The third-largest U.S. oil
companyConocoPhillipswon a contract to develop a
$10 billion natural-gas project in the United Arab Emirates,
Bloomberg News reports.
ConocoPhillips will hold a 40 % stake in the Shah field,
while state-owned Abu Dhabi National Oil Co., known as Adnoc,
will own the rest, the Abu Dhabi-based company said today in a
statement. The partners will share the project's cost, Adnoc
said, without disclosing financial terms or a timeframe for the
project. The cost has been estimated at $10 billion.
``It's a positive for ConocoPhillips,'' Philip Weiss, an
analyst at Argus Research in New York who has a ``buy''
recommendation on the stock told BN. ``Some of their
competitors have been involved in that area, and they haven't
Abu Dhabi, capital of the U.A.E., is developing gas reserves
to meet accelerating gas demand as record oil export revenue
finances offices, tourist attractions, roads and airports.
Houston-based ConocoPhillips won the contract after the U.A.E
considered bids from companies including Exxon Mobil Corp.,
Royal Dutch Shell Plc and Occidental Petroleum Corp.
As part of its expansion plans, ConocoPhillips in May signed
an agreement with Saudi Aramco, the kingdom's state-run oil
company, to jointly build and own a 400,000 barrel-a-day
refinery in Yanbu on the Red Sea coast that will make ultra-low
sulfur fuel from heavy grade crude oil.
ConocoPhillips and Adnoc expect to conclude an agreement on
the project by the end of this year and will form a joint-
venture company to manage the gas facilities, according to the