Abu Dhabi National Oil Company or ADNOC and Occidental Al Hosn, LLC, (Occidental), formed a joint venture for the $10 billion Shah Sour Gas Field project. The project, in which Abu Dhabi Gas Development Company Limited or Al Hosn Gas owns 60 per cent share, will be based on manage and operate the project and develop the Field.

The technologically challenging project will see equal contribution by both firms. The project involves special handling of the sour gas which is to be reserved within the Shah Field located onshore 180-km south-west of the capital.

The project worth $10 billion is expected to boost Abu Dhabi’s natural gas exploration activities besides increasing availability of natural gas for the local population.

Samuel Ciszuk, a senior Middle East energy analyst at IHS Global Insight, told Bloomberg newswire. “They need more gas and they are ready to pay more for it.” He hoped that the projects may be commissioned before schedule, offering the residents gas at cheap rates.

David Schulte, a technical consultant to the project, and Tareq Sahoo, the senior vice president of Al Hosn, hoped that the project would be completed well in advance.