Shell Heading Towards UAE Door Over Bab Exit?

The UAE’s Bab gas field is the latest victim of falling oil prices, with Shell this week announcing that it is walking away from the project, dealing a blow to efforts to boost domestic production.

Shell dealt a hefty blow to the UAE’s efforts to ramp up gas production when it announced on 18 January its withdrawal from the $10bn Bab sour gas field project. Along with the Shah sour gas field, Bab is a cornerstone of the UAE’s plans to increase gas production, and its reliance on imports looks set to continue.

Moreover, the decision underlines the potential threat to Abu Dhabi’s crude oil plans. It also leaves the future of Shell’s long presence in the UAE in doubt, with its only remaining significant activity its 15% share in Abu Dhabi Gas Industries Limited (Gasco).


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