"We will continue with our projects, there will be no delays", said Ismail Al Ramahi, manager gas processing division at ADNOCADNOC, while speaking to the participants of Gas Arabia 2009 conference, here in the capital.

The costs to construct oil and gas projects are sharply falling, as recession has hit global economies.

Already prices are 30 per cent cheaper than estimated last year, bringing new opportunities for Abu Dhabi National Oil Company (ADNOC)Abu Dhabi National Oil Company (ADNOC) to step-up its efforts to expand its hydrocarbon infrastructure, in order to preparing for the next up-turn in the energy demand and the prices.

With the cost of development becoming more attractive, ADNOCADNOC official said Abu Dhabi will consider all those projects which were abandoned for being too expensive.

He expected the cost of projects to fell even to 50 per cent level from a 30 per cent at present, as economic gloom becomes thicker each passing day.

Abu Dhabi Onshore Oil Operations Company (Adco)Abu Dhabi Onshore Oil Operations Company (Adco), the largest oil producer in the UAE last month awarded two EPC contracts to develop its Sahil, Asab and Shah onshore oilfields at a cost of $3.5 billion, about 20 per cent cheaper than estimated.

Economists are banking on Abu Dhabi to lift the nation's falling economic growth for 2009, predicated to range anywhere between 0.5-2.00 per cent.

Abu Dhabi has yet to announce its budget, and government officials are indicating launch of several infrastructure projects to keep the economy on fast track.

Abu Dhabi's GDP was estimated to be $105 billion in 2008, with hydrocarbon sector having the lion's share of 58 per cent due to oil price hike, and was projected to surge to $120 billion in 2010.

Abu Dhabi grew by eight per cent in 2007.

Al Ramahi invited international EPC contractors, technology and solution providers and consultants to get ready to bid for the large number of projects to be announced shortly.

In this regard, Al Ramahi said that the tenders of three mega projects would begin to come in large packages from next couple of months, as preparations in this regard are underway.

These multi-billion US dollar projects include Integrated Gas Development (IGD), Sour Gas Development, Nitrogen Generation and injection apart from Co2 capture.

Other projects which are already in implementation stage include, Flare gas recovery project, besides the establishment of Compressed Natural Gas (CNG) stations across Abu Dhabi, Al Ain and Sharjah.

On the Sour Gas Development project, which was estimated at $10-$12 billion, when it was announced late last year, in partnership with industry giant ConocoPhillips, the ADNOCADNOC official did not divulge on its current estimated cost

However, the project is nearing to complete FEED stage.

On the Nitrogen Generation and Injection project, he said that in the initial stage 300 million cubic feet per day (MCFD) of nitrogen gas will be injected into the oil reservoirs to enhance oil recovery, replacing the methane gas.

"And if the project bears positive results than the project will be expanded to 600 mmcfd", he added.

Speaking on the Carbon dioxide Capture project with MASDARMASDAR, he said this multi-billion dollar project would inject CO2 into the oil reservoirs to enhance oil recovery.

On the Flare Gas Recovery project, he said since 1995, there has been 74 per cent reduction in flaring which will be brought to zero-level.

By Haseeb Haider

© Khaleej Times 2009

 

Community Comments (0) - Comment on this article

The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.

 

 

 

close x

Loading ...

 

close x

Report Abuse

Loading ...

 

 

close x

Loading ...