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Abu Dhabi National Oil Company (ADNOC) has selected US based Occidental Petroleum (Oxy) as a partner to develop its Shah Gas field in Abu Dhabi, ADNOC said in a statement.
ADNOC said that Oxy will control 40% of the project while ADNOC will hold the majority 60% along with Abu Dhabi Gas Development Company, which was established in February 2010.
The large-scale development involves the development of high sulfur content gas reservoirs within the Shah Field, located on-shore 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 of gas at Shah to produce around 500 million cubic feet per day of network gas and other related hydrocarbon liquids, in addition to new gas and liquid pipelines.
The Shah gas field is integral to Abu Dhabi with its plans to boost gas production to meet mounting domestic gas demand particularly as the government develops gas-hungry power generation, desalination plants and its downstream industries such as petrochemicals.
Sour gas is highly corrosive, and generally more costly and challenging to process because of its high sulphur content, and therefore requires special handling and infrastructure.
A statement published by the UAE’s news agency WAM said that all the contracts were awarded last year.
Last April, Houston based ConocoPhillips withdrew from the US$10 billion development saying that it intended to shift its operational focus from midstream and downstream activities to upstream work.
