Gulf Oil and Gas accountACCOUNT

Shell signs Saudi gas agreement at ceremony in Riyadh

Source: 11/16/2003, Location: Middle East

Shell Exploration Company B.V. ("Shell") today announced the official signing at a ceremony in Riyadh of an upstream project agreement under which a consortium, led by Shell, will explore for natural gas in Saudi Arabia and develop any commercial finds.

Sir Philip Watts, Chairman of the Committee of Managing Directors of the Royal Dutch/Shell Group of Companies, signed the agreement on behalf of Shell. His Excellency Ali Al-Naimi, Minister of Petroleum and Mineral Resources, signed on behalf of the Saudi Arabian government.

Shell holds 40 per cent of the consortium, and is partnered by Saudi Arabian Oil Company and Total Ventures Saudi Arabia which each hold 30 per cent. The consortium's exploration activities will be the first upstream operations in which international energy companies participate in Saudi Arabia since the nationalisation of the oil and gas exploration and production industry in the 1970s.

The Royal Dutch/Shell Group of Companies already has five joint ventures in Saudi Arabia in the downstream areas of refining, petrochemicals and marketing oil products, and with its partners has some $7.8 billion invested in the Kingdom.

Today's signing ceremony follows the approval of the agreement by Saudi Arabia's Supreme Petroleum Council, the council of Ministers and the Shoura council. The incorporation of the consortium as a joint venture company is now expected to be completed by the end of 2003.

Exploration is expected to commence in the first quarter of 2004. The consortium's gas acreage covers over 200,000 square kilometres of the South Rub Al Khali (Empty Quarter), an area five times the size of the Netherlands and almost as large as Great Britain.

Commercial discoveries of gas will be developed by the consortium for domestic use in power generation, water desalination and petrochemicals production.

Sir Philip said today: "Gas is playing an increasingly important role in meeting the world's growing demand for energy and is likely to overtake oil as the preferred fuel sometime after 2020. The Royal Dutch/Shell Group of Companies is the world's largest private producer of natural gas, and I am delighted that we will now be able to apply our expertise and experience to help Saudi Arabia build a long-term gas business. The agreement we have formally signed today will see us begin exploration and production operations in the country with the world's largest reserves of hydrocarbons. It is of historic importance for the Royal Dutch/Shell Group of Companies."

Walter van de Vijver, a Group Managing Director of the Royal Dutch/Shell Group of Companies and Chief Executive Officer of Shell Exploration and Production, said: "The development of its gas reserves is an enormous undertaking for Saudi Arabia. I am glad that the Royal Dutch/Shell Group of Companies has been invited to play an important part in this work. I am also particularly pleased that we are expanding our partnership with Saudi Aramco, the world’s largest producer of hydrocarbons, into the upstream."

Brian Wilson, the UK Prime Minister's Special Representative on Trade Opportunities for British Business, attended the signing ceremony. He said: "I am extremely pleased to witness this historic agreement between Shell and Saudi Arabia. The Royal Dutch/Shell Group of Companies has done a remarkable job assisting with the development of the UK gas sector, and I am certain it will do the same in Saudi Arabia."

Gas Processing >>

Gas Processing News in Saudi Arabia >>

Oman >>  7/17/2019 - JGC Corporation (hereinafter referred to as "JGC") announced today that it has been awarded a Front End Engineering and Design (FEED) contract under a...
Saudi Arabia >>  7/10/2019 - McDermott International, Inc. (MDR) has been awarded a contract in excess of $1.5 billion for Package 4 of Saudi Aramco's Marjan Increment Development...

Saudi Arabia >>  7/9/2019 - Saudi Aramco has awarded 34 contracts with a total value of $18 billion for the engineering, procurement and construction of the Marjan and Berri incr...
Kuwait >>  7/1/2019 - Kuwait Oil Company (KOC) and Halliburton have signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature (HPHT) e...

Saudi Arabia >>  7/1/2019 - Saudi Aramco and Baker Hughes, a GE company (BHGE) signed a memorandum of understanding to create a new joint venture facility in Saudi Arabia to man...
United Arab Emirates >>  7/1/2019 - DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Charte...

Related Categories: Deodorization system  Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Related Articles: Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

Oil & Gas Projects in Saudi Arabia >>

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.