Four tenders have been issued to contractors for development of the Shah gas field in Abu Dhabi, ADNOC CEO Yusuf Bin Omeir Bin Yusuf announced yesterday.
Speaking at the opening session of Gastech 2009, Yusuf said the current global financial crisis has provided ADNOC with an ideal opportunity to execute its mega projects for new development and for boosting production capacity at a lower cost and higher quality.
“2009 is one of the most difficult years in the world economy due to recession and shortage of liquidity. This financial crisis caused many companies and countries producing or consuming energy to downsize and economise, consequently this lead to weakness in world demand and decrease in the oil price, leading to problems in expansion and execution of projects,” he said.
”However, in ADNOC we look at the bright and positive side of the crisis which has created a window of opportunity in order to execute our giant projects at lower cost and better quality. The contracts of the integrated gas projects that link offshore and onshore activities will be awarded and will produce one billion cubic feet of gas daily. Moreover, four tenders related to the development of Shah Field have been published to contractors,” he revealed.
ADNOC and its subsidiaries will exploit the Emirate’s vast sour gas reserves in the coming years. The sour gas projects include the Shah Project, awarded to ConocoPhillips last year, and the ELIXIER Project, which will produce nitrogen gas to be used in injection as a substitute for methane gas.
US-based Conoco-Phillips owns a 40% share of the venture and is also present at Gastech 2009, but has so far declined to comment on the tenders.
ADNOC are believed to be fast-tracking other upstream and downstream mega projects in 2009-2010 with an estimated total value of between $35-$55 billion.
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Pre-Approved Bidders:
Package one – Gas-gathering facility
Samsung (South Korea)
Larsen & Toubro (India)
Package two – Main process units including a gas processing plant
Hyundai Heavy Industries (South Korea)
Petrofac (UK)
Saipem (Italy)
Package three – Sulphur recovery units
Petrofac
Saipem
Samsung
GS Engineering & Construction (South Korea)
Techint (Italy)
Package four – Offsites and utilities
SK Engineering (South Korea)
Hyundai Heavy Industries
