DUBAI, 6 June 2003 — Saudi Arabia told Exxon Mobil yesterday that it had closed talks on a $15 billion gas project, the biggest Saudi energy opening in nearly 30 years, oil company and Saudi sources said.
Saudi Petroleum and Minerals Minister Ali Al-Naimi sent notice in a letter to Exxon and fellow consortium members ending negotiations to develop gas in the South Ghawar field.
“Saudi Arabia has cancelled the Exxon-led deal for South Ghawar effective June 15,” a Saudi industry source told Reuters of the US major’s $15 billion project. In the United States, a person familiar with the negotiations confirmed that all the members of the Exxon consortium had received a cancellation notice from Riyadh.
Other potential investors in what was known as Core Venture One were Royal DutchShell, BP and ConocoPhillips.
