Energy giant ConocoPhillips said it expects to seal a $10 billion sour gas deal with Abu Dhabi National Oil Company, the world's third largest oil exporter, according to media reports.

Conoco's chief executive Jim Mulva said the contract which has been in the works for months may be announced within the next month or two, Financial Times said.

We're working very hard on this project. Hopefully there will be an announcement that we will be working together in the next month or two, he said.

Mulva's comments is the first time Conoco confirmed the deal, but the company still hasn't officially confirmed the reports from the UAE that it was going to get the contract.

Royal Dutch Shell and Occidental Petroleum have also reported to have been front runners as of the end of last year. However, in recent months Occidental has been told that it is not a finalist.

Abu Dhabi's gas potential is great and contains more than 90 percent of the UAE's 214.4 trillion cubic feet of natural gas reserves, the fifth largest in the world.

Meanwhile, Occidental Petroleum did partner with Abu Dhabi's International Petroleum Investment Company recently in developing both upstream and downstream ventures in areas both in and outside the Middle East.

Abu Dhabi is the largest of the seven emirates making up the United Arab Emirates and accounts for 96 percent of the federation's petroleum output.