4 New Discoveries for Saudi Aramco
Feb 07 2021 Read 1484 Times
Oil and gas giant Saudi Aramco has started 2021 on a positive note with the discovery of four new fields. Energy Minister Abdulaziz bin Salman has confirmed two of the fields are unconventional deposits, one located at the existing Al-Reesh well which currently generates around 4,400 barrels per day of Arab extra light crude oil and just over 3 million standard cubic feet of natural gas.
Al-Sirrah, the second unconventional well harbours mostly natural gas, with production estimated at around 18 million cu m daily. Al-Sirrah is also the sight of the third discovery, an exclusively natural gas well with a daily rate of 32 million cu m. The fourth field was discovered at the Al-Ajramiyah well in northern Saudi Arabia, which currently pumps around 3850 barrels of crude per day. While the total recoverable reserves figure has yet to be confirmed, Saudi Arabian expects it to provide a significant boost to the industry.
Kingdom eyes extra light crude oil
Saudi Arabia is currently sitting on around 17% of the world’s total proven petroleum reserves. The new discoveries strengthen the Kingdom’s status as an energy superpower and suggest production will surge in 2021, with a renewed focus on extra light crude oil.
“The discovery at Al-Reesh field is especially important as it shows that it is possible to produce Arab extra light crude oil at the Tuwaiq mountain formation,” says the minister.
A positive shift for Saudi Arabia
As one of the largest oil producers in the world, Saudi Arabia was hit hard by the slump in demand triggered by the coronavirus pandemic. The Kingdom has been forced to slash spending plans for 2021 by 7% and faces a significant deficit due to the oil price crash. Saudi Arabia has also adhered closely to production control regulations issued by OPEC, unlike other nations that blatantly exceeded their quotas. While the industry may be experiencing a slump in production, Abdulaziz bin Salman was quick to highlight the new discoveries emphasise the wealth of natural resources available to Saudi Araia.
“Saudi Aramco continues to work on assessing the quantities of oil, gas, and condensate in the discovered fields and to determine their area and size,” adds the minister.
It’s not just COVID-19 that has reshaped the oil and gas industry over the past 12 months. Climate change has also forced producers to reassess emissions and develop more efficient, environmentally-friendly products. Find out more in ‘Global Collaboration and Development of the Latest Engine Oil Standards’.
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