Saudi Aramco has finalized the South Rub' al-Khali (SRAK) Gas Development venture with international petroleum companies Shell and Total. The area included in the SRAK agreement totals some 210,000 square kilometers, and the companies will enjoy a 25-year production period.
The SRAK Project covers non-associated gas exploration activities, as well as the evaluation, development and production of natural gas, natural gas liquids and field condensates in two promising areas in the southern and eastern Rub' al-Khali.
Shell holds a 40 percent share in the new joint venture, while Total and Saudi Aramco each hold a 30 percent stake in the project. The Kingdom currently has some 230 trillion standard cubic feet of proven gas reserves, as well as a gas processing and delivery network, the Master Gas System, stated a press release.
The SRAK Project is the first such agreement signed since the opening of the Kingdom's upstream gas sector. The project is designed to form a strategic partnership between the Kingdom and leading international petroleum companies, and to support domestic economic development and create employment opportunities for Saudi nationals.
Additional concession areas are also being offered for international development by the Ministry of Petroleum and Mineral Resources. The results of this ongoing process will be announced in coming months, according to the Ministry. — (menareport.com)
© 2003 Mena Report (www.menareport.com )