Published — Friday 5 April 2013
Last update 5 April 2013 4:46 am
PARIS: Abu Dhabi did not choose Total to develop the $ 10 billion Bab Sour gas field project in the UAE where it was competing with Royal Dutch Shell, the French group’s chief executive said.
“I read in the press that Shell is said to have been selected for the development of this acid gas project,” Christophe de Margerie said on the sidelines of an oil conference.
“If I understand well, they have offered a price that was significantly below ours. Good for them, but these prices didn’t work for us. So we didn’t get it, but it’s not a problem because at this price we couldn’t do it,” De Margerie said.
Industry sources said recently that Abu Dhabi National Oil Co. (ADNOC) had recommended to authorities in Abu Dhabi that Anglo-Dutch Royal Dutch Shell win the project.
Total’s sidelining 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.
It could also 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.
De Margerie played down the link between the two projects, however. “They have nothing to do with each other, these are two separate issues.”
The winning bidder for the Bab project will be expected to form a joint venture with ADNOC as the majority shareholder, an ADNOC source said.ers. Republication or redistribution of content provided by Thomson Reuters is expressly prohibited without the prior written consent of Thomson Reuters, except where permitted by the terms of the relevant Thomson Reuters service agreement. Neither Thomson Reuters nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.