Oxy release first two packages for $3bn Qatar offshore project

27 May 2014

US oil company plans to release five packages in total at Idd el-Shargi North Dome field

The US’ Occidental Petroleum Corporation (Oxy) has released two packages for its planned phase 5 expansion at the Idd el-Shargi North Dome field in Qatar.

MEED reported in November that Oxy was planning to release tenders for five packages at the offshore field. The two that have been released are:

  • Process platforms including living quarters accommodating 206 beds
  • Two wellhead platforms and 12 wells

Several international engineering, procurement and construction (EPC) contractors have prequalified for the project. Contractors bidding on the initial two packages include:

The submission date for technical submissions is 31 July, with commercial proposals due a month later on 31 August. A decision is expected to be made by the end of 2014 at the latest.

“The majority of the work for this project is offshore and this is reflected in the contractors bidding for the initial two packages,” says a source familiar with the scheme. “Aside from upgrading some onshore facilities it is focused almost entirely on offshore.”  

Oxy has been operating the offshore oil field since it signed a production-sharing agreement with Qatar Petroleum (QP) in 1994. The new expansion is expected to sustain the current production of 100,000 barrels a day (b/d) for the next six years.

Three more packages are expected to be released in July. They are:

  • Halul Island facilities upgrade
  • 40-kilometre pipeline
  • 40km flowline

The scope of work will include drilling 200 wells for production, water injection and water source wells, the construction of new platforms and jackets, and the installation of fluid processing equipment. Pipeline debottlenecking and water source schemes will be executed and several enhanced oil recovery (EOR) programmes will be initiated.

The Idd el-Shargi North Dome field has been in production since 1963 and output had declined to 20,000 b/d by 1994. Oxy raised production to 140,000 b/d, but this has now levelled off at 100,000 b/d.

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