Al-Marsad newspaper: The writer, Muhammad Al-Saed, commented on a remarkable report published by the Elaf electronic newspaper entitled “Saudi Arabia… Pressure to remove the Saudi Oil Minister!”
Saudi gas
Al-Saad said, in his article, “What if Ali Al-Naimi did not obstruct Saudi gas production!”, published in the newspaper “Okaz”: “The report tells the story of the failure of the negotiations for gas projects that the Saudi government started early, specifically at the end of the year 2000 with major oil and gas companies around the world. At the time, the Saudis saw that an amazing future for gas was inevitably coming, and they wanted to prepare for it and put their feet in a promising market, but those negotiations faltered, despite many expecting them to succeed. And many times, which prompted the major energy companies to withdraw from the negotiations and close the file until the new Saudi administration came in 2015. After that, Prince Abdulaziz bin Salman took over the energy file to resume the Kingdom’s oil position and the discoveries of gas deposits and maximize it, with the support of King Salman bin Abdulaziz and Crown Prince Muhammad bin Salman. .
energy sector
And he continued: “The text of the Elaph newspaper report, which sheds light without noticing anyone, says: Western companies are fed up with negotiations with Saudi Arabia over gas projects worth billions of dollars in order to expel Saudi Oil Minister Ali Al-Naimi, according to sources close to the file, and after they were considered American oil companies that they will not be able to obtain any concession from the Saudi minister began, since the beginning of 2002, a campaign against his hardness in the negotiations aimed at starting the operation of the Saudi gas project. Pointing out: “The specialized oil “Petrostrategy” bulletin reported that the Saudi Oil Minister has support in the negotiations he is carrying out on three projects called “the Saudi Gas Initiative.” Gas projects, which are the first opening up of the energy sector in Saudi Arabia since its nationalization.
strategic problems
He added, “The Saudi Gas Initiative, a project estimated at $25 billion, which was officially launched in June 2001, provides for the possibility of foreign companies active in oil and gas affairs to participate in exploration and then invest the natural gas reserves in the Kingdom in partnership with Saudi Aramco, the national company, pointing out: “The Financial Times said that Al-Naimi, who was former president of Aramco, opposed this project even before it was officially launched, stressing that the return of foreign companies to Saudi lands after the nationalization of the sector in 1975 would pose problems. strategy for the kingdom.
oil world
And he added, “Negotiations are continuing on two of the three projects, the first with a consortium headed by Exxon Mobil allied with BP Imoco and Philips Petroleum, and the second project with Shell, Total Fina Alf and Conoco. As for the negotiations on the third project, managed by Exxon Mobil jointly with Occidental and Marathon, they are currently suspended.” ( Elaph’s text ended.” He continued: “After years, the memoirs of Minister Ali Al-Naimi, titled “From the Badia to the World of Oil,” came out in which he explicitly stated that he was behind the failure of the Saudi gas initiative, and that his strictness was what led to the closure of its file.
big predicament
He pointed out: “Today, as we see the world in a great predicament due to the gas crisis, the scarcity of suppliers and the lack of supply, we ask: What if Al-Naimi emerged from the shell of doubt and rejection at that time and allowed the negotiations to pass and move to the level of agreement and production? Where would Saudi Arabia’s production of gas stand today? Especially that The cost at that time was reasonable, and the infrastructure investment had ended and production and export had begun, and Saudi Arabia would have quenched the markets’ thirst for gas, and would have dominated production and export and the resulting enormous influence in light of a crisis afflicting the world,” noting: “Saudi Arabia had chosen eight International companies to invest in three pivotal projects to develop gas fields. The leadership of the implementation of the first project to develop the northern Empty Quarter, and the second pivotal project in the Red Sea and northwest Saudi Arabia, was entrusted to ExxonMobil, which leads in the first a consortium of companies: Royal Dutch Shell and BP And Philips, while in the second it leads a consortium that includes the companies: Exdantal Petroleum and Enron, while the implementation of the third pivotal project (the Shaybah field and the southeast area of the Empty Quarter) has been assigned to Royal Dutch Shell and includes two companies, Total Fina Alf and Co. Noko”.
Recession
He pointed out: “Let us go back to that delicate stage that followed the September 11, 2001 bombings, and the accompanying economic recession, the decline in oil sales, and the emergence of gas on the horizon. With foreign companies, he also revealed at the time that negotiations with the targeted companies also included the development of water, electricity and petrochemical projects,” noting: “Prince Saud Al-Faisal said in statements reported by news agencies: “The committee concerned with negotiations has completed its task in reaching agreements on water, electricity and petrochemical projects.” All that remains are the technical issues that will be entrusted to the Minister of Petroleum to end these negotiations as soon as possible.
gas market
He continued, “What did the minister do after the matter reached him?! There is no doubt that the hardening of “Al-Nuaimi”, according to his confession in his memoirs, missed a historic opportunity for Saudi Arabia that could have pushed for the sovereignty of the gas market and its industry, as it dominated and continues to dominate the oil market for eighty years. This has caused a delay in the gas investment project for two full decades,” adding: “Without a doubt, Saudi Arabia, with its great economic position, was able to confirm its position as a reliable energy provider following the Saudi Vision project and deep economic reform, which included the oil industry from reservoirs to refineries in partnership with the OPEC group. Plus, in addition to restoring the initiative in the gas and other energy products industry, which is currently led by Saudi Energy Minister Prince Abdulaziz bin Salman.