ABU DHABI Ñ Saudi Arabia plans to again extend its deadline to
complete negotiations for the kingdom's multi-billion natural gas
development project.
The deadline, set for Saturday, is expected to be extended for another
six months. The major obstacle is said to focus on disagreements regarding a
Saudi plan to ensure profits for foreign energy firms.
Saudi sources said Riyad and Western bidders have not closed the gap in
their positions to launch the exploration and development of natural gas
fields in the southern part of the kingdom. They said negotiations could
continue until the end of the year.
The Saudis have been pressed by the United States to conclude an
agreement for an estimated $25 billion worth of investment projects. U.S.
giants ExxonMobil and Conoco are favorites to win the most lucrative
concessions.
Industry sources said Western companies want to be ensured a return of
close to 20 percent on their investment. But the Saudis are offering about
half that return.
Arab diplomatic sources said Riyad prefers to delay the discussions as
part of an effort to obtain political concessions from such governments as
the United States and the European Union.
