Tenders Launched for $10B Abu Dhabi Sour Gas Development

Dow Jones Newswires

DUBAI (Dow Jones Newswires), October 13, 2008

ConocoPhillips and Abu Dhabi National Oil Co. Monday launched the tender process for the $10-billion Shah sour gas field development in Abu Dhabi, with the aim of completing the project by the end of 2013, people familiar with the plans say.

Adnoc and Conoco held a meeting with local and international contractors in Abu Dhabi city Monday, asking for expressions of interest in 10 separate project packages, all of which will be tendered between the first and third quarter of 2009, documents seen by Dow Jones Newswires show.

Under the tender schedule, all contracts are set to be awarded in late 2009 and early 2010, the documents show.

European and U.S. contractors including Snamprogetti, Technip SA, Bechtel Group Inc. and Foster Wheeler Ltd., and Japanese and South Korean firms were expected to attend Monday's meeting, the people say.

Sour gas is highly corrosive and generally more costly and challenging to process because of its high sulfur content, which requires special handling and infrastructure.

The Shah tender will offer 10 packages for bidding, including gas gathering and processing plants, sulfur recovery units and pipelines among other facilities, the documents show.  

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