At least eight leading international offshore contractors have submitted commercial bids to Qatar’s North Oil Company (NOC) for multiple packages comprising the third phase of its Gallaf project, which involves the Al Shaheen offshore oilfield.

NOC — a pairing between state-controlled giant Qatar Petroleum and France's Total — is executing the multi-phased Gallaf project that is aimed at maintaining output at Al Shaheen, which is Qatar’s largest offshore oilfield.

The emirate has an oil production capacity ranging between 500,000 and 600,000 barrels per day, which is minuscule compared with other Persian Gulf heavyweights.

However, Qatar is not a member of Opec and hence not bound to any potential agreement to curb its oil output, giving it more flexibility to continue spending on key oil-based developments.

While Qatar’s massive expansion programme on its North Field gas field is likely to remain at the heart of its expansion strategy, it is expected to continue making calculated investments in some of its key offshore oilfields — including Al Shaheen, ISND and Bul Hanine.

The most recent Gallaf development — likely to be together valued at more than $1 billion — comprises its third expansion phase and would help in maintaining Al Shaheen’s output capacity at a plateau of 300,000 bpd.

Multiple packages up for grabs

Up to four engineering, procurement and construction packages are up for grabs for the Gallaf project, out of which the first three packages are considered the most crucial on offer.

Commercial offers were recently submitted by a clutch of offshore contractors for the three packages named as 5, 6 and 7, respectively.

While price bids have been submitted individually for the trio of packages, contractors have also offered bids in clubs involving one or more packages, one person familiar with the development said.

Workscope on offer

Package 5 calls for the turnkey provision of at least two wellhead platforms, with each of those structures expected to weigh between 4000 and 4500 tonnes, another person said.

Those thought to have offered commercial bids for this package include Italy’s Saipem, Malaysia’s Sapura Energy, Vietnam’s Petro Vietnam Technical Services Corporation (PTSC), Singapore’s Sembcorp Marine (Sembmarine), India’s Larsen & Toubro (L&T) and South Korean giant Hyundai Heavy Industries.

The second package on offer — Package 6 — involves a new central processing platform.

Bidders for this major platform job include McDermott International of the US, Saipem, Sapura, Sembmarine and Hyundai.

The offshore processing platform is expected to have one processing train plus power generation and water-injection facilities.

The new process platform will involve more than 33,000 tonnes of steelwork.

The platform’s deck is expected to weigh up to 17,000 tonnes, with the jacket tipping the scales at around 8300 tonnes, while the piles will weigh an additional 8000 tonnes.

The third contract — Package 7 — includes multiple segments of subsea pipelines totalling up to 50 kilometres.

Those said to have bid include Saipem, Sapura, Oslo-listed Subsea 7 and L&T.

Combined offers

In addition, Saipem and Sapura are said to have submitted a combined offer for all three packages, putting them in an elite club of bidders, Upstream has been.

Those said to have made combined offers for Packages 5 and 6 include Hyundai, Sapura, Saipem and Sembmarine, another person said.

For 5 and 7, L&T, Sapura and Saipem are thought to have bid.

The fourth package on offer — Package 8 — involves modifications and other brownfield work elements.

Italy’s Rosetti Marino and Ponticelli are said by project watchers to be among the key bidders for this package.

Al Shaheen accounts for almost half of Qatar's crude production.

Its existing facilities include 33 platforms, 300 wells and several production hubs spread over nine separate locations.

PTSC has been associated with the first stage of Gallaf, having landed a key contract from NOC in 2018 that was thought to be valued at between $300 million and $350 million.

Sembmarine earlier said it has won deals to build platforms for the Gallaf Stage 2 development offshore Qatar.

Field Development

Bids are in: Contractors submit offers for $1bn-plus project offshore Qatar