Shell Exits Bab Sour Gas Project

Shell has decided to exit the Bab sour gas project in Abu Dhabi.

In a statement published Monday, the company said, “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, the company added.

In 2013, Shell was chosen by the Abu Dhabi National Oil Company (ADNOC) to participate in a 30-year joint venture to develop the major Bab sour gas reservoirs in the Emirate of Abu Dhabi.