Bul Hanine phase 1B shortlist drawn up

Up to half-a-dozen leading contractors have been shortlisted by Qatar Petroleum (QP) for a major contract related to phase 1B of its multi-billion-dollar Bul Hanine redevelopment project in the Persian Gulf, writes Nishant Ugal.

Sources told Upstream that QP issued tender documents this month to up to six shortlisted contenders, with technical bids due to be submitted in another two to three months’ time.

The operator informed participants that project specifications would change in due course, according to one industry source.

“QP wants to make some changes to the project’s front-end engineering and design (outcome) and this is likely to be carried out before the submission of the technical bids,” said a project watcher.

A second source claimed that QP wants to further reduce costs on the offshore project, which could lead to a reduced contract workscope and design changes.

Those players believed to have been issued tenders include Abu Dhabi’s National Petroleum Construction Company (NPCC), China’s Offshore Oil Engineering Company (COOEC), a grouping of US giant McDermott with Qatar’s Nakilat-Keppel Offshore & Marine (NKom), and French heavyweight TechnipFMC.

Italy’s Saipem and Malaysia’s SapuraKencana are also thought to be among the short-listed players, but this could not be confirmed.

More than a dozen offshore players were believed to have responded to expressions of interest invited by QP last year.

South Korea’s Hyundai Heavy Industries, Spain’s Dragados Offshore, Italy’s Rosetti Marino, UK-listed Petrofac and Lamprell, and Singapore’s Emas replied to the EoIs but are now understood to be out of the fray.

The current workscope for phase 1B includes topsides for four wellhead platforms weighing less than 1000 tonnes each and one manifold platform, with a jacket tipping the scales at about 1400 tonnes and topsides of about 2500 tonnes.

In addition, 10 kilometres of umbilicals and 20 kilometres of subsea pipelines are included in the existing workscope, as is the replacement of a 20-inch export pipeline from the PS3 complex to Halul island with a new 16-inch pipeline.

The winning contractor will also be responsible for platform modifications and tie-in of the new facilities to the existing PS3 complex.

In 2014, QP announced plans to spend more than $10 billion on revamping Bul Hanine, dividing the project into three phases — 1A, 1B and 2.

QP has already produced more than 1.3 billion barrels of oil from Bul Hanine and the first redevelopment phase is ex­pected to lead to incremental production from the Arab-D and Hamlah reservoirs.

Last year, McDermott was awarded an EPC contract for four wellhead jackets as a part of phase 1A, thought to have a combined weight of close to 3500 tonnes.

QP is said to be changing the workscope for the final redevelopment stage, which is expected to be the most challenging, involving a central processing platform “super-complex”.

The redevelopment scheme is part of a plan by Qatar to boost production efficiency at the oilfield, as well as implement drilling programmes designed to increase crude reserves, the company said last year.

QP wants output from the offshore field to climb to 90,000 barrels per day by 2020 from the current 40,000 bpd.

Bul Hanine lies about 120 kilometres off Qatar.