ConocoPhillips Signs Abu Dhabi Gas Pact

DUBAI, United Arab Emirates -- Abu Dhabi National Oil Co. has signed a deal with ConocoPhillips(COP Quote) to extract natural gas in the Persian Gulf emirate.

The two companies will split development costs on the project, which was first announced as an interim agreement last year. ADNOC said it will have a 60% stake in the project, while Houston-based ConocoPhillips will retain the rest.

The onshore Shah field contains sour gas, which costs more to produce because it contains high levels of the toxic compound hydrogen sulfide.

ADNOC said the facility will produce 540 million cubic feet of gas a day. The project includes construction of a natural gas processing plant, natural gas and liquid pipelines and sulfur-exporting facilities.