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Qatar Petroleum (QP) is finally moving forward with plans to redevelop the declining 45,000 b/d offshore Bul Hanine field. It plans to ramp up production to 90,000 b/d. But at what cost? The state firm says it will throw an astounding QR40bn, about $11bn, at the project over the next fourteen years.
While not necessarily a watershed moment for Middle East oil production, the high costs associated with the Bul Hanine redevelopment may indicate that mature Middle East fields – once textbook ‘easy oil’ – may no longer be so easy. Costs at Bul Hanine have spiraled: the latest estimate of $11bn for the addition of 45,000 b/d output, is almost double QP’s previous $6bn estimate of redevelopment costs. (CONTINUED - 1178 WORDS)