Shell Drops Abu Dhabi Bab Sour Gas Project

Anglo-Dutch major Shell has decided to drop its 1bn ft³/d sour gas project at Bab in the emirate of Abu Dhabi that it was working on with state Adnoc, it said in a statement January 18.

"Following a careful and thorough evaluation of technical challenges and costs, Shell 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. 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, it said in a statement.

It did not disclose the financial savings it would make from the decision, or how much it had spent so far. The project entailed a 1bn ft³/d sour gas processing plant, the output being planned for the domestic market.