After signing a joint venture agreement last month, ConocoPhillips and the Abu Dhabi National Oil Company (Adnoc) have made a final investment decision greenlighting the development of the emirate's Shah ultra-sour gas field.

Petroleum Economist reports that the deal was struck later than had been hoped as sponsors had been waiting for engineering, procurement and construction costs to fall.

The UAE has been keen to develop its gas reserves as despite a highly profitable crude surplus, the country is a net importer of liquefied petroleum gas, with demand for the fuel increasing steadily.

ConocoPhillips has developed a strong expertise in developing and processing gas fields, with strong training and development regimes ensuring the technical proficiency of its workers.

The US company holds a 40 per cent stake in the Shah field, while Adnoc holds the remaining 60 per cent interest.

Now that the final investment decision has been made, the two companies will begin construction of the requisite gas gathering systems, gas processing trains and product pipelines to bring the field on stream.

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