Dolphin

Location and Geology

The Dolphin Gas Project is situated in the Khuff Zone of the Qatari North Field, approximately 80 kilometers offshore Qatar. This field is one of the world's largest natural gas fields, with estimated recoverable reserves of about 900 trillion cubic feet (Tcf).

Project Overview

The project was initiated to develop the natural gas resources in the Khuff Zone and create the first natural gas network in the Gulf Cooperation Council (GCC) area. The project involves the extraction, processing, and transportation of natural gas from Qatar to the United Arab Emirates (UAE).

Ownership and Operators

The project is operated by Dolphin Energy Ltd, a company established in 1999 and headquartered in Abu Dhabi. Dolphin Energy is 51% owned by Mubadala Development Company, which is itself owned by the Abu Dhabi Government. The other major partners are Total and Occidental Petroleum, each holding a 24.5% interest in the project.

Development and Infrastructure

• Exploration and Appraisal: The first appraisal well, NFD 1, was spudded in December 2001 and completed in April 2002. A second appraisal well, NFD 2, was spudded in April 2002 and completed in June 2002.
• Initial Development: The project involved drilling 24 offshore wells in the Khuff Zone, constructing two offshore production platforms, and building a large onshore gas processing plant in Ras Laffan, Qatar. This plant is one of the largest of its kind in the world.
• Pipeline and Transportation: Raw, wet gas is transported from the offshore platforms to the gas processing plant via two 36-inch multiphase pipelines. The processed gas is then exported through a 48-inch, 364-kilometer subsea pipeline to the Taweelah receiving facility in Abu Dhabi.

Contracts and Construction

• Front End Engineering Design (FEED): Awarded to a partnership of Foster Wheeler and Sofresid, with work completed between January 2002 and May 2003.
• Engineering, Procurement, and Construction (EPC) Contracts: The EPC contract for the Ras Laffan plant was awarded to JGC Corporation of Japan, valued at about $1.6 billion. J Ray McDermott Middle East Inc. was contracted for the construction, installation, and hook-up of the offshore production platforms. Saipem of Italy laid the subsea export pipeline and the twin 36-inch sea lines linking the wells to Ras Laffan.

Production and Capacity

• Production Start: Commercial production began in July 2007 and reached full initial capacity of 2 billion cubic feet per day (bcf/day) by February 2008. There is potential to increase this capacity to 3.2 bcf/day.
• Export: The project exports processed gas to utilities and energy companies in the UAE. Additionally, it exports condensate, LPGs, ethane, and sulfur by-products internationally.

Financing

The project was financed through a combination of conventional lending and Islamic financing, totaling $3.5 billion. The financing involved 25 national, Islamic, and international financial institutions, making it the largest Shari’a-compliant oil and gas financing transaction at the time.

This project is a significant milestone in the energy sector, providing a substantial source of natural gas for the GCC region and beyond.