Qatar Petroleum (QP) has started a development drilling campaign on its giant North Field Expansion programme, the first phase for which will now be known as the North Field East project.

The first of the 80 developments wells planned for the initial phase was spudded on 29 March by the jack-up GulfDrill Lovanda, the Qatari state-controlled player said on Wednesday.

The rig is operated by GulfDrill, a joint venture between Qatar-based Gulf Drilling International and Seadrill.

The first expansion phase at the giant North Field is likely to ramp up Qatar’s liquefied natural gas production capacity from 77 million tonnes per annum to 110 million tpa by 2025.

The second phase of the expansion project, North Field South, will further increase Qatar’s LNG production capacity from 110 million tpa to 126 million tpa, QP said without suggesting a timeframe for the increased production.

'Important milestone'

QP chief executive Saad Sherida al Kaabi said “the start of the development drilling campaign (for North Field East) represents an important milestone”, to deliver on the nation’s strategy to grow its LNG production capacity.

QP had earlier awarded a number of contracts for jack-up drilling rigs to be utilised for the drilling of 80 development wells for North Field East.

The company said that the installation of the first four offshore jackets meant for the expansion project is under way and “is expected to be completed by the end of this month".

Upstream reported earlier this month that QP subsidiary Qatargas has again delayed — this time to at least until the second half of this year — the tender process for a huge onshore package comprising the liquefaction facilities meant for the first phase of the North Field Expansion project.

Delay to start-up

QP recently said that it will postpone the start of production from its new gas facilities — the first phase — to 2025 due to a delay in the bidding process but is not downsizing the world’s largest liquefied natural gas project despite concerns of a mounting glut.

Kaabi told Reuters the company is not scaling back a plan to build six new LNG production trains needed for the ambitious domestic scale-up, though commercial bids from contractors and the start of output will be delayed.

QP last year issued to three leading international consortia tender documents for the huge liquefaction facilities package.

Qatargas is carrying out the tender process for several key onshore as well as offshore EPC packages for the North Field Expansion project, on behalf of QP.

In addition to the liquefaction facilities, packages comprising storage tanks, utilities and sulphur-handling facilities are also up for grabs and these would also subsequently be delayed, one contracting source said.

On the offshore front, Qatargas is expected to soon issue tenders for the platform topsides for the project.

Norwegian consultancy Rystad Energy recently said that the North Field Expansion project is likely to cost more than $50 billion.

Oslo-based Rystad believes the project's first development phase is now likely to be sanctioned by next year.

“The first stage of the project, estimated to cost about $35 billion, was expected to be sanctioned this year. However, we now estimate that it is more likely to be approved in the first half of 2021,” Rystad previously said.

The consultancy added that QP “is re-evaluating the commercial outlook of its North Field Expansion project due to low gas prices before reaching out to international partners".

Rystad believes that, while the project’s first phase is likely to be sanctioned next year, the second phase is likely to gain approval by 2023 at the earliest.

Field Development

Qatar Petroleum starts North Field Expansion drilling