ADNOC To Prequalify Bidders For Sour Gas Development During 1Q07
Abu Dhabi National Oil Company (ADNOC) is to prequalify bidders for sour gas development during the first quarter of 2007, pushing back earlier plans that would have set a bid deadline for the project before the end of 2006 and prequalification by September (MEES, 7 August). Ten international oil companies are reported to have responded to a request for proposals earlier this year, including BP, Chevron, Eni, ExxonMobil, Lukoil, Occidental, ONGC, Shell, Sinopec and Total. MEES understands the emirate’s Supreme Petroleum Council (SPC) intends to focus initially on further development plans for the onshore Shah and Bab fields before it turns its attention to offshore gas. Key to the selection of a developer will be its ability to deploy appropriate technology at competitive costs to handle sour gas. Bidders may also be required to integrate options for the use of recovered sulfur into the proposals. The decision to pursue the development of more cost-intensive sour gas is driven by concern about the rising price trend for gas imports – and to a lesser extent by availability. Abu Dhabi’s dramatic industrial expansion plans for the petrochemicals and aluminum sectors, combined with the growing requirement for power and desalination, are driving sharp growth in gas consumption – estimated at around 4.6bn cfd.
