ABU DHABI (Dow Jones Newswires), November 3, 2008
ConocoPhillips, the third-largest U.S. oil company by market value, will make a final investment decision next year on the estimated $10 billion Shah sour gas project in Abu Dhabi once preliminary engineering has been completed, a top company official said Monday.
"We're still in FEED (front-end engineering design) engineering. I'd say early next year it'll be completed," Ryan Lance, ConocoPhillips' president for exploration and production for Europe, Asia, Africa, and the Middle East, said at an Abu Dhabi conference.
Once the FEED is completed, ConocoPhillips will make the final investment decision on the project, Lance said, speaking on the sidelines of the Adipec 2008 oil and gas exhibition.
ConocoPhillips and Abu Dhabi National Oil Co., which implemented the project in a joint venture, in October launched the tender process for the Shah sour gas field development in Abu Dhabi, with the aim of completing the project by the end of 2013, people familiar with the plans told Dow Jones at the time.
The Shah tender will offer 10 packages for bidding, including gas gathering and processing plants, sulfur recovery units and pipelines among other facilities.
Sour gas is highly corrosive and generally more costly and challenging to process because of its high sulfur content, which requires special handling and infrastructure.
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