ADNOC and ConocoPhillips make $10 bn Shah official
Partners sign agreement to proceed with Shah gas development in UAE
Abu Dhabi National Oil Company (ADNOC) and the US-based ConocoPhillips have announced that the Shah gas field joint venture and field entry agreement has now been officially signed.
Reports this week have said that budget for the Shah sour gas field may rise to US$12 billion due to the construction of a sulfur gas pipeline. The complexity of pipeline is causing the project a few headaches.
However, most other engineering, procurement and construction (EPC) contracts have now been issued.
The UAE mega project involves the development of sour gas reservoirs within the Shah field, located onshore approximately 180 km south-west of the city of Abu Dhabi.
The project will involve several gas gathering systems, construction of processing trains to process one billion cubic feet per day gas at Shah to produce 540 million cubic feet per day of network gas, in addition to new gas and liquid pipelines and the construction of sulfur exporting facilities at Ruwais Industrial City.
ADNOC and ConocoPhillips will jointly share the cost of the Shah gas field development project.
A new Company will be formed to manage and operate Shah facilities upon completing the project, with a 60 % interest for ADNOC and a 40 % interest for ConocoPhillips.