast. Source: Fitch Solutions

Refining Capacity: Fuels Production Set For Growth

While global demand is in recovery, the refining sector will remain under considerable strain over the coming two to three years, as it
battles with pre-existing overcapacity and a wave of new facilities rolling onstream. This will depress overall utilisation rates and may
force the shut-in of some less efficient facilities. Downstream projects currently in the pipeline will also be at risk of cancellation or
delay. However, most of the greenfield projects under development in MENA are well advanced and are unlikely to be derailed.
Many of these projects also benefit from access to low-cost domestic feedstock and strong government support and this,
combined with their high complexity and economies of scale, will position them well to take market share from other, legacy
producers. As with the upstream sector, the GCC will drive growth, reflecting the generally stronger financial position of its NOCs,
strategic efforts to diversify along the value chain and the abundance of domestic oil resources.

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Capacity Growth Set To Boom

MENA - Net Change In Refining Capacity, '000b/d (2021f-2025f)

f = forecast. Source: Fitch Solutions

MENA's refining capacity is forecast to grow strongly across the next five years. We forecast refining capacity to increase to 13.91mn
b/d in 2025, a growth of around 2.41mn b/d (20.9%). Capacity additions in the second half of our forecast period are likely to be
softer, owing to increasing saturation of global products markets and a shift in capex from greenfield to brownfield refining projects.

New investment is spread across a number of developments. Key contributors to growth include:

• Saudi Arabia's 400,000b/d Jazan facility, which will reach full operational capacity in 2021 (delayed from 2020).
• Kuwait's 615,000b/d Al-Zour refinery, also targeting operational start-up in 2022 (again, delayed from 2020)
• Iraq's 140,000b/d Karbala refinery, initially planned for 2020, now delayed until 2022, adding to the 70,000b/d
CDU commissioned at Basra in 2019. The country is also in the process of rehabilitating capacity that was damaged during the
conflict.
• Iran's Persian Gulf Star refinery, which in 2020 was processing up to 480,000b/d and is targeting an increase in throughput to
540,000b/d.
• The expansion of Ruwais in the UAE, which will add 600,000b/d of full conversion capacity by the mid-2020s.
• The 90,000b/d capacity expansion of the Sitra refinery in Bahrain, set for completion in 2022.
• The Duqm refinery in Oman, a greenfield facility which will add 230,000b/d of capacity and is targeted for completion by late
2021 or early 2022.

As this wave of capacity rolls onstream, the focus of investment is shifting away from capacity growth and towards
brownfield projects, largely clean fuels projects, residual upgrading, capacity debottlenecking and modernisation works. These
investments are needed to equip legacy facilities to compete in the global marketplace, amid tightening fuel standards and shifting
product slates.

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Capacity Surging
MENA - Cumulative Net Change In Refining Capacity, '000b/d

f = forecast. Source: Fitch Solutions

Gas Production: Temporary Roadblocks, But Outlook Remains Bright

As with oil, a number of gas projects in planning and under development have faced delays, including Qatar's massive LNG
expansion project and the giant Jafurah unconventional development in Saudi Arabia. At least one major venture - Abu Dhabi
National Oil Company's Dalma gas project - has been cancelled. Delays have stemmed from a mix of pandemic-related
operational disruptions and the sharp curtailment of capital spending as companies have sought to conserve cash and cushion
their balance sheets against the collapse in prices. However, the long-term fundamentals remain positive and we forecast MENA gas
production to rise from 856bcm in 2020 to reach 1,099bcm by 2030 (28.3%).

Natural Gas A Strategic Focus

MENA - Natural Gas Production (2019-2030)

e/f = Fitch Solutions estimate/forecast. Source: JODI, National Sources, US Energy Information Administration, Fitch Solutions
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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Several core markets will rely heavily on gas to meet rising energy in the power and industrial sectors and, to a lesser degree, to
support oil-to-gas switching in the overall energy mix. As such, gas production growth is of strategic import in many markets, in
particular those fostering the development of gas-based industries as part of their economic diversification efforts and/or those
facing a growing reliance on imported energy. We believe that companies in the region will continue to ramp-up investments in the
development of MENA's large and largely underdeveloped gas resource base. A large share of current production is associated in
oilfields and volumes here are under pressure from rising demand for re-injection. The main driver of output growth will be
greenfield, non-associated gas developments.

