Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Shell Looks Set for Bab Sour-Gas Contract

change text size
Shell Looks Set for Bab Sour-Gas Contract

ABU DHABI - State-run Abu Dhabi National Oil Co., or Adnoc, said that Royal Dutch Shell PLC has "good standing" in its bid to operate the Bab sour-gas field, the firm's director general Abdulla al-Suwaidi said Monday. 

The company has shortlisted Shell and France's Total SA for the estimated $10 billion deal, but is yet to make an official announcement on the winner. 

"Shell has good standing... in a couple of weeks we will pick one of them," Mr. Suwaidi told reporters in Abu Dhabi. 

Industry sources have said that Shell won the bid, after the two firms presented competitive offers. The main difference between the two bids was their approach in handling the massive amounts of sulfur produced at the field. 

The Bab field, once developed, will produce between 500 million cubic feet and 800 million cubic feet of gas per day, but expertise is required to handle the large amounts of sulfur generated from the estimated 15% hydrogen sulfide content of the gas. 

Shell has recommended exporting the sulfur, while Total submitted a proposal to reinject the sulfur back into the reservoir. 

The deal needs to be signed off by the emirate's highest oil authority, the Supreme Petroleum Council – which includes the most senior leaders in the emirate.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Most Popular Articles
From the Career Center
Jobs that may interest you
Drilling Engineer
Expertise: Driller, Drilling Engineering
Location: US
 
Learning and Development Consultant
Expertise: Business Development, Research & Development
Location: US
 
Subsea Engineer - R & D Manager
Expertise: Research & Development, Subsea Engineering
Location: Houston, TX
 
search for more jobs