Tuesday, Feb 23, 2010
Gulf News
Abu Dhabi Abu Dhabi Gas Development Company (AGD) will award contracts later this year for the onshore development of the Shah sour gas field, the Arabic language daily Al Ittihad reported yesterday, quoting an unnamed official.
AGD is a joint venture company of Abu Dhabi National Oil Company (Adnoc) and the US-based energy major ConocoPhillips.
The AGD project involves the development of sour natural gas and condensate reservoirs in the Shah gas field located approximately 180 kilometres southwest of the city of Abu Dhabi.
Senior executives of the Adnoc Group of Companies declined to confirm the Arabic daily report when contacted by Gulf News.
It was previously estimated that the development of the sour gas reserves in the Shah field was expected to cost more than $10 billion (Dh36 billion). Adnoc owns a 60 per cent stake, while ConocoPhillips owns the remainder.
"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 540 million cubic feet per day of network gas, in addition to new gas and liquid pipelines and the construction of sulphur exporting facilities at Ruwais Industrial City," Adnoc said in July last year, when the joint venture was announced.
"Due to the sour nature of the natural gas in the Shah field, extensive risk assessment studies have been conducted," said Conoco-Phillips at the time.
in numbeRs
$10b
estimated cost of sour gas reserves development
60%
equity of Adnoc in joint venture
By Himendra Mohan Kumar
Gulf News 2010. All rights reserved.
