Saudia-Online the Net Gate to Saudi Arabia Market
Saudi Arabia Business News
Business Opportunities
Business Guide
Companies Directory
Corporate Websites
Currency Exchange
Saudi Arabia Events
Local News
Saudi Stocks
Monthly Economic Reports
Saudi Arabia Travel
Saudi Arabia Weather
Submit Press Release
Read Press Releases


Free Websites
 for Saudi
companies and Establishment
for Foreign companies 
interested in exporting
to Saudi Arabia

Community Sign Up

Message Boards
Should women be in the army?

About Saudi Arabia
About us

Arabic cuisine
Arabic newspapers

Arabic radio and TV

Free downloads

Saudi Arabia ISP's

Science and Technology

Send us feedback


Traveling to Saudi Arabia

Phone Free

Top Saudi Arabia Business News

Saudi speeds tempo on rare gas investment opening
Dubai, 25 February 2001

Saudi Arabia is speeding the pace on its multibillion dollar gas opening to the world's top oil companies and broadening participation in its so-called core ventures, industry sources said yesterday. Saudi negotiators are seeking final proposals for the kingdom's three huge ventures by the end of February so as to award hotly-contested consortium leader posts by mid-March and sign memoranda of understanding by early April, sources said.

"The distinct impression during the last few weeks is that the Saudi negotiators are serious about pushing things along quickly," an industry source said. "They are sticking to their April 1 deadline for signing MOUs." Saudi Arabia, the world's biggest holder of oil reserves and fifth largest gas reserves, unveiled its energy sector opening to foreign firms more than two years ago.

As talks now enter the final stages, competition for project leadership has grown fierce as all negotiations will occur between the Saudi team and the consortium leader - even defining the internal structure - industry sources said. "The companies are fighting it out to lead and operate the core ventures," a regional analyst said. The kingdom itself appears intent on hating up competition for gas sector projects - worth an estimated $25 billion - by expanding the shortlist of companies grouped under core ventures two and three, industry sources said.

Executives from ExxonMobil and Royal/Dutch Shell are now in Dhahran poring over data - for core venture three in ExxonMobile's case and core ventures two and three in Royal/Dutch Shell's case, the sources added. "There are too many super majors lumped together in core venture 1 (South Ghawar area development) and the Saudis apparently wanted to spread things out a bit more," the analyst said. The top brass from ExxonMobil, BP Amoco, Royal Dutch/Shell, TotalFinaElf and Chevron flew to Riyadh last weekend to discuss the structure of the estimated $15 billion core venture 1 with a Saudi ministerial team. Italy's energy giant ENI has also been tapped for involvement in that project.

Executives from the remaining short listed potential investors - Phillips, Conoco, Enron/Oxy, Marathon and Eni are due to meet with the same Saudi team this week, industry sources said. Core Venture 2 (Red Sea area development) now groups Exxon/Mobil, TotalFinaElf, Royal Dutch/Shell and Marathon. Core Venture 3 (Shaybah Area Development) now groups ExxonMobil, Royal Dutch/Shell, TotalFinaElf, Phillips and Enron/Oxy.

The companies are being asked to help develop known gas reserves and also invest in downstream projects fed by gas supplies, such as power and desalination. The kingdom's more valuable oil sector, remains off limits to foreign companies since nationalization in the 1970s.
SOURCE: Gulf News

Send Page To a Friend  

Starting Business with Saudi Arabia Use the Saudi Business Guide

Join the mailing list
Your Email Address:

Archives Section

Back to Business News


Free services in Saudia-Online
Free services

Free Websites for 
Saudi Arabia

Free services

Free Websites for Saudi companies and Establishment

Free services

Free Websites for
Saudi Arabia Travel
Agencies and Companies

Free services

Free Domain

Free services

List your Saudi
Arabia Company in
our Directory

Free services

Subscribe to our

Free services Jobs......
Post a job!

Job Openings

Free services

Advertise Free
Classifieds section. 

Gift Reminder

Get Stock Quote: Enter Symbol(s)

Symbol Lookup
My Portfolio
Our Privacy Vow 


Make Saudia-Online My Start Page  -  Bookmark Saudia-Online
Contact Us -  Advertising Info -  About Us -  Terms Of Service -  Add My Site -  Privacy Policy 

1999-2000 by Horizon for Commercial Development Co., Ltd, All rights reserved.
  Saudia-Online,Malls2Save,JeddahMalls,RiyadhMalls,RiyadhShops,SaudiMade,Travel2Saudi and HDC are  trademarks of Horizon for Commercial Development Co. Ltd.  P.O. Box 14657, Jeddah 21434, Saudi Arabia
 Telephone 00966-2-6693585, Fax 00966-2-6693472

26 February 2001 06:45:40 PM

Click Here!