Bidding On UAE Sour Gas Project May Reach $10 Billion

At least five multinational oil companies have placed bids on a new oil development project in the United Arab Emirates, in collaboration with state-run Abu Dhabi National Oil Company [ADNOC]. The giant sour gas project in expected to fetch as much as $10 billion in international bidding, with the winner taking 40% of the project and ADNOC taking the rest. The project opens up Middle Eastern oil development to outside players usually not allowed to take a part as Saudi development is off limits to outsiders and Qatar has a moratorium on new projects. The list of current bidders includes BP, Royal Dutch Shell, Total, ConocoPhillips and Occidental Petroleum Corp., industry sources said. ADNOC had invited bids from other major American oil companies including Exxon Mobil and Chevron.

Sources: Reuters, GulfNews.com
Commentary: The Nor'easter May Be Good for Natural Gas Stocks • Understanding OPEC: Cheaters Never Win • IEA Warns of Low Global Oil Production, Diminishing Stocks
Stocks/ETFs to watch: BP (BP), Royal Dutch Shell (RDS.A), Total (TOT), ConocoPhillips (COP), Occidental Petroleum Corp. (OXY). Competitors: Exxon Mobil (XOM), Chevron (CVX). ETFs: SPDR Oil & Gas Exploration & Production ETF (XOP), iShares Dow Jones U.S. Oil & Gas Exploration/Production (IEO)

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