The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE
George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’
George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’View Video
Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America
Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin AmericaView Video

Latest Share Chat

UAE set to award Bab gas project to Shell -sources

Wed, 20th Mar 2013 12:57

By Stanley Carvalho

ABU DHABI, March 20 (Reuters) - Abu Dhabi National Oil Co.(ADNOC) has recommended that Shell win themulti-billion dollar project to develop its Bab gas field, butthe UAE's higher authorities have yet to rule on it, industrysources said on Wednesday.

Industry newsletter International Oil Daily reported onTuesday that state-run ADNOC had recommended that the SupremePetroleum Council (SPC) pick Royal Dutch Shell ahead of rivalFrench bidder Total to develop the ultra-sour gasproject the United Arab Emirates needs to temper growing gasimports.

Three industry sources confirmed to Reuters on Wednesdaythat ADNOC had recommended Shell ahead of Total to tackle Bab'spotentially deadly gas.

The SPC and EC usually agree with ADNOC decisions, but as ofWednesday neither had ruled on whether to officially award Shella project which has been valued at $10 billion.

"Shell's selection is recommended to the higherauthorities," a senior source at ADNOC told Reuters.

Spokespeople for ADNOC, Shell and Total declined to comment.

The Bab ultra-sour gas deal would give Shell, which many hadexpected would win the contract to develop Abu Dhabi's Shah gasfield 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, acompetitive edge in talks for the 2014 renewal of the UAE'slargest onshore oil concession on which the Bab field stands.

Total being sidelined for the Bab project comes despite aFrench charm offensive which saw French President FrancoisHollande fly into the UAE in January to help Total'sbid.

The winning bidder for the Bab project will be expected toform a joint venture with ADNOC as the majority shareholder, theADNOC source said.

Related Shares

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, par...

7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating th...

31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.