QatarEnergy Awards $6 Billion in EPCI Contracts
Fresh commitments cover expansion work on the Al-Shaheen field that is expected to add 100,000 B/D of oil production once completed.
QatarEnergy has announced the award of four main engineering, procurement, construction, and installation (EPCI) contract packages related to the next development phase of the offshore Al-Shaheen field. The new work at Qatar’s largest oil field is designed to increase production by about 100,000 B/D of oil.
The awards are part of Project Ru’ya, which is the third phase of Al-Shaheen’s development since North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%), took over the field’s operation in July 2017.
The project, which will develop more than 550 million bbl of oil, will be executed over a 5-year period with first oil expected in 2027.
The project includes the drilling of more than 200 wells and the installation of a new centralized process complex, nine remote wellhead platforms, and associated pipelines.
The EPCI awards include:
- Nine wellhead platforms valued at about $2.1 billion—consortium of McDermott Middle East Inc. and Qingdao McDermott Wuchuan Offshore Engineering.
- A central processing platform valued at about $1.9 billion— consortium of McDermott Middle East Inc. and Hyundai Heavy Industries.
- A riser platform valued at about $1.3 billion—Larsen & Toubro Ltd.
- Subsea pipelines and cables valued at about $900 million—China Offshore Oil Engineering Co.
“By awarding these contracts, we are taking an important step towards realizing the full potential of Al-Shaheen field, which produces around half of Qatar’s crude oil today,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and president and CEO of QatarEnergy.
Al-Shaheen field is located 80 km offshore Qatar and is among the world’s largest in terms of oil in place. The field began commercial production in 1994 and underwent development to reach an oil production rate of 300,000 B/D in 2007.