ONGC in race with Exxon, BP for Abu Dhabi gas

State-owned Oil and Natural Gas Corp (ONGC) is contending against 10 companies, including global giants ExxonMobil, BP, Chevron and Chinese majors, to secure projects to develop gas reserves in Abu Dhabi.

ONGC was in competition with ExxonMobil, BP, Shell, Chevron, Total of France, Occidental of the US, Enio of Italy, Russia's Lukoil and China's Sinopec and China National Petroleum Corp for partnering Abu Dhabi National Oil Co (ADNOC) in developing sour gas reserves, sources said.

ADNOC, which had last month invited international firms to partner it in developing sour gas reserves, aims at setting up a new operating company in partnership to extract, process and supply about three billion cubic feet per day of sour gas to domestic markets.

Abu Dhabi has 213 trillion cubic feet of mostly sour gas reserves, both onshore and offshore. Project developments will involve the installation of sweetening plants and related facilities.

Sources said ADNOC planned to issue a tender next month for the development of offshore sour gas reserves, with technical and financial proposals due to be submitted in late December. An award is due in early 2007.

Shell and ExxonMobil had previously done technical studies at the onshore Shah and Bu Hasa fields. BP and Total have also carried out studies on offshore fields.