LONDON Ñ Saudi Arabia has again rejected an offer by
Western energy majors for the development of the kingdom's natural gas
sector.
Industry sources said a Saudi ministerial panel led by Foreign Minister
Prince Saud Al Faisal turned down a counterproposal by Western energy majors
in a letter sent last week, Middle East Newsline reported. They said the Saudi letter essentially
reiterates the terms previously submitted by the kingdom for the estimated
$30 billion gas and infrastructure project.
The Saudi proposal is said to offer a rate of return of up to 12
percent. The oil majors have asked for an 18 percent rate of return.
The major companies vying for the Saudi project are ExxonMobil, Royal
Dutch/Shell and BP. The companies are being asked to formally reply to
Riyad's terms regarding the gas project in October.
