DAMMAM, 20 November 2006 — Gas would continue to propel the industrial drive of the Kingdom, heralding a new era of prosperity for its people. With gas demand in Saudi Arabia set to grow three fold, from five billion cubic feet per day (BCFD) to 14.5 BCFD by 2030 Saudi Arabia is pursuing an extensive gas exploration program. It has already added 48 trillion cubic feet to its gas reserves in the last decade. Exploration in under explored areas of Red Sea, Rub Al-Khali (the Empty Quarters) and the northwest onshore areas are currently under focus. The Saudi gas reserves are estimated today at 242 trillion cu.ft.
The Saudi government is pursuing a policy to encourage industries in the Kingdom that depend on its hydrocarbon resources, says Prince Faisal ibn Turki, adviser to the Ministry of Petroleum and Mineral Resources, and the driving force behind the Saudi hydrocarbon policy who chaired the first session and introduced the panelists one after the other. Prince Faisal took deep interest in the proceedings, intermingled with the guests and the speakers and took active part in discussions during and after the sessions.
The Kingdom’s hydrocarbon and mineral policy broadly aims at creating jobs, wealth and prosperity through sustained economic and individual growth through economic diversification, said Khalid Al-Senani, manager gas supply and pricing department, Ministry of Petroleum & Mineral Resources, while making his presentation on Saudi Arabia’s gas industry — progress and future development.
A packed, rather overflowing conference hall at the Eastern Province Chamber of Commerce and Industry, defined the mood at the beginning of Saudi Energy Forum yesterday — the second day of the forum.
With gas reserves exceeding 2,585 trillion cubic feet, the Middle East has already overtaken Russia as far as gas reserves are concerned, emphasized Abdulah A. Al. Naim, vice president exploration at Saudi Aramco, while giving an overview of the extensive gas exploration activity currently being undertaken in various parts of the Kingdom.
Rub Al-Khali has been identified by the US Geological Survey as among top three unexplored areas. This area is thus of major interest for gas reserves. When the Saudi Gas initiative was finally launched in 2004, the Empty Quarters was the focus of attention. All eyes have since been glued to the results from this area, as this was the first experience of the Kingdom in joint venture in upstream hydrocarbon projects. All the joint venture partners of Saudi Aramco expressed their satisfaction with how things were moving ahead in this direction.
The CEO of South Rub Al-Khali Company Ltd. (SRAK) Dr. Patrick Allman gave an overview of the challenges and the successes achieved by his joint venture organization. SRAK has already spudded the first well ahead of the schedule and it currently undergoing testing.
The Sino-Saudi Gas Ltd. with block-B of the acreage contracted to them for development are also going ahead with their exploration program. The CEO of the joint venture company Shichneg Wang told the packed auditorium that two exploratory wells have been drilled and are currently under testing. Two more are expected to be drilled by early next year, he added.
Similarly Luksar Energy Ltd. has also drilled two wells by now which are undergoing testing. Eni Repsa Gas Ltd., despite facing technical challenges of deep well, high pressure, high temperature and high hydrogen sulphide content has been successful in drilling a number of wells by now.
The next two sessions were focused on petrochemicals. The first of these sessions was chaired by Mohammed Al-Mady, vice chairman and CEO of SABIC. The Saudi petrochemical output was expected to go up to 75 million MT/year by 2010 against 40 million MT/ year in 2005. The Saudi share in the global petrochemical industry would hence go up from seven percent in 2005 to 13 percent in 2010.