Saudi Arabia will spend about USD 17 billion developing the Manifa oil field as the national crude producer shifts focus to developing natural gas deposits and refining and petrochemical plants.
Mr Khalid Al-Falih CEO Saudi Arabian Oil Company said that the company will spend USD 90 billion expanding its refining and petrochemical assets. The company known as Saudi Aramco aims to be a top tier producer of petrochemicals within the next decade. The Manifa field is set to begin producing crude in 2013.
He said that “Saudi Aramco is going to grow in our downstream and our gas production. Aramco generally outlines its spending in 5 year plans.
According to BP Plc’s Statistical Review of World Energy, Saudi Arabia holds the world’s largest oil reserves and the fifth largest gas deposits. The country is seeking to produce more gas to run power plants and save more valuable crude for exports, with local electricity demand growing by about 8 percent according to government figures. The kingdom used 8.1 billion cubic feet of gas a day last year.
Mr Al Falih said that unconventional gas will help meet domestic demand. Aramco is boosting investment in gas exploration and will look for deposits in the Red Sea and for shale oil. We are undertaking a massive exploration campaign. The company plans to start drilling for gas in the Red Sea very soon next year and may expand exploration to deeper water areas in late 2012. Aramco made a conventional gas discovery in the northwest of the kingdom that it is still evaluating.
He said that Aramco is developing the Manifa oil field to raise output of heavy crude, which is thicker and more difficult to refine. The company is planning three refineries to process the blend, which generally fetches lower prices on international markets compared with lighter grades. It is producing well above 9 million barrels a day.
Mr Ali Al Naimi oil minister of Saudi Arabia said that government will invest USD 125 billion on upstream and downstream oil projects over 5 years to enhance its production capacity. The company in 2009 completed the previous capital spending program of more than USD 100 billion which was then the biggest in its history.
He said that the company sees a new golden age of petroleum with adequate supply and technology, while noting that the pace of progress on alternatives to crude including renewable energy and nuclear projects is faltering.
(Sourced from www.arabianbusiness.com)
