Occidental to get 40pc of Abu Dhabi's Shah gas
Abu Dhabi, January 20, 2011
Occidental Petroleum (Oxy) will have a 40 per cent share in the Abu Dhabi National Oil Company's (Adnoc) Shah gas project, the UAE state news agency WAM said on Thursday.
Adnoc chose Occidental for the project, estimated to be worth $10 billion, sources said on Wednesday, in a deal which could make the US-based company a world leader in high-sulphur gas production.
Sources had told Reuters on Wednesday that Occidental's share could be up to 40 per cent, given that Adnoc usually prefers the 60-40 partnership structure.
US major ConocoPhillips pulled out of the big but expensive gas project in April 2010, leaving Adnoc scrambling for a partner to develop the gas field it needs to meet soaring energy demand in the UAE.
WAM quoted an Adnoc statement saying implementation of the projects would include the treatment of around 1 billion square feet daily of sour gas and that will produce 500 million square feet.
Adnoc sources also said Occidental was likely to send a statement to the New York Stock Exchange, where its shares are traded, on Thursday before trading begins.-Reuters