Idd El Shargi South Dome (ISSD)

Profile for Idd El Shargi South Dome (ISSD) Oil Project

Location and Geography

• The Idd El Shargi South Dome (ISSD) oil field is located offshore Qatar, approximately 85 kilometers east of Doha, in the shallow waters of the Arabian/Persian Gulf. The water depth at the site is about 35 meters (or 82 feet).

Discovery and History

• The Idd El Shargi field, including the South Dome, was discovered in 1960 by Shell. The field began production in the 1960s, but it was not until the involvement of Occidental Petroleum Corporation (Oxy) in 1994 that significant development and redevelopment efforts were undertaken.

Operator and Partners

• The ISSD field is currently operated by QatarEnergy (formerly known as Qatar Petroleum). Historically, Occidental Petroleum Corporation (Oxy) played a significant role in the development of the field, especially after assuming operatorship in 1994.

Geology

• The ISSD field produces a mix of heavy-to-medium sour crude oil and associated gas from Lower Cretaceous and Jurassic carbonates. The reservoirs are characterized by low permeability, which necessitated the use of advanced drilling and production techniques such as horizontal drilling and water injection to maintain production levels.

Development Phases

• The development of the ISSD has been carried out in several phases:
  • Early Development: Initial production started in the 1960s using vertical wells.
  • Oxy's Involvement: After Oxy assumed operatorship in 1994, horizontal drilling and water injection techniques were introduced to halt depletion and restore production.
  • Phase 1 to 4: Various phases of redevelopment were implemented between 1995 and 2013, focusing on drilling additional wells, enhancing oil recovery (EOR) techniques, and upgrading facilities.
  • Phase 5: Currently in the approval stage, this phase involves significant expansion, including the drilling of additional production and water injection wells, installation of new processing facilities, and upgrading the pipeline system. This phase is expected to require a capital expenditure of around $3 billion.

Production

• The ISSD field has seen significant production over the years. By 2008, the combined production from the Idd El Shargi North and South Domes had reached 47,000 barrels of oil equivalent per day (boe/d). The field has recovered approximately 62.85% of its total recoverable reserves, with peak production achieved in 2019. Production is expected to continue until the field reaches its economic limit in 2054.

Reserves

• The Idd El Shargi North and South Domes were estimated to contain around 150 million boe of reserves as of 2008. The ongoing and future development phases, including Phase 5, are expected to reevaluate and potentially increase these reserve estimates.

Infrastructure and Contractors

• The development and operation of the ISSD field involve several key contractors:
  • SMOE: Involved in the engineering, procurement, fabrication, and installation of various platforms and facilities.
  • Petrofac: Participates in the project as a contractor for various services.
  • Schlumberger: Provides technical services related to drilling and production optimization.
  • Venture Gulf Engineering: Also involved in the project.

Economic and Regulatory Aspects

• The project operates under a Development and Production Sharing Agreement (DPSA) with the State of Qatar. The economic analysis includes considerations of capital costs, operating costs, royalty payments, and corporate income tax. The project's economic viability is assessed based on various economic assumptions, including oil prices and discount rates.

Future Developments

• The ongoing and planned developments, particularly Phase 5 of the ISSD, aim to maintain and enhance production levels through advanced EOR techniques, additional drilling, and infrastructure upgrades. These efforts are designed to optimize the field's production and extend its economic life.