Thu Mar 7, 2013 4:40am EST
* High costs, low returns of Empty Quarter gas search
* Development terms the problem-sources
* Shell says talks with Saudi government continue
By Reem Shamseddine and Amena Bakr
KHOBAR/DUBAI, March 7 (Reuters) – Royal Dutch Shell is set to pull out soon from a joint venture that has searched for gas in Saudi Arabia’s Empty Quarter for years, due to disagreements with the government over terms, four industry sources familiar with the matter said.
The gas search has been a top priority for Saudi Arabia as it struggles to keep pace with rapidly rising domestic demand for energy, but the shale revolution has opened up more lucrative opportunities for energy companies elsewhere.