Qatar Petroleum, Oxy Ink Idd El Shargi Development Agreement

Occidental Petroleum Corporation (Oxy) reported Monday that its subsidiary Occidental Petroleum of Qatar Ltd. inked an agreement with Qatar Petroleum for the Phase 5 field development plan (FDP) for the Idd El Shargi North Dome (ISND) field offshore Qatar.

The investment for development activities associated with the FDP is estimated at more than $3 billion, Oxy reported in a press release.

Through the ISND Phase 5 FDP, the companies will seek to improve the ultimate recovery in all existing contract reservoirs through activities such as implementing upgraded reservoir simulation models and/ or improving waterflooding practices in all oil reservoirs.

Under the FDP, the companies will drill 200 additional production, water injection and water source wells, and will install associated facilities needed to support these wells. These facilities will include minimum facilities platforms, wellhead jackets, fluid processing equipment and pipeline debottlenecking and water source projects.

Qatar Petroleum and Oxy Qatar will also implement pilot studies to support produced water reinjection and enhanced oil recovery projects.

Work outlined in the agreement is already underway and, over the next six years, will continue to sustain the field’s oil production levels of approximately 100,000 barrels of oil per day (bopd).

Oxy Qatar and Qatar Petroleum developed the FDP under the July 1994 development and production sharing agreement between the Qatari government and Oxy Qatar.

Oxy Qatar also operates, under separate contractual agreements, the Idd El Shargi South Dome Field and the Al Rayyan field in Block 12, and is a partner with Dolphin Energy.

While the Qatari government’s energy policy is focused on natural gas production and exports, the country is also taking measures to extend its oil field production through enhanced oil recovery techniques, the U.S. Energy Information Administration reported in its January 2013 analysis report of Qatar.

While Qatar’s oil production has risen steadily since the 1990s, its fields are maturing, and output from the Dukhan field, formerly Qatar’s largest producing field, is declining. In 2011, Qatar was the third smallest crude producer in the Organization for Petroleum Exporting Countries, with production of about 1.6 million bopd of total liquids, including 850,000 bopd of crude production, EIA reported.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com

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