Saudi Arabia will extend discussions with the eight American and European oil majors chosen to develop its gas resources under the framework of an agreement involving investments of up to $20-billion, reported the Petroleum Intelligence Weekly, PIW, Saturday, December 15.
The initial date for talks’ conclusion was set for mid-December, however the final date has now been pushed back to March 2, 2002, due to a number of outstanding issues. The companies—Exxon-Mobil, Shell, BP, Phillips, Occidental, Marathon, TotalFinaElf and Conoco—are negotiating exclusivity rights on the gas reserves offered for development.
The agreements provide for implementation of several core ventures that include exploration for natural gas, its production, processing, transportation and utilizing for energy-intensive industries such as electrical power generation, water desalination processes and the production of petrochemicals.
Saudi Arabia sits on the world's biggest oil reserves with an estimated 261 billion barrels and has proven natural gas reserves of 220 trillion cubic feet (6.6 trillion cubic meters), according to AFP. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
