Award nears for Margham contract

17 January 2003
US-based KCA Deutag has been selected for a contract covering the working over of two existing drilling wells at the onshore Margham condensate/gas field in Dubai emirate. Three US-based companies - Schlumberger, Nabors and Santa Fe - and Oman's MB Petroleumwere competing for the contract (MEED 22:11:02; 2:8:02).

KCA Deutag is expected to start the 60-day programme in early March. The Dubai office of the UK's SPD Well Project Management will provide project management consultancy services for the contract.

The client is Margham Dubai Establishment (MDE), which is planning a major development of three existing gas fields in the emirate - Margham, Khubai and Southwest Margham. Plans are on the drawing board to drill an appraisal well at Khubai. The US' Western Geophysical has carried out 3-D seismic surveys over a large onshore area in Dubai, including the three fields.

MDE also plans the construction of a 20-kilometre-long pipeline to transport natural gas from the onshore Khubai field to processing facilities at Margham.

Work is progressing on schedule for the Margham field development project. In January 2002, MDE awarded an estimated $45 million engineering, procurement and construction (EPC) contract to the US' Solar Turbines International Company for the installation of new facilities to maintain production and increase supplies of natural gas to Jebel Ali. Australia's Worley carried out the front-end engineering and design (FEED) work for the scheme. The project manager is US-based VECO(MEED 4:1:02).

The Margham field produces about 20,000 barrels a day of condensate and about 230 million cubic feet a day of gas.

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