Saudi
Arabia, IOCs sign North Rub’ Al-Khali gas agreements
Posted: 6 March 2004
The Ministry of Petroleum & Mineral Resources announced that
on March 7, the Kingdom of Saudi Arabia will sign landmark upstream
gas agreements with international oil companies Lukoil, Sinopec,
Eni and Repsol, and state-owned Saudi Aramco.
The three agreements are the result of an open bidding process
conducted on January 26, 27 and 28, during which international oil
companies competitively bid for the opportunity to search for non-associated
gas in three contract areas in the North Rub’ Al-Khali Basin.
The bid to explore Contract Area A, consisting of 29,900 km2, was
won by the Russian oil company Lukoil. Contract Area B, consisting
of 38,800 km2, was granted to Chinese oil and petrochemical company
Sinopec, and the 52,000 km2 Contract Area C will be explored by
a consortium consisting of Italian oil company Eni and the Spanish
company Repsol. As part of each of the three agreements, Saudi Aramco
will be a 20-percent partner.
“These agreements will mark the beginning of a long period
of mutually beneficial collaboration between the Kingdom and the
international petroleum companies,” the Ministry said. “One
of the Kingdom’s historic strengths is its tradition of forming
strong global partnerships, and these three upstream gas agreements
build on that tradition.”
The Ministry noted that signing agreements with such prominent
companies from Europe and Asia strengthen’s the Kingdom’s
ties to these regions. “The Kingdom of Saudi Arabia is truly
blessed to have these international companies as partners in the
search for non-associated gas,” the Ministry said in a statement.
“Through the mutually-beneficial relationships established
here today with Lukoil, Sinopec, Eni and Repsol, the Kingdom of
Saudi Arabia is proud to open the door to future prosperity for
all.
Posted by Richard Price,
Editor Pipeline Magazine
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