MEED reported that State owned gas operator Abu Dhabi Gas Industries Company is in talks with international engineering firms over a deal to design and manage a gas injection and carbon dioxide recovery project at its Habshan field in the north of the emirate.

Executives at 3 contractors said that Gasco has tendered the combined front end engineering and design and project management consultancy deal and hopes to award the contract before the end of September.

The winning bidder will design two systems, one for the injection of about 670,000 cubic meters an hour of nitrogen gas into the Habshan field and a second to recover carbon dioxide produced by the field for reinjection and use as an industrial gas.

An Abu Dhabi based source at one engineering firm considering bidding for the deal said that "It is not such a huge project but it is a very interesting one because of the kind of work involved."

The project is part of Abu Dhabi's plans to increase reservoir pressure at its oil and gas fields using nitrogen produced by Elixier, a JV of Germany's Linde and the state run Abu Dhabi National Oil Company. Elixier will begin producing the nitrogen at its air separation facilities in Mirfa between January and May 2011.

According to a statement, Gasco wants to complete engineering and construction work on the Habshan facilities at the same time.

(Sourced from MEED)