ConocoPhillips has won a contract for a project expected to cost more than $10 billion to develop sour gas reserves in the United Arab Emirates, sources at state oil company ADNOC said on Thursday.
The project was one of the largest upstream projects in the past year open to international companies competing for limited access the Middle East's oil and gas fields.
"ConocoPhillips is the winner of the project," said one source at state-run Abu Dhabi National Oil Company (ADNOC), who declined to be identified. "The official signing (of the contract) will take place soon."
A second source at ADNOC also said Conoco had won the project. The company emerged as the front runner for the contract last month, beating competition from Exxon Mobil (XOM.N: Quote, Profile, Research), Occidental Petroleum and Royal Dutch Shell.
The project was one of the largest upstream projects in the past year open to international companies competing for limited access the Middle East's oil and gas fields.
"ConocoPhillips is the winner of the project," said one source at state-run Abu Dhabi National Oil Company (ADNOC), who declined to be identified. "The official signing (of the contract) will take place soon."
A second source at ADNOC also said Conoco had won the project. The company emerged as the front runner for the contract last month, beating competition from Exxon Mobil (XOM.N: Quote, Profile, Research), Occidental Petroleum and Royal Dutch Shell.
Conoco was expected to take a 40 percent stake in the project, while ADNOC would hold the rest.
Developing the sour gas at the Shah field would cost at least $10 billion, an industry source said on Thursday. Costs for the project have escalated, as they have worldwide in the energy sector as producers strain to bring new capacity online to meet rising demand.
Last year, analysts pegged the price of developing Shah and a second sour gas field called Bab at $10 billion. Now, the cost is as high for just the one field. (Reuters)
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