UPDATE 1-UAE ADNOC-Conoco gas JV eyes start-up Q2, Q3 2014

* ADNOC-Conoco Shah JV eyes Q2, Q3 2014 project start-up

* JV CEO cautiously optimistic over Conoco’s commitment

By Luke Pachymuthu

ABU DHABI, March 30 (BestGrowthStock) – The United Arab Emirates $10
billion Shah gas project will start-up by the second or third
quarter of 2014, even though ConocoPhillips (COP.N: ) has yet to
make a final investment decision on it.

But the chief executive of the joint venture of Abu Dhabi
National Oil Co (ADNOC) and Conoco, remains cautiously
optimistic of the U.S company’s commitment to the project.

“Once they (ADNOC and Conoco) both agreed to launch the
first package, that was good news, now how will it end up we
will wait and see,” Saif Ahmed al-Ghafli told reporters on the
sidelines of an industry event.

Conoco, the third largest U.S. oil company, has recently
embarked on a two-year plan to divest some assets and reduce
refining capacity to boost returns and reduce debt as it plays
catch up with its oil major peers.

GETTING STARTED

To hit its start-up target, the joint-venture group will
have to launch and award the main Engineering, Procurement and
Construction (EPC) contracts by the summer to hit its target,
Ghafli said.

“Well we will have to do it very soon…this summer,” he
said.

The Shah gas development is the first in the UAE of a sour
gas field. The OPEC oil exporter has the world’s fifth-largest
gasreserves, much of it sour or with a high sulphur content.

ADNOC holds a 60 percent stake in Shah, while Conoco holds
the remainder.

The project, which will be implemented in three phases, will
process about 1 billion cubic feet per day of sour gas from 20
wells.

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(Reporting by Luke Pachymuthu; ; Editing by William Hardy)

UPDATE 1-UAE ADNOC-Conoco gas JV eyes start-up Q2, Q3 2014