JEDDAH, 3 November 2003 — The Kingdom’s Supreme Council for Petroleum and Mineral Affairs has approved a $2 billion gas project with a consortium led by Royal Dutch Shell, according to the council’s secretary-general.
A meeting of the council, chaired by Crown Prince Abdullah, deputy premier and commander of the National Guard, on Saturday also approved a framework agreement for three gas exploration and production projects.
“The meeting approved the project in principle,” Dr. Matlab Al-Nafeesa, the secretary-general, said referring to a deal signed by Saudi Aramco with the consortium, which includes the French giant TotalFinaElf.
Petroleum and Mineral Resources Minister Ali Al-Naimi announced the deal on Oct. 11. He said a new company would be set up for gas exploration and production from an area of 209,160 sq km in the Rub Al-Khali (Empty Quarter) in the south of the Kingdom.
