Shell ‘set to win gas field project’
Industry newsletter International Oil Daily reported that state-run ADNOC had recommended that the Supreme Petroleum Council pick Royal Dutch Shell ahead of rival French bidder Total to develop the ultra-sour gas project the United Arab Emirates 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.
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Hide AdThe 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 $10bn.
“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.