Qatar, Iran To Lead Regional Growth

MENA - Selected Markets Net Change In Dry Natural Gas Production, bcm (2021f-2030f)

f = forecast. Source: Fitch Solutions

Production gains will be led by the GCC. A number of projects are scheduled for production over the coming years, including the
North Pars expansion (Qatar), Hawiyah and Haradh, and Tanajib (Saudi Arabia), the North West Area project (the UAE) and Khazzan
Phase 2 (Oman). Given the size of the resource base, there is room for additional production growth within the region. However, low
state-set gas prices, a lack of foreign participation and infrastructural limitations have dragged on developments in many markets.
Considerable upside stems from plans to monetise the region's large unconventional resource base. The most advanced plans are
in Saudi Arabia, where the kingdom has committed USD110bn to the development of the Jafurah basin, targeting 22.7bcm
production by 2036. In November 2020, the Abu Dhabi National Oil Company, in partnership with French major Total, also
produced the first unconventional gas in the UAE and is targeting 10.0bcm of output by 2030.

Middle Eastern production outside the GCC will continue to be led by Iran. With the bulk of the South Pars development now on
stream, the pace of growth will slow, but several other large projects are in line for development. The country boasts a large
discovered resource base, but limited foreign participation in the sector and considerable financial constraints on the National
Iranian Oil Company will cap production growth, even assuming a thawing of relations under US President Biden. Iraq and Kuwait
are both set for strong growth, but from a low base. Both countries are looking to tap flared gas resources and have plans to
monetise both associated and non-associated resources. However, progress has faced consistent to delays and will inevitably suffer
due to the recent pullback in capex.

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Egypt Poses Upside Risk

MENA - Net Change In Dry Natural Gas Production, bcm

f = forecast. Source: Fitch Solutions

As with oil, North Africa lags the larger MENA region. In Libya, natural gas production has suffered from the same weak security
environment and chronic underinvestment that plagues oil. Investment in Algeria has also disappointed and heavy decline rates on
the major Hassi R'Mel gas field are dragging headline growth into negative territory, with limited greenfield additions to
counterbalance the large mature asset base. Egypt is also forecast to see declines over the 10-year forecast period. However, this is
based only on those projects that are post-FID and a prospective offshore resource base offers substantial upside risk, once the
global market recovers.

Gas Consumption: Industrial And Power Demand Set For Continued Growth

Natural gas demand is better insulated from Covid-19 than oil demand, due to its limited consumption in the transport sector, We
estimate that demand growth remained in positive territory in 2020, with the region posting a healthy 2.2% annual growth.
According to our data, MENA gas demand will rise from 694bcm in 2020 to 903bcm in 2030 (up 30.2%), with growth averaging
2.7% a year across the forecast period.

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Domestic Supply Growth Unlocking New Demand

MENA - Natural Gas Demand (2019-2030)

e/f = Fitch Solutions estimate/forecast. Source: JODI, National Sources, US Energy Information Administration, Fitch Solutions

Positive demographic and economic fundamentals brighten the long-term outlook for energy demand more broadly, in particular
across the power, industrial and transport sectors. Furthermore, energy diversification, industrial oil-to-gas switching and growth in
the downstream sector should see natural gas take a larger share in final consumption over the coming decade. Iran and Saudi
Arabia will be the main engines of growth in the region, accounting for around 6.0% of regional additions over the 10-year forecast
period. This reflects the large size of their domestic gas markets, strong overall energy demand growth, oil-to-gas switching (largely
in Iran) and the rising availability of domestic supplies.

Key Markets Posting Healthy Growth

Net Change In Dry Natural Gas Demand, bcm (2021f-2030f)

f = forecast. Source: Fitch Solutions

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On a sub-regional level, growth will be relatively well-diversifed, with demand rising by 31.4% in the GCC, 25.4% in North Africa
and 30.9% in the Middle East, ex-GCC. The vast bulk of these demand additions will be met by rises in domestic supply. The
exception is North Africa, where we see a growing disconnect in the gas market, between a bearish outlook on production and
bullish prospects for consumption. This will drive a sharp deterioration in the region's gas trade balance, reflecting the combination
of a steep decline in exports and more moderate rise in imports.

