BP and Royal Dutch Shell have submitted bids for a sour gas project in the UAE that could have a price tag as high as USD 10 billion. The UAE holds the world’s fifth largest gas reserves, and needs to develop them to meet soaring domestic demand. It, as well as neighbouring Gulf countries, are facing rising energy needs as their populations grow and economies expand, fuelled by record oil revenues. Industry sources said that France-based Total and US Occidental Petroleum Corp. had also submitted bids. Adnoc invited bids from several other companies including BG Group, Chevron, ConocoPhillips, ExxonMobil and Japan Oil Development Co. The contract will be awarded in the fourth quarter this year, an official from Adnoc’s gas unit Gasco said in March. The project will boost sour gas output by around a billion cubic feet per day. It requires the installation of four sulphur processing units to treat the gas.
