Project name:  Adnoc – Onshore Shah Sour Gas  Field Development
Name of client:  Adnoc – Abu Dhabi National  Oil Company
Budget:  $10 billion

Main contractor: Not yet appointed
Facility type:  Gasfield Development
Status:  Feasibility study
PMC: Not yet appointed
Location: Shah
Project status
Adnoc has moved ahead with the development of sour gas as high oil prices have made the project commercially viable and domestic gas demand has jumped in recent years.
The company is considering to develop three sour gas reservoirs – at the offshore Hail field and the onshore Bab and Shah fields.
Adnoc plans to establish a joint venture company with a foreign developer, on a 60:40 ownership ratio, to administer the project.
In June 2006, Adnoc is expected to kick off the selection process for a foreign partner.
Thirteen International Oil Companies (IOCs) are understood to have been shortlisted as a potential foreign partner.
In August 2006, 13 IOCs have signified interest to be the foreign partner of Adnoc in its sour gas development programme.
The IOCs are:
• BP, Chevron Corporation, China National Petroleum Company (CNPC), ENI, ExxonMobil, Japan Oil Development Company (Jodco), Lukoil, Occidental Petroleum Corporation (Oxy), Oil and Natural Gas Corporation (ONGC), Petro-Canada, Royal Dutch/Shell Group, Sinopec and Total; and
• On April 15, 2007, bids have been received for the sour gas development programme.
The bidders include:
BP, BG Group, Chevron, ConocoPhillips, ExxonMobil, Japan Oil Development Company, Occidental Petroleum, Royal Dutch Shell and Total
In June 2007, Adnoc has decided to split the sour gas reserves project between the Shah and Bab fields, acknowledging that the projects are putting a lot of pressure on cost and are two complex to be carried out simultaneously.
The Bab field development is understood to take place at a later stage.
Adnoc subsequently has asked the bidders to revise their bids taking into accounts the modified scope of work for the Shah sour gas field.
Revised bids are due by August 30, 2007.
In September 2007, revised bids have been received from four IOCs: ConocoPhillips, ExxonMobil Corporation, Occidental Petroleum, and Shell Group
An award is expected by the end of October 2007.
The project target is to deliver about 3,000 cf/d to the network by 2012.
Project scope
The sweet gas demand from the industrial, power generation and oil sectors in Abu Dhabi is raising by 20 per cent each year.
The Abu Dhabi National Oil Company is now looking at developing its sour gas reserves, which make up approximately 50 per cent of the UAE’s reserves base, estimated at 214 trillion cu ft.
The project target is to deliver about 3,000 cf/d to the network by 2012.
Project Structure
Abu Dhabi National Oil Company (Adnoc) will form a joint venture company with an IOC for the Shah sour gas field development.
Shareholdings will be: Adnoc (60 per cent), and IOC (40 per cent)
Schedules for this project
June 2006 Selection process for   foreign partner kicks off
August 2006  Expressions of Interest   submitted by 13 IOCs
15 April 2007  Bids received
June 2007  Adnoc split Shah and Bab   sour gas field as two projects
30 August 2007  Revised bids due
September 2007  Revised bids received
End of October 2007  Selection of foreign  partner   expected
2012  Scheduled sour gas delivery