ExxonMobil to lead Saudi Core Venture 1
Largest of three core ventures in the Saudi Arabian Natural Gas Initiative
Exxon Mobil Corporation (Irving, TX) announced this weekend that the Kingdom of Saudi Arabia has selected ExxonMobil as the leader and operator for Core Venture 1, the largest of three core ventures in the Saudi Arabian Natural Gas Initiative.
As a result of the announcement ExxonMobil is now the leader and operator of two of the three core ventures, having previously been selected to lead Core Venture 2. The company also announced today that it has signed Preparatory Agreements for both core ventures, allowing ExxonMobil, along with the other international oil companies and the Saudi government, to progress to the Project Definition Phase.
"We are very honored by the confidence the Saudi government has shown in ExxonMobil by awarding us the leadership of Core Ventures 1 and 2 in the Kingdom's strategic gas initiative," said Exxon Mobil Corporation Chairman Lee Raymond. "This investment opportunity strengthens our leadership position in the Kingdom and complements the portfolio of exciting new projects we have underway around the world."
Together, Core Venture 1 (Southern Ghawar) and Core Venture 2 (Red Sea) account for a total estimated industry investment of over U.S. $20 billion and is designed to underpin the Kingdom's goals of increased gas utilization, economic growth and job creation.
Core Venture 1 will significantly expand the Kingdom's gas, power, water desalination and petrochemical infrastructure and provide for exploration and development of the Kingdom's gas resources in the Northern Rub' Al-Khali region. The project includes field production and gathering facilities, gas processing and fractionation plants to recover and separate liquids from existing and new gas production, gas liquids transmission and downstream investment in power, petrochemicals and water desalination. The project includes up to 4000 megawatts of new power generation capacity integrated with water desalination, and two new petrochemical facilities, one each on the east and west coasts of Saudi Arabia.
With the signing of Preparatory Agreements today, ExxonMobil, along with the other international oil companies and the Saudi government, will move ahead to the Project Definition Phase. Work in the next phase will result in the definition of the technical scope of each core venture as well as the commercial, legal, financial and regulatory regimes that will govern them.
ExxonMobil has invested more than US $5 billion in Saudi Arabia and is the largest foreign investor in the Kingdom. The company is also the largest foreign purchaser of crude oil and other hydrocarbons from Saudi Aramco. Existing facilities include two petrochemical joint ventures with Sabic, Yanpet and Kemya, and the Samref refinery - a joint venture with Saudi Aramco.
Raymond concluded, "We look forward to working with the Saudi government, Saudi Aramco and other energy companies in the core ventures. In our leadership role, we will harness the full capabilities of all participants along with ExxonMobil's technical and financial resources to accomplish the Kingdom's goal of expanding the gas sector and ensuring the people of the Kingdom of Saudi Arabia and our shareholders benefit from this initiative."
Exxon Mobil Corporation is the world's premier petroleum and petrochemical company. The company has subsidiaries or operations in about 200 countries and territories around the world.
For additional information on ExxonMobil, visit our website at www.exxonmobil.com
Cautionary Statement
This release contains forward-looking statements regarding business and project plans. Actual future results could differ materially for market, technical, or other reasons, including those discussed under "Factors Affecting Future Results" in ExxonMobil's most recent form 10-K
Source: Exxon Mobil Corporation