In the United Arab Emirates, Oxy has partnered with the Abu Dhabi National Oil Company (ADNOC) to develop the Shah gas field in Abu Dhabi, one of the largest gas fields in the Middle East. The project will develop high-sulfur content reservoirs within the Shah field, located onshore approximately 180 km (110 miles) southwest of the city of Abu Dhabi.
The project involves 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. This is anticipated to produce approximately 500 million cubic feet per day of sales gas – providing net to Oxy in the range of 200 million cubic feet per day. In addition, the project is expected to produce approximately 50,000 barrels per day of condensate and natural gas liquids – expected to yield in the range of 20,000 barrels per day net to Oxy.
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.
Project capital expenditures are estimated to be in the range of $10 billion for the project with Oxy’s share proportional to its ownership.