Business News
Jordan signs accord with Shell for oil shale exploitation
May 17, 2009, 19:57 GMT
Amman - The Jordanian government on Sunday signed an agreement with Royal Dutch Shell for the exploitation of the country's huge oil shale reserves.
The accord, which could involve an eventual multi-billion-dollar investment, was signed by the Minister of Energy and Mineral Resources Khaldoun Qteishat and Shell's Vice Chairman Malcolm Brendid.
Under the agreement, Shell pledged to spend 540 million dollars in the course of preliminary exploration operations, which could take at least 10 years before commercial production begins, Qteishat said.
The concessionary agreement will cover about 22,000 square kilometres and involves four stages at the end of which Shell will evaluate the outcome of its operations and decide whether to proceed to the next stage or halt the project, Maher Hijazin, director of the natural resources authority said.
'If Shell completes all stages it could arrive at a marathon project involving an investment of multi-billion dollars, whereby the country will not only reach self-sufficiency in energy but becomes an exporter of oil,' he added.
Jordan currently imports more than 95 per cent of its energy needs, estimated at about 110,000 barrels of oil per day, from Saudi Arabia at market prices.
Official estimates put Jordan's oil shale reserves at about 40 billion tons.
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