Occidental to join ADNOC on giant Shah Gas Field project
24 Jan 2011
Los Angeles – Occidental Petroleum Corp. (Oxy) is to participate in the development of Abu Dhabi’s Shah gas field, one of the largest gas fields in the Middle East: taking a 40% stake in a 30-year contract, with Abu Dhabi National Oil Co. (ADNOC) holding the remaining 60% interest.
The project involves development of high-sulfur content reservoirs within the Shah field, located onshore about 180km south west of the city of Abu Dhabi.
Work will involve development of several gas gathering systems, construction of new gas and liquid pipelines and processing trains to process 1 billion cubic feet of high-sulfur content gas.
The development is anticipated to produce approximately 500 million cubic feet per day of network gas and a significant amount of condensate and natural gas liquids.
ADNOC is already in the process of developing the field with the majority of project engineering procurement and construction contracts already awarded. Production from the field is scheduled to begin in 2014.
Capital expenditures are estimated to be in the range of $10 billion for the project with Oxy’s share proportional to its ownership.
