QatarEnergy on Wednesday revealed contracts valued at $6 billion for the upcoming development phase of the country’s largest oil field, aiming to boost oil production by about 100,000 barrels per day (bpd).
The contract includes engineering, procurement, construction, and installation packages for the offshore Al-Shaheen field, the state-owned company said in a statement.
“The award is part of Project Ruya (vision in Arabic), which is the third phase of Al-Shaheen’s development since North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%), took over the field’s operation in July 2017,” it added.
Set to exploit over 550 million barrels of oil, Project Ruya’s first production is scheduled for 2027, the statement said.
The project includes the drilling of over 200 wells and the installation of a new centralized process complex, along with nine remote wellhead platforms, and associated pipelines.
“By awarding these contracts, we are taking an important step towards realizing the full potential of Al-Shaheen filed, which produces around half of Qatar’s crude oil today,” Qatari Energy Minister and CEO of QatarEnergy, Saad Sherida Al-Kaabi, was quoted as saying in the statement.
Located 80 kilometers (50 miles) north of Doha in the North Gas Field, the Al-Shaheen field is among the world’s largest in terms of “oil in place,” according to the statement.
The decision comes after Saudi Arabia announced shelving plans to increase output to around 13 million bpd.
On Tuesday, Saudi Arabia ordered its national oil company, Saudi Aramco, to decrease its crude oil production capacity by 1 million barrels per day (bpd).
The move also comes at a pivotal moment for oil producer countries as they are pressured by global energy transition targets and the future of crude oil against the rising capacity of renewable sources.
By Sibel Morrow and Handan Kazanci
Anadolu Agency
energ@aa.com.tr