Companies pledge $100 billion investment in Saudi Arabia over next

JIDDAH, Saudi Arabia -- Western oil companies have committed to invest $100 billion over the next 20 years in Saudi Arabia's oil and gas sectors, the official who oversees oil policy said Wednesday.

Prince Saud al-Faisal, who is foreign minister as well as head of the Supreme Petroleum Council, did not name any of the companies but said they were among the industry's "super-giants." Saudi Arabia is the world's No. 1 oil producer and exporter.

He said no specific agreements had yet been signed and that a negotiating committee would be formed over the next few weeks to work out the details. He said he expected negotiations to be finalized by the end of the year.

Saud said that the national oil company Aramco will participate in the execution of the projects, which will be wholly financed by the foreign companies themselves.

Last month, the SPC conducted a series of meetings with 12 international oil companies that have all submitted plans for projects.

They are Total Fina Elf, Royal Dutch/Shell Group, Phillips Petroleum, Chevron, Exxon Mobil, Texaco, Conoco, Enron, Occidental Petroleum, BP Amoco, ENI and Marathon.

They have all signed agreements that commit them to speak directly with the oil committee, without the aid of third parties.

Saudi Arabia recently started seeking foreign investment in its natural gas and petrochemicals sectors, but not in oil development.

The Saudi economy has been hard-hit by unstable international oil prices, increasing competition from international trade blocs, unemployment and a huge budget deficit.

Saudi Crown Prince Abdullah pushed legislation that opened the country to foreign investments. He also has been a leading proponent for privatizing public companies.

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