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An unnamed official from the Abu Dhabi Gas Development Company (AGD) has said that contracts for the onshore development of the Shah sour gas field will be awarded later this year.
Arabic language daily Al Ittihad reported that the joint venture between the Abu Dhabi National Oil Company (ADNOC) and the US supermajor ConocoPhillips will select the winning bidders from a pre-approved set of contractors.
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.