JEDDAH, 17 July — The Kingdom aims to sign draft implementation agreements for three multibillion-dollar gas projects with international consortiums by Dec. 16, the Middle East Economic Survey (MEES) reported yesterday.
The deadline has been set for the completion of the “project definition program” — the elaboration of all commercial, financial, legal and technical aspects of the scheme, AFP news agency said quoting the industry newsletter.
The Natural Gas Initiative, with work to be launched after final accords are sealed, involves exploration and production. It will supply feedstock for petrochemical industries as well as power and water desalination plants.
The projects are to be carried out in partnership with the Saudi Arabian Oil Company (Saudi Aramco) on a long-term basis of up to 30 years.
The Saudi government signed preparatory agreements with eight international oil companies on June 3 for the three gas projects worth as much as $50 billion.
The deals, valued at $20 billion in near-term investments, are the first upstream energy projects open to foreign companies since the sector was nationalized in Saudi Arabia a quarter of a century ago.
The three projects cover 440,000 square kilometers, the size of Sweden, making it the world’s largest area for hydrocarbon investment.
Saudi Arabia sits atop the world’s biggest oil reserves and has proven natural gas reserves of 6.6 trillion cubic meters. (AN)
