According to overseas media Abu Dhabi on May 1st, an official from the United Arab Emirates National Oil Company (Adnoc) said here on April 29 that the United Arab Emirates will sign a plan for the development of reserves of sour natural gas within a week. contract.
Adnoc’s news provider told Reuters in February this year that the US oil giant Continental Phillips (Conoco) has won a project to develop sour natural gas in Shah’s gas field in the United Arab Emirates, and development costs will More than 10 billion U.S. dollars. Both Conoco and Adenoc UAE have not officially announced the contract.
This project is the UAE’s largest upstream project in the past year when competition was limited to international companies in the oil and gas sector in the Middle East.
Umell Suwina, manager of land operations at Adnoc Exploration and Production Department, told reporters during an energy conference: “We expect to sign Conoco in the next week to develop sour gas in the Shah field. The contract was going smoothly as planned and there were no delays or problems."
Suwinner refused to confirm that the winner of the contract was also unwilling to disclose the estimated cost of the project. Suwanna said in his presentation at the Energy Conference that the ever-increasing cost of the global energy industry has increased the investment required for the development of sour natural gas.
Last year, industry analysts thought that the total cost of developing the Shah field in the UAE and another sour gas field named Bab was estimated at US$10 billion. Today, the development cost of one of the sulfur-bearing gas fields is as high as US$10 billion.
Suvena said that as an important fuel for rapid economic development, the United Arab Emirates, which has a shortage of natural gas, will continue to promote its plans for the development of other sulfur-bearing gas fields.
Suwana added that sulfur, a by-product from the development of sulfur-containing natural gas, will help make this project profitable because of rising prices.
Suvena said that the current price of sulfur is about 700 to 800 US dollars per ton. The United Arab Emirates has the world’s fifth-largest natural gas reserves and reserves of 214 trillion cubic feet of natural gas, most of which are sour gas.
Because sour natural gas has potentially fatal hydrogen sulfide content, this natural gas is more difficult to extract than conventional natural gas reserves.
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