Adnoc reconsiders Shah gas scheme
Abu Dhabi National Oil Company (Adnoc) has developed a back-up plan for its Shah gas field development, raising questions over the prospects of a joint venture agreement.
The decision to seek expressions of interest for a project management consultancy contract on the scheme is being seen as a fall-back option for Adnoc, suggesting it wants to ensure that if the selection of an international oil company fails, or if their bids are deemed too high, it can still go ahead.
Adnoc faces domestic pressure to complete the ambitious project on time. It says there is an anticipated shortfall of gas in Abu Dhabi, both for re-injection and to sell on to the market, that must be met by the start of 2012.
The sour gas was originally intended to be reinjected into oil fields to maintain reservoir pressure, but the focus has now switched to sulphur recovery, which will allow the gas to be used domestically.
Adnoc recently split the sour gas development in the Shah and Bab fields into two separate projects, because of the cost and complexity of handling both projects simultaneously (MEED 29:6:07).
Although ConocoPhillips, ExxonMobil Corporation, Occidental Petroleum, all of the US, and the UK/Dutch Shell Group have been shortlisted to develop reserves at the Shah field, some uncertainty still surrounds the oil majors' pricing and commitment of to the project. Their revised proposals are due in August.
The scope of the new project management consultancy tender, which has been issued through Adnoc subsidiary Abu Dhabi Gas Industries Company (Gasco), covers a gas gathering system, gas processing facility and sulphur management system.
Other elements of the project include pipelines, sulphur solidification and storage at Ruwais and a new export jetty, also at Ruwais.
The project management contractor will manage the front-end engineering and design (FEED) phase, with an option to also handle the engineering, procurement and construction phase of the project.
Gasco is due to award the contract by the third quarter of 2007, with the FEED expected to take 12 months.
www.meed.com/oilandgas
Abu Dhabi National Oil Company (Adnoc) has developed a back-up plan for its Shah gas field development, raising questions over the prospects of a joint venture agreement.
The decision to seek expressions of interest for a project management consultancy contract on the scheme is being seen as a fall-back option for Adnoc, suggesting it wants to ensure that if the selection of an international oil company fails, or if their bids are deemed too high, it can still go ahead. Adnoc faces domestic pressure to complete the ambitious project on time. It says there is an anticipated shortfall of gas in Abu Dhabi, both for re-injection and to sell on to the market, that must be met by the start of 2012. The sour gas was originally intended to be reinjected into oil fields to maintain reservoir pressure, but the focus has now switched to sulphur recovery, which will allow the gas to be used domestically. Adnoc recently split the sour gas development in the Shah and Bab fields into two separate projects, because of the cost and complexity of handling both projects simultaneously (MEED 29:6:07). Although ConocoPhillips, ExxonMobil Corporation, Occidental Petroleum, all of the US, and the UK/Dutch Shell Group have been shortlisted to develop reserves at the Shah field, some uncertainty still surrounds the oil majors' pricing and commitment of to the project. Their revised proposals are due in August. The scope of the new project management consultancy tender, which has been issued through Adnoc subsidiary Abu Dhabi Gas Industries Company (Gasco), covers a gas gathering system, gas processing facility and sulphur management system. Other elements of the project include pipelines, sulphur solidification and storage at Ruwais and a new export jetty, also at Ruwais. The project management contractor will manage the front-end engineering and design (FEED) phase, with an option to also handle the engineering, procurement and construction phase of the project. Gasco is due to award the contract by the third quarter of 2007, with the FEED expected to take 12 months. www.meed.com/oilandgasThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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