Aramco makes new oil and gas discoveries

Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman bin Abdulaziz, has announced that Aramco has discovered 14 Arabian oil and natural gas fields and reservoirs in Eastern Region and the Empty Quarter

The discoveries include six fields and two reservoirs of oil, as well as two fields and four reservoirs of natural gas. The oill. discoveries  amount to a total of 5,801 bpd from the Eastern region, and 2,325 bpd from the Empty Quarter, giving a total of 8,126 bpd, along with 2.11 mmscf/d of associated gas. The natural gas discoveries amount to a total of 80.5 mm scf/day along with 6,010 bbl condensate.

While these are modest compared to the Kingdom’s vast reserves of more than 260bn bbl, the second largest in the world, the Minister stressed the significance of the added value that these discoveries represent, cementing the Kingdom’s leading position in the global energy sector, reinforcing its rich hydrocarbon potential and strengthening its ability to meet both domestic and global energy demand efficiently and sustainably, as well as supporting the Kingdoms ambitious Vision 2030 development plans.

Oil prices are however currently at a relatively low level, having recently dropped below US$60/bbl in the face of a perfect storm of recession fears following the imposition of US tariffs and the unwinding of OPEC production cuts. Saudi Arabia, which has shouldered most of the burden of OPEC production cuts, is currently producing around 9mn bpd, and with the unwinding of OPEC production cuts, is due to bump that up to 9.2mn bpd in May.

Aramco intends to maintain its position as the world’s largest crude oil company by production volume, and is progressing several crude oil increments that are scheduled to come onstream in the coming years to sustain maximum sustainable capacity at 12mn bpd, although it has abandoned previous plans to raise this further to 13mn bpd. It is instead strengthening its focus on gas, including the development of its unconventional gas resources.

Downstream, Aramco intends to continue the strategic integration of its Upstream and Downstream businesses, grow its liquids-to-chemicals business and enhance its domestic and global Downstream businesses in key high-growth geographies such as China, India, and Southeast Asia. In recent developments, China Petroleum & Chemical Corporation (Sinopec), and Yanbu Aramco Sinopec Refining Company (Yasref) have announced the signing of an agreement intended to pave the way for a major petrochemical expansion at Yasref, in Yanbu, on the west coast of Saudi Arabia. It will involve the creation of a state-of-the-art petrochemical unit, a large-scale mixed feed steam cracker with a 1.8 million tons per year capacity, and a 1.5 million tons per year aromatics complex with associated downstream derivatives integrated into the existing Yasref complex. This is expected to enhance Yasref’s ability to meet the growing demand for high-quality petrochemical products.