Abu Dhabi National Oil Company’s (Adnoc) exploration and production directorate Dr Saif al Nasseri said that in their quest to find to natural gas as they explore more challenging reserves, cost-effective ways need to be developed by Abu Dhabi and other Middle East producers.

At the Shah oil fields, after ending a nine-month search for an international partner, the Emirate is starting its first sour gas project. Shah oil fields are known for their high-levels of toxic sulphur content.

The top official who manages planning and gas processing at the government’s national oil company added that even as the region’s gas industry are trying to cut development costs, they need to keep up investment in the interest of long-term projects and training staff. Further cost reduction, especially as they develop fields with tighter returns on investment, are necessary to be developed, economically, for projects to continue.

Adnoc last month awarded a contract to US-based Occidental Petroleum to develop the Shah gas fields in the southwestern region of Emirate after reopening the concession as when another US company, Conoco Phillips, dumped the US$10 billion project.

Contractors have already been selected to build the infrastructure to separate the sulphur from the gas, including a railway for transporting solidified sulphur and export facilities at the port of Ruwais said Adnoc.