US oil giant ExxonMobil has denied media allegations that it has withdrawn from the $25 million Core Venture 1 South Ghawar Gas Project (CVI) in Saudi Arabia. The oil major insists that negotiations with the Saudi government are still underway, reported AFP.
Earlier this week, Forbes Magazine published a statement by ExxonMobil’s Chairman and Chief Executive Officer Lee Raymond saying that the project was not competitive and therefore was abandoned.
"We continue to have discussions with the Saudi government on the natural gas initiative," said an ExxonMobil spokesperson. "Mr. Raymond's (statement) was taken out of context," he added.
As CV 1’s project’s operator, Exxonmobil holds a 35 percent interest in the initiative. Partners Royal Dutch/Shell and BP Amoco each hold a 25 percent interest and Phillips Petroleum holds the remaining 15 percent interest.
Seeking to revitalize foreign investment in Saudi gas, the government offered international firms access to vast new fields of uncertain gas resources, while retracting its initial proposal, which put on the table the Kingdom’s best fields holding huge proven reserves. Bidders were given a deadline of early October to present their counteroffers to the scaled down scheme, which carries more risk and less commercial-viability than its predecessor. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
