Nov 17 2011 |
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Saudi Aramco, Shell JV Secures OK To Assess Kidan Area
Thursday, Nov 17, 2011
(This story was originally published Wednesday.)
RIYADH (Dow Jones)--A joint venture between Saudi Arabian Oil Co., known as Saudi Aramco , and Royal Dutch Shell PLC (RDSB) said Wednesday it has secured approval from the Saudi government for Kidan area appraisal plan in the Rub al-Khali or empty quarter.
"As a result of this approval, the South Rub al-Khali Co ., or SRAK , will be drilling up to three appraisal wells and conducting extensive studies aimed at further defining development concepts for the field," the joint venture said in a statement posted on its website.
SRAK was one of three ventures launched in 2003-04 that gave international oil companies upstream access to Saudi Arabian energy reserves for the first time since 1980.
It has drilled the first of three exploration wells it hopes to make in the second phase of the exploration plan and completed the acquisition of 1025 km of the planned 1950 km 2D seismic data, in addition of 4,328 square km of 3D seismic data.
Last year the firm said it has extended its exploration license by five years to 2015.
Saudi Arabia plans to greatly increase gas production to meet domestic energy demand and free up crude oil for export. However, the country hasn't yet discovered non-associated natural gas in sufficient quantities to replace oil as the fuel for its planned electricity plants and guarantee cheap feedstock for new petrochemical factories.
Shell's decision to continue its drilling program will allay some fears about the commercial viability of the exploration areas after the withdrawal of France's Total SA (TOT) from the venture in 2008. SRAK is now a 50-50 venture between Aramco and Shell.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
(END) Dow Jones Newswires
17-11-11 0401GMT
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