Bloomberg reported that Royal Dutch Shell is very interested in renewing its right to pump oil in a venture with Abu Dhabi's state-run crude producer after its concession expires in 2014.

An executive with the Anglo Dutch company said that Shell wants to develop natural gas resources to help meet Abu Dhabi's rising domestic demand and to bolster its partnership.

Mr John Barry the company's country chairman in the emirate said that International oil companies aim to develop oil and gas deposits to replace energy they consume by pumping at current fields.

He said that Shell along with Exxon Mobil, Total and BP, all partners in the Abu Dhabi concession also signed agreements with Iraq to boost output there. Shell is exploring for gas in Saudi Arabia and will produce more of that fuel than it will pump oil next year.

Mr Robin Mills head of consulting at Dubai-based energy advisory Manaar said that "Shell and the other IOCs will want to maintain their stake in Abu Dhabi. It's a major part of their production and reserves. It's also important to them as a test-bed for new technologies and a way of maintaining a Middle East presence which they can use to win business elsewhere."

(Sourced from Bloomberg)