Shell has announced that, following a careful and thorough evaluation of technical challenges and costs, it has decided to exit the joint development of the Bab sour gas reservoirs with ADNOC in the emirate of Abu Dhabi, and to stop further joint work on the project.
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The evaluation concluded that for Shell, the development of the project does not fit with the company’s strategy, particularly in the economic climate prevailing in the energy industry.
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Shell had announced April 30 2013 that the Company had been chosen by the Abu Dhabi National Oil Company (ADNOC) to participate in a 30-year joint venture (JV) to develop the major Bab sour gas reservoirs in the Emirate of Abu Dhabi. Shell was to hold a 40% equity stake in the JV, with ADNOC holding 60%. It was intended that the gas would supply the local market in the United Arab Emirates.
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