Abu Dhabi National Oil Company (Adnoc) has signed a deal with the US’ Occidental Petroleum Corporation (Oxy) that will see the company become a partner in the planned $10bn-plus Shah gas project.

Adnoc announced that Oxy will take a 40 per cent stake both in the project and the operating company, Abu Dhabi Gas Development Company.

Shah will produce 1 billion cubic-feet-a-day (cf/d) of sour, or sulphur-rich, gas from the southern Shah field before separating the sulphur from the natural gas and transporting both to processing and distribution facilities at Habshan and Ruwais.

Oxy replaces the US’ ConocoPhillips, who left the scheme in April 2010. The full details of the deal have not been disclosed by either party.