ConocoPhillips has decided to end its participation in developing the Shah Gas Field with Abu Dhabi National Oil Company (ADNOC). ConocoPhillips had considered holding a 40 percent ownership stake in the project.
“The Shah Gas Field will be a world-class project that will develop a key resource for Abu Dhabi and the region and it was a difficult decision not to participate in a project of this importance,” said Ryan Lance, senior vice president, E&P International, ConocoPhillips. “We value our relationship with ADNOC and will continue to look for opportunities to work together in the future.”
This is the second major Middle Eastern project the company has pulled out of this month. The company has cited a strategic decision to move away from downstream and midstream activities and focus more on upstream exploration and production work.
The move from ConocoPhillips has been widely anticipated and discussed in hushed tones since last summer. The big question for the project owner, Abu Dhabi National Oil Company is who comes in to fill the void?
The Shah Field gas development project is amongst the most technically challenging anywhere in the world because of its highly corrosive sulphur content.
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