By Amena Bakr
DOHA, Jan 20 (Reuters) - State-run Qatar Petroleum (QP) plans to spend around $7 billion over the next seven years to boost crude oil and gas condensate production from its Bul Hanine offshore field, two sources familiar with the plan said.
The field off Qatar's east coast produces around 40,000 barrels per day (bpd) of crude oil and QP hopes to more than double output to 90,000 bpd by 2020, they said.
The volume of condensate, a light oil, and associated gas that will be produced is unclear, but the high investment cost should easily be recovered over time, they said.
While the cost of boosting crude production and capturing the condensate is expected to be around $7 billion, the total cost of the wider project, including refinery expansion work, could reach $12 billion, three sources said.
QP's communications department did not respond to a request for comment.
Over the past few years QP had been receiving technical advice from French energy firm Total
"Total has been undergoing a feasibility study on the field and that should be finalised in the coming month," one source familiar with the matter said.
QP is now ready to move forward with the project and may invite several foreign companies to complete different phases.
As part of the project, a QP-owned gas processing plant at Mesaieed will be expanded to help collect the condensate, which can be used to make jet and vehicle fuels. The dry gas will then be pumped back under the Gulf to boost field recovery rates.
"The natural gas and condensate will be separated at the facility, then the gas will be reinjected into offshore fields to maintain pressure and the condensate will be sent to the Doha refinery," one source said.
It is unclear what will be the capacity of the separation facility, but the sources said it would be the largest of its kind in the world.
(Editing by Dale Hudson)
((amena.bakr@thomsonreuters.com)(+9714398300)(Reuters Messaging: amena.bakr.thomsonreuters.com@reuters.net))
Keywords: QATAR OXY/
