Friday, 31 July 2009

No green light yet on Shah sour gas project

A final investment decision on the US$10 billion (Dh36.7bn) Shah sour gas project has still not been made by the Abu Dhabi National Oil Company (ADNOC) and ConocoPhillips, the US energy company, despite the two signing a joint venture agreement earlier this month.

The investment decision would be made next year, said Sigmund Cornelius, the chief financial officer of ConocoPhillips.

“We had been operating informally under interim agreements at Shah. What you saw recently was just replacing the interim agreements to formally establish the joint venture,” Mr Cornelius said. “So it should not be construed as a decision that was made to go forward with the project.” The go-ahead would depend on the bids received for several key engineering, procurement and construction packages related to the proposed gasfield development, Mr Cornelius said.

No comments:

Post a Comment