Gas Deficit Risks Rising In North Africa

MENA - Net Change In Dry Natural Gas Production & Demand, bcm (2021f-2030f)

f = forecast. Source: Fitch Solutions

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Oil & Gas Glossary

Term Description Term Description

AOR additional oil recovery IOC international oil company

APA awards for predefined areas IPO initial public offering

API American Petroleum Institute JOC joint operating company

bbl barrel JODI joint organisations data initiative

bcm billion cubic metres JPDA joint petroleum development area

b/d barrels per day LAB linear alkyl benzene

boe barrels of oil equivalent LDPE low density polypropylene

BTU British thermal unit LNG liquefied natural gas

capex capital expenditure LPG liquefied petroleum gas

CBM coal bed methane mcm million cubic metres

CEE Central and Eastern Europe MENA Middle East and North Africa

CSG coal seam gas MoU memorandum of understanding

DoE US Department of Energy mt metric tonne

DM developed markets mtpa million tons per annum

EBRD European Bank for Reconstruction & Development NGL natural gas liquids

EEZ exclusive economic zone NGV natural gas vehicle(s)

EIA US Energy Information Administration NOC national oil company

EM emerging markets opex operating expenditure

EOR enhanced oil recovery PE polyethylene

E&P exploration and production PP polypropylene

EPSA exploration and production sharing agreement PSA production sharing agreement

EV electric vehicle(s) PSC production sharing contract

FID final investment decision R&D research and development

FDI foreign direct investment R/P reserves/production

FEED front end engineering and design RPR reserves to production ratio

FLNG floating liquefied natural gas SGI strategic gas initiative

FPSO floating production, storage and offloading SoI statement of intent

FSRU floating storage and regasification unit SPA sale and purchase agreement

FTA free trade agreement SPR strategic petroleum reserve

FTZ free trade zone SSA Sub-Saharan Africa

GCC Gulf Cooperation Council tcm trillion cubic metres

G&G geological and geophysical t/d tonnes per day

GS geological survey toe tonnes of oil equivalent

GTL gas to liquids tpa tonnes per annum

GWh gigawatt hours TRIPS Trade-Related Aspects of Intellectual Property Rights

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Term Description Term Description

HDPE high density polyethylene TWh terawatt hours

HoA heads of agreement USGS US Geological Survey

IEA International Energy Agency WIPO World Intellectual Property Organization

IGCC integrated gasification combined cycle WTI West Texas Intermediate

Oil & Gas Methodology

Connected Thinking

We use a simple and transparent forecasting model as a base for our industry forecasts, but rely heavily on our analysts' expert
judgement to ensure our forecasts capture all of the insights we derive using our unique Connected Thinking approach. We believe
analyst expertise and judgement are the best ways to provide the most accurate, up-to-date and comprehensive insight to our
customers.

Our Connected Thinking approach to forecasting and analysis integrates macroeconomic variables from Fitch Solutions Country
Risk to provide our customers with unique and valuable insight on all relevant macroeconomic, political and industry risk factors
that will impact their operations and revenue-generating potential in the industry/industries they operate in.

Oil & Gas Methodology

For the Oil & Gas industry, we have historical data and 10-year forecasts for 45 core industry variables, including oil & gas production,
refined fuels production and consumption, refining capacity, refined fuels production, and trade of oil and natural gas. We also have
historical data and 10-year forecasts for 36 energy price indicators.

Our forecasts are a combination of analyst expert judgement and a market's own historical time series.

Our Oil & Gas analysts interact with other analytical teams in Fitch Solutions, including Country Risk, Commodities, Power,
Renewables, Autos and Infrastructure. This ensures that they have a comprehensive understanding of external factors that may
impact the oil & gas industry outlook on either a market, regional or global level. In addition, our oil & gas forecasts draw on
assessments of political risk, regulatory outlook and outlook for capital expenditure by the industry.

There is a constant rolling cycle of data monitoring, with databases being updated on a quarterly basis. Analysts will use their
judgement outside of these cycles to implement forecast changes when necessary.

