Summary
Occidental Petroleum Corporation (OXY) announced on January 20, 2011, that it has been selected by the Government of Abu Dhabi to participate in the development of the Shah gas field. This significant development grants OXY a 40 percent participating interest in a 30-year contract for one of the largest gas fields in the Middle East, with the Abu Dhabi National Oil Company (ADNOC) holding the remaining 60 percent. The project focuses on high-sulfur content gas reservoirs and is a major international expansion for OXY. The Shah gas project is expected to involve substantial capital expenditures, estimated at $10 billion, with OXY's share proportionate to its ownership. Production is slated to commence in 2014, with an anticipated output of approximately 500 million cubic feet per day of network gas, along with significant condensate and natural gas liquids. This venture underscores OXY's strategic move to bolster its international presence, which already accounts for roughly 45 percent of its global production.
Key Highlights
- 1Occidental Petroleum (OXY) to participate in the development of the Shah gas field in Abu Dhabi.
- 2OXY will hold a 40 percent participating interest in a 30-year contract.
- 3The Shah gas field is one of the largest gas fields in the Middle East.
- 4The project involves developing high-sulfur content gas reservoirs.
- 5Estimated capital expenditures for the project are $10 billion, with OXY's share proportional to its 40% ownership.
- 6Production is scheduled to begin in 2014.
- 7Anticipated production is approximately 500 million cubic feet per day of network gas, plus condensate and natural gas liquids.