Identifier
Created
Classification
Origin
07ABUDHABI1128
2007-07-05 12:30:00
CONFIDENTIAL//NOFORN
Embassy Abu Dhabi
Cable title:
THREE U.S. COMPANIES SHORT LISTED FOR SOUR GAS
how-toVZCZCXRO3643 PP RUEHDE RUEHDIR DE RUEHAD #1128 1861230 ZNY CCCCC ZZH P 051230Z JUL 07 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC PRIORITY 9289 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEHDE/AMCONSUL DUBAI 7159 RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHDC RHEHNSC/NSC WASHINGTON DC RHEHAAA/WHITE HOUSE WASHINGTON DC
C O N F I D E N T I A L ABU DHABI 001128
SIPDIS
NOFORN
SIPDIS
DEPT FOR NEA/ARP, EB/ESC/IEC/EPC
NSC FOR HUTTO
ENERGY FOR SR POLICY ADVISOR MWILLIAMSON, SR ADVISOR GETTO,
AND DAS BROADMAN
6000/ITA/TD/AS/AC/CJAMES
3004/ITA/TD/AS/AC
E.O. 12958: DECL: 07/05/2017
TAGS: EPET ENRG EINV PINR AE
SUBJECT: THREE U.S. COMPANIES SHORT LISTED FOR SOUR GAS
PROJECT
Classified By: Classified by Ambassador Michele J. Sison
for reasons 1.4 (B) and (D). This cable contains
business proprietary information.
C O N F I D E N T I A L ABU DHABI 001128
SIPDIS
NOFORN
SIPDIS
DEPT FOR NEA/ARP, EB/ESC/IEC/EPC
NSC FOR HUTTO
ENERGY FOR SR POLICY ADVISOR MWILLIAMSON, SR ADVISOR GETTO,
AND DAS BROADMAN
6000/ITA/TD/AS/AC/CJAMES
3004/ITA/TD/AS/AC
E.O. 12958: DECL: 07/05/2017
TAGS: EPET ENRG EINV PINR AE
SUBJECT: THREE U.S. COMPANIES SHORT LISTED FOR SOUR GAS
PROJECT
Classified By: Classified by Ambassador Michele J. Sison
for reasons 1.4 (B) and (D). This cable contains
business proprietary information.
1. (C) We have been told that the Abu Dhabi National Oil
Company (ADNOC) has invited four companies to re-bid on its
on-shore sour gas development project: Occidental Petroleum,
ExxonMobil, ConocoPhillips, and Shell. BP was not invited to
re-bid. According to ConocoPhillips Abu Dhabi President,
Nick Spencer (protect),three of the four companies invited
to re-bid had based their proposals on a sulfur reinjection
procedure and one company had offered sulfur recovery. After
considering the dangers of sulfur reinjection, ADNOC asked
the four companies to resubmit bids based on sulfur recovery.
Spencer suggested that Conoco, with its extensive refining
experience, had good recovery capabilities. Spencer also
said that the resubmitted bids would be due to ADNOC by the
end of August. Occidental Development Company President Rolf
Monjo (protect) denied press reports that ADNOC had split the
bid into two parts (one for each field) due to the complexity
of the project. He stated that the tender had been set up in
such a way that companies could bid on developing either
field or both fields.
2. (SBU) Abu Dhabi is pushing quickly to develop this
project. Original tenders were submitted on April 15 and
ADNOC has already selected a short list. At least some oil
company executives believe that the agreement could be signed
as early as the end of the year (or by first quarter 2008).
3. (C) Comment: Abu Dhabi will be facing massive increases
in power demands to meet its development plans (estimated at
over $100 billion in the next five years). The sour gas
project is one of the ways that ADNOC is trying to meet that
demand. It will be a massive development project, however.
Given the tight time constraints that ADNOC is operating
under, the winning company (or companies) will need to ramp
up operations quickly, putting strains on the Emirate's
already tight housing, schools, and office space market.
4. (C) Comment Continued: It appears as if some cracks are
developing in the "old boy" network of International oil
companies (IOC) operating in Abu Dhabi. Exxon has been the
only U.S. IOC operating in Abu Dhabi's upstream oil
development, with the rest of the companies either European
or Japanese. Neither Oxy nor Conoco are currently equity
partners with ADNOC, though Oxy is a partner with the Abu
Dhabi government company Mubadala on the Dolphin Project to
bring gas from Qatar. We are seeing more new companies try
to position themselves in Abu Dhabi in advance of the
expiration of current concessions: the Abu dhabi Company for
Onshore Oil Operations (ADCO) concession expires in 2014. End
Comment.
SISON
SIPDIS
NOFORN
SIPDIS
DEPT FOR NEA/ARP, EB/ESC/IEC/EPC
NSC FOR HUTTO
ENERGY FOR SR POLICY ADVISOR MWILLIAMSON, SR ADVISOR GETTO,
AND DAS BROADMAN
6000/ITA/TD/AS/AC/CJAMES
3004/ITA/TD/AS/AC
E.O. 12958: DECL: 07/05/2017
TAGS: EPET ENRG EINV PINR AE
SUBJECT: THREE U.S. COMPANIES SHORT LISTED FOR SOUR GAS
PROJECT
Classified By: Classified by Ambassador Michele J. Sison
for reasons 1.4 (B) and (D). This cable contains
business proprietary information.
1. (C) We have been told that the Abu Dhabi National Oil
Company (ADNOC) has invited four companies to re-bid on its
on-shore sour gas development project: Occidental Petroleum,
ExxonMobil, ConocoPhillips, and Shell. BP was not invited to
re-bid. According to ConocoPhillips Abu Dhabi President,
Nick Spencer (protect),three of the four companies invited
to re-bid had based their proposals on a sulfur reinjection
procedure and one company had offered sulfur recovery. After
considering the dangers of sulfur reinjection, ADNOC asked
the four companies to resubmit bids based on sulfur recovery.
Spencer suggested that Conoco, with its extensive refining
experience, had good recovery capabilities. Spencer also
said that the resubmitted bids would be due to ADNOC by the
end of August. Occidental Development Company President Rolf
Monjo (protect) denied press reports that ADNOC had split the
bid into two parts (one for each field) due to the complexity
of the project. He stated that the tender had been set up in
such a way that companies could bid on developing either
field or both fields.
2. (SBU) Abu Dhabi is pushing quickly to develop this
project. Original tenders were submitted on April 15 and
ADNOC has already selected a short list. At least some oil
company executives believe that the agreement could be signed
as early as the end of the year (or by first quarter 2008).
3. (C) Comment: Abu Dhabi will be facing massive increases
in power demands to meet its development plans (estimated at
over $100 billion in the next five years). The sour gas
project is one of the ways that ADNOC is trying to meet that
demand. It will be a massive development project, however.
Given the tight time constraints that ADNOC is operating
under, the winning company (or companies) will need to ramp
up operations quickly, putting strains on the Emirate's
already tight housing, schools, and office space market.
4. (C) Comment Continued: It appears as if some cracks are
developing in the "old boy" network of International oil
companies (IOC) operating in Abu Dhabi. Exxon has been the
only U.S. IOC operating in Abu Dhabi's upstream oil
development, with the rest of the companies either European
or Japanese. Neither Oxy nor Conoco are currently equity
partners with ADNOC, though Oxy is a partner with the Abu
Dhabi government company Mubadala on the Dolphin Project to
bring gas from Qatar. We are seeing more new companies try
to position themselves in Abu Dhabi in advance of the
expiration of current concessions: the Abu dhabi Company for
Onshore Oil Operations (ADCO) concession expires in 2014. End
Comment.
SISON