September 08, 2008

Aramco to boost drilling investments by 40%

MEED reported that Saudi Aramco is preparing a plan to boost drilling activity by a third and increase investments by 40%. As per report, a final version of Aramco's plan, which runs from 2009 to 2013, is expected to be approved by the company's board and the Oil Ministry by mid May 2008.

Aramco will bolster the number of wells drilled around Saudi Arabia to 248 as compared with an initial target of 187 and investment on projects will be increased to USD 13.7 billion from USD 10.7 billion under the draft plan. The increase in drilling activity will be aimed at sustaining Saudi’s production target of 12.5 million barrels a day, which it expects to reach by the end of 2009.

Mr Ali Al Naimi Saudi oil minister said that the world's top oil exporter has no plans to embark on further capacity expansion as long term oil demand forecasts fall and alternative fuel supplies rise. He added that the world has enough oil to fuel future economic growth, but the energy industry is facing a big challenge to ensure investment is enough to meet future demand.