By OGJ editors
HOUSTON, Apr. 29 -- ConocoPhillips has withdrawn from another large venture in the Middle East, both of which it said were under review when it announced a strategic trimming of its global operations last November (OGJ, Nov. 16, 2009, p. 68).
It said on Apr. 28 that it would pull out of the joint venture it entered last July with Abu Dhabi National Oil Co. to develop sour gas reserves in giant Shah field 180 km southwest of Abu Dhabi City.
Earlier, it withdrew from a project with Saudi Aramco to build a 400,000-b/d export refinery at Yanbu, Saudi Arabia (OGJ Online, Apr. 21, 2010).
In the Shah project, ConocoPhillips, 40%, and ADNOC, 60%, formed a company to drill 20 wells and build infrastructure for production of about 1 bscfd of raw gas yielding 1.6 million tonnes/year of NGL, 30,000-40,000 b/d of condesnate, 3.4 million tonnes/year of sulfur, and 500-600 MMscfd of dry gas. Costs were estimated as high as $10 billion (OGJ, Nov. 16, 2009, p. 33).
The dry gas was to be used in domestic markets or reinjection.
“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, ConocoPhillips senior vice-president, exploration and production international. “We value our relationship with ADNOC and will continue to look for opportunities to work together in the future.”
