QP to restructure in wake of oil price fall
Flagging oil prices push Qatar Petroleum to restructure in coming months
As the drop in oil price continues to impact the Gulf, state-owned Qatar Petroleum plans to restructure in the coming months in an effort to adapt.
Qatar Petroleum International (QPI) Chief Executive Officer Nasser Khalil Al-Jaidah told state news agency QNA: "The restructure comes at the right time, with low oil prices a great motivation for the institution to be more capable of facing challenges in the upcoming years by getting rid of all burdens that accumulated during the previous period.”
Plans earlier this year included absorbing QPI into its structure, indicating consolidation in the wake of the price drop.
As prices below $100 will hamper the growth of shale oil, Al-Jaidah said demand for OPEC oil is likely to improve: "The coming period will witness an improvement in prices but they will not reach $100," he said.
US crude settled down 19 cents at $59.69 a barrel, after falling more than $1 during the session. Brent oil moved up 11 cents at $66.81, down from more than $115 in June last year. According to Al-Jaidah, oil prices have stabilised since December because of higher demand coming out Europe and the emerging markets, accompanied by lower US output.
Al-Jaidah said QPI's international projects were currently being evaluated in terms of geopolitics, prices and "current challenges", giving no further details.