Saudi Aramco to boost gas exploration

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Saudi Arabian Oil Company, also known as Saudi Aramco, is boosting its gas exploration and development efforts to meet rising demand for electricity in the kingdom, Arab News reported.

"King Abdullah has given instructions to carry out more gas drilling and development operations … to use gas, instead of oil, for electricity generation, as oil can be exported or kept for future generations," the newspaper cited Petroleum and Mineral Resources Minister Ali Al-Naimi as saying.

Aramco is drilling at two new wells in Tabuk, which has "substantial reserves of oil and gas in commercial quantities" and is also using an advanced drilling ship designed to carry out operations in deep waters in order to find oil and gas in the Red Sea, the newspaper reported, citing Naimi.

The kingdom, the world’s largest crude exporter, found double the amount of gas previously estimated in the Madyan gas well, Naimi added.

Aramco will drill more wells to appraise the Madyan field, which is forecast to produce 75m cubic feet a day of gas and 4,500 barrels a day of condensate for a 20-year period, the newspaper reported.

Aramco's gas production averaged 9.9bn cubic feet per day in 2011, up from 9.4bn cubic feet per day in 2010, while gas reserves rose to 282.6 trillion standard cubic feet from 279 trillion standard cubic feet.

Saudi Arabia has about one-fifth of the world's proven oil reserves and is the largest oil producer and exporter of total petroleum liquids in the world. The kingdom has the largest spare capacity which it has used to help stabilise the global oil market and invest in the development of the country's infrastructure in addition to providing financial aid to neighbouring countries.

Iraq and Iran are the second and third largest producers after the kingdom in the Organisation of Petroleum Exporting Countries cartel.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Will shale shake the Middle East?

Will shale shake the Middle East?

The debate over shale’s impact on the GCC continues. Will this...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams