SAUDI RENEGOTIATION OF ARAMCO DEAL MOVING ALONG
  Saudi Arabia's renegotiation of its
  collective agreement with Aramco to purchase oil for the
  latter's ex-partners is moving along and should lead to a
  fundamental structural change in the contract, oil industry
  sources said.
      Petroleum Intelligence Weekly, in this Monday's edition,
  said negotiations are moving along for adjustment of the 1.34
  mln bpd joint long term agreement at official prices and
  volumes and other terms may be rearranged.
      The agreement signed in January for the months from
  February to June is up for renegotiation.
      Under the January contract Aramco was to purchase 1.34 mln
  bpd for the four partners allocated among them as Exxon Corp
  &lt;XON> 440,000 bpd, Texaco Inc &lt;TX> 350,000 bpd, Mobil Corp
  &lt;MOB> and Chevron Corp &lt;CHV> 550,000 bpd between them.
      But an overlifting by Texaco Inc in the first quarter
  allowed other companies like Exxon Corp to underlift its
  obligations under the contract
      PIW said that that one alternative under consideration is
  to revert to four individual contracts rather than a collective
  agrement.
      John Lichtblau, director of the Petroleum Industry Research
  Foundation Inc said that renegotiation of the pact was more of
  a formality as the Saudis have each company on a separate
  schedule although separate agreements with the companies would
  favor one on one negotiations and ensure that contracted
  liftings occur .
      "The companies will probably follow the Saudi wants within
  limits as they do not want to antagonize them for the long
  haul," he said.
      Lichtblau said that the renegotiations would most likely
  concentrate on volume rather than price.
      Saudi displeasure with the agreement has long been noted
  and in April industry publications said that renegotiation were
  being sought, a fact later confirmed by Reuters with Aramco.
      Aramco Corp was formerly owned by Chevron Corp &lt;CHV>, Exxon
  Corp &lt;XON>, Mobil Corp &lt;MOB> and Texaco Inc &lt;TX> but is now
  owned by Saudi Arabia which bought its assets although the
  ex-partners have various agreements with Saudi Arabia.
  

