Two American companies have signed contracts worth $275 million to develop gas production in two ocean fields off the United Arab Emirates.
The American I.B.B Lou Muse Company and the UAE National Petroleum Company will develop the gas at the two oil fields at a cost of $265 million. The American engineering company Foster Whales will be paid $10 million for their supervision of the project.
According to sources familiar with the agreement, the UAE Company has a 70 percent share of the project and Lou Muse has 30 percent. According to the same sources, the project would take four years to be fully implemented. The UAE expects gas production to increase from the current 300 million cubic feet to 450 million cubic feet per day.
Engineering work is expected to start immediate at the two ocean fields of Abu Bahuosh and Um Shaif. The project is the biggest gas development project in the Emirates.
James Willy, Foster Whales Regional Director said the company is currently running a gas development project in Saudi Arabia at a cost of $2 billion. The Saudi project that began in November of last years will be completed in 2001. –(Albawaba-MEBG)
