Qatar spends $6 bln on Al-Shaheen expansion

QatarEnergy has confirmed the award of four EPCI packages for the next development phase of the local Al-Shaheen field, the Qatari NOC announced on Wednesday.

The awards include a USD 2.1-billion EPC contract for nine wellhead platforms signed with a consortium consisting of McDermott Middle East and Qingdao McDermott Wuchuan Offshore Engineering Company; a USD 1.9-billion deal for a central processing platform with McDermott Middle East and Hyundai Heavy Industries; a USD 1.3-billion contract for a riser platform with Larsen & Toubro; and a USD 900-million award for subsea pipelines and cables with China Offshore Oil Engineering Company.

Larson & Toubro announced its award in November 2023.

The next phase – labelled the Ru’ya project – aims to boost production of the field by around 10,000 bopd.

It is the third phase since North Oil Company took over as operator in July 2017.

North Oil Company is a joint venture between QatarEnergy with a 70% stake alongside partner French energy giant TotalEnergies with the remaining 30% stake.

“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,” said Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and president and CEO of QatarEnergy.

Al-Shaheen is Qatar’s largest offshore oil field and is located 180 kilometres from Doha on Block 5.