Canadian oil and gas giant EnCana Corp. said Sunday it's splitting into two companies, but operations in Colorado are likely to remain "business as usual," a Denver-based spokesman said Monday.

EnCana is based in Calgary, Alberta, Canada. Its U.S. division is based in Denver.

"It's driven by shareholder value," said Doug Hock, spokesman for Denver's EnCana Oil & Gas (USA) Inc. "It shouldn't affect our operations at all. It's business as usual in terms of exploring for and producing natural gas."

EnCana is one of Colorado's largest natural gas producers, with operations in the rich Piceance Basin on Colorado's Western Slope and north of Denver in the Denver-Julesburg Basin.

The parent company announced Sunday that the board of directors had unanimously approved a proposal to split EnCana into two energy companies -- one a natural gas company with assets in Canada and the United States, and the second a fully integrated oil company focused on producing oil from oilsands in Canada and running refineries in a joint venture with ConocoPhillips in Texas and Illinois.

The natural gas company is expected to retain the EnCana name, while the oil company will operate under a new name, tentatively called "IntegratedOilCo." or IOCo.

The natural gas company represents about two-thirds of EnCana's current production and proved reserves.

Shares of EnCana rose in early trading Monday in response to the news.

Royal Dutch Shell is facing a showdown with investors over its plans to pay £3m to directors simply to stay on the board for three years.

The oil giant is giving shares equivalent to their annual salary - around £1m each - to finance director Peter Voser, exploration and production director Malcolm Brinded and gas and power director Linda Cook 'to enhance retention ahead of the forthcoming board successions'. Chief executive Jeroen van der Veer is due to retire next June, while Robert Routs, head of its downstream and chemicals business, will leave by the end of the year. Royal Dutch Shell is keen to keep the three directors on board to ensure continuity.

But one investor said the payments were pointless: 'I have not seen a business it works in. The executives still leave.'

Corporate governance monitor PIRC is also recommending that its members vote against the remuneration report, saying: 'PIRC does not support the use of retention awards, in particular when no performance conditions are applied.'

Abu Dhabi Water and Electricity Authority (Adwea) on Wednesday announced that it will establish the world's largest sewage network tunnel system.

The system will cover the island and mainland of the city of Abu Dhabi, with an estimated cost of about Dh4 billion, and is scheduled for completion within five years to meet the growing demand resulting from the massive urban expansion of the capital.

"Adwea is in the process of constructing the world's largest drainage system, starting from Abu Dhabi Corniche Road, passing through Airport Road, until it reaches the new sewage treatment plant at Al Wathba," Shaikh Diab Bin Zayed Al Nahyan, Adwea's chairman, told the media yesterday.

Strategy
The announcement came during the authority's revealing of its two and five-year strategic plans, which are designed to meet the gross demand for 10,600 megawatts (MW) of electricity and 848 million imperial gallons per day (MIGD) forecast by 2012.

Shaikh Diab also announced that Adwea yesterday started to receive the tenders for Al Showayhat Project S2 for the production of 1,500 MW and 100 MIGD. "We also plan to launch another strategic project, namely Al Show-ayhat S3 for the production of 1,500 MW and 100 MIGD," he added.

The estimated investment cost of Al Showayhat S2 is around $2 billion, and it represents the eighth project in the authority's privatisation programme, where foreign investors are allowed a 40 per cent stake on average.

"We are also planning to sell existing assets to potential foreign partners in Taweelah B to produce 1,070 MW and 100 MIGD, subject for completion by July 2008, and the development of a new 1045 MW and 69 MIGD there," Abdullah Saif Al Noeimi, director of the privatisation department at the authority said.

The expansion plans also include Fujairah I and II by February 2009 and July 2010 respectively, with a combined capacity of 2855 MW and 230 MIGD.

In relation to sanitation, two new treatment plants are to come up in Al Ain and Al Wathba to complement the sewage system of the emirate.
Abu Dhabi Distribution Company (ADDC) announced as well that its project for remote meter reading is 70 per cent accomplished, and is four to five months away from completion, saving consumers time, especially in the cases of service termination which requires a final statement. "With the new system, we will be able to generate the final statement in five minutes," said Ahmad Al Mereikhi, director of Abu Dhabi Distribution Company .

Adwea's investments have grown from Dh99 million at the inception to more than Dh45 billion today, excluding the Al Showayhat S2 and S3 projects.

Adwea is in the process of constructing the world's largest drainage system, starting from Abu Dhabi Corniche Road, passing through Airport Road until it reaches the new sewage treatment plant at Al Wathba.