By Elsa Baxter
Firms officially sign contract to develop UAE gas field to boost domestic supply.
Abu Dhabi National Oil Company (Adnoc) and ConocoPhillips signed a multi-billion dollar deal in Thursday to develop the Shah gas field in the UAE, WAM news agency reported.
The firms will jointly share the cost of the project, which is estimated to cost about $10bn, and is part of plans to boost domestic gas supply.
The large scale project to develop sour gas reservoirs, located about 180km south-west of Abu Dhabi, will process one billion cubic feet of gas per day, the news agency said.
A new company will be formed to manage and operate Shah facilities, once the project is complete, with a 60 percent share for Adnoc and a 40 percent share for ConocoPhillips.
The UAE holds the world's fifth-largest gas reserves, according to a report in the Gulf Times, but has failed to keep up with rising domestic demand. The UAE largely remains dependent on gas imports from Qatar, the paper said.
ConocoPhillips was awarded the contract last year, but officially signed the papers on Thursday following negotiations.