IOCs from China, Malaysia, Russia, India, Japan, Europe and the US are understood to be prequalified for the upstream gas round, which covers three contract areas in the Rub al-Khali zone - an area that was originally designated to be developed under core venture 1 of the gas initiative. The three tracts are contract area A, which covers 29,900 square kilometres, the 38,800-square-kilometre area B and area C, which covers about 51,400 square kilometres.

Companies have been given access until 15 October to Aramco's data room in Dhahran, against a refundable deposit of $100,000 for each contract area. Bid documents are due to be returned by 24 January, with offers for the three designated areas to be opened over three consecutive days thereafter.

Under the licensing and bid procedures set out, the ministry 'will qualify companies as operators and non-operators' and will need to approve 'any consortium formation'. In addition, the ministry has given companies that were not originally invited to participate in the scheme until 30 October to submit their expressions of interest. The ministry will individually qualify each of these companies.

Under a joint operating agreement, Saudi Aramcowill take a 20 per cent interest in each of the three contract areas, which will be developed by a single firm or a consortium of IOCs. However, the ministry says that Aramco will have 'no special rights, no golden share' and 'no more rights exceeding its 20 per cent share'.

Under the same regulations, Aramco will also act as offtaker, guaranteeing the purchase of up to 750 million cubic feet of gas from the operators of each contract area. Gas production above this level will be taken on a 'best effort' basis, the ministry says. Moreover, the government has determined a minimum gas production rate of 350 million cubic feet from each contract area to trigger the construction of a pipeline from the domestic master gas system (MGS) to a primary delivery point in the concessions. The gas rounds will complement another upstream gas project signed in July between the ministry and a team led by the Royal Dutch/Shell Group. Under the deal, Shell, with France's Totaland Aramco, will explore, produce and develop non-associated gas resources in the 200,000-square-kilometre area originally assigned to core venture 3 (MEED 18:7:03).