Abu Dhabi National Oil Company and ConocoPhillips, the US oil and gas company are expected to announce a 60:40 JV, a 30 year partnership to develop the US$10 bln on shore gas project-emirate's first major sour gas project. The success of the deal highly depends on the prices of the natural gas liquids such as ethane, propane and butane-used as petrochemical feedstock and are currently touching near record prices on world markets.
With the deal, Adnoc has startled the industry by choosing ConocoPhillips for the deal over the most probable partners including the Anglo-Dutch energy group, Royal Dutch Shell, and the US oil companies, ExxonMobil and Occidental Petroleum, all of which submitted bids. Agreeing to some of the tough terms from Adnoc to gain a footing in the Middle East region's oil and gas reserves, Conoco Phillips's strategy would be tough and dicey in the light of unstable commodity prices.
08-Jul-08 
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