Why the US won’t let Iran develop oil in Saudi Arabia
Saudi Arabia and Iran will likely fight over a proposed $15bn project in the kingdom, the kingdom’s state oil company, Aramco, has said.
The plan is the first major US oil project outside of the Middle East to be put to market and comes as Saudi Arabia seeks to expand its domestic oil production by boosting domestic demand from its booming oil sector.
Aramco chief executive Hassan al-Omari said Aramco was considering the possibility of selling its existing oil reserves to foreign investors.
But he said he would not speculate on whether a sale of oil from the oil fields would be possible.
“We have been in discussions with various parties about this project and we are considering various scenarios, including one where we sell the oil reserves of the fields, but not the entire oil field,” he said.
“This project is not only about Aramco and its customers, it’s also about Saudi Arabia as a whole, Aramko and its stakeholders.”
The US oil giant has previously said it would not pursue projects that could lead to US expropriation.