QatarEnergy awards $6bn worth contracts for further development of Al-Shaheen field

QatarEnergy has awarded four main engineering, procurement, construction, and installation (EPCI) contract packages, collectively valued at over $6bn, for the next development phase of the Al-Shaheen field located offshore Qatar. The awards are part of Project Ru’ya which marks the third phase of development of the oil field since North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%), took over its operation in July 2017. The project’s aim is to ramp up production of the largest oil field in Qatar by nearly 100,000 barrels of oil per day (bpd). Project Ru’ya, which is set to exploit over 550 million barrels of oil, will span a five-year period, with initial oil production anticipated in 2027. The project encompasses the drilling of over 200 wells and the establishment of a new centralised process complex, along with nine remote wellhead platforms and associated pipelines. QatarEnergy has granted the EPC package for nine wellhead platforms, valued at approximately $2.1bn, to a consortium comprising McDermott Middle East and Qingdao McDermott Wuchuan Offshore Engineering. Additionally, the EPC package for a central processing platform, valued at around $1.9bn, has been awarded to the McDermott Middle East and Hyundai Heavy Industries consortium. Larsen & Toubro has secured the EPC package for a riser platform, valued at approximately $1.3bn. Furthermore, the EPC package for subsea pipelines and cables, with an estimated value of $900m, has been awarded to China Offshore Oil Engineering (COOEC). Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “By awarding these contracts, we are taking an important step towards realising the full potential of Al-Shaheen filed, which produces around half of Qatar’s crude oil today. “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 maximising value from Al-Shaheen field through the implementation of world-class development and operational excellence programmes.” Situated 80km north-east of Ras Laffan, the Al-Shaheen field began commercial production in 1994. The field, which spans nearly 2,214km2 in Block 5, went through substantial development to achieve an oil production rate of 300,000bpd by 2007.