Saudi Arabia has cleared a major obstacle for signing final agreements with international oil majors for two mega gas projects, agreeing terms on associated power plants, the chief Saudi negotiator has said. “The committee conducting the negotiations has completed its mission in reaching agreements on the electricity, water and petrochemical plants,” Foreign Minister Prince Saud Al Faisal told reporters. “What remains now is technical issues which have been referred to the petroleum minister to conclude the negotiations,” the Prince said without elaborating. The agreements were reached on the first and third projects, Core Venture 1 (CV1) and Core Venture 3 (CV3), which require investments of about USD 20 billion. ExxonMobil has the lead role in CV1 while Dutch Royal/Shell has the lead in CV3. The second project, Core Venture 2 (CV2) was shelved to “reassess its economic situation,” according to Prince Saud. Both are part of the Saudi Natural Gas Initiative which calls for the exploration and production of non-associated natural gas to be used as fuel for power, water and petrochemical plants.
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