Four leading international contractors or consortiums are battling it out for a prized subsea pipelay job from Qatargas that involves the second development stage of its giant North Field Sustainability project.

Up for grabs is a substantial offshore contract that is said to be the largest subsea pipelay job in the Persian Gulf region this year.

Qatar's LNG drive carries on

Several state-owned giants in the Middle East have adopted a cautious approach with big-ticket offshore developments in the wake of coronavirus pandemic, but Qatar has been progressing on multiple expansion projects despite the current market headwinds.

The Persian Gulf nation is spending billions of dollars on its North Field Sustainability and North Field Expansion projects, which were among the first to be taken following the removal in 2017 of a 12-year self-imposed moratorium on further development of the field.

The North Field Sustainability project is a crucial part of the company's strategy to maintain the giant field’s production profile.

The pipelay package on offer for the sustainability project comprises the engineering, procurement, construction and installation of up to 270 kilometres of subsea pipelines.

This will involve laying about 170 kilometres of 32-inch diameter subsea pipelines and 100 kilometres of 38-inch diameter subsea pipelines.

Contract decision soon

Technical bids for the offshore pipelay package were recently submitted by four offshore EPCI players, multiple people with direct knowledge of the tender process told Upstream.

“Technical offers have been submitted and the operator is likely to finalise its preferred contractor by end of this year,” one person said.

The bidders include a grouping of Switzerland-based Allseas with UK’s Petrofac, McDermott International of the US, Italy’s Saipem and Oslo-listed Subsea 7.

The pipelay workscope is in addition to a separate tender that Qatargas offered earlier this year for work on the offshore infrastructure required for the North Field Sustainability project.

Qatargas is nearing the decision phase for the first package meant for its sustainability project that involves huge offshore facilities.

A trio of contractors is said to be in the frame for the prized offshore job — McDermott, Saipem and a grouping of South Korean giant Hyundai Heavy Industries with Malaysia’s Sapura Energy.

126 million tpa capacity - and beyond?

Qatargas last year awarded a key front-end engineering and design contract to Saipem for the second development phase of the sustainability project.

Qatar is a leading producer and exporter of liquefied natural gas, with current output of 77 million tonnes per annum.

Qatargas and parent Qatar Petroleum (QP) are working on the mega expansion project at the North Field that envisages ramping up the nation’s liquefaction capacity to 126 million tpa — an increase of 49 million tpa from current levels.

Norway’s Rystad Energy believes that Qatar’s massive North Field expansion plan is likely to cost more than $50 billion in greenfield investments.

QP chief executive Saad Sherida al Kaabi recently hinted at further expansion of the country’s giant North field.

LNG

Qatar closing in on award of North Field subsea job