Shah field costs plunge by $3bn

Abu Dhabi National Oil Company (ADNOC) will save almost a quarter of the cost of developing the Shah field as it seeks to boost the nation’s oil capacity by tapping toxic “sour” gas reserves.

Costs for developing the field have fallen to US$10 billion (Dh36.72bn) from $13bn, a senior ADNOC official said on Monday.

The chief executive of the company, Yousef Omair bin Yousef, in his opening address to the Gastech conference in the capital, said ADNOC would focus its development efforts on two projects in particular: its joint ventures with the US energy company ConocoPhillips to develop Abu Dhabi’s Shah sour gas deposit and with Germany’s Linde Group to extract nitrogen from air for use in enhanced oil recovery projects.