Published: August 18, 2009
Abu Dhabi National Oil Company has entered into a joint venture with ConocoPhillips to develop the Shah gas field in the south of the United Arab Emirates, together with a natural gas processing plant, new natural gas, liquid and sulphur pipelines.
Under the US$10bn joint venture agreement, Abu Dhabi National Oil Company will own a 60% interest in the development, and ConocoPhillips will own a 40% interest.
The Shah field is expected to produce a total of 1 billion cubic feet of raw gas a day. The field will also produce 10,000 tonnes of sulphur a day, which is likely to be transported through a heated pipeline to the processing facilities.
The final agreement came a year after the two firms signed a preliminary deal to develop the field.
The Shah deal is the first major project Abu Dhabi National Oil Company has opened to foreign firms since 2006. Shearman & Sterling was the adviser.