Qatar Petroleum (QP) and Occidental Petroleum of Qatar signed on 7 November two agreements providing for further development of the offshore Idd al-Shargi field. The agreements cover the full field development of the Idd al-Shargi south dome and the phase 2 development of its north dome. For the south dome project, a contract award is imminent for the new infrastructure (MEED 23:8:02).
The first agreement, covering Idd al-Shargi north phase 2, calls for 144 million barrels of oil reserves to be developed, which will increase production to 127,000 barrels a day (b/d) by 2006. Total capital investment costs are estimated at $566 million. Idd al-Shargi north is operated by Occidental under a development and production sharing agreement (DPSA) signed with QP in 1994. Output at the field hit a historical high in June 1998: current production capacity is put at 90,000 b/d.
QP and Occidental signed a second DPSA in 1997 for the south dome. Under the revised agreement, full field development will take place at a cost of $212 million, which will see production reach about 17,000 b/d in 2006.
Engineering, procurement and construction (EPC) bids for the full field development were submitted in the summer by Singapore's Sembawang, Dubai-based J Ray McDermott and Abu Dhabi's National Petroleum Construction Company (NPCC). Sembawang is the front-runner for the south dome contract, which is due to be awarded by the end of November. In addition to supplying the processing platform and bridges, the successful bidder will be responsible for tying in the new infrastructure to the north dome's facilities.