Abu Dhabi Signs $3.6 Billion Gas Deals

Abu Dhabi has 97.8 billion barrels of proven crude reserves -- the world's fifth largest, and more than six trillion cubic meters (212 trillion cubic feet) of gas, ranking world's fourth.

Abu Dhabi Gas Development Company (ADGAS) on July 12 that it signed four contracts worth a total of 3.6 billion dollars with firms from Italy, South Korea, Spain and India to develop its Shah gas field.

As part of an overall program to develop the Shah sour gas reservoir, 180 kilometers (110 miles) southwest of Abu Dhabi, the contractors were awarded the turnkey contracts after competitive bidding, the company said.

Two contracts worth $1.6 billion were signed with Italy's Saipem to construct gas treatment and sulphur recovery units and to build gas lines for the Shah project.

The facilities aim to treat one billion cubic feet of gas per day.

Samsung Engineering won a $1.49 billion deal, while Tecnicas Reunidas of Spain and India's Punj Lloyd clinched a $463 million deal.

A U.S. partner, ConocoPhillips, announced in April that it was abandoning its 40% stake in the Shah gas field venture.

Abu Dhabi has 97.8 billion barrels of proven crude reserves -- the world's fifth largest, and more than six trillion cubic meters (212 trillion cubic feet) of gas, ranking world's fourth.

Copyright Agence France-Presse, 2010

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