QatarEnergy has further delayed the commercial bids deadline for two major engineering, procurement, installation and construction (EPIC) packages for the expansion of the Maydan Mahzam offshore oilfield. The new deadline for price offers is set for the end of March. This follows the submission of technical bids last year and several previous delays, attributed to bidders needing more time to prepare cost estimates in line with current raw material prices.

Scope and Value of the EPIC Packages

The two packages are substantial, likely to be worth upwards of $4 billion in total and are expected to be highly competitive. The first and largest package, EPIC-1, involves the construction of several major offshore structures. These include a new compression and process platform with a 10-legged jacket, a new utilities and living quarters platform, a large riser platform, and a single wellhead jacket with 16 production slots equipped with gas lift.

The second package, EPIC-2, focuses on subsea infrastructure, comprising the laying of over 100 kilometres of pipelines, 28 kilometres of umbilicals, and nearly 20 kilometres of power cables, along with other associated facilities. A third package for brownfield modification works is also part of the project but details on bidders are unconfirmed.

Project Background and Objectives

This initiative, known as the PS2 Life Extension Project, aims to redevelop several offshore assets to extend the production life of the Maydan Mahzam field for another 30 years. The field is a legacy asset located about 100 kilometres east of the Qatari coastline in shallow water depths of 12 to 40 metres. Having produced oil and associated gas for over 50 years since 1965, its output is declining and its existing facilities have exceeded their design life, despite significant remaining reserves.

Strategic Context

The Maydan Mahzam expansion, along with the Bul Hanine development, represents QatarEnergy's largest recent oilfield projects aimed at sustaining and expanding Qatar's oil production capacity, which stands between 500,000 and 600,000 barrels per day. The state giant awarded $4 billion in contracts for Bul Hanine last year, signaling continued investment in strategic oil assets. Front-end engineering and design studies for both fields were awarded in 2022.