Shah field operator builds up steam

Al Hosn Gas, which is developing one of the emirate's most challenging gasfields, wants to bring its expertise to other sour-gas developments.

Saif Al Ghafli, the chief executive, the chief executive of Al Hosn Gas, also said they are on track in building up their local workforce from 30 per cent Emirati today to 75 per cent in five years' time. Silvia Razgova / The National
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Al Hosn Gas, which is developing one of Abu Dhabi's most challenging gasfields, wants to bring its expertise to other sour-gas developments.

The company, a joint venture between Abu Dhabi National Oil Company (Adnoc) and Occidental Petroleum operating the Shah gasfield, could deploy its expertise in handling toxic sulphur as the emirate opens up similar fields, said Saif Al Ghafli, the chief executive. Adnoc opened tenders for the Bab and offshore Hail gasfields earlier this year.

"As more gas projects come on stream in the future, Al Hosn Gas will be uniquely positioned in the future to use our expertise," said Mr Al Ghafli. "It all depends on who will be the partners in it."

Shah, a US$10bn (Dh36.73bn) project in the Empty Quarter, requires Occidental and Adnoc to build plants to strip poisonous hydrogen sulphide from 1 billion cubic feet of raw gas, then turn the sulphur into pellets to be transported by the nation's first railway to a seaside port.

The sulphur could then be marketed for use in fertiliser or concrete, while the emirate would benefit from 500 million cubic feet of clean gas.

Today 60 per cent of the installations are complete - hulking masses of steel and concrete in the midst of rolling red sand dunes.

Twenty wells - a fifth of the total - have been completed and the three rigs that will be needed through 2014 are already in place, said Mr Al Ghafli. Should Adnoc, which holds a 60 per cent stake in Al Hosn Gas, decide to do so, production could be expanded with additional wells, he added.

Occidental, a partner with Abu Dhabi on other strategic projects, including a natural gas pipeline to Fujairah, expects to spend $600 million this year on Shah, part of an overall increase in company-wide spending outlined in its last earnings report.

The company was also on track in building up its local workforce from 30 per cent Emirati today to 75 per cent in five years' time.

There have been no serious accidents, added Mr Al Ghafli.