RIYADH, 26 January 2003 — Saudi Arabia will hold meetings with top executives of oil giants within the next few days to settle the outstanding differences related to gas projects, Foreign Minister Prince Saud Al-Faisal announced.
Prince Saud, who is chairman of the ministerial committee set up to negotiate with international oil firms, said that the companies were seeking clarification on the Kingdom’s exploration and production offers.
“The differences are restricted to excavation and production sectors,” the minister told Asharq Al-Awsat, a sister publication of Arab News. Prince Saud said last Wednesday that the Kingdom would finalize next month one of the three major gas deals with a consortium of foreign oil companies headed by Royal Dutch Shell.
“We have received a positive response from Core Venture 3. Ministerial negotiations have been concluded and final (technical) negotiations will start by the end of this month,” the prince told a press conference.
Prince Saud disclosed plans to establish major petrochemical plants as part of the gas deals. “By implementing petrochemical projects within the gas initiative, the government intends to strengthen the Kingdom’s position as a leading petrochemicals producer,” he explained.
“We also intend to achieve a strategic partnership between Saudi Basic Industries Corporation and leading international companies specializing in this area,” he said.
The planned petrochemical projects will be the largest in the world.
Prince Saud said that investments in the gas sector would be the largest foreign investment in the Kingdom, adding that they will cover the vital sectors of water desalination, electricity generation and industry in addition to gas exploration, production and distribution.
“These projects will play an important role in expanding basic services such as water and electricity and creating more jobs for Saudis,” he said.
They will be accompanied by secondary projects, which will open new channels to utilize local funds and encourage foreign investment.
“The negotiations will enter an important phase after receiving responses from the companies,” he said. “The consortium of companies picked to implement the first and third core ventures wish to complete the negotiations as quickly as possible,” he added.
“They have accepted most of the conditions detailed in the last offer presented by the Saudi team.”
The companies have also agreed in principle to implement the electricity and water desalination projects without delay as per the tariffs and conditions set by the Kingdom. (Asharq Al-Awsat)
