Royal Dutch Shell plc Exits Saudi Arabia Gas Project:
"Shells exits Kidan gas project
Kidan, located in the Rub al-Khali desert that spans much of the southern Arabian Peninsula, was to be developed by Shell alongside Saudi Aramco, the Kingdom's national oil company, as part of the South Rub al-Khali, or SRAK, field development joint venture. But likely due to overwhelming economic, logistical and technical challenges, Shell decided to back out.
In an emailed statement to the Oil & Gas Journal, a Shell spokesman said the company "has decided to end further investment in the Kidan development." It's not the only one. According to Reuters, at least three Western firms including Italy's ENI (NYSE: E ) , Spain's Repsol and France's Total (NYSE: TOT ) have also scrapped plans to search for gas in the Rub al-Khali.
One of the biggest challenges these companies faced in developing the Rub al-Khali, which means "the empty quarter" in Arabic, is the presence of what's known as "sour gas," which contains large quantities of hydrogen sulfide, a highly toxic and corrosive compound."
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