Oxy split ISND Expansion project in five EPC packages
The state-owned company Qatar Petroleum (QP) and its US partner Occidental Petroleum Corporation (Oxy) are moving forward on the development of the Idd-Al-Shargi North Dome (ISND) fifth phase project offshore the Qatar Peninsula in the Arabic Persian Gulf.
Located 90 kilometers east of Doha, Idd-Al-Shargi is the largest crude oil field in Qatar with 150 million barrels estimated in 2008.
If Qatar holds the largest non-associated gas field with the offshore North Dome field, its reserves in crude oil are much shorter.
In that respect Qatar is very different from its neighboring countries such as Kuwait, Saudi Arabia, United Arab Emirates which are leading the world crude oil production while running short of natural gas.
In a context where the pressure on the gas prices is spreading from USA to the rest of the world, Qatar, as first world exporter of liquefied natural gas (LNG), sees the potential threat on its long term development.
Therefore Qatar is unlikely to lift in 2015 the current moratorium freezing further developments in the North Dome natural gas exploration and production.
Instead, Qatar is boosting its petrochemical industries in order to diversify revenues from the gas and take advantage of its competitive feedstock in the downstream sector.
The expansion of the Idd-Al-Shargi North Dome enters also in this strategy since the crude oil prices remain steady around $100 per barrel.
QP and Oxy tendered two INSD Phase-5 EPC contracts
In 1960, Shell discovered Idd-Al-Shargi crude oil field by only 35 meters of water depth.
In 1994, Qatar Petroleum and Oxy signed a development and production sharing agreement (DPSA) to boost Idd-Al-Shargi North Dome crude oil production from the 20,000 barrels per day (b/d) at that time a plateau target of 100,000 b/d.
Implementing water injection techniques for enhanced oil recovery (EOR), Oxy managed to stop the depletion of ISND.
As a result, QP transferred the operatorship to Oxy also for the Idd-Al-Shargi South Dome field in 1997.
Idd-Al-Shargi North Dome is a complex field to develop because of the low permeability of its reservoir.
To learn about the field and optimize the ISND exploration production, Oxy and QP proceed in phases.
In 2011, Oxy and QP launched the ISND fourth phase and in 2013 they decided to proceed with the fifth phase to represent $3 billion capital expenditure.
This Idd-All-Shargi North Dome Phase-5 should include five packages to be awarded for engineering, procurement and construction (EPC) contracts:
– 40 kilometers flowlines
– Two wellhead platforms
– Central processing platform including water injection modules and living quarter
– 40 kilometers export pipeline
– Upgrade of the Halul Island facilities
From these five EPC packages, QP and Oxy have called for tender the two main packages of the wellhead platform and the central processing platform.
From the series of pre-qualified engineering companies, QP and Oxy are expecting six of them to submit an offer for a decision to come by the end of 2014 on the first two EPC packages to be awarded in the Idd-Al-Shargi North Dome Phase-5 project.
The post Qatar Petroleum and Oxy tender Idd-Al-Shargi North Dome Phase-5 appeared first on 2B1stconsulting.