Bul Hanine

Location and Geology

The Bul Hanine oil field is located approximately 120 kilometers east of the Qatari coastline, in the Arabian Gulf. It is situated in shallow water, with a water depth of about 131 feet.

Field Discovery and Operation

The Bul Hanine field was discovered in 1970 and began production in 1972. It is operated by QatarEnergy (formerly known as Qatar Petroleum), which is the state-owned integrated oil and gas company of Qatar.

Production Details

• The field currently produces around 40,000 barrels per day (bpd) of oil, along with associated gas and condensate. The oil produced is of high quality.
• The field is Qatar's fourth-largest producing oil asset and its largest offshore oil field. It accounts for approximately 1% of Qatar's daily oil output.

Redevelopment Project

Objectives

The Bul Hanine Field Redevelopment Project, announced in May 2014, aims to increase the field's production and extend its life. The project targets an increase in production from 40,000 bpd to 90,000-95,000 bpd by 2020, and to extend the field's life by 25 years.

Investment and Scope

• The project involves an investment of QAR40 billion (approximately $11 billion), making it one of the largest projects managed by Qatar Petroleum.
• The redevelopment includes both offshore and onshore facilities. Key components include new central production facilities, an onshore gas liquids processing facility at Mesaieed, and the drilling of about 150 new wells by 2028.

Offshore Work

• The project involves the installation of new wellhead jackets, with 14 jackets planned. Two jackets were scheduled for installation by December 2016, and two more by July 2017. The combined weight of these four structures is 3,495 tons.
• An offshore central complex will be installed, consisting of production, compression, utility, and living quarter platforms. This complex will process fluids obtained from the wellheads.

Onshore Work

• Oil produced will be sent to Halul Island for export. Approximately 900 million cubic feet per day (mcf/d) of sour, rich gas will be transported via a 150km subsea pipeline to a new gas treatment facility in Mesaieed. Lean sweet gas will be sent back to the offshore facilities for compression and injection.

Contractors and Key Players

• McDermott International was awarded a contract in October 2015 for the engineering, procurement, construction, and installation (EPCI) of four wellhead jackets. McDermott’s teams in Dubai will handle the design engineering and procurement, with fabrication at their Dubai facility.
• Other contractors involved include John Wood Group Plc for design/FEED engineering and Fugro NV for various services.

Production and Processing

• The field produces light crude oil (36°-38° API) from Jurassic carbonates. Oil and condensate are piped to the terminal on Halul Island for processing and export.
• Gas produced is used as fuel gas at the production station and Halul Island, and also as feed for the Mesaieed natural gas liquids (NGL) facilities.

Economic and Operational Impact

• The project is part of Qatar Petroleum's broader strategy to improve efficiency and increase productivity at its fields. Despite the drop in oil prices since the project's approval, the redevelopment aims to ensure long-term sustainability and increased production.
• The field has already recovered 89.04% of its total recoverable reserves, with peak production in 1973. Based on economic assumptions, production is expected to continue until the field reaches its economic limit in 2036.

Future Plans

• The Bul Hanine Redevelopment Phase 2 is currently in the feed stage, indicating ongoing planning and evaluation for further development.

In summary, the Bul Hanine oil field redevelopment is a significant project aimed at enhancing production, extending the field's life, and ensuring the long-term sustainability of Qatar's oil resources.