LOC15:10
12:10 GMT
DOHA, Jan 31 (KUNA) -- QatarEnergy has announced the award of the four main Engineering, Procurement, Construction, and Installation (EPCI) contracts, worth USD six billion, related to the development phase of the offshore Al-Shaheen field to increase production by about 100,000 barrels of oil per day (bpd).
According to a statement by the company, the deal was part of Project Ru'ya (vision in Arabic), which is the third phase of Al-Shaheen's development since North Oil Company, a joint venture between QatarEnergy, owns 70 percent of shares, and TotalEnergies, owning 30 percent, took over the field's operation in July 2017.
Project Ru'ya, which will develop more than 550 million barrels of oil, will be executed over a period of five years 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 four EPC packages, with varying scopes of work, valued in total at more than USD six billion consisting of and EPC package for nine wellhead platforms valued at about USD2.1 billion and awarded to a consortium of McDermott Middle East Inc. and Qingdao McDermott Wuchuan Offshore Engineering Co.
The second EPC package for a Central Processing Platform valued at about USD 1.9 billion and awarded to a consortium of McDermott Middle East Inc. and Hyundai Heavy Industries.
The third EPC package for a riser platform valued at about USD 1.3 billion and awarded to Larsen and Toubro Limited.
The fourth EPC package for subsea pipelines and cables valued at about USD 900 million and awarded to China Offshore Oil Engineering Co (COOEC).
Speaking on the issue, Saad Sherida Al-Kaabi -- Qatar's Minister of State for Energy Affairs, the President and CEO of QatarEnergy -- welcomed the award of the contract packages as an important milestone in the development of the State of Qatar's largest oil field.
He said, "By awarding these contracts, we are taking an important step towards realizing the full potential of Al-Shaheen filed, which produces around half of Qatar's crude oil today."
Minister Al-Kaabi added, "I would like to thank North Oil Company and our longtime strategic partner TotalEnergies for their great efforts towards unlocking the true potential of Qatar's hydrocarbon resources and maximizing value from Al-Shaheen field through the implementation of world-class development and operational excellence programs."
Al-Shaheen field is located 80 kilometers offshore Qatar and is among the world's largest in terms of "oil in place."
The field commenced commercial production in 1994 and underwent significant development to reach an oil production rate of 300,000 bpd in 2007. (end)
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