Qatar’s crude oil production is anticipated to create a positive impact in the years ahead, with a large share of potential production deriving from brownfield projects, the latest report by Fitch Solutions noted.
The country is dependent on additional oil production from its two largest oil fields such as Al-Shaheen and Dukhan, the report said. It also highlighted that upside risks to crude oil production from aging oil fields are expected to be limited.
It said that “Qatar’s medium-term crude oil production outlook slightly upwards against the backdrop of QatarEnergy’s ongoing brownfield oil projects.”
On one hand, it is highly estimated that Qatar’s oil production will rise to 620,000 barrels per day within the next five years, with a large share of incremental production stemming from brownfield projects.
On the other hand, Crude oil production has fallen to nearly 590,000 barrels per day last year, from a peak of 900,000 barrels per day in 2007, as Qatar’s oilfields are maturing resulting in lower production.
QatarEnergy at present is implementing several projects to maintain production levels and slow down the pace of decline in oil production, including rehabilitation, life extension and production enhancement projects, drilling of new wells, and replacing oil infrastructures, the report mentioned.
However, the leading firm, QatarEnergy is carrying out new key projects for the redevelopment of the second-largest onshore Dukhan oil field.
The report further stated that “The first Enhanced Water Flood (EWF) Project, which started in 2016, is expected to be completed in 2028. The EWF involves an extensive infill drilling campaign targeting the remaining oil in reservoirs. The second CO2 Water-Alternating-Gas (WAG) Pilot project aims to improve the recovery factor and enhance production output through a CO2 WAG injection scheme.”
Earlier, QatarEnergy launched the first phase of the Bul Hanine redevelopment project which involves the drilling of 30 new wells and the installation of four new wellhead jackets and production hub platforms.
This project, however, was completed in 2019 and currently is in the engineering, procurement, installation, and commissioning phase.
The oil and gas sector organisation had announced an allocation of QR3.64bn ($1bn) to revamp the Bul Hanine field in three phases. Meanwhile, the further development of the Maydan Mahzam oil field is currently ongoing. Bul Hanine and Maydan Mahzam oil fields at present produce almost 50,000 barrels per day of crude oil.
During the COVID-peaked period, QatarEnergy was recognised for the key technical services contract that is aimed at de-risking the further development of its huge Bul Hanine and Maydan Mahzam offshore oilfields.
“Despite significant potential upside to condensate production from greenfield LNG projects, Qatar is serious about reversing declining crude production from the maturing oil fields. Further development of the Al-Shaheen field could offer potential oil production of 40,000 barrels per day, but it remains to be seen to what extent Qatar will be able to unlock additional production from aging fields,” Fitch added.
The country expects to generate nearly 260,000b/d of condensate from North Field East and 120,000b/d from North Field South LNG projects. The data reveals that Qatar’s total crude oil and condensate production will increase from 1.33 million barrels per day in 2023 up to 1.7 million barrels per day in 2032.
Source: The Peninsula