Industry-Specific Methodology

Our approach to forecasting combines both bottom-up and top-down analyses, drawing data from a wide range of corporate,
governmental and multilateral sources. The forecasts also leverage proprietary data and analysis from across our 125 markets and
25 industry verticals.

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Upstream Production

Our supply-side forecasts are bottom up, aggregating individual projects (both greenfield and brownfield) up to the market level to
derive a total number.

We define oil production as crude oil, NGLs and lease condensates.

We define natural gas as dry natural gas, and exclude NGLs, which is captured under oil production.

The data are mostly sourced from companies active in the market and the relevant regulatory agencies such as the EIA and JODI.

We factor in the production capacity as reported by the given company or agency, but will make informed assumptions as to the
project start-up date and commissioning periods.

In general, we include only those projects that are post-FID. However, pre-FID projects that we view to have a high probability of
progressing will also be included. The likelihood of a project progressing will be decided on a number of factors, including:

• The economics of a given project

• The prevailing oil or natural gas price
• The political and regulatory environment
• Assumptions as to the capital allocation process of the equity partners

Legacy production (production beginning in any year prior to the forecast period) is forecast out, as per historical trends. However,
we make adjustments to the assumed decline rate, based on historical decline rates, forecast investment into enhanced oil recovery
or legacy field redevelopment, technological developments and other relevant factors.

Production is expressed in b/d for oil and cubic meters for natural gas.

Refining Capacity

Our refining capacity forecasts are bottom up, aggregating individual projects (both greenfield and brownfield) up to the market
level and consider nameplate capacity.

The data are mostly sourced from companies active in the market and the relevant regulatory agencies.

We factor in the crude throughput capacity as reported by the given company or agency, but will make informed assumptions as to
the project start-up date and commissioning periods. The capacity forecasts cover crude distillation units (otherwise known as
atmospheric distillation units). They do not cover secondary processing capacity.

In general, we include only those projects that are post-FID. However, pre-FID projects that we view to have a high probability of
progressing will also be included.

It is expressed in b/d.

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Refining Capacity Utilisation

This is a derived indicator. The value is calculated as refined fuels production as a proportion of nameplate refining capacity. Given
the lower density of refined fuels, a refinery running at 100.0% of its nameplate (crude) capacity will operate at above 100.0%,
according to this indicator. Process optimisation and debottlenecking, which will increase the crude throughput at a given facility
but will not be reflected in our headline refining capacity forecast, can also lead to over-utilisation. In general, new and more
complex facilities will run at higher utilisation rates than legacy facilities.

It is expressed in b/d.

Refined Products Production

Headline refined fuels production is a function of a market’s refining capacity and its forecast utilisation rates. We further break
down production into gas oil/diesel, gasoline, jet fuel, kerosene, fuel oil, LPG and other products. The breakdown of production is
modelled on historical trends.

It is expressed in b/d.

Refined Products And Natural Gas Consumption

Our refined products as well as natural gas consumption forecasts are top-down and leverage a range of market-level forecasts
from other analytical teams in Fitch Solutions, in addition to a market's own historical time series. Common drivers of fuels demand
include the domestic economic and political environment, demographic trends and developments in energy-intensive sectors of
the economy, as well as infrastructure build out and availability.

As with refined fuels production, we further break down refined products consumption into gas oil/diesel, gasoline, jet fuel,
kerosene, fuel oil, LPG and other products.

It is expressed in b/d for oil and cubic meters for natural gas.

Oil Trade

This is a derived indicator.

We calculate crude and other liquids net exports as crude, NGPL and other liquids production, plus refining capacity gains, less
refined products production.

For refined products net exports, the value is calculated as refined products production less refined products consumption. As with
our production and consumption forecasts, we further break down trade into gas oil/diesel, gasoline, jet fuel, kerosene, fuel oil, LPG
and other products. For total net oil exports (crude, plus, products), the value is calculated as crude, NGPL and other liquids
production, plus refining capacity gains, less refined products consumption.

As derived indicators, our net export forecasts do not take account of annual stock change. This can lead to some small
discrepancies between our historical data set and observed trade flows.

It is expressed in b/d.
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data included in the report are solely
derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

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Gas Forecasts

Gas Trade

As derived indicators, our net export forecast do not take account of annual stock change. This can lead to some small
discrepancies between our historical data set and observed trade flows.

