Shell and Total win gas exploration concession in Saudi Arabia

A consortium of Shell and French Total have won the concession from Saudi Arabia for the exploration and production of gas in Rube Al Khali (Empty Quarter) in a area covering 200,000 sq km.
The deal was finalized at the meeting of the Minister of Oil and Mineral Resources Eng. Ali Al Naimi with Jeroen Van der Veer, vice chairman of Shell, in the presence of the representatives of Total.

The agreement signed by Shell and Total with Saudi Arabia is estimated to be worth $ 2 bn and is to form a joint venture with Saudi Aramco for the gas exploration and production in the southern part of Rube Al Khali. Shell, as leader of the consortium, will retain a share of 40 % in the new joint venture, with Saudi Aramco and Total having a 30 % share each.
Eng. Ali Al Naimi described the project as a vital step and powerful launch of the international investments in the gas exploration and production activities in the Kingdom and that is being implemented as per the directives of the Deputy Premier and Commander of the National Guard, Crown Prince Abdullah Bin Abdul Aziz A'al Saud. This would be followed by other projects to be implemented by other major international oil companies.

Eng. Al Naimi said that the ministry will offer, through a specific timetable, other promising areas to international oil companies on clear competitive and transparent basis. According to him, this will be governed by the regulations aimed at facilitating appropriate investment environment in the best manner and in a way fulfilling the Kingdom's interests.
He also disclosed that major international oil companies from several countries like USA, Japan, Russia, China and India as well as from the European countries have been invited for a seminar to be organized by the ministry in London. The invitations have been extended on the basis of certain specific criteria including the company's experience in the field of exploration and production of oil and natural gas as well as its strong financial position and high competitiveness.

Eng. Al Naimi said that these steps have been taken in accordance with the directives of the Custodian of the Two Holy Mosques, King Fahd Bin Abdul Aziz A'al Saud, the Deputy Premier and Commander of the National Guard, Crown Prince Abdullah Bin Abdul Aziz A'al Saud and the Second Deputy Premier, Minister of Defence and Aviation and Inspector General, Prince Sultan Bin Abdul Aziz.
Their directives are aimed at accelerating the momentum of growth and progress of the Saudi economy in a way serving the interests of the country as well as the citizens through attracting foreign investments, broadening the Kingdom's economic base besides exploiting its natural resources in the best possible manner. He thanked King Fahd and Crown Prince Abdullah for the support being given to the oil sector.

The meeting was also attended by Prince Abdul Aziz Ibn Salman Ibn Abdul Aziz, undersecretary for petroleum affairs at the ministry, Prince Faisal Ibn Turkey Ibn Abdul Aziz, advisor at the ministry, Abdu Rahman Ibn Muhammed Abdul Kareem, undersecretary for the companies' affairs at the ministry and several other senior officials of the ministry.