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FINANCIAL NEWS
Aramco, Shell JV extends gas drilling license
27 Oct 2010
(MENAFN) A joint venture between Saudi Aramco and Royal Dutch Shell PLC (RDSB) to drill for natural gas in the Kingdom�s Empty Quarter has extended its exploration license by five years to 2015, Reuters reported.
The South Rub Al-Khali Co, or 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.
Saudi Arabia plans to greatly increase gas production in order to meet domestic energy demand and free up crude oil for export.
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 Royal Dutch Shell.
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