Project Ru’ya : QatarEnergy advances Al-Shaheen field development with $6bn EPCI contracts
In a significant move to enhance its oil production capabilities, QatarEnergy has awarded four main Engineering, Procurement, Construction, and Installation (EPCI) contracts totaling more than six billion dollars. This monumental investment is aimed at the next development phase of the offshore Al-Shaheen field, Qatar’s largest oil field, with a vision to increase production by approximately 100,000 barrels of oil per day (BPD).
The contracts are a part of Project Ru’ya, marking the third phase of development for the Al-Shaheen field since its operation was taken over by North Oil Company, a joint venture between QatarEnergy, holding a 70% stake, and TotalEnergies, with a 30% stake, in July 2017. Project Ru’ya sets an ambitious target to develop over 550 million barrels of oil, planning to drill more than 200 wells and install a new centralized process complex, nine remote wellhead platforms, and associated pipelines, aiming for first oil by 2027.
The distribution of the EPCI contracts includes a $2.1 billion agreement for nine wellhead platforms awarded to a consortium of McDermott Middle East Inc. and Qingdao McDermott Wuchuan Offshore Engineering Co., a $1.9 billion contract for a Central Processing Platform to McDermott Middle East Inc. and Hyundai Heavy Industries, a $1.3 billion contract for a riser platform to Larsen & Toubro Limited, and a $900 million agreement for subsea pipelines and cables awarded to China Offshore Oil Engineering Co (COOEC).
Major EPC Contracts Awarded Under Project Ru’ya for Offshore Al-Shaheen Field Development to Enhance Qatar’s Oil Output
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, emphasized the importance of these awards as a pivotal step towards realizing the full potential of the Al-Shaheen field, which currently accounts for about half of Qatar’s crude oil production. He also expressed gratitude towards North Oil Company and TotalEnergies for their efforts in maximizing the value from the Al-Shaheen field through world-class development and operational excellence programs.
Located 80 kilometres offshore Qatar, the Al-Shaheen field is among the world’s largest in terms of oil in place. Since commencing commercial production in 1994, the field has undergone significant development, achieving an oil production rate of 300,000 bpd by 2007.
This latest initiative by QatarEnergy and its partners underscores their commitment to leveraging advanced technologies and strategic partnerships to bolster Qatar’s position in the global energy market. By enhancing the Al-Shaheen field’s production capabilities, QatarEnergy is not only aiming to meet the increasing global demand for energy but also ensuring the sustainable development of its hydrocarbon resources.
The award of these EPCI contracts by QatarEnergy is a testament to the company’s strategic vision and its role in the global energy sector. It underscores the importance of investing in infrastructure and technology to sustain and increase oil production levels. The collaboration with international partners like TotalEnergies also highlights the significance of joint ventures in achieving ambitious energy projects. This move is expected to not only enhance Qatar’s oil production capacity but also strengthen its position as a key player in the global oil market.