TotalFinaElf announced on December 21st that it had signed three letters of intent covering Saudi Arabia’s natural gas development projects.
A company spokeswoman said that: “To our knowledge we’re the only foreign oil company invited to submit proposals for three projects.”
She added that: “The next step will be to take part in the data room in January 2001.” The three projects reportedly cover a gas-use project, a petrochemical scheme and a water desalination operation.
Royal Dutch/Shell and BP Amoco had said on December 14th that they had signed letters of intent signaling their interest in the long-awaited energy opening, with Exxon Mobil Corp. and Chevron Corp.
following suit on December 15th and 19th. Enron Corp. and Occidental Petroleum Corp. indicated on December 20th that they had jointly signed letters of intent to take part in the Saudi projects.
An Occidental spokesman said that: “We have been invited to submit proposals on two of the three ventures approved by the Saudi government.” Other firms short listed for the projects include Phillips Petroleum Co., Marathon Oil Co., Texaco Inc., Conoco Inc. and Eni.
The opening was announced in late 1998 and is part of the kingdom’s attempts to liberalize its economy, create jobs and lure additional foreign investment.
In July, the negotiating team had outlined the kingdom’s plans for exploration and development, including three major gas projects.
The projects, including the Kidan/Shaybah gas development in the remote Empty Quarter area bordering the U.A.E., the Rabigh industrial city and Midyan/Burkhan area field development in the northwest and the aradh/Harmaliyah gas development in the eastern province, involve gas exploration, field development and downstream investment tied to power generation, electricity or water desalination.
