RIYADH, 21 April 2003 — The world’s largest oil company, ExxonMobil Corp, denied yesterday that it had pulled out of the multibillion-dollar gas initiative, a spokesperson said. “We continue to have discussions with the Saudi government on the natural gas initiative,” the spokesman told AFP in a brief statement.
ExxonMobil Chairman and Chief Executive Officer Lee Raymond was quoted by Forbes Magazine earlier this week as saying the project was not competitive and the company has abandoned it.
“Mr. Raymond’s (statement) was taken out of context,” added the spokesperson. ExxonMobil has secured the lead role in two out of three projects in the natural gas initiative requiring investments of up to $25 billion.
Foreign Minister Prince Saud Al-Faisal, who heads a ministerial committee conducting talks with eight foreign firms, said in January talks on the second project, headed by ExxonMobil, have been suspended to review its economic situation.
But Prince Saud said Riyadh has 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. The government signed preliminary agreements in June 2001 with eight international oil companies for the development of mega gas-based integrated projects, but the final deal has proved elusive.
