Qatar’s state-owned oil and gas giant, QatarEnergy, has awarded four engineering, procurement, construction and installation (EPCI) contract packages to increase oil production at Qatar’s offshore Al-Shaheen oilfield, the country’s largest.
The four contracts will expand oil production by around 100,000 barrels per day.
The EPCI contracts were awarded to several international companies, and included:
- A $2.1bn package awarded to a group of companies formed by McDermott Middle East and Qingdao McDermott Wuchuan Offshore Engineering.
- A second $1.9bn package given to a consortium consisting of McDermott Middle East and Hyundai Heavy Industries.
- A third package valued at $1.3bn awarded to Larsen & Toubro.
- A smaller package of $900m awarded to China Offshore Oil Engineering.
Saad Sherida Al-Kaabi, QatarEnergy’s CEO and president, as well as the country’s Minister of State for Energy Affairs, called the move a milestone in the development of the oilfield. He added: “By awarding these contracts, we are taking an important step towards realising the full potential of Al-Shaheen field, which produces around half of Qatar’s crude oil today.”
Al-Shaheen field is located 80km off the coast of Qatar and is among the world’s largest oil reservoirs in terms of content. Commercial production began in 1994, undergoing significant development to reach an oil production rate of 300,000 barrels per day.
Qatar has, in recent years, become an increasingly attractive foreign direct investment (FDI) destination for investors, mostly due to its laws that enable full foreign ownership in most of the country’s sectors.
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In 2019, Qatari officials from the Ministry of Commerce and Industry came up with Invest Qatar, the country’s investment promotion agency, in a move to oversee and attract more projects from abroad. According to the Kearney FDI Confidence Index, the country emerged as one of the most attractive FDI destinations for investors from abroad.
“The primary driver of Qatar’s economy is the energy sector, which has attracted tens of billions of dollars in FDI,” the US Department of State states in a country report. “Significant opportunities for foreign investment exist in infrastructure, healthcare, education, tourism, energy, information and communications technology, and the service sector.”