Qatar Energy Awards EPCI Contracts for Offshore Al-Shaheen Oil Field, Chinese Companies Secure Two Key Projects

QatarEnergy announced on January 31st, local time, that it has awarded four major Engineering, Procurement, Construction, and Installation (EPCI) contract packages for the next development phase of the offshore Al-Shaheen oil field, expected to increase daily production by approximately 100,000 barrels of oil. The total value of these contracts is approximately 43.068 billion RMB.

The contracted companies include a consortium formed by McDermott Middle East and Qingdao McDermott Wuchuan Offshore Engineering, as well as a consortium formed by McDermott Middle East and HD Modern Heavy Industries. Additionally, Larsen & Toubro Limited from India and China Offshore Oil Engineering Co., Ltd. (COOEC) have secured contracts.

Notably, two Chinese companies have secured significant individual contracts. The consortium formed by McDermott Middle East and Qingdao McDermott Wuchuan Offshore Engineering has been awarded an EPCI contract package worth approximately 2.1 billion USD for nine wellhead platforms. China Offshore Oil Engineering Co., Ltd. will receive an EPCI contract package worth around 900 million USD for subsea pipelines and cables.

The Al-Shaheen oil field currently produces about half of Qatar's crude oil, operated by North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%).

This latest contract reflects the active role of Chinese companies in cooperation within Qatar's energy sector. In recent years, Chinese firms have taken on increasing engineering and construction tasks in Qatar's energy projects. Furthermore, QatarEnergy's transfer of equity in its largest gas field to Sinopec indicates a deepening trend in energy cooperation between China and Qatar.