The Phase 1 field development plan for al-Khafji oilfield in the offshore Partitioned (Neutral) Zone (PZ) is aimed at maintaining current output there at 300,000 b/d, rather than expanding it, MEES learns. Kuwaiti officials in the past have talked of raising offshore PZ output to 350,000 b/d (MEES , 2 December 2002). But this goal seems unlikely to be achieved at least during the first phase of the development plan because of the expected increase in the water-cut in the Khafji field, based on an assessment of current drilling plans and reservoir data. So the extra crude production envisaged under the development project will merely keep production at the plateau of around 300,000 b/d. The purpose of new onshore and offshore facilities, to be established under separate contracts awarded last week (worth a total of $1.2bn see below), MEES further learns, is to handle increased crude oil production rates and the associated water-cut. In order to maintain the current level of crude production, new facilities will be required to handle the increased flow of oil and the associated water-cut. Furthermore, some existing facilities are reaching the end of their design life and need replacing.
Kuwait and Saudi Arabia share equally the output from the PZ, both onshore and offshore. Total production from the zone averages around 600,000 b/d. The offshore is operated by al-Khafji Joint Operations (KJO) a joint venture between Kuwait Gulf Oil Company (KGOC) and Saudi Aramco Gulf Operations Company (AGOC). In 2003, Toyo Engineering of Japan was awarded a five-year planning and design contract as part of a modernization program for the Khafji field (MEES , 9 June 2003). The aim of the program is to enable the field to continue producing crude oil in a stable way for more than 30 years. Earlier this year J Ray McDermott was awarded two contracts to provide engineering, procurement, construction and installation contracts by KJO the first for an integrated wellhead jacket, and the second for the expansion of loading facilities (MEES , 20 February).
Onshore, Offshore Contracts Awarded
A consortium of three Egyptian companies Petrojet, Enppi and Petroleum Marine Services were on 22 August awarded a contract valued at $722mn, covering the development of offshore facilities in the Khafji field. Announcing the award, Egypts Oil Minister Sameh Fahmy said it involved the design, manufacture, supply and installation of six offshore platforms, and the design, supply and laying of 110km of sub-sea pipelines (28in, 36in and 48in) and 8km of cables (6in) along with the development of other facilities in the field. He added that the duration of the contract was 31 months, with the new facilities scheduled for start-up in the first quarter of 2009.
Athens-based Consolidated Contractors International Company (CCC) was last week awarded a contract covering the onshore facilities for al-Khafji field development plan Phase 1. The scope of CCCs contract, valued at $507mn, includes review and verification of the basic engineering provided, and detailed engineering, procurement, construction, testing, commissioning and start-up assistance. The project includes the following main units: inlet separator and gas reception; gas compression and processing facilities; flare system; utilities and offsite units; buildings and others, including process control system.
