QatarEnergy's Maydan Mahzam Oilfield Redevelopment Reaches Key Bidding Phase

Top contractors have submitted commercial offers to QatarEnergy for a major, long-delayed redevelopment program at the Maydan Mahzam offshore oilfield, one of Qatar's largest. The project involves two engineering, procurement, installation, and construction (EPIC) packages, potentially worth billions of dollars combined. Located about 100 kilometers east of Qatar's coastline near Halul Island, Maydan Mahzam is a legacy asset with maturing production. After months of delays, the bid process has reached a crucial phase, with QatarEnergy currently evaluating commercial offers and an award expected as early as September.

EPIC-1: Platform Construction Package

The larger package, EPIC-1, has received price bids from at least four contractors: China's Offshore Oil Engineering Company (COOEC), India's Larsen & Toubro (L&T), South Korea's Hanwha Offshore, and Vietnam's PTSC. Other players like HD Hyundai Heavy Industries, Saipem, and Seatrium were involved in the technical bid phase but are no longer competing. The workscope for EPIC-1 includes a new compression and process platform (PS2K) with a 10-legged jacket, a new utilities and living quarters platform (PS2L), a large riser platform (PS2R), and a single wellhead jacket with 16 production slots, all equipped with gas lift.

EPIC-2: Subsea Infrastructure Package

The second package, EPIC-2, covers the installation of over 100 kilometers of subsea pipelines, 28 kilometers of umbilicals, and nearly 20 kilometers of power cables, along with other associated facilities. Commercial bidders for this package include Saipem, COOEC, L&T, US contractor McDermott International, and European player Allseas. Both EPIC-1 and EPIC-2 are potentially valued at nearly $4 billion together, though rising insurance and logistics costs could increase project expenses.

Project Background and Strategic Importance

QatarEnergy follows a two-stage bid process, with technical bids followed by commercial offers. The tender for Maydan Mahzam was initiated in 2024 but faced repeated delays, including from the US-Israeli conflict with Iran, though momentum is expected to recover amid hopes of a peace agreement. The expansion, dubbed the PS2 Life Extension Project, aims to redevelop several offshore assets to extend the field's production potential for another 30 years. The shallow-water asset, in depths of 12 to 40 meters, has been producing oil and associated gas for over 50 years, but output is declining. The field currently produces about 75,000 barrels per day (bpd), and the redevelopment is expected to sustain and increase capacity to around 95,000 bpd through new wells, platform upgrades, and associated infrastructure. Qatar's overall oil production capacity is between 500,000 and 600,000 bpd, with most projects focused on maintaining and boosting output from its largest fields. This follows QatarEnergy's $4 billion contract award to COOEC last year for the Bul Hanine offshore oilfield development, underscoring its commitment to strategic oil projects.