PetroVietnam Technical Services Corporation (PTSC) has landed a sizeable subcontract from South Korean giant Daewoo Shipbuilding & Marine Engineering for work on North Oil Company’s (NOC’s) Gallaf project offshore Qatar.

Multiple people with direct knowledge of the development told Upstream that PTSC was recently confirmed as the winner for a key subcontract that involves a large jacket of a central processing platform, along with an offshore bridge.

Daewoo recently landed a major contract from NOC to build a large fixed offshore platform as part of Package 6 in the Al-Shaheen oilfield expansion project, which involves the Gallaf development.

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NOC — a partnership of state-controlled Qatar Petroleum (QP) and France’s TotalEnergies — is executing the multi-phase project, which aims to maintain output at Al Shaheen, Qatar’s largest offshore oilfield.

The main Package 6 contract is worth 725 billion won ($630 million), Daewoo said.

However, the value of PTSC’s subcontract could not be independently confirmed.

PTSC is yet to make a formal announcement on the subcontract award, Upstream understands.

Key facilities

A spokesperson for Daewoo earlier told Upstream that Package 6 would consist of four main elements — a new central processing platform topsides, a new jacket, an interconnecting bridge and brownfield integration works on existing host platforms.

While Daewoo will fabricate the topsides at its Okpo yard on Geoje Island in South Korea, the jacket and bridges will be fabricated by PTSC, Upstream understands.

The topsides will depart the Okpo shipyard around the second half of 2023.

Package 5 winner

In addition to the subcontract from Daewoo involving the central processing platform, in June PTSC landed a separate engineering, procurement, construction and installation contract from NOC in Package 5 of the Gallaf development.

In addition to the subcontract from Daewoo involving the central processing platform, PTSC in June landed a separate contract from NOC for the engineering, procurement, construction and installation of Package 5 of the Gallaf development.

This EPCI package includes two wellhead platforms with a total weight up to 19,000 tonnes, PTSC earlier said.

The Package 5 workscope involves the “detailed design, procurement, construction, pre-commissioning, commissioning, loadout, sea-fastening, transportation and installation, hook-up and offshore commissioning” of the offshore facilities.

PTSC was associated with the first batch of Gallaf. In 2018, NOC awarded it a contract thought to be worth between $300 million and $350 million for the decks and bridges of three wellhead platforms.

The Gallaf development involves the installation of eight new wellhead platforms, with the contracts to be awarded in three separate batches.

Batch 3 is centred on a pair of wellhead platforms and a large new processing platform, as well as subsea flowlines.

Subsea 7 earlier this year confirmed a key offshore pipeline contract for Gallaf Batch 3, for the Al Shaheen field.

Key oilfield

Al Shaheen is crucial for Qatar because it accounts for about half of the country’s total oil production, which according to QP’s annual 2019 review was running at just over 592,000 barrels per day.

The field’s existing facilities include 33 platforms, 300 wells and several production hubs over nine locations.

Located on Block 5 about 80 kilometres offshore, Al Shaheen started production in 1994, with TotalEnergies assuming operatorship in 2017, when production was about 300,000 bpd.

Under a 25-year concession agreement, TotalEnergies holds a 30% stake in NOC, while QP holds a 70% working interest.

(This article was updated on 19 October to reflect the correct development phase of the Al Shaheen field)