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$5bn North Field Compression Enters Construction Phase as Saipem and COOEC Secures Contract

Home » Energy » LNG » $5bn North Field Compression Enters Construction Phase as Saipem and COOEC Secures Contract
Qatar offshore megaproject

The North Field Compression project has moved into the execution stage after QatarEnergy LNG awarded the COMP5 offshore Engineering, Procurement, Construction and Installation (EPCI) contract, valued at approximately $5 billion, to a consortium of Saipem and Offshore Oil Engineering Co. Ltd. (COOEC).

The award advances one of Qatar’s most important offshore gas infrastructure programm, which aims to sustain production from the North Field the world’s largest non-associated natural gas reservoir while supporting the country’s long-term LNG expansion strategy.

The newly awarded contract marks a significant milestone for the wider North Field Production Sustainability (NFPS) program. It concludes the competitive tender process previously reported by Construction Review and shifts the project into full engineering and procurement activities ahead of offshore construction.

The COMP5 package has an overall value of approximately US$4 billion, with Saipem’s share estimated at $3.1 billion.

The contract strengthens Saipem’s long-standing partnership with QatarEnergy LNG after previously securing the COMP2 and COMP3 offshore compression packages, which remain under execution.

North Field Compression project: Offshore compression facilities form the next phase

The project involves the engineering, procurement, fabrication and offshore installation of two massive offshore compression complexes.

Each complex will include:

  • One offshore compression platform.
  • One living quarters platform.
  • One flare platform.
  • Interconnecting bridges and associated offshore systems.

Each installation will weigh approximately 68,000 tonnes, making the facilities among the largest offshore compression structures ever built for Qatar’s energy sector.

Construction activities will span approximately five years. Offshore installation is scheduled for 2029 and 2030, with Saipem deploying its heavy-lift construction vessel De He to install the giant offshore structures.

North Field Compression Project supports Qatar’s long-term LNG strategy

The North Field Production Sustainability program differs from the North Field East and North Field South expansion projects because its primary objective is to maintain reservoir pressure as the giant offshore field matures.

The offshore compression facilities will ensure long-term production reliability by sustaining gas flow from existing reservoirs feeding Qatar’s LNG export infrastructure.

The program therefore complements the country’s wider expansion plans, which aim to increase LNG production capacity to 142 million tonnes per annum over the coming years.

The latest award also reinforces Qatar’s position as one of the world’s busiest offshore construction markets.

Recent NFPS contract awards have attracted leading international EPC contractors, reflecting continued investment in large-scale offshore energy infrastructure despite changing global energy markets.

For Saipem, the COMP5 award further expands its offshore portfolio in Qatar. The company now holds three major offshore compression packages under the NFPS program, strengthening its role in one of the world’s largest gas infrastructure developments.

Once completed, the offshore compression complexes will play a critical role in extending the productive life of the North Field while ensuring stable gas supplies for QatarEnergy LNG’s export facilities and future LNG trains.

The latest contract award also reflects a broader wave of offshore energy construction across the Gulf. In the United Arab Emirates, ADNOC Offshore and ExxonMobil awarded an EPC contract to a consortium led by Técnicas Reunidas for a major offshore oil field development. Both projects demonstrate continued investment in offshore platforms, subsea infrastructure and production facilities as regional energy producers expand capacity and modernize aging assets.

Qatar offshore megaproject enters final contractor selection

Four international contractors submitted technical bids for the COMP5 package. They include Saipem, McDermott, Larsen & Toubro Energy Hydrocarbon and China Offshore Oil Engineering Company (COOEC). QatarEnergy LNG has since continued its technical assessment before selecting contractors for the next procurement stage.

The construction scope includes two offshore compression platforms weighing between 30,000 and 35,000 tones each. Contractors will also build jackets, flare platforms, living quarters, bridges and supporting offshore infrastructure. In addition, they will install subsea connections and associated facilities needed to integrate the new complexes into existing production systems.

The offshore facilities will help maintain pressure across the giant North Field reservoir. Consequently, Qatar can sustain production levels while supporting LNG expansion projects already under construction at Ras Laffan.

Earlier NFPS packages have already moved into execution. Larsen & Toubro secured the COMP4 offshore compression package, while Technip Energies continues detailed engineering support. More recently, Saipem and COOEC received the COMP5 offshore EPCI contract, confirming the project’s transition from procurement into execution.

Qatar offshore megaproject strengthens long-term LNG production

The North Field Production Sustainability program differs from Qatar’s LNG expansion projects because it focuses on maintaining reservoir productivity instead of adding liquefaction capacity. However, both programs work together to secure future LNG exports.

The offshore compression complexes will compensate for natural reservoir pressure decline through advanced gas compression systems. They will also improve production reliability while supporting QatarEnergy LNG’s target of increasing national LNG production capacity to approximately 142 million tones annually by 2030.

Construction activities will require extensive offshore fabrication, heavy-lift installation, subsea engineering and commissioning work over several years. Furthermore, the project will create opportunities for marine contractors, equipment manufacturers and specialist engineering firms supporting offshore energy developments.

Industry analysts expect offshore compression infrastructure to remain one of Qatar’s largest investment priorities throughout the decade. The facilities will protect production performance from the mature reservoir while reinforcing the country’s leadership in global LNG supply.

The offshore compression package also complements the broader $30 billion North Field Offshore Expansion project, which is delivering new wellhead platforms, subsea pipelines and offshore facilities to support Qatar’s long-term LNG growth. Together, the projects strengthen upstream infrastructure while enabling future production targets from the North Field, the world’s largest non-associated gas reservoir.

Qatar offshore megaproject

Project fact sheet

Project: North Field Production Sustainability (NFPS) – COMP5 Offshore Compression Project

Location: North Field, offshore Qatar

Project value: Approximately $5 billion

Current status: EPCI contract awarded; engineering and procurement underway

Client: QatarEnergy LNG

Contract duration: Approximately five years

Project type: Offshore gas compression infrastructure

Scope of works:

  • Engineering
  • Procurement
  • Fabrication
  • Offshore transportation
  • Installation
  • Commissioning

Major facilities:

  • Two offshore compression complexes
  • Two compression platforms
  • Two living quarters platforms
  • Two flare platforms
  • Interconnecting bridges

Weight of each complex: Approximately 68,000 tonnes

Planned offshore installation: 2029–2030

Strategic objective: Sustain long-term gas production from the North Field and support Qatar’s LNG expansion.

Project team

Project owner: QatarEnergy LNG

Program: North Field Production Sustainability (NFPS)

Lead EPCI contractor: Saipem

Consortium partner: Offshore Oil Engineering Co. Ltd. (COOEC)

Engineering: Saipem

Procurement: Saipem–COOEC consortium

Fabrication: Saipem–COOEC consortium

Offshore installation: Saipem

Heavy-lift installation vessel: De He

Commissioning: Saipem–COOEC consortium

Operations after completion: QatarEnergy LNG

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