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.