Adnoc and ConocoPhillips to develop Shah gas field
(By a staff reporter)KHALEEJ TIMES 9 July 2008
ABU DHABI - In a major development, Abu Dhabi National Oil Company (Adnoc) and leading US oil exploration company ConocoPhillips have signed an Interim Agreement to developing on-shore Shah gas field in the emirate of Abu Dhabi.
Both companies also agreed to setup a company, to manage and operate the oil fields, upon completion of the project.
Adnoc will have majority 60 per cent interest in the company, while rest of 40 per cent will be held by ConocoPhillips.
According to the details, Adnoc and ConocoPhillips will jointly share the cost of the Shah gas field development project.
It is expected that final joint venture agreements will be completed between the two parties by year-end.
This large-scale project involves the development of sour gas reservoirs within the Shah field, located on-shore approximately 180 km south-west of the city of Abu Dhabi.
Industry analysts put the value of the project at $10 billion, which will pump gas at a time when fast expanding economy needs the most.
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 570 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 in the emirate.
Great attention was given during the Front End Engineering and Design (FEED) stages to select state of the art HSE systems as a result of extensive risk assessment and recovery studies.
ConocoPhillips is an integrated energy company with interests around the world.