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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