1220 
MINERALS YEARBOOK, 1978-79 
 
tons); chromite (5 to 10 million tons); coal (10 million tons); and zinc,
gold, iron, manganese, and phosphate. Asbestos and manganese were to be the
subject of further studies. Oman's high-quality marble was 
already utilized at four plants and there were eight aggregate quarries.
Significant deposits of limestone were also under study, 
possibly for use in the cement industry. 
 
 
QATAR 
 The petroleum industry continued to be the base of Qatar's economy, accounting
for 99% of total export earnings, over 90% of Government earnings, and approximately
55% of the GNP, estimated at $4.5 billionl3 in 1978 and $4.9 billion in 1979.
The other mineral commodities and their values for 1978-79 (respectively)
were nitrogenous fertilizers ($65 million and $128 million), iron and steel
($27 million and $131 million), limestone ($21 million both years), and cement
($13 million and $17 million).14 
 Qatar's economy settled somewhat during 1978-79 when the growth rate dropped
to around 11%. This was in contrast to the rapid expansion that took place
between the years 1974 and 1977 as a result of rising oil prices. Cutbacks
in government spending were responsible for the moderation of the growth
rate and also reducing inflation to near 9% in 1979, from a high of 50% in
1975. The balance of trade surplus increased from $12 billion in 1978, to
an estimated $2 billion in 1979,15 owing mostly to oil price increases and
the rapid growth of Qatar's steel industry. 
 Qatar continued its emphasis on diversification of its light and heavy industry,
using its reserves of oil and gas as feedstock and fuel. Over $1.8 billion
was allocated for industrial projects and construction loans in the 1979-80
budget. Projects included expansion of cement and fertilizer production capacity,
completion of a petrochemicals complex, and utilization of the huge reserves
of natural gas in the production of NGL and liquified natural gas (LNG).
The post oil economy will no doubt be dominated by these gas reserves, conservatively
estimated at 100 trillion cubic feet. The Government was moving cautiously
on development plans, hoping to use the gas only when oil supplies become
scarce. 
 Qatar's crude petroleum production in 1979 increased 5% over 1978 levels.
Production averaged 506,000 barrels per day in 1979, as opposed to 485,000
barrels per day in 1978. The percentage of this output produced from the
onshore Dukhan oilfield declined 2.9% from 1978 to 1979, and comprised 45%
of the total output for 1979. Oil 
from the Bul Hanine, Maydam Mahzam, and Idd el-Shargi offshore oilfields
registered a 12% increase in output from 246,000 barrels per day in 1978
to 276,000 barrels per day in 1979. Qatar also shares the small Bunduq oilfield,
located in the Persian Gulf between Qatar and the United Arab Emirates, with
Abu Dhabi on a 50-50 basis. The oilfield produced about 6,000 barrels per
day in 1978, but was shut down in 1979 due to pressure maintenance problems.
Both Governments told the main concessionaire, United Petroleum Development
(Japan), that a secondary recovery program must be instituted before production
can be resumed. 
 Petroleum production in Qatar was regulated by the Qatar Petroleum Producing
Authority (QPPA), and marketing was controlled by the Qatar General Petroleum
Corp. (QGPC); both of which were government organizations. Companies operating
onshore were British Petroleum (BP), CFP, Shell, Mobil, Exxon, andPartex
(Portugal). The former offshore concessionaires were Shell and Ente Nazionale
Idrocarburi (ENI). These companies purchased over 55% of Qatar's crude oil
under 5-year agreements signed in 1976. In 1978, oil prices averaged $13.19
for 40° API Dukhan (onshore) and 
$13.00 for 36° API Marine (offshore). By yearend 1979, that price
had
reached $23.19 for Dukhan and $23.00 for Marine. Qatar exported 98% of its
crude oil in 1978-79. 
 Qatar operated a small refinery in the Umm Said industrial zone, with a
capacity of 4 million barrels per year of refined petroleum products. With
the refinery operating near capacity in 1979, Qatar imported nearly 20% of
its domestic fuel requirements. The Ministry of Industry and Agriculture
planned to construct a 150,000barrel-per-day export refinery in Umm Said,
as part of the plan to diversify Qatar's industry. The cost of the project
was estimated at $408 million. 
 The Government undertook several steps to utilize its substantial production
of natural gas, which averaged 590 million cubic feet per day in 1978 and
548 million cubic feet per day in 1979. Associated gas from