Four-way fight shaping up for $4 billion contract at one of world’s largest gas fields
Posted 05/06/2023 09:18
Qatargas, a state-run company, has compiled a pre-qualification list for an extensive engineering, procurement, construction, and installation (EPCI) contract required for the compression facilities in its North Field Production Sustainability (NFPS) offshore project. The subsidiary of QatarEnergy, the state-owned energy company, has informed pre-qualified bidders in preparation for an upcoming international tender process, set to commence within days, according to three sources familiar with the bidding process.
Qatargas is overseeing the tender process for multiple expansion and sustainability projects for Qatar's significant North Field, with the combined contracts valued at billions of dollars. While more than $50 billion has been allocated for the two development phases of the North Field, the NFPS project is critical for Qatar's goal of maintaining gas production from the field.
Among the pre-qualified participants for the EPCI contract, known as EPCI 4, which is part of the multi-phase NFPS development, are four leading international contracting companies, as revealed by an individual close to the project. The list reportedly includes a consortium comprising McDermott International (USA) and Hyundai Heavy Industries (South Korea), as well as Saipem (Italy), Larsen & Toubro (India), and Offshore Oil Engineering Company (China), each qualifying individually, according to another source.
The EPCI 4 package, estimated to be worth over $4 billion, involves the construction of two massive offshore compression platform complexes, potentially requiring a combined fabrication of up to 100,000 tonnes. Sources indicate that the scope of work is similar to the $4.5 billion EPCI 2 package awarded last year to a consortium consisting of Saipem and Offshore Oil Engineering Company.
Qatargas is expected to execute the NFPS compression facilities project in phases over several years. The EPCI 4 package encompasses the second phase and includes the installation of two compression systems, CP8S and CP4N. Each system comprises a compression platform, flare platform, interconnected bridge, living quarters facility, and associated infrastructure. The compression platforms are projected to weigh between 25,000 and 35,000 tonnes, with the overall structures involving a fabrication process of up to 100,000 tonnes.
It is believed that Technip Energies conducted the front-end engineering and design work for the offshore compression project.
Qatargas is actively progressing with the tender process for multiple packages associated with the extensive North Field development, as part of its efforts to expand and sustain production capacity through significant investments. The first expansion phase, North Field East, is estimated to cost around $28.75 billion and aims to increase QatarEnergy's liquefied natural gas (LNG) output to 110 million tonnes per annum by 2026. The second phase, North Field South, is expected to further boost Qatar's LNG production to a potential 126 million tonnes per annum.
Upstream had sought a comment from QatarEnergy but did not receive a response by the time of publishing.
Key players in the regional energy sector, including Abu Dhabi National Oil Company (Adnoc), QatarEnergy, and Saudi Aramco, are fast-tracking various oil and gas expansion projects, positioning themselves as key suppliers to global markets in the Persian Gulf region.