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Shell selected for Bab sour gas project: report

Adnoc has selected UK-Dutch group’s development proposal over Total, claims trade title

Abu Dhabi National Oil Company (Adnoc) has selected UK-Dutch oil major Shell to develop and operate its $10bn Bab sour gas project, according to a report published by International Oil Daily.

Shell’s proposal, which was chosen over an offer from French group Total, includes plans to export the large amounts of sulphur extracted as a by-product in sour gas fields. Total was considered by many to be the frontrunner to win the deal.

The report came two days after Adnoc director-general Abdulla Nasser al-Suwaidi said the company had recommended an international oil company to Abu Dhabi’s Supreme Petroleum Council (SPC) to develop the Bab sour gas field.

The Bab field, located about 150 kilometres southwest of Abu Dhabi city, is expected to be an operation similar in size to the under-development Shah sour gas project.

The Bab development is expected to have a capacity of about 1 billion cf/d of sour gas, which will be processed to a smaller amount of sales gas and associated sulphur and liquid petroleum gas (LPG).

The proposal still needs to be approved by the SPC before Adnoc and Shell can form a joint venture to develop the field.