Differences among western oil company regarding Saudi gas projects
Saudi Arabia, Economics, 8/31/2002

The London- based specialized Oil Daily International said that differences erupted among the western companies which were chosen to complete large gas projects in Saudi Arabia, and many of them agreed to the Saudi conditions.

The bulletin said that differences increases the complications of discussions among the companies which constitute the three "consorsiumat " which is negotiating with the Saudi government on deals estimated at 20 billion dollars. Each of the companies ( Exxon- Mobile ) which runs two of the "consorsiumat." Royal Dutch - Shell which leads the third while other companies are BP, TotalFinaElf , Philips, Occidental, Marathon and Conoco.

The bulletin said that certain companies are ready to accept the conditions set by the Saudis while Exxon, Mobile and Shell are opposing them.

Until July this year, the said companies were seeking an annual return on investment ranging between 15- 18% while Riyadh proposed a rate ranging between 8- 12 %.

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