While Nueimi prepares to leave ministry of oil; Axon company gives up Saudi gas project
Saudi Arabia, Economics, 4/19/2003

The executive director of the American Exxon- Mobile company, Lee Raymond, has stressed that his company has given up a project for boosting large investment in the Saudi oil.

Meantime, well-informed sources at the Saudi Aramco company said that the Saudi minister of oil Ali al-Nueimi is due to leave the Saudi ministerial formation at the beginning of next month and that he is one of the main opposers for the agreements with the said company.

Saudi Arabia had invited the major multi national oil companies, especially the Exxon- Mobile and the Royal Dutch Shell to propose suggestions in December concerning three projects at a total value of 25 billion dollars in an attempt to settle a long term difference concerning the commercial items.

The kingdom which has the fourth largest gas reserves in the world gave concessions to these companies in order to eliminate a crisis concerning the areas proposed for exploration for natural gas and return on investment.

There is consortium led by Exxon- Mobile and includes the companies of Shell, BP, Conoco Phillips for investment at the southern al-Ghawar oil field at a cost of 15 billion dollars. It is the first main project in the gas initiative.

The companies asked to have for a guarantee of having enough amount of production in order to allow an acceptable rate for investment in the projects of oil production and building petrochemical factories, electricity station and water desalination.

On the other hand, well-informed sources at the Saudi Aramco company said that the Saudi oil minister Ali al-Nueimi, who is due to leave the Saudi ministerial formation by the beginning of May, the date set for the change, was among the strongest opposers for several agreements with the investing companies.

The source said that having al-Nueimi out of the ministry will be a positive element to the possibility of reaching an agreement and that al-Nueimi is always in difference with the Saudi foreign minister Prince Saud al-Faisal on many points.

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