Shell signs Saudi Natural Gas Initiative agreements in Jeddah

Sir Mark Moody-Stuart, Chairman of the Royal Dutch/Shell Group, signed two major gas project agreements, offered to international oil companies as part of the Saudi Natural Gas Initiative, in Jeddah this afternoon. Shell will lead Core Venture 3 (projects in Rub al Khali and Shaybah areas) together with Total Fina Elf and Conoco and will play a major role in Core Venture 1 (South Ghawar gas development and related projects) with ExxonMobil, BP and Phillips.

Sir Mark Moody-Stuart, said: "Shell is honoured to be given such a significant role in this historic development, with it set to represent the largest integrated project undertaken to date by the Shell Group. We see great potential for the Kingdom in the development of its natural gas resources, providing a magnet for increased investment and a motor for economic diversification."

Phil Watts, CEO of the Exploration and Production business, added: "We look forward to working alongside our Core Venture partners to grow the natural gas sector in Saudi Arabia. Over the past sixty years Shell Companies in the Kingdom have established successful partnerships. We seek to build on these in this exciting new venture."

The Core Ventures have been awarded to international oil companies as part of Saudi Arabia's multibillion dollar gas value chain investment programme, comprising exploration and production, power generation, desalination and chemicals projects.

Shell has been active in the Kingdom of Saudi Arabia since the 1940s and has invested over $7 billion with its partners in petrochemicals, refining, and other downstream business ventures.

Shell operates more oil and gas than any other private company in the world and, consequently, has gained experience at leading such consortia in many places around the world

Shell To Participate In Core Ventures In Saudi Natural Gas Initiative

These are two of three Core Ventures awarded to international oil companies as part of Saudi Arabia's multibillion dollar gas value chain investment programme, comprising exploration and production, power generation, desalination and chemicals projects.

Sir Mark Moody-Stuart, Chairman of the Royal Dutch/Shell Group, said: "Shell is honoured to be given such a significant role in this historic development. We are delighted to have been selected to participate in both Core Venture 1 and Core Venture 3".

Phil Watts, CEO Exploration and Production, added: "The Saudi Natural Gas Initiative represents an excellent opportunity for Shell to build upon its long history of partnership with the Saudi government and the Saudi people. We look forward to playing a constructive role in the establishment of the Saudi natural gas industry."

This announcement follows a Letter of Intent (LOI) signed last December in which Shell expressed its interest to participate in the Natural Gas Initiative.

Shell has been active in the Kingdom of Saudi Arabia since the 1940s and has invested over $7 billion with its partners in petrochemicals, refining, and other downstream business ventures.