The US’ ConocoPhillips has officially confirmed that it is ending its participation in the $10bn Shah gas project in Abu Dhabi.
The company was a 40 per cent joint venture partner in Abu Dhabi Gas Development Company, which was set up to develop the sour, or sulphur rich, field. Conoco had yet to make a final decision on funding for the project when the decision was announced. Abu Dhabi National Oil Company held the remaining 60 per cent of the company.
The companies planned to produce 1 billion cubic feet a day of sour gas from the Shah field in the south of the emirate before separating the sulphur from the natural gas and transporting both to processing and distribution facilities at Habshan and Ruwais.
The company said that it had decided not to participate in the project without giving a reason in a 28 April statement.
“The Shah Gas Field will be a world-class project that will develop a key resource for Abu Dhabi and the region and it was a difficult decision not to participate in a project of this importance,” said Ryan Lance, senior vice president of International exploration and production at ConocoPhillips. “We value our relationship with Adnoc and will continue to look for opportunities to work together in the future.”