Due to the vast size of the exploration area - about 210,000 square kilometres - the contracts are being tendered in packages. A total of four contracts for seismic surveys will be awarded in two phases as part of the first 12-month exploration programme.

Phase one will see the award of two contracts in March, with another two awards to follow at a later stage under the second phase. A new round of one-year contracts will be tendered in the second year of the exploration phase. The project company is required to submit a progress report to the Petroleum & Mineral Resources Ministry at the end of each project year.

The contracts will follow a two-pronged strategy. In exploration areas considered to be the most promising, the focus will be on drawing up detailed maps; less detailed surveys will be carried out in other parts to establish an overview of the total exploration area.

Under the terms of the agreement, Shell has assumed the role of operator and taken a 40 per cent stake in the venture, with the remaining 60 per cent evenly split between France's Totaland Saudi Aramco. South Rub al-Khali will be headquartered in Al-Khobar in the Eastern Province and headed by Shell's Patrick Allman-Ward.

The Shell-led consortium signed the landmark agreement for the deal with the ministry in mid-November (MEED 21:11:03).