The third phase of Al-Shaheen’s expansion will unfold over five years, with the first oil expected in 2027.
QatarEnergy has awarded contracts valued at $6 billion for the expansion of the Al-Shaheen oilfield, its largest offshore site.
Announced on Wednesday, these contracts mark a pivotal step in enhancing the nation’s crude oil production capabilities.
The expansion involves four major engineering, installation, and procurement contracts, aimed at boosting the field’s output by 100,000 barrels per day.
Energy Minister Saad Al-Kaabi, who also serves as the CEO of QatarEnergy, emphasised the strategic importance of this move.
“By awarding these contracts, we are taking an important step towards realising the full potential of the Al-Shaheen field, which produces around half of Qatar’s crude oil today,” he stated.
Located approximately 80 kilometres off Qatar’s northeastern coast, Al-Shaheen currently produces 300,000 barrels per day.
The field is operated by the North Oil Company, a joint venture between QatarEnergy and France’s TotalEnergies, which holds a 30% stake.
Minister Kaabi expressed gratitude towards the North Oil Company and TotalEnergies for their role in maximising Qatar’s hydrocarbon resources.
The awarded engineering contracts involve international firms including South Korea’s Hyundai, China Offshore Oil Engineering Co, Indian multinational Larsen & Toubro, and a consortium of US contractor McDermott and Qingdao McDermott Wuchuan Offshore Engineering.
The third phase of Al-Shaheen’s expansion, which commenced in 1994, will unfold over five years, with the first oil expected in 2027.
This phase is set to develop over 550 million barrels of oil, involving the drilling of more than 200 wells, and the installation of nine remote wellhead platforms, and pipelines.
In related news, QatarEnergy has also signed a 15-year deal with US-based Excelerate Energy to supply Bangladesh with natural gas. Commencing in January 2026, this deal entails the delivery of one million tons of LNG annually to floating storage units in Bangladesh.
“We are pleased to sign this agreement with Excelerate for the supply of up to one million tons per annum of LNG to Bangladesh,” said Kaabi.
He highlighted the agreement’s significance in strengthening relations with Excelerate and supporting Bangladesh’s energy needs and economic development.
These developments are part of Qatar’s broader strategy to solidify its position in the global gas market. Following the Russian invasion of Ukraine in 2022, Qatar’s gas has been increasingly sought by European countries.
Additionally, QatarEnergy has recently inked 27-year gas supply deals with China’s Sinopec, France’s Total, Britain’s Shell, and Italy’s Eni, marking some of the longest agreements in industry history.
Qatar, a leading LNG producer alongside the United States, Australia, and Russia, holds a pivotal role as the primary natural gas supplier to Bangladesh.
In June, QatarEnergy furthered its commitment by signing an agreement with Bangladesh’s state-owned Petrobangla to supply 1.5 million tons of LNG annually for 15 years.
These agreements underscore Qatar’s expanding influence in the global energy market and its commitment to meeting the growing energy demands of Asian countries, primarily China, Japan, and South Korea.