ConocoPhillips and Abu Dhabi National Oil Company (ADNOC) have signed an Interim Agreement to develop the Shah Gas Field in Abu Dhabi, it was revealed this month. Under the agreement ConocoPhillips and ADNOC will jointly share the ongoing front-end engineering and design (FEED) and project mobilisation for the Shah Gas Field development. Final project agreements are expected to be completed by the end of this year.
The joint project will involve the development of natural gas condensate reservoirs and the construction of a new one billion cubic feet per day (bcf/d) natural gas processing plant within the Shah Field, located approximately 180 kilometres southwest of Abu Dhabi. It will also include new gas and liquid pipelines and sulfur-exporting facilities at Ruwais, UAE. ADNOC will hold a 60% stake in the project with ConocoPhillips holding 40%.
“ConocoPhillips is pleased to establish a major presence in Abu Dhabi and is honored to participate with ADNOC in this world-class gas development. Our extensive experience in the development of high-sulfur gas fields and ability to employ state-of-the-art technology complements our strategy to invest in projects that expand our global presence and help meet the growing demand for energy around the world,” said Jim Mulva, chairman and chief executive officer, ConocoPhillips.
“This new facility will expedite field development in the short-term and currently provide gas to fuel the UAE’s considerable industrial, commercial and domestic power requirements. It is imperative that the UAE exploits what resources it possesses, and there are considerable sour gas reserves,” said Nick Coles, founder and organizer of the Sour Oil and Gas Technology (SOGAT) conference and exhibition.
