'The kingdom remains committed to the successful and timely implementation of the natural gas initiative projects and we remain hopeful that [they]. can be implemented in the framework of the government's final offer of 5 September 2002,' Naimi said in a 6 May letter to the US' ExxonMobil Corporationand the Royal Dutch/Shell Group.
This is not the first time IOCs have been given a deadline to conclude talks on the initiative - an earlier deadline of 2 March passed with little fanfare. ExxonMobil recently denied reports that it is planning to withdraw from core venture 1, in which it has a 35 per cent stake.
The Royal Dutch/Shell Group and the UK's BPeach hold a 25 per cent interest and the remainder is held by the US' Philips Petroleum Company. ExxonMobil also heads core venture 2, which was suspended in January. The $25,000 million gas initiative has been repeatedly delayed by disagreements over acreage, profit margins and the role of Saudi Aramco. Some of the projects' downstream elements are already being pursued for private development in partnership with the government's power and water bodies (MEED 25:4:03).
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