Al Khaleej Gas - Phase Two (AKG-2) Project, Qatar

ExxonMobil Middle East Gas Marketing Limited controlled by Exxon Mobil Corporation, the State of Qatar and Qatar Petroleum announced the launch of the Al Khaleej Gas - phase two (AKG-2) project in July 2006.

This new development follows the successful completion of the initial stage of the project, AKG-1, which was started up in November 2005 with a capacity of 750 million cubic feet per day (mcfd) pipeline sales gas.

When the new AKG-2 project becomes operational in the third quater of 2009, it is planned to have a production of 1,580mcfd of north field natural gas for processing to sales gas for domestic markets in Qatar, while also recovering associated condensate and natural gas well liquids.

GAS OUTPUT IN DETAIL

AKG-2 will be expected to produce, annually, about 1,250mcfd of sales gas, about 15 million barrels of field condensate, about one million tons of natural gas liquids (propane, butane and plant condensate) and an estimated 870,000t a year of ethane for use as petrochemical feedstock.

Al Khaleej Gas is currently being developed alongside the Ras Laffan (phase three) LNG expansion project (LNG trains six and seven) to provide extra gas for export to the Ras Laffan Liquefied Natural Gas Company Limited.

The total investment for AKG-2 is expected to be more than 3bn. By sharing the same site certain infrastructure and utilities do not have to be duplicated and the project won't be as costly or take as long to complete.

CONSTRUCTION OF THE AL KHALEEJ GAS PROJECT

The development will involve the construction of both offshore and onshore facilities including two wellhead platforms, gas treating and liquids recovery facilities and fractionation operations.

The onshore components will be constructed adjacent to other RasGas facilities in Ras Laffan Industrial City.

Technip France has signed a contract for Engineering, Procurement and Construction (EPC) of the AKG-2 project with RasGas Co Limited, acting on behalf of ExxonMobil Middle East Gas Marketing Limited. Chiyoda of Japan had already carried out the front-end engineering and design (FEED) for the project in late 2005.

The contract for a gas processing train (with ethane recovery capability), with a capacity to support gas sales of 1,250 million standard cubic feet a day (mscfd) of natural gas, is being executed by the Technip / Chiyoda Joint Venture (CTJV).

The value of the contract exceeds $1.6bn and involves the construction of the feed gas-inlet, gas treatment, liquids recovery and fractionation facilities. Previously Chiyoda was the construction company responsible for the successful completion of the AKG-1 project.

AKG-2 OFFSHORE

The offshore element of the AKG-2 project involves the fabrication and installation of two remote unmanned well-head platforms (WH10 and WH11) and jackets with attendant supporting infrastructure.

There will be two nine-slot offshore platforms and two intra-field pipelines that will connect the platforms with two 38in wet-gas export trunk-lines to bring the gas ashore.

The two platforms will be connected to the RasGas Alpha Complex by two separate composite power and fibre-optic subsea communications cables.

The Engineering, Procurement, Construction and Installation (EPCI) contractor responsible for both platforms and pipelines is J Ray McDermott Eastern Hemisphere Ltd a subsidiary of J Ray McDermott SA, who was awarded the contract by ExxonMobil Middle East Gas Marketing Ltd in July 2006 (the estimated value of the contract is $300m). Construction of the platforms began in May 2007 in the Jebel Ali yard for 2009 delivery.

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