The three contract areas offered under the initial upstream gas round are located in the Rub al-Khali zone, an area that was originally designated to be developed under the gas initiative. Contract area A covers 29,900 square kilometres, area B 38,800 square kilometres and area C about 51,400 square kilometres (see map).

According to the ministry, a number of companies will be prequalified for each package over the next three months, before the tender is launched in January. IOCs will have access to confidential upstream data in Dhahran, against a refundable deposit of $100,000 for each contract area, until 10 October.

Representatives of IOCs from the US, Europe, China, India, Japan, Malaysia and Russia participated in the meeting, which an international oil executive described as 'very well attended indeed'.

'The upstream gas opening is a strategic decision by the government in support of economic liberalisation, and will help attract foreign direct investment,' Naimi said in an opening address at the briefing.

The briefing came only days after the ministry and the Royal Dutch/Shell Group signed an agreement for the upstream development of non-associated gas resources in the area originally allocated to core venture 3 under the gas initiative (MEED 18:7:03).

The landmark deal will allow IOCs for the first time since the creation of Saudi Aramcoto become involved in the upstream development of the kingdom's hydrocarbons reserves. Actual non-associated gas reserves in the kingdom are estimated by the ministry to be close to 50 trillion cubic feet.