By OGJ editors
HOUSTON, July 10 -- ConocoPhillips and Abu Dhabi National Oil Co. (ADNOC) have signed joint venture and field entry agreements for developing Shah gas field in Abu Dhabi.
The project will development onshore sour natural gas and condensate reservoirs in Shah gas field, about 180 km southwest of Abu Dhabi city.
The field, discovered in 1966, had original reserves of 500-600 million bbl of 30° gravity oil in Cretaceous carbonates at 8,000 ft. The gas-condensate is in the deeper Jurassic Arab formation (OGJ, Aug. 18, 2008, p. 44).
The development includes construction of gas gathering systems, gas processing trains, and product pipelines designed to process and transport 1 bcfd of gas, associated liquids, and sulfur.
The companies note that due to the sour gas, the development required extensive risk-assessment studies with front-end engineering and design stages selecting state-of-the-art health, safety, and environmental systems.
The project will included one the world's largest sulfur-removal plants as well as sulfur processing and exporting facility at Ruwais Industrial City, Abu Dhabi, according to the companies.
To date, the companies have released for tender 6 of 10 major engineering, procurement, and construction bid packages to prequalified contractors and plan to release the remaining EPC bid packages later this year. Tender results will be known in early 2010, the companies say.
ADNOC has a 60% interest in the joint venture with ConocoPhillips having the remaining 40%.
Personnel from both ADNOC and ConocoPhillips will staff the new operating company.
