Saudi Oil Minister Ali Naimi said on January 17th that foreign oil companies could take 100 percent stakes in three core gas projects on offer under the kingdom’s multi-billion dollar energy opening.
When asked whether the firms would be allowed to take full stakes in the opening, Naimi said that: “Why not? The whole idea is to get as much foreign investment as possible.”
The Saudi ministerial negotiating team is expected to present detailed information on the three projects to the 10 short listed Western oil companies in mid-January and the firms will have until February 10th to submit written responses.
The negotiators are expected to determine a method for selecting leaders for the three core ventures during February, with a final decision and the formation of consortia under the leaders due in March.
Naimi said that the process for determining the leaders “is going to be very competitive.” Project terms will be discussed during the second quarter after the signing of memorandums of understanding by April 1st.
Core Venture 1, which covers the South Ghawar area development, reportedly groups Royal Dutch/Shell, BP Amoco, Exxon Mobil Corp., Chevron Corp., TotalFinaElf and Eni.
Core Venture 2, including the Red Sea area development, has been assigned to Exxon Mobil, TotalFinaElf and Marathon Oil Co. Core Venture 3, which covers the Shaybah area development, includes TotalFinaElf, Conoco Inc., Phillips Petroleum Co. and a joint venture between Enron Corp. and Occidental Petroleum Corp.
© 2001 Mena Report (www.menareport.com)
