You are here

Shell withdraws from Kidan natural gas project in Saudi Arabia

09th July 2014

Shell has confirmed that it is to withdraw from its joint venture project to develop natural gas production in the Empty Quarter with Saudi Aramco

Shell withdraws from Kidan natural gas project in Saudi Arabia
Shell remains committed to the Kingdom and we are keen to grow our investments, both in upstream and downstream

"Shell has been in regular dialogue with officials at the ministry of petroleum and mineral resources and our joint venture partner, Saudi Aramco, in the South Rub Al Khali Company (SRAK) on the Kidan project,” said a Shell spokesperson. “Shell has decided to end further investment in the Kidan development. This was a difficult decision but Shell remains committed to the Kingdom and we are keen to grow our investments, both in upstream and downstream."

The move comes as surprise to many in the industry that believed the Anglo-Dutch supermajor would soon issue front-end engineering contracts for the sour gas project, as part of a USD 4bn planned first phase development initiative.

Shell's withdrawal from Kidan follows a number of disappointments in the Empty Quarter (Rub al-Khali) in which international joint ventures have failed to find commercially viable reserves.

Got a news tip? Email news@oilandgastechnology.net