Dry Natural Gas Net Exports

This is a derived indicator. It is calculated as dry natural gas production less dry natural gas consumption.

Of which, LNG Net Exports

LNG net exports are derived based on gross LNG exports, less gross LNG imports.

Gross export and import forecasts are bottom up, aggregating individual liquefaction and regasification projects (both greenfield
and brownfield) up to the market level. We rely on our LNG Projects database a comprehensive catalogue of liquefaction,
regasification facilities in each market.

Of which Pipeline Net Exports

This is a derived indicator. It is calculated as theoretical natural gas net exports less LNG net exports. Given that stock changes are
implicitly captured in the pipeline net export forecast, there may be small discrepancies between our historical data set and
observed trade flows.

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Risk/Reward Index Methodology

Matrix Categories

The Risk/Reward Index (RRI) matrix is divided into two distinct categories:

• Rewards: Evaluation of an industry's size and growth potential (Industry Rewards), and macro industry and/or market
characteristics that directly affect the size of business opportunities in a specific sector (Country Rewards).
• Risks: Evaluation of micro, industry-specific characteristics, crucial for an industry to develop to its potential (Industry Risks)
and a quantifiable assessment of the political, economic and operational profile (Country Risks).

Benefits Of Using Our Oil & Gas RRIs

• Global Index: A global table, ranking all the markets in Fitch Solutions’ universe for upstream oil & gas from least (closest to
zero) to most (closest to 100) attractive.
• Accessibility: Easily accessible, top-down view of the global, regional or sub-regional risk/reward profiles.
• Comparability: Identical methodology across all markets for oil & gas allows users to build lists of markets they wish to
compare, beyond the confines of a global or regional grouping.
• Scoring: Scores out of 100 with a wide distribution provide nuanced investment comparisons. The higher the score, the more
favourable the profile.
• Quantifiable: Quantifies the rewards and risks of doing business in the upstream and downstream sectors in different markets
around the world and helps identify flashpoints in the overall business environment.
• Comprehensive: Comprehensive set of indicators assessing industry-specific risks and rewards alongside political, economic
and operating risks.
• Entry Point: A starting point to assess the outlook for the upstream and downstream oil and gas sectors, from which users can
dive into more granular forecasts and analysis to gain a deeper understanding of the market.
• Balanced: Multi-indicator structure prevents outliers and extremes from distorting final scores and rankings.
• Methodology: It is a combination of proprietary Fitch Solutions forecasts, analyst insights and globally acceptable benchmark
indicators (for example, Transparency International’s Corruption Perceptions Index).

Upstream Oil & Gas Risk/Reward Index Methodology

Our Upstream Oil & Gas RRI quantifies and ranks a market's attractiveness within the context of the oil industry, based on the
balance between the risks and rewards of entering and operating in different markets.

We combine industry-specific characteristics with broader economic, political and operational market characteristics. We weight
these inputs in terms of their importance to investor decision-making in a given industry. The result is a nuanced and accurate
reflection of the realities facing investors in terms of the balance between opportunities and risks, and between sector-specific and
broader market traits. This enables users of the index to assess a market's attractiveness in a regional and global context.

The index combines our proprietary forecasts and analyst assessment of the regulatory climate. As regulations and forecasts
change, so the index scores change, providing a dynamic and forward-looking result.

The Upstream Oil & Gas Risk/Reward Index comprises 72 markets.

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Weightings Of Categories And Indicators

Upstream Risk/Reward Index

Source: Fitch Solutions

Assessing Our Weightings

Our matrix is deliberately overweight on Rewards (90% of the final RRI score for a market) and within that, the Industry Rewards
segment (60% of final Rewards score). This is to reflect the fact that when it comes to long-term investment potential, industry size
and growth potential carry the most weight in indicating opportunities, with other structural factors (demographic, labour statistics
and infrastructure quality) weighing in, but to a slightly lesser extent. In addition, our focus and expertise in emerging and frontier
markets has dictated this bias towards industry size and growth to ensure we are able to identify opportunities in markets where
regulatory frameworks are not as developed and industry sizes not as big as in developed markets, but where we know there is a
strong desire to invest.

