Aramco to develop deep water exploration and production
Saudi Aramco plans to produce natural gas this decade off the Red Sea coast to increase domestic supplies to power generation and water desalination plants rising 7 percent a year.
The program is designed to ensure to have ample spare capacity to meet underestimated energy demand.
Saudi Aramco started 2D and 3D seismic studies in 2009 with the local Arabian Geophysical & Surveying Company.
In 2011 Saudi Aramco, the world’s largest state-run oil company, awarded two contracts to Saudi Arabia’s Shoaibi Group to search for oil and gas in the Red Sea.
Shoaibi Group and its international partners started in February to survey parts of the Red Sea, the Khobar.
The contracts were with U.K.’s ARKeX and the Norwegian Electromagnetic GeoService AS ( EMGS).
Shoaibi and its partners completed the exploration and data-compilation work on second quarter 2011.
In addition Shoaibi formed two joint ventures last year, one with Global Geophysical Services, the other with Norway’s Petroleum Geo-Services Co., known as PGS, to provide seismic services in Saudi Arabia.
All this program is to help Saudi Arabia to increase natural gas production by 40 percent to 4.5 billion cubic feet per day in 2014.
Saudi Aramco targets 100 billion barrels from Red Sea
This increase would represents 38% increase of the actual Saudi Arabia 267 billion barrels of so-called proven reserves, about one-fifth of the world’s total.
Saudi Aramco, the world’s largest oil producer, plans to drill its first deep water exploratory well in the Red Sea by year-end.
Deep water and shallow water drilling are key components of Saudi Aramco’s long-term goal of finding at least 100 million barrels of energy resources within the Kingdom of Saudi Arabian (KSA) in the next decades
The company is also working on increasing its rate of oil recovery from fields to 70% from 50% in coming years.
These discovered oil and gas fields lie by more than 1000 meters water depth and request to introduce and deploy deep water offshore technologies at large scale.
Therefore this program will benefit to engineering and services companies which have accumulated experience in other deep water regions such as the North Sea or the Gulf of Mexico.
To support the deep offshore exploration and production program Saudi Aramco will improve its research and development capabilities.
Saudi Aramco will double the number of scientists who work for the company and opening research centers around the world, the first one to be in Houston, Texas USA.
Duba could also be used to install the downstream activities for the oil and gas treatment.
Saudi Aramco is operating offshore fields such as Safaniya for 50 years, so it is confident to implement its $25 billion capital expenditure in the Red Sea on time with Saudi Arabia targets.