Middle East: Qatar

MIDDLE EAST

Dr. A. F. Alhajji, Contributing Editor

Qatar

As one of the world’s largest holders, producers and exporters of natural gas, Qatar embarked on ambitious development programs to increase its production and export capacities. Higher oil prices in 1999 and 2000 are helping Qatar go further and faster to achieve its goals.

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Exploration. Late last year, Occidental Petroleum announced initial production of 2,500 bopd from the offshore EOR project at Idd El-Shargi South Dome oil field. The new production comes from the first of seven appraisal wells that will be completed by the end of 2000.

Drilling/development. Wells drilled totaled 66 in 1999, down considerably from 1998’s pace. A slight increase, to 72 wells, is expected for 2000.

State-owned Qatar General Petroleum Co. (QGPC) is trying to coordinate efforts with the United Arab Emirates Offsets Group (UOG) to participate in the Dolphin Project. Under the project, gas from Qatar’s North field will be piped under the sea to Abu Dhabi, then to Dubai and Oman.

The development of Alkhaleej oil field is underway and expected to double the field’s capacity to about 70,000 bpd through the addition of three new platforms, additional processing facilities and pipelines, and the drilling of nine new producing wells and four injectors. Three companies (Eni, TotalFinaElf and QGPC) are developing the field at a cost of $200 million. First oil from the new facility is scheduled for third-quarter 2001.

A series of projects by Qatargas and RasGas are expected to boost the companies’ combined LNG output this year to 7 million t, from 6.1 million tons, with an estimated capacity of 11 million t/year.

Last April, QPGC awarded a $200-million engineering, procurement and construction contract to Eni’s Snamprogetti subsidiary for the construction of a gas lift plant at Dukhan oil field. QGPC plans to increase the field’s capacity to 335,000 bopd from the current 270,000 bopd over a period of 10 years.

Construction began at the end of last year on Qatar’s $400-million, fourth grassroots natural gas facility (NGL-4) at Mesieed. A fractionation and treatment plant is expected to be completed in 2002.

Production. Qatar’s oil production declined in 1999, due to OPEC cuts that were agreed on in March 1999. Qatar’s output averaged 723,548 bopd, including 115,000 bcpd. Estimated capacity nationwide is about 850,000 bopd and is expected to rise further as new projects are completed.

A majority of Qatar’s oil reserves, 3.8 billion bbl, are onshore, in Dukhan field. The rest of the reserves, 1.6 billion bbl, are in six offshore fields.