QatarEnergy has announced the award of the four main Engineering, Procurement, Construction, and Installation (EPCI) contract packages for the upcoming development phase of the offshore Al-Shaheen field, Qatar’s largest oil field.
This development aims to increase production by approximately 100,000 barrels of oil per day (BPD). The contracts are part of Project Ruya, the third phase of Al-Shaheen’s development, led by North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%), operating the field since July 2017.
About Al-Shaheen field and Project Ruya
The Al-Shaheen field is situated 80 kilometers offshore Qatar and ranks among the world’s largest in terms of “oil in place.” Commercial production at the field began in 1994, and it underwent substantial development, reaching an oil production rate of 300,000 barrels per day (bpd) in 2007.
With a 25-year plan to maximize oil production, North Oil Company is actively expanding and developing the Al Shaheen oil field, focusing on installing new platforms in two phases: Gallaf and Ruya.
The Gallaf phase represents the initial significant expansion of the Al Shaheen field. It involves adding eight new platforms to the existing network and enhancing oil production by extending pipelines, contributing to the overall field development.
Project Ruya, a significant undertaking slated to develop more than 550 million barrels of oil, is scheduled to take place over five years, with the first oil expected in 2027.
The project encompasses drilling over 200 wells and installing a new centralized process complex, nine remote wellhead platforms, and associated pipelines, marking a substantial investment in the oil field’s growth and productivity.
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Project Ruya – The Four EPC packages awarded by QatarEnergy / North Oil Company
The four EPC packages, totaling over six billion dollars and encompassing diverse scopes of work, include:
EPC Package | Scope | Value (USD) | Contractor(s) |
1 | 9 Wellhead Platforms | $2.1 billion | McDermott Middle East Inc. and Qingdao McDermott Wuchuan Offshore Engineering Co |
2 | Central Processing Platform | $1.9 billion | McDermott Middle East Inc. and Hyundai Heavy Industries |
3 | Riser Platform | $1.3 billion | Larsen & Toubro Limited |
4 | Subsea Pipelines and Cables | $900 million | China Offshore Oil Engineering Co (COOEC) |
Under the EPC contracts, the Contractors will be responsible for the engineering, procurement, construction and installation of each package, respectively. In oil and gas industry, EPC contracts are typically executed after the conclusion of the Front-End Engineering (FEED) Phase and Final Investment Decision (FID) is made.
QatarEnergy - Leadership comments on the EPC packages awards
His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, expressed satisfaction with the award of the contract packages, considering it a significant milestone in the development of the State of Qatar’s largest oil field.
He stated that by awarding these contracts, they are taking an important step towards realizing the full potential of the Al-Shaheen field, which currently contributes around half of Qatar’s crude oil production.