ABU DHABI Ñ Saudi Arabia has pledged that it will sign in March
multi-billion dollar agreements for the Western exploration and production
of the kingdom's natural gas sector.
Saudi officials said the pledge was relayed to the United States, which
is regarded as the favorite to win most of the estimated $25 billion in gas
exploration and development projects. U.S. companies face European
counterparts for the projects.
Saudi Oil Minister Ali Al Naimi acknowledged the gap between the
kingdom and competing countries during the current negotiations. But Al
Naimi said he hoped the negotiations will be completed in accordance with
Riyad's new deadline.
"Negotiations are progressing," the Saudi minister said. "We are looking
forward to signing the executive agreement in the first week of March."
The Saudi contracts are regarded as a priority for the Bush
administration and the State Department. In June, Riyad signed preliminary
agreement with eight foreign companies, including Conoco, Exxon-Mobil and
TotalFinaElf. A final accord, scheduled for December, has been delayed amid
differences over taxes, revenue sharing and the size of the gas fields.
