ADNOC to award Bab gas project to Shell



REUTERS

Published — Thursday 21 March 2013

Last update 21 March 2013 4:15 am

| نسخة PDF Print News | A A

ABU DHABI: Abu Dhabi National Oil Company (ADNOC) has recommended that Shell win the multi-billion dollar project to develop its Bab gas field, but the UAE’s higher authorities have yet to rule on it, industry sources said.
Industry newsletter International Oil Daily reported that ADNOC had recommended that the Supreme Petroleum Council (SPC) pick Royal Dutch Shell ahead of rival French bidder Total to develop the ultra-sour gas project the UAE needs to temper growing gas imports.
Three industry sources confirmed that ADNOC had recommended Shell ahead of Total to tackle Bab’s potentially deadly gas.
The SPC and EC usually agree with ADNOC decisions, but as of yesterday neither had ruled on whether to officially award Shell a project which has been valued at $ 10 billion.

“Shell’s selection is recommended to the higher authorities,” a senior source at ADNOC said.
Spokespeople for ADNOC, Shell and Total declined to comment.
The Bab ultra-sour gas deal would give Shell, which many had expected would win the contract to develop Abu Dhabi’s Shah gas field in 2011 but which lost out to Occidental Petroleum, a showcase project for Shell gas treatment technology.
It also could give the Anglo-Dutch energy giant, a competitive edge in talks for the 2014 renewal of the UAE’s largest onshore oil concession on which the Bab field stands.
Total being sidelined for the Bab project comes despite a French charm offensive which saw French President Francois Hollande fly into the UAE in January to help Total’s bid.
The winning bidder for the Bab project will be expected to form a joint venture with ADNOC as the majority shareholder, the ADNOC source said.

What's happening around Saudi Arabia

JEDDAH: Jeddah police have closed all entry points into Makkah to prevent undocumented pilgrims from entering the holy city during this year’s Haj, in a bid to prevent overcrowding that could lead to health and safety problems.Officials have taken ac...
RIYADH: In view of the increasing incidence of MERS in the capital, the Directorate General’s Office of Health Affairs in the Eastern Province has unveiled a set of preventive measures to combat Middle East Respiratory Syndrome (MERS) coronavirus in...
JEDDAH: The Bureau of Investigation and Public Prosecution recently charged three young men in the harassment case at the Jeddah corniche. A number of young men were arrested for harassing two Saudi girls at the corniche a day after Eid Al-Fitr.A vi...
JEDDAH: A total of 232 people injured in Sunday’s Aramco compound fire in Alkhobar have been discharged from hospitals here, the Eastern Province Health Department announced on Tuesday.Fifty-seven are still receiving treatment at four hospitals, with...
RIYADH: The Directorate of Education in Riyadh is keeping a close watch on schools, such as sanctioning health material and monitoring the health of staff and students, to prevent the spread of the MERS coronavirus among students. As a step in this...
RIYADH: The Ministry of Municipal and Rural Affairs has announced new legislation for the Dec. 12 elections, including fines and imprisonment for failure to disclose candidate financing, obstructing procedures or officials, and fraudulent activity.Vi...

Stay Connected

Facebook