ADNOC asks companies to resubmit bids for project.
Dubai,(Reuters) Abu Dhabi has asked oil companies to re submit bids for a giant sour gass project in the UAE as it devides the project into two saperate contracts, a magazine reported on Friday.
develope the Shah and Bab gas fields in a contract that could hhave a total of $10b (Dhs.36.7b).
Abu Dhabi will now asked for saperate bid for the two fields as the cost and complexity of developing them together was too great, the london-base weekly Middle East Economic Diagest (MEED) reported.
Abu Dhabi National Oil Company(ADNOC) has asked oil companies to resubmit bids for the Shah field alone by mid-July, MEED said, without citing sources.
The Bab field would be developed in a second stage, MEED quoted UAE Energy Minister Mohammed Bin Dha’en Al Hamili as saying.
The project is one of the largest open to oil and gas companies competing for limited access to the energy reserves in the Middle East.
Saudi Arabia keeps the world’s biggest oil reserves closed to international firms, while gas exporter Qatar has a moratorium on new projects.
France Total, Conoco-Philips and the US’s Occidental Petroleum Corporation were also bidding for the project, industry sources had said in April.
The sour gas in the UAE’s Shah and Bab fields, with a content of arround 30% of deadly hydrogen sulphide, is together to produce then sweeter gas reserves.
The UAE holds the world’s fifth largest gas reserves at over 200 trillion cubic feet, and needs to develope them to meet soaring domestic demand.
Business Gulf News – Sunday July 1, 2007
Filed under: OIL & GAS NEWS