Qatar Petroleum (QP) is expected to finalise within months multiple onshore and offshore contracts that are part of the first expansion phase at the giant North Field and which together are expected to be worth billions of dollars.

At least three significant onshore engineering, procurement and construction contracts for the North Field East project are yet to be finalised, along with two additional contracts that together involve offshore infrastructure meant for the gas expansion scheme.

Onshore packages

In addition to the recently awarded liquefaction facilities package, QP subsidiary Qatargas is likely to finalise its preferred contractor later this month for Package 2, which comprises three giant storage tanks, Upstream understands from well-informed contracting sources.

The bidders for the second package include Italy's Saipem, McDermott International of the US, South Korean players Samsung C&T and a grouping of Hyundai Engineering & Construction and Kogas.

All bidders are said to have submitted revised commercial offers for Package 2 earlier this year, as a part of the project’s optimisation plan.

Two additional packages comprising utilities and sulphur-handling facilities are also said to be up for grabs and could be finalised after the storage tanks package is awarded.

Those said to be eyeing Package 3, comprising utilities, include Saipem, Italy's Tecnimont and Spain's Tecnicas Reunidas, project watchers said.

However, one person said that the award for Package 3 is likely during the second quarter this year, since commercial offers for the tender process project are due in March.

Offshore package

In addition to the onshore packages, Qatargas is expected to finalise two significant offshore packages later this year that are part of the North Field East project — the name given to the first phase of the North Field Expansion project where QP this week took a $28.75 billion final investment decision.

However, one person said that, while all key onshore packages could be finalised within a month or two, the offshore packages could be awarded either by mid-2021 or in the second half of the year.

The first package comprises work on at least eight new unmanned wellhead platform topsides, along with other associated offshore facilities, while the second one involves the EPCI of more than 500 kilometres of subsea pipelines and up to 300 kilometres of subsea cables.

Upstream recently reported that a quartet of leading international contractors or consortia are battling it out for the first offshore package.

Technical and commercial offers were recently submitted for the first offshore package, with McDermott and Hyundai Heavy Industries and Samsung Heavy Industries said to be among the key bidders.

In addition, a grouping of Saipem with Singapore’s Sembcorp Marine is also among the contenders.

Qatargas last year issued the tenders for the two offshore packages meant for the first expansion phase of the North Field.

For the second package, McDermott, Saipem and Switzerland-based Allseas are said to be in the fray, with bids likely to be submitted later this month.

While the first North Field expansion package comprises eight offshore topsides meant for the initial phase of the giant gas development, Qatargas might also include at a later stage five additional topsides for the North Field South development, project watchers said.

McDermott has been performing the front-end engineering and design work for the North Field East offshore project that involves topsides for offshore platforms and subsea pipelines.

The US-player earlier said that its FEED workscope “includes the design of four offshore trunklines with intra-field pipelines, eight wellhead platforms and power and fibre optic subsea cable rings”.

McDermott is also working on the EPCI contract involving multiple offshore jackets for the North Field East project.

Further expansion

QP is targeting further expansion of the North Field to 126 million tpa of liquefied natural gas, with the second phase known as North Field South.

Chief executive Saad Sherida al Kaabi said this week that the second expansion phase is expected to start production by 2027, with Qatar aiming to further expand the North Field production capacity at a later stage.

"We are evaluating further capacity expansions beyond 126 million tpa," he said.

One project watcher suggested that once QP selects its preferred contractors for various EPC packages meant for North Field East, it could be relatively easier for the operator to fast-track work on the second development phase.

LNG

Contractors poised for flurry of North Field Expansion deals in Qatar