Expansion in Qatar hydrocarbon sector creates new openings for international business

Qatar’s oil and gas industry is entering a new phase of investment and development. Significant expansion projects are under way at the Al Shaheen field, Qatar’s largest offshore oil asset. Located 80km north of Doha in the Arabian Gulf, Al Shaheen has been in production since 1994 and remains one of the world’s largest offshore oil fields, with 40 platforms and more than 400 operational wells.

Project Ru’ya is a multi-year programme led by North Oil Company, a joint venture between QatarEnergy and TotalEnergies aims to develop more than 550 million barrels of oil over five years, encompassing the drilling of more than 200 wells and the installation of a new centralised process complex, nine remote wellhead platforms and associated pipelines. The first oil from the new facilities is targeted for 2027.

A central pillar of Qatar’s energy strategy

Oil and gas underpin much of Qatar’s economy, representing the bulk of export revenues and a large share of GDP. Although the country’s leadership in natural gas and liquefied natural gas (LNG) attracts global attention, crude oil capacity continues to play a strategic role in ensuring reliable supply to world markets.

Production from Al Shaheen accounts for a major share of national output. The current expansion signals a clear intent to optimise recovery from existing reserves and keep production steady over the long term. This approach also fits within the wider aims of Qatar National Vision 2030, which targets a more diverse economy while consolidating the country’s position as an energy leader.

Opportunities in the supply chain

Large-scale upstream projects of this kind create opportunities far beyond direct oilfield operations. Specialist engineering, fabrication, marine logistics, environmental services, safety systems and training providers all have potential roles within the supply chain. Contracts may range from high-value technical packages to ongoing operational support and maintenance agreements.

International companies with proven expertise in offshore engineering, drilling support, subsea technology or asset integrity management will find demand in Qatar’s expanding sector. However, the competitive landscape is regulated and securing work requires a structured market-entry approach, strong local relationships and compliance with national content requirements.

A stable, investor-friendly environment

Qatar maintains one of the most predictable and well-regulated investment frameworks in the Gulf region. Legal and commercial reforms in recent years have encouraged greater foreign participation in priority sectors, including energy and related services. Free zone platforms such as the Qatar Free Zones Authority (QFZA) and Qatar Science and Technology Park (QSTP) offer tax benefits, customs exemptions and full foreign ownership.

The state is also expanding port facilities, transport links and industrial areas to streamline logistics for both offshore and onshore projects. This combination of regulatory clarity and infrastructure investment strengthens the case for long-term contracts and collaborative ventures in the oil and gas industry.

Market entry considerations

Foreign companies entering Qatar’s energy sector need to select the right structure for their operations. Common routes include:

• Forming a local entity – either as a limited liability company or a registered branch, depending on applicable ownership rules.
• Setting up in a free zone – allowing 100% foreign ownership, profit repatriation and exemption from import duties, while enabling participation in certain energy-related activities.
• Appointing an agent or distributor – typically suited for defined equipment supply or shorter-term service arrangements.

Each path comes with specific licensing, regulatory and tax requirements. For energy projects, companies need to meet QatarEnergy’s qualification criteria and follow all health, safety and environmental regulations. Workforce planning should also account for Qatarisation obligations, which set minimum hiring levels for Qatari nationals in certain roles.

Positioning for long-term growth

The Al Shaheen development sits within a broader investment programme in Qatar’s energy sector. Current initiatives include raising LNG capacity at the North Field, modernising refining and petrochemical assets, and expanding renewable energy generation to complement hydrocarbon production.

Businesses ready to commit resources and establish a lasting base can tap into a combination of large-scale project tenders and a business climate that values predictability. Early positioning will help secure roles in upcoming procurement rounds and strengthen long-term supply chain links.

How Sovereign PPG can help

Establishing a presence in Qatar’s oil and gas market requires clear planning, accurate structuring and familiarity with sector-specific approval processes. Sovereign PPG advises on entity set-up, registration, licensing and compliance, helping clients navigate local requirements from the outset.

To discuss your Qatar market entry or explore options across the UAE, Saudi Arabia, Oman or Bahrain, contact Sovereign PPG at sovppg@SovereignGroup.com, call +971 (0)4 456 1761 (Dubai) or +971 (0)2 448 5120 (Abu Dhabi), or complete the enquiry form below.