In an effort to increase investor interest in natural gas exploration, the Kingdom is presenting three giant projects in the country’s first licensing round.
The Minister of Petroleum and Mineral Resources, Ali Al-Naimi, was quoted in the Saudi Economic Survey saying that 41 international energy companies attended a London seminar to hear the terms of the contract, and that he would hold the auction by the first quarter of year 2004.
“After a few years of negotiation, it was obvious that there must be a different way of doing business. Exploration and production will be pursued separately... and I think this route is going to yield better success,” he said.
The Royal Dutch/Shell group of companies and Total recently signed an agreement with Saudi Arabia, estimated to be worth $2 billion, to form a joint venture with Saudi Aramco for gas exploration in an area of 200,000 square kilometres in the southern part of Rub Al-Khali.
Also in the news is the Middle East Economic Digest (MEED) latest quarterly edition of the Saudi Arabian Market Report, which states that the Kingdom will witness its best year since 1981 in terms of growth, exports, the balance of payments, and budget.
Source: SPA