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INDICATORS - EXPLANATION AND SOURCES - UPSTREAM RRI

Indicator Rationale Source

Oil Reserves (bn Indicates size of the opportunity for oil developments. Data is for the current year. National source, our
bbl) data

Gas Reserves Indicates size of the opportunity for gas developments. Data is for the current year. National sources, our
(bcm) data

Discoveries Rate - Outlines the prospectivity and potential of the upstream. Our calculation
Industry
last five years
Rewards
Hydrocarbon Five-year forward looking indication of production volumes. Our forecast
Production (boe)

Hydrocarbon Five-year forward looking indication of production growth. Our forecast

Production
Growth (boe, %)

State asset Total share NOCs control. Demonstrates the potential access and restrictions to Our calculation
ownership (%) resources.

Country Competitive Divides resource base by the approximate number of companies operating to indicate Our calculation
RewardsLandscape the level of competition.

Infrastructure Calculates the extent and quality of oil and gas infrastructure, indicating ease of Our calculation
Integrity access and level of maintenance investment needed.

License Type Outlines a market's score based on whether oil and gas licences are offered as Our calculation
concessions, production sharing agreements or service contracts.

Income Tax Outlines the relative tax rate incurred by oil and gas companies. Government sources

Royalties & Special Indicates further required payments (and supplementary taxes) beyond income tax. Government sources
Industry
Taxes
Risks
Bureaucratic Outlines the ease of business processes, with a particular emphasis on mitigating the Our Operational Risk
Environment risk of delay to project timelines. score

Legal A second ease of business indicator, highlighting potential challenges with the Our Operational Risk
Environment Risk transparency and effectiveness of rule of law. score

Long-Term The Long-Term Economic Risk Index takes into account the structural characteristics Our Country Risk
Economic Risk of economic growth, the labour market, price stability, exchange rate stability and the Index
Index sustainability of the balance of payments, as well as fiscal and external debt outlooks
for the coming decade

Short-Term The Short-Term Economic Risk Index seeks to define current vulnerabilities and Our Country Risk
Economic Risk assess real GDP growth, inflation, unemployment, exchange rate fluctuation, BOP Index
Index dynamics, as well as fiscal and external debt credentials over the coming two years.
Country
Long-Term The Long-Term Political Risk Index assesses structural political characteristics based Our Country Risk
Risks
Political Risk Index on our assumption that liberal, democratic markets with no sectarian tensions and Index
broad-based income equality exhibit the strongest characteristics in favour of political
stability, over a multi-year time frame.

Short-Term The Short-Term Political Risk Index assesses pertinent political risks to investment Our Country Risk
Political Risk Index climate stability over a shorter time frame, up to 24 months forward. Index

Operational Risk Our Operational Risk Index focuses on existing conditions relating to four main risk Our Operational Risk
Index areas: Labour Market, Trade & Investment, Logistics, and Crime & Security. Index

Source: Fitch Solutions

fitchsolutions.com 93
Qatar Oil & Gas Report | Q4 2022

Downstream Oil & Gas Risk/Reward Methodology

Our Downstream Oil & Gas RRI quantifies and ranks a market's attractiveness within the context of the downstream industry, based
on the balance between the risks and rewards of entering and operating in different markets.

We combine industry-specific characteristics with broader economic, political and operational market characteristics. We weight
these inputs in terms of their importance to investor decision-making in a given industry. The result is a nuanced and accurate
reflection of the realities facing investors in terms of the balance between opportunities and risks and between sector-specific and
broader market traits. This enables users of the index to assess a market's attractiveness in a regional and global context.

The index combines our proprietary forecasts and analyst assessment of the regulatory regime. As regulations and forecasts
change, so the scores change providing a dynamic and forward-looking result.

The Downstream Oil & Gas Risk/Reward Index comprises 92 markets.

