April 17 (Bloomberg) -- South Rub al-Khali, a Saudi Arabian joint venture between Royal Dutch Shell Plc and Saudi Aramco, got a government extension for its drilling program as it searches for natural gas in the region known as the Empty Quarter.

The 18-month extension is for the first exploration period, which includes a drilling program of seven gas wells, Muhammad Ibn Awad al-Qhtani, head of external affairs at the venture known as SRAK, said by telephone from Riyadh today. The extension will allow more time to explore for additional natural gas, al-Qhtani said.

SRAK started drilling its fourth exploration well, Kiran-6, in March, according to a SRAK statement on March 25. The venture failed to find natural gas on three previous tries.

Total SA withdrew from SRAK in February because the venture failed to find gas and transferred its shares to the other partners. Shell held 40 percent of the project and Saudi Aramco had 30 percent before Total gave up its stake. The companies agreed in July 2003 to explore for gas in an area of 200,000 square kilometers (78,000 square miles) in the Rub al-Khali desert, or Empty Quarter.

Total and Shell, Europe's largest oil company, became the first Western companies to win rights to develop Saudi Arabia's energy reserves after they were nationalized in the 1970s. Saudi Arabia, holder of a quarter of the world's known oil reserves and about 2.5 percent of its gas, awarded the contract to boost its gas reserves from the current volume of 250 trillion cubic feet.

The country requires natural gas to meet soaring domestic demand as it spends record oil revenue on developing new cities and industries to provide improved living standards and jobs. New discoveries in the Rub al-Khali in the kingdom's southeast, were expected to boost gas reserves.

To contact the reporter on this story: Glen Carey in Dubai at gcarey8@bloomberg.net

Last Updated: April 17, 2008 07:13 EDT