By the OGJ Online Staff
LONDON, Nov. 26 -- Five companies -- BP PLC, ChevronTexaco Corp., ExxonMobil Corp., Occidental Petroleum Corp., and Royal Dutch/Shell Group -- have until yearend to bid close to $1 billion to replace Enron Corp. as holder of a 24.5% stake in the inter-Gulf Dolphin gas project operated by Dolphin Energy Ltd. (DEL)
Enron had been due to operate the subsea pipelines in the project, but withdrew in May, selling its holding to the state-owned United Arab Emirates Offsets Group (UOG), which now holds 75.5% of DEL.
The other partner is France's TotalFinaElf SA, with 24.5%. It will operate the upstream section of the project.
All five companies invited to bid for the ex-Enron stake had voiced an interest in the project. UOG is hoping for close to $1 billion for the 24.5% share.
The Dolphin project is designed to provide export outlets for gas in the region. Next week Qatar and Abu Dhabi are to finalize a $3.5 billion contract to send gas from Qatar to the UAE.
Complications over contractual matters involving the DEL operation delayed plans to sign a development and production sharing agreement (DPSA) in October.
The DPSA would allow the companies to produce up to 2 bcfd from a North Field block off Qatar and move it through a subsea pipeline to Taweelah in Abu Dhabi. In the second phase, the volume of gas would be increased by 50%.
The new contract involves DEL investing $2 billion to drill 16 wells and build a production platform and treatment facilities to strip condensate, sulfur, gas liquids, and liquefied petroleum gas from the wet gas and spend another $1.5 billion on the construction of a 350-km, 48-in. pipeline from the Ras Laffan gas processing facilities in Qatar to Taweelah.
Qatar will own all the condensate, sulfur, NGL, and LPG extracted from the wet gas, and charge $1.30/MMbtu for the dry gas, which DEL will export. The first delivery of gas to Taweelah is expected in late 2004 or early 2005.