Saudi Arabia expects foreign oil majors to invest at least $20 billion in its gas initiative as the two sides start working out technical details, Foreign Minister Prince Saud Al Faisal said on Sunday.
Prince Saud said that under the preparatory agreements signed on June 2, foreign companies have agreed to directly invest a minimum of $20 billion in the projects, the Gulf Daily News quoted him as saying.
“This is the minimum level expected, which means that it could exceed that,” he was quoted as saying.
Oil Minister Ali Al Nuaimi has been appointed to supervise the Saudi negotiating team and to oversee the implementation of the accord, he added.
The ministerial committee in charge of negotiations with the foreign oil majors would continue to receive periodic reports on implementation of the projects from Al Nuaimi and issue guidelines when necessary, he said.
The minister added that he expected no delays in working out the details of the project, due to be completed by year end.
“It must be made clear that during the past two and a half years, most of the major requirements for these projects were prepared and the remaining work is of a technical nature,” he said.
Saudi Arabia has picked eight international firms to carry out its multi-billion dollar gas initiative, with ExxonMobil leading the biggest South Ghawar project valued at $15 billion.
Prince Saud said that under the agreements, designing the projects was the responsibility of the eight selected firms, according to the paper.
The kingdom will provide the data and information to enable the firms to carry out their work, he added – Albawaba.com