Weightings Of Categories And Indicators

Downstream Risk/Reward Index

Source: Fitch Solutions

Assessing Our Weightings

Our matrix is deliberately overweight on Rewards (90% of the final RRI score for a market) and within that, the Industry Rewards
segment (70% of final Rewards score). This is to reflect the fact that when it comes to long-term investment potential, industry size
and growth potential carry the most weight in indicating opportunities, with other structural factors (demographic, labour statistics
and infrastructure quality) weighing in, but to a slightly lesser extent. In addition, our focus and expertise in emerging and frontier
markets has dictated this bias towards industry size and growth to ensure we are able to identify opportunities in markets where
regulatory frameworks are not as developed and industry sizes not as big as in developed markets, but where we know there is a
strong desire to invest.

fitchsolutions.com 94
Qatar Oil & Gas Report | Q4 2022

INDICATORS - EXPLANATION AND SOURCES - DOWNSTREAM RRI

Indicator Rationale Source

Refining Capacity Quantifies the current size of the refining sector as a comparison to peer Our forecast
('000b/d) - 5-year ave markets.

Utilisation Rates (%) - Outlines the efficiency of the existing facilities, identifying over or under capacity. Our calculation
5-year ave

Domestic Fuels Demand Shows the size of the domestic market demand as a comparison to peer markets. Our forecast
('000b/d) - 5-year ave

Fuel Demand (% growth) Identifies the domestic demand opportunity and trend in consumption patterns. Our forecast
Industry
- 5-year ave
Rewards
Regional Fuel Demand - Shows the regional export market size to represent the opportunity for exports. Our forecast
5-year ave

Life Span Of Approximate calculation of the life span of infrastructure to identify the Our calculation
Infrastructure remaining operating life

Theoretical Net Crude Identifies spare capacity of domestic oil supply as a potential feedstock. Our calculation
Exports ('000b/d) -
5-year ave

State asset ownership Indicates how much of the given market is open for private investment. Our calculation
(%)
Country
Population Assesses market size based on total population size. Our calculation
Rewards
Population Growth (%) Assesses potential market size based on the population growth rate over five Our calculation
years

Logistics Risk Offers a comparative indicator on ease of transport for feedstock supply, fuels Our Operational Risk
Industry
distribution and import/export flexibility. Index
Risks
Fuel Subsidies Penalises a markets’ score if fuels prices are sold at below market costs. Our calculation

Long-Term Economic The Long-Term Economic Risk Index takes into account the structural Our Country Risk
Risk Index characteristics of economic growth, the labour market, price stability, exchange Index
rate stability and the sustainability of the balance of payments, as well as fiscal
and external debt outlooks for the coming decade

Short-Term Economic The Short-Term Economic Risk Index seeks to define current vulnerabilities and Our Country Risk
Risk Index assess real GDP growth, inflation, unemployment, exchange rate fluctuation, Index
balance of payments dynamics, as well as fiscal and external debt credentials over

Country the coming two years.

Risks Long-Term Political Risk The Long-Term Political Risk Index assesses structural political characteristics Our Country Risk
Index based on our assumption that liberal, democratic markets with no sectarian Index
tensions and broad-based income equality exhibit the strongest characteristics in
favour of political stability, over a multi-year time frame.

Short-Term Political Risk The Short-Term Political Risk Index assesses pertinent political risks to Our Country Risk
Index investment climate stability over a shorter time frame, up to 24 months forward. Index

Operational Risk Index Our Operational Risk Index focuses on existing conditions relating to four main Our Operational Risk
risk areas: Labour Market, Trade & Investment, Logistics, and Crime & Security. Index

Source: Fitch Solutions

fitchsolutions.com 95
Fit
Fitch
ch Solutions, 30 North C
Colonnade
olonnade,, Canary W
Wharf
harf,, L
London.
ondon. E14 5GN, UK
Tel: +44 (0)20 7248 0468
Fax: +44 (0)20 7248 0467
Web: www.fitchsolutions.com

IS SN: 1748-4189
ISSN:

Copy Deadline: August 2022

opy

This report from Fitch Solutions Country Risk & Industry Research is a product of Fitch Solutions Group Ltd, UK Company registration number 08789939 (‘FSG’). FSG is an
affiliate of Fitch Ratings Inc. (‘Fitch Ratings’). FSG is solely responsible for the content of this report, without any input from Fitch Ratings. Copyright © 2022 Fitch
Solutions Group Limited.
Copyright of Qatar Oil & Gas Report is the property of Business Monitor International and its
content may not be copied or emailed to multiple sites or posted to a listserv without the
copyright holder's express written permission. However, users may print, download, or email
articles for individual use.

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