Shah sour gas-condensate project advances

ConocoPhillips and Abu Dhabi National Oil Co. signed an interim agreement to develop the Shah sour gas-condensate field onshore in southern Abu Dhabi.

Jul 9th, 2008

By OGJ editors
HOUSTON, July 9 -- ConocoPhillips and Abu Dhabi National Oil Co. signed an interim agreement to develop the Shah sour gas-condensate field onshore in southern Abu Dhabi.

The project, valued at more than $10 billion, involves producing sour gas-condensate, stripping the liquids and sulfur for pipeline shipment to the Persian Gulf, and reinjecting the gas for pressure maintenance.

Final agreements are to be completed by yearend. The interim agreement provides for the two companies to share the cost of front-end engineering and design and project mobilization for development.

Shah field, near the border with Saudi Arabia 180 km southwest of Abu Dhabi city, was discovered in 1966 with 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.

ConocoPhillips said the project will involve construction of a 1 bcfd gas processing plant at the field, new natural gas and liquid pipelines, and sulfur exporting facilities in Abu Dhabi's Ruwais industrial zone. One pipeline will transport elemental sulfur in hot water to Ruwais.

Project interests are ADNOC 60% and ConocoPhillips 40%.

OGJ estimated Abu Dhabi's proved gas reserves at 198.5 tcf (OGJ, Dec. 24, 2007, p. 24).

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