ADNOC set to award contract for Bab sour gas field

bab-care SMC flickrBab field can support raw gas production of up to one billion cubic metres per day. (Image source: Care_SMC/Flickr)Abu Dhabi National Oil Company (ADNOC) could be on the cusp of awarding a contract to develop the Bab sour gas field project

Indicating that Royal Dutch Shell is a strong contender for the bid, Abdulla Nasser Al Suwaidi, director-general of ADNOC, said, “Royal Dutch Shell is in a strong position.

“The recommendation is not disclosed at this time, because it’s still an internal process, but Royal Dutch Shell has a good standing.”

The deal could give Shell a showcase to project its gas treatment technologies, according to sources.

It is also expected to give the Anglo-Dutch company a competitive edge in talks for the 2014 renewal of the UAE’s largest onshore oil concession on which the Bab field stands.

The concession system allows oil and gas firms to acquire equity in hydrocarbon resources from the Organisation of the Petroleum Exporting Countries (OPEC) member country.

Industry sources believe that the Bab field could support raw gas production of up to one billion cubic metres per day. Preliminary estimates suggested that the field could produce up to 3.6mn cubic metre per day.

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