Saudi Aramco discovered 8 new oil and gas fields in 2014

Updated 11 May 2015

Saudi Aramco discovered 8 new oil and gas fields in 2014

JEDDAH: Saudi Aramco discovered eight new oil and gas fields in the east of the country in 2014, the company said in its annual report.
Saudi Aramco did not give figures on estimated reserves or production rates for the new fields but said they represent the highest number of discoveries in the company’s history.
“Upstream, we reliably met domestic and international demand, discovered eight new fields and booked reserves that significantly exceeded production — despite the fact our combined oil and gas production approached an all-time high,” Chairman Khalid Al-Falih wrote in the report.
There were five new gas fields, named Abu Ali, Faras, Amjad, Badi and Faris, with two oil fields, Sadawi and Naqa. The other was an oil and gas field named Qadqad.
“This brings our total number of discovered fields to 129,” the company said.
Saudi Aramco produced 9.5 million barrels per day (bpd) on average in 2014 and exported a total of 2.5 billion barrels to customers around the world, the report said.
Saudi Arabia, which has output capacity of 12.5 million bpd, pumped 10.29 million bpd in March.
The company said at the end of 2014 that crude oil and condensate reserves stood at 261.1 billion barrels while natural gas reserves registered 294 trillion cubic feet, both record highs.
Saudi Arabia has about 100 major oil and gas fields, but more than half of its oil reserves are contained in eight fields in the northeast portion of the country, according to the US Energy Information Administration.
Its giant Ghawar field is the world’s largest oil field in terms of production and total remaining reserves.
The report said that Aramco’s Sadara joint venture with The Dow Chemical Company is on schedule for an initial start up in the third quarter of 2015 and all process units will be on-stream within one year of start up.
Sadara is on track to be the first chemical complex in the countries of the Gulf Cooperation Council (GCC) to use naphtha as part of its feedstock. This advance will lead to new specialty chemicals plants and businesses in the Kingdom and open up a new range of downstream opportunities, which in turn will help create high-quality jobs for Saudi nationals, according to the report.
“We run the world’s largest corporate training program. More than 28,000 apprentices and 5,000 college students have graduated from our programs since their inception.” said Huda M. Al-Ghoson, executive director, human resources, in the annual report.

Saudi Arabia looks to cut spending in bid to shrink deficit

Updated 01 October 2020

Saudi Arabia looks to cut spending in bid to shrink deficit

  • Saudi Arabia has issued about SR84 billion in sukuk in the year to date

LONDON: Saudi Arabia plans to reduce spending next year by about 7.5 percent to SR990 billion ($263.9 billion) as it seeks to reduce its deficit. This compares to spending of SR1.07 trillion this year, it said in a preliminary budget statement.

The Kingdom anticipates a budget deficit of about 12 percent this year falling to 5.1 percent next year.

Saudi Arabia released data on Wednesday showing that the economy contracted by about 7 percent in the second quarter as regional economies faced the twin blow of the coronavirus pandemic and continued oil price weakness.

The unemployment rate among Saudis increased to 15.4 percent in the second quarter compared with 11.8 percent in the first quarter of the year.

The challenging headwinds facing regional economies is expected to spur activity across debt markets as countries sell bonds to help fund spending.

Saudi Arabia has already issued about SR84 billion in sukuk in the year to date.

“Over the past three years, the government has developed (from scratch) a well-functioning and increasingly deeper domestic sukuk market that has allowed it to tap into growing domestic and international demand for Shariah-compliant fixed income assets,” Moody’s said in a statement on Wednesday. 

“This, in turn, has helped diversify its funding sources compared with what was available during the oil price shock of 2015-16 and ease liquidity pressures amid a more than doubling of government financing needs this year,” the ratings agency added.