Saudi Arabia’s Supreme Petroleum Council has given its backing to a USD 2 billion gas project with a consortium led by Royal Dutch/Shell, the official Saudi Press Agency (SPA) has reported.
Crown Prince and de facto ruler Prince Abdullah bin Abdul Aziz “gave its agreement in principle to the project.” Saudi Oil Minister Ali al-Nuaimi announced on 11 October that, pending the council’s seal of approval, the deal had been signed with the consortium which includes the TotalFinaElf and the kingdom’s national oil giant Saudi Aramco. A new company is to be set up for the gas exploration and production from an area of 209,000 square km in the Rub al-Khali (Empty Quarter) in the south of the kingdom, Nuaimi said. Shell will control a 40% stake, with TotalFinaElf and Aramco controlling 30% each, added the minister. Nuaimi also said Saudi Arabia will hold an international tender early next year for three new gas exploration and production projects. The petroleum council also approved a framework agreement for the three projects, the body’s secretary general Matlab bin Abdullah al-Naffissah told SPA. The Shell deal, awarded in July, came after the collapse of the Saudi Natural Gas Initiative (NGI) in its integrated form which included power, water and petrochemical projects in addition to gas exploration and production prompting the kingdom to break up the project and tender it in parts.
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