Saudi and oil majors sign on gas projects
Saudi Arabia aims to sign draft implementation agreements for three multi-billion-dollar gas projects with international consortia by December 16, the Middle East Economic Survey (MEES) reported Monday, July 16.
The deadline has been set for the completion of the "project definition programme", the elaboration of all commercial, financial, legal and technical aspects of the scheme, the industry newsletter said.
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 state-run Saudi Aramco on a long-term basis of up to 30 years. Saudi Arabia signed preparatory accords with eight oil majors 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 kilometres (176,000 square miles), 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 220 trillion cubic feet (6.6 trillion cubic metres). — (AFP)
© Agence France Presse
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