Saudi Arabia signed upstream gas exploration and production agreements with Russia's Lukoil and Sinopec of China yesterday as Spanish and Italian firms lined up to ink deals later in the day that the kingdom hopes will attract billions of dollars in investments.
Contracts to explore for and produce non-associated gas in the northern part of the vast Rub al-Khali, or Empty Quarter desert, were also to be signed at the same ceremony in Riyadh by a consortium formed by Spanish oil group Repsol YPF and Italy's Eni.
State-owned Saudi Aramco is a partner in the three ventures, controlling 20 percent of the stakes in each of the projects in three regions covering a total area of 120,000km2.
"We expect investment in the first phase [exploration] to reach US$300 million," said China Petroleum and Chemical Corp (Sinopec,
The Sinopec-Aramco joint company will be incorporated in the Virgin Islands, he said, noting that last year China imported 11.92 million tonnes of crude from Saudi Arabia and this year plans to ship in 13.15 million tonnes.
Saudi Oil Minister Ali al-Nuaimi said the contract area for Sinopec covered 38,800km2.
"Efforts are also currently underway to establish a partnership between Aramco and Sinopec to provide the Chinese market with petroleum products through investments in joint venture refineries," Nuaimi told reporters.
Vagit Alekperov, president and chief executive officer of Lukoil had first put pen to paper with Abdullah Jumah, president and CEO of Saudi Aramco and the kingdom's oil minister.
"For the first time in the history of bilateral relations the doors to Saudi Arabia have been opened to the Russian petroleum business community," said Alekperov.
"The size of the investment will depend on the size of prospection and exploration work and it could go up to around US$three billion," he said.
Al-Nuaimi looked to future profits. "The area Lukoil and Saudi Aramco will jointly explore measuring 29,900km2 contains promising indications that we expected will yield profitable returns to the kingdom and Lukoil," the minister noted.
Under the terms of the contracts being signed yesterday, the exploration phase has been set at 10 years, divided into three periods of five, three and two years, with the latter two optional, a senior oil ministry official said Saturday night.
The contracts, awarded in late January, will run for a maximum of 40 years, the ministry's director general in the oil-rich Eastern Province, Yahya Shinawi, told reporters.
The north Rub al-Khali basin has been divided into three "contract areas," designated A for Lukoil, B for Sinopec and C for the Spanish-Italian consortium.
Associated gas and oil are "outside the scope" of the agreements, although they provide for the conditional exploitation of 500 million barrels of oil in place, he said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College