RIYADH, 23 January 2003 — The Kingdom should finalize next month one of three major gas deals with a consortium of foreign oil companies headed by Royal Dutch Shell, Foreign Minister Prince Saud Al-Faisal said yesterday.
“We have received a positive response from Core Venture 3 (CV3). Ministerial negotiations have been concluded and final (technical) negotiations will start by the end of this month,” he told a press conference.
“We expect these negotiations to reach a final agreement within two to three weeks,” said Prince Saud, who heads the ministerial committee conducting talks with foreign firms.
Shell has a 40-percent interest in CV3, with the remaining 60 percent split evenly between TotalFinaElf and Conoco. The project needs investments worth $5 billion.
Prince Saud said Riyadh has also received a “positive” response from the Core Venture 1 (CV1) consortium, headed by ExxonMobil, and including BP Amoco and Phillips Petroleum.
“The response opens the way for final negotiations which will tackle various (technical) sectors,” said Prince Saud.
CV1 foresees development of the South Ghawar field requiring investment of up to $15 billion.
Talks on Core Venture 2, also headed by ExxonMobil, have been postponed to review its economic situation, Prince Saud said.
The government signed preliminary agreements in June 2001 with eight international oil companies for the development of mega gas-based integrated projects requiring about $25 billion of investment, but the final deal has proved elusive as deadlines have come and gone.
The projects also include water desalination, power and petrochemical plants. (AFP)
