SAUDI ARABIA: OIL GIANTS ROYAL DUTCH/SHELL AND TOTAL SIGN LANDMARK DEAL ON GAS EXPLORATION WITH SAUDI ARABIA

Record ID: 189763

  • Title: SAUDI ARABIA: OIL GIANTS ROYAL DUTCH/SHELL AND TOTAL SIGN LANDMARK DEAL ON GAS EXPLORATION WITH SAUDI ARABIA
  • Date: 15th November 2003
  • Summary: (W8) RIYADH, SAUDI ARABIA (NOVEMBER 15, 2003) (REUTERS) 1. VARIOUS OF DELEGATIONS WALKING AND SEATED AT TABLES (3 SHOTS) 0.25 2. (SOUNDBITE) (Arabic) PETROLEUM AND MINERAL RESOURCES MINISTER ALI IBN IBRAHIM AL-NAIMI SAYING: "The south Rub'al-khali upstream partnership agreement signed today not only formed an important strategic alliance between the kingdom and major petroleum companies such as Shell, Total and Saudi Aramco, but also serves as an indicator of confidence in the strength and solidity of the Saudi economy. This agreement also represents a significant advance in developing gas investments and achieving a number of vital national goals." 1.08 3. VARIOUS OF SIGNING CEREMONY AND SIGNATORIES SHAKING HANDS (7 SHOTS) 2.08 4. (SOUNDBITE) (English) SHELL CHAIRMAN PHILIP WATTS, SAYING: "Shell is now able to contribute some experience to help the kingdom build its long term gas business even further. We appreciate that this project is a key element in the kingdom's development plans. So together with our partners, we are committed to moving ahead quickly with operations on the ground without delay. We are very excited by the prospect of exploring in an area in the south Rub'al-khali, about the size of Great Britain." 2.47 5. DELEGATES APPLAUDING 2.51 6. WIDE OF CEREMONY 2.58 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 30th November 2003 12:00
  • Keywords:
  • Location: RIYADH, SAUDI ARABIA
  • Country: Saudi Arabia
  • Reuters ID: LVACIUFFQYI4J9RHXZP40D6T3BP1
  • Story Text: Oil majors Royal Dutch/Shell and Total have signed a
    landmark deal on gas exploration with Saudi Arabia.


    Oil majors Royal Dutch/Shell and Total signed a
    landmark deal with Saudi Arabia on Saturday (November 15)
    to find and pump natural gas in the kingdom.

    Saudi Arabia's cabinet gave final approval to the deal
    with Shell, Total and state-owned Saudi Aramco earlier this
    month.

    The agreement "not only forms an important strategic
    alliance between the kingdom and major petroleum companies
    such as Shell, Total and Saudi Aramco, but also serves as
    an indicator of confidence in the strength and solidity of
    the Saudi economy," Saudi Oil Minister Ali al-Naimi said in
    a speech after the signing.

    Through the deal, Shell and Total will win the first
    Western oil company rights to Saudi Arabia's huge energy
    reserves since the kingdom nationalised them in the 1970s.

    The project could see up to $2 billion invested to
    develop a 209,160 square km (80,740 sq mile) block in the
    southern part of the vast Empty Quarter desert.

    The project was the sole survivor of the kingdom's
    so-called gas initiative for foreign investors. Two other
    multi-billion dollar gas development packages fell apart
    after a prolonged contractual dispute.

    "Shell is now able to contribute some experience to
    help the kingdom build its long term gas business even
    further. We appreciate that this project is a key element
    in the kingdom's development plans. So together with our
    partners, we are committed to moving ahead quickly with
    operations on the ground without delay," Shell Chairman
    Philip Watts said after the signing.

    Shell will have 40 percent of the project, with Total
    and Saudi Aramco holding 30 percent each.


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