Under the interim agreement, ConocoPhillips and the Abu Dhabi National Oil Company (ADNOC) will jointly share the ongoing cost of front-end engineering and design (FEED) and project mobilization for the Shah gas field development. Final project agreements are expected to be completed by 2008 year-end.
This large-scale project involves the development of natural gas condensate reservoirs within the Shah gas field, located onshore approximately 180km southwest of the city of Abu Dhabi.
The project will involve the construction of a new one billion cubic feet per day natural gas processing plant at the Shah gas field, new natural gas and liquid pipelines and sulfur-exporting facilities at Ruwais, UAE. ADNOC will have a 60% interest and ConocoPhillips will have a 40% interest in the project.
Jim Mulva, chairman and CEO of ConocoPhillips, said: 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 technology complements our strategy to invest in projects that expand our global presence and help meet the growing demand for energy around the world.
