Royal Dutch Shell PLC (RDSA, RDSB) said Tuesday it was selected by state-run Abu Dhabi National Oil Co., or Adnoc, to operate the strategically important Bab sour-gas field.
Royal Dutch Shell PLC (RDSA, RDSB) said Tuesday it was selected by
state-run Abu Dhabi National Oil Co., or Adnoc, to operate the strategically
important Bab sour-gas field.
Shell will participate in a 30-year joint venture with Adnoc to develop the Bab
sour gas reservoirs, 150 kilometers south-west of the capital
Abu
Dhabi
, it said in an emailed statement.
The company will hold a 40% equity stake in the joint venture, which will
operate the field, while Adnoc will own the remaining the stake. Gas output
from the field will supply the local market in the
United
Arab Emirates
.
Adnoc has previously shortlisted Shell and
France
's
Total SA (TOT) for the estimated $10 billion deal, and industry officials 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, people with knowledge of the
situation have said.
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.
Διαβάστε ακόμα
Τρι, 24 Σεπτεμβρίου 2024 - 19:58
Τρι, 24 Σεπτεμβρίου 2024 - 19:54
Τετ, 18 Σεπτεμβρίου 2024 - 18:32
Τετ, 18 Σεπτεμβρίου 2024 - 18:27
Τρι, 17 Σεπτεμβρίου 2024 - 20:01