UAE to award nuclear project contract in H2'09-Total

NUCLEAR DEAL: Total announced its bid at the start of 2008. (Getty Images)

The UAE will likely award a contract for the construction of two nuclear reactors in the second half of 2009, a senior executive at French oil major Total said on Thursday.

Total, which is jointly bidding with GDF Suez for the project, reckons it can win the multi-billion dollar deal, Jean-Jacques Mosconi, head of strategy and planning at Total, told the Reuters Energy Summit.

"Yes, we are hopeful about the decision. We know there's competition but we think we have a good file to propose to Abu Dhabi because we have been there for decades in onshore and offshore business," he said.

The US-allied UAE, already a major oil producer, says it needs nuclear energy to meet the rapidly rising demand for power and desalinated water. Electricity demand has rocketed, with an expected need for an extra 40,0000 megawatts of electricity by 2017, straining its power grid.

"They know we are good partners in managing projects," he said.

Total has said it was keen to expand its activities to nuclear power and has agreed with French utility GDF Suez to split a stake in a company formed to build and operate France's second generation EPR nuclear power plant at Penly in northwestern France.

Mosconi also said the emirates' national electricity company would have a 51 percent stake in the project, leaving Total and GDF Suez to share the remaining 49 percent if they win the deal.

He declined to give further details on how the two French companies would split the 49-percent stake.

He also said nuclear reactor maker Areva would provide engineering works, while French power group EDF would supply technical assistance, but added they would have no stakes in the project.

When Total announced its bid at the start of 2008, industry sources close to the matter said they expected the plant to start running in 2016. (Reuters)

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READERS' COMMENTS

UAE
Posted by Dude, Dubai, United Arab Emirates on Saturday 6 June 2009 at 09:21 UAE time

UAE is rich with sources of renewable energy, really rich.

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