Shell to exit development of Bab sour gas reservoirs

Royal Dutch Shell plans to exit its joint development of the Bab sour gas reservoirs with ADNOC in Abu Dhabi.

The Anglo-Dutch oil major said that after a careful and thorough evaluation of the technical challenges and costs, it concluded that the development of the project does not fit its strategy, particularly in the current energy industry climate.

The Bab sour gas project, which is located 150 km southwest of Abu Dhabi, is one of the largest gas fields there.

Shell won the $10bn deal to develop Bab in 2013.

At 1335 GMT, Shell shares were up 0.6% to 1,359p.