In December 2008, the Natural Resources Authority forwarded to the cabinet the commercial contract it initially signed with Shell to tap Kingdom’s vast amounts of oil shale.
Sharif added that the final decision to go ahead with developing and investing in this promising sector will be made following the preliminary stages of the project.
As per the agreement, the first commercial quantities of oil extracted from oil shale will be produced within 12-20 years from the date the contract is signed between both sides, Minister of Energy and Mineral Resources Khaldoun Qteishat said in a previous statement.
Shell will employ its patented In-situ Conversion Process, under which the ground is heated over several years, to extract oil shale in oil form.
He said the anticipated initial figure of direct investments in the project ranges between $20-25 billion, adding that Shell will invest around $430 million during the project’s early phases.
The Cabinet referred the draft contract to be studied thoroughly by an ad hoc ministerial services committee before it is discussed again by Cabinet and then endorsed through constitutional channels, Qteishat said.
