Jordan has signed an initial agreement with the British company Shell for exploration of oil and gas fields in the Sarkhan basin in the northeast of the Kingdom.

The country's Energy and Natural Resources Ministry said that under the agreement the company will hold surficial study of the Sarkhan basin which covers an area of 20,000 square kilometers. Exploration work will begin in the first months of next year.

Previously, the company Shell and Jordan signed an agreement on shale gas production in the territory of the country. Jordan covers about 80% of its gas needs through imports from Egypt.

Mr Mustafa Fayyad Jordanian Senate member said that the loss to Jordan due to short supply of Egyptian gas is about USD 1 billion per year but in reality the losses can be much higher.

Since the beginning of November, mass demonstrations are underway in Jordan in connection with up to 50% increase in fuel prices because of growing state budget deficit of the country which hits USD 7.7 billion.