A Jordanian official said that Royal Dutch Shell PLC has commenced the first stage of exploring oil in the country's extensive oil shale deposits on the basis of a signed contract between the 2 sides.

Mr Maher Hijazin director of Jordanian Natural Resources Authority said that the first stage was launched after a signed agreement between Shell and Jordan last May was put in implementation.

Mr Hijazin said that based on the agreement, the company will provide USD 30 million including USD 5 million to the Jordanian government. Shell will spend USD 540 million in the project's initial exploration, assessment and designing before commercial operation.

He said that the agreement consists of four stages due to last for 3 years, prior to final stage which will be the investment part. Jordan which sits atop an estimated 40 billion tonnes of oil shale deposits imports 95% of its energy needs.

(Sourced from Menafn.com)