RIG & BARGE WORLD
Thus , more than 550 million barrels of oil would be developed by the company over five years through drilling more than 200 wells and by establishing a new centralized processing complex , with the first oil coming in 2027 .
The platform is built by Lamprell at its Hamriyah facility in the UAE , using the latest designs for operational efficacy and environmental footprint reduction . It is also fitted with the most competent techniques to help enhance oil recovery techniques and lower emissions in line with the overall sustainability goals of Qatar .
Parallel to the Al-Shaheen development , Qatar is progressing with the NFE project , which focuses on the North Field , the world ’ s largest non-associated natural gas field . As per recent research findings , there are additional gas reserves appraised to be around 240 trillion cubic feet ( tcf ), thus raising the total gas reserves of Qatar to over 2,000 tcf . The NFE project envisions the added development of four new LNG trains and eight wellhead platforms from which 80 new wells would be drilled .
Qatar ’ s energy heavyweight is also pursuing its LNG fleet expansion program with vigor through the execution of shipbuilding contracts and time charter agreements for 104 conventional LNG vessels and 18 QC-Max class LNG ships , amounting to a total of 122 ultra-modern vessels , with the first new ship slated to be delivered by the end of the third quarter of 2024 .
In September 2024 , Italian energy engineering firm Saipem secured a $ 4 billion offshore contract from QatarEnergy to enhance production capabilities in the North Field . This contract is a critical component of QatarEnergy ’ s strategy to increase its liquefied natural gas ( LNG ) production capacity from 77 million tons per annum ( mtpa ) to 142 mtpa by 2030 , reinforcing Qatar ’ s status as a leading LNG exporter .
These offshore developments are integral to Qatar ’ s long-term energy strategy , aiming to meet rising global energy demand and contribute to energy security . By investing in advanced technologies and expanding production capacities , Qatar is poised to maintain its leadership in the global energy market while supporting economic growth and diversification .
SAUDI ARABIA SUSPENDS CONTRACTS FOR 22 JACK-UP RIGS AMID PRODUCTION CAP
In a significant move , Saudi Aramco has suspended contracts for 22 jack-up rigs operated by eight contractors , including Advanced Energy Systems ( ADES ), China Oilfield Services Ltd ( COSL ), Shelf Drilling , Saipem , Arabian Drilling , Borr Drilling , Egyptian Drilling Company ( EDC ), and ARO Drilling . This decision aligns with Saudi Arabia ’ s directive to cap its oil production at 12 million barrels per day , a reduction from the previously targeted 13 million barrels per day .
The suspension affects a substantial portion of the contractors ’ fleets . For instance , ADES , which provides Aramco with 33 jack-up units , has had five rigs suspended . Similarly , COSL and Shelf Drilling each have four rigs suspended out of nine , while Saipem and Arabian Drilling each have three rigs suspended out of nine . Borr Drilling , EDC , and ARO Drilling each have one rig suspended .
As a result , the working utilization of Aramco ’ s jack-up fleet has decreased from 100 % in March 2024 to approximately 86 % by July 2024 , with projections indicating a further decline to 80 % by the end of July .
The cancellations are attributed to Saudi Aramco ’ s strategic reassessment of its upstream operations amid efforts to optimize costs and adapt to an increasingly volatile energy market . With crude oil prices stabilizing at moderate levels , Aramco appears to be recalibrating its focus toward maximizing output from existing infrastructure rather than expanding drilling operations .
Another contributing factor is the kingdom ’ s ambition to align with global sustainability goals . Saudi Arabia , under its Vision 2030 initiative , is investing heavily in renewable energy projects and alternative energy sources . This strategic pivot reduces the emphasis on conventional offshore exploration and production , affecting the demand for jackup rigs .
The move has significant implications for contractors such as Valaris , Shelf Drilling , and others operating in the region . Many of these companies rely on Saudi operations as a substantial revenue stream . The sudden contract terminations have not only disrupted their business plans but also raised concerns about the short-term health of the offshore drilling market .
While the cancellations reflect a broader shift in Saudi Arabia ’ s energy strategy , experts believe they are also indicative of the growing pressures to modernize and streamline operations . Investments in advanced technologies like automated drilling systems , digital twins , and carbon capture could potentially reshape the industry , allowing for fewer rigs with higher productivity and lower environmental impact .
16 | January-February 2025 | www . rigsbargeworld . com