Al Rayyan

Al Rayyan Oil Field Profile

Location and Geology

• The Al Rayyan oil field is located in Block 12, approximately 50 kilometres north of Qatar, in the Arabian Gulf. It is situated in shallow water with a depth of about 131 feet.
• The field is characterized by a very low relief, anticlinal structure with a maximum structural height of 21-24 meters across a 10-km diameter.

Geological Formation

• The producing horizons are part of the Arab sequence, specifically the Arab-A and Arab-C formations, which were formed by the shoaling of the Tethys Sea in the Late Jurassic period. These formations are capped by the Hith anhydrite.

Reservoir Characteristics

• The Arab formation has strong water drive, high porosities for a carbonate field (around 20%), and good permeability, which provides a potential recovery factor of about 30%.

Production History and Current Status

• The Al Rayyan field came onstream in late 1996 using a leased platform and storage tanker. By the end of the last year mentioned in the sources (prior to 2002), the field had produced approximately 27 million barrels of oil.
• As of the latest data, the field has recovered about 96.33% of its total recoverable reserves, with peak production achieved in 2004. Production is expected to continue until the field reaches its economic limit in 2028.
• Current production is around 15,000 barrels per day (b/d) from eight horizontal wells, producing medium-grade sour crude with an API gravity of 25 degrees.

Operational Details

• The field is operated by QatarEnergy, a state-owned integrated oil and gas company that covers the entire spectrum of the oil and gas value chain.
• The production is sold under a long-term contract at a price related to Arab heavy crude.

Development and Expansion

• Initially, the field's development was managed under an exploration and production sharing agreement negotiated in 1976. The consortium, which included Gulfstream Resources, had to commercialize the field to avoid the expiration of its oil and gas rights in 1996. Later, the stewardship was transferred from Arco to BP.
• There have been plans to expand and upgrade the facilities. However, these plans have faced several delays and challenges, including disagreements over costs and the economic viability of the development. A proposed drilling program to increase production was delayed due to cost concerns raised by Gulfstream Resources, the 65% majority partner at the time.

Infrastructure and Challenges

• The current production is limited by the temporary platform's electrical and fluid handling capacities, as well as high lease costs. OPEC restrictions have also constrained cash flow from the field.
• Qatar Petroleum has been seeking a leased floating storage and offloading (FSO) vessel to store oil from the Al Rayyan field, indicating ongoing efforts to optimize operations.

Future Prospects

• Despite the challenges, there are ongoing efforts to optimize and potentially expand the field. Nearby, in Block 11, there are plans to drill new wells to test additional prospects, which could provide synergy with the Al Rayyan development.

In summary, the Al Rayyan oil field is a significant offshore oil field in Qatar, operated by QatarEnergy, with a complex history of development and ongoing efforts to optimize its production.