By Stanley Carvalho
ABU DHABI, March 20 (Reuters) - Abu Dhabi National Oil Co.(ADNOC) has recommended that Shell win themulti-billion dollar project to develop its Bab gas field, butthe UAE's higher authorities have yet to rule on it, industrysources said on Wednesday.
Industry newsletter International Oil Daily reported onTuesday that state-run ADNOC had recommended that the SupremePetroleum Council (SPC) pick Royal Dutch Shell ahead of rivalFrench bidder Total to develop the ultra-sour gasproject the United Arab Emirates needs to temper growing gasimports.
Three industry sources confirmed to Reuters on Wednesdaythat ADNOC had recommended Shell ahead of Total to tackle Bab'spotentially deadly gas.
The SPC and EC usually agree with ADNOC decisions, but as ofWednesday neither had ruled on whether to officially award Shella project which has been valued at $10 billion.
"Shell's selection is recommended to the higherauthorities," a senior source at ADNOC told Reuters.
Spokespeople for ADNOC, Shell and Total declined to comment.
The Bab ultra-sour gas deal would give Shell, which many hadexpected would win the contract to develop Abu Dhabi's Shah gasfield in 2011 but which lost out to Occidental Petroleum, a showcase project for Shell gas treatment technology.
It also could give the Anglo-Dutch energy giant, acompetitive edge in talks for the 2014 renewal of the UAE'slargest onshore oil concession on which the Bab field stands.
Total being sidelined for the Bab project comes despite aFrench charm offensive which saw French President FrancoisHollande fly into the UAE in January to help Total'sbid.
The winning bidder for the Bab project will be expected toform a joint venture with ADNOC as the majority shareholder, theADNOC source said.