Speaking on the sidelines of a Dubai conference, Khalid Al-Falih told Oil & Gas Middle East reporters that the giant Manifa offshore development plan is progressing on schedule, but market demand dictates it will produce at only 55% of its design capacity when it is fired up in two year’s time.
“The Manifa project is on schedule for 2013. It is planned for a 900,000 bpd design capacity, but as the market doesn’t need that much it will be producing 500,000 bpd when it comes on stream,” Al-Falih said.
The project, at 900,000 barrels per day capacity, is one of the largest heavy crude oil increments ever commissioned by the industry, but distinctive aspects of the field made for costs not typically associated with development. Manifa lies in shallow waters in the Arabian Gulf, requiring unique access solutions involving drilling islands.
At an estimated cost of US$9 billion, the Manifa oilfield was originally slated to begin production in mid-2011. In addition to the heavy oil production, the scope of the field includes 120 million scfd sour gas, 50,000 bpd condensate and 950,000 bpd of produced water. Among the known contractors working on the project are Saipem, Halliburton, Foster Wheeler, Technicas Reunidas and Jan De Nul Group.
“All the production infrastructure will be designed and built for our 900,000 bpd target but we will produce at 500,000 bpd,” clarified Al-Falih.
Al Falih also commented on the massive Khursaniyah programme, which includes facilities to process and stabilise 500,000 bpd of Arabian Light crude oil blend from the Abu Hadriya, Fadhili and Khursaniyah fields, as well as a grassroots gas plant to process 1 billion scfd of associated gas.
“The major gas project development underway at Khursaniyah is already onstream,” he said. In addition the Karan gas plant is progressing to plan.
“The Karan gas plant, with an installed capacity of 1.8bn cfd is on schedule. It will be fully on stream in 2013, but the first production from it will be taken to existing capacity by Q2 2011,” he revealed.
“The big plant for which we will be awarding contracts for is Wasit. This plant will process gas discovered two years ago in Arabia and Hasba. It will have the capacity of 2.5bn cubic feet per day. That project is due to go on stream in 2014,” said the CEO.
He added: “It is the biggest gas plant we have ever built in one go. Other gas developments include the NGL recovery plant in Shaybah, which will be awarded in the first quarter 2011 and will go on stream by 2014.”
