The Saudi Minister of Petroleum and Mineral Resources, Ali bin Ibrahim Al-Naimi, told a press conference that he presented a preliminary offer for gas exploration in Saudi Arabia at the Kingdom’s seminar in London today.
Exploration for dry gas will take place in three areas of the Kingdom, which amount to a total area of 30,000 to 50,000 square kilometres. Scientific evidence indicates that there is a high probability of discovering gas in these fields, Al-Naimi told reporters.
Speaking after the first session of a seminar on gas exploration and production in the Kingdom, which attracted representatives of 41 international oil companies, Al-Naimi said that the Kingdom has a seventy-year history of dealing with foreign investments and joint ventures with international companies, and has achieved tremendous success in this field.
The offer the Kingdom is presenting to companies to invest in gas exploration and production is competitive with the best international standards.
Al-Naimi said that the Kingdom’s previous gas initiative did not reach an impasse, as was reported, but was impeded by certain companies due their differences in approach to business.
Talks on gas exploration were successful with other companies, he said, citing the agreement reached with Shell and Total to explore for and produce gas in areas amounting to 200,000 square kilometres. He added that the agreement with the two companies was a culmination of talks initiated in June 2001.
The Kingdom has reached the conclusion that it is preferable to separate gas exploration projects from those of power generation, water desalination and petrochemical products, Al-Naimi said.
He stressed the dynamism of the Saudi economy, and said that the Kingdom requires development of its gas sector, within the expansion of its economy and diversification of its economic base, in order to meet increasing domestic needs. There is no current need for the exportation of gas. He estimated that the Kingdom’s consumption of gas would reach 12 billion cubic feet per day by the year 2025, compared with a current average gas consumption of 7 billion cu. ft. per day.
Al-Naimi said that the Kingdom has an advanced gas network, which supplies and distributes gas under the supervision of Saudi Aramco, which is well known for its vast experience in this field.
The gas exploration operation is designed to meet the future demands for gas in the Kingdom. The projects will be implemented in phases.
The Kingdom today presented a preliminary offer for investment. Saudi authorities will announce the names of companies that choose to bid, and provide them requirements of the project, before they select companies to embark upon the venture as soon as possible. The volume of gas investment is unlimited. The Kingdom will guarantee the highest levels of transparency at all levels and stages.
In response to a question, Al-Naimi said that oil exploitation in the gas-rich areas would be limited to the Kingdom’s companies.
Replying a question, he said that despite the recent, unprecedented Riyadh bombings, the Kingdom remains among the world’s most secure and stable countries.
Source: SPA
