Saudi Arabia plans $110bn investment in Al-Jafurah unconventional gas field

Saudi Arabia plans $110bn investment in Al-Jafurah unconventional gas field
Saudi Aramco plans to invest $110 billion to develop unconventional gas reserves in Saudi Arabia’s Al-Jafurah field. (SPA)
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Updated 22 February 2020

Saudi Arabia plans $110bn investment in Al-Jafurah unconventional gas field

Saudi Arabia plans $110bn investment in Al-Jafurah unconventional gas field
  • Al-Jafurah deposits are estimated to hold 200 trillion cubic feet of wet gas
  • Al-Jafurah is southeast of Ghawar, the world’s largest conventional oilfield

RIYADH: Saudi Aramco plans to invest $110 billion to develop unconventional gas reserves in Saudi Arabia’s Al-Jafurah field, Saudi Press Agency (SPA) reported on Friday.

The development plans were reviewed by the Saudi High Commission for Hydrocarbons in a meeting chaired by Crown Prince Mohammed bin Salman.

The Al-Jafurah deposits are estimated to hold 200 trillion cubic feet of wet gas and the phased development of the field is expected to gradually increase production to 2.2 trillion cubic feet by 2036 if fully completed, SPA said.

The crown prince said development of the field over 22 years would provide the government with an annual net income of $8.6 billion and contribute $20 billion to the kingdom’s gross domestic product per year, according to the agency.

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The field is expected to produce 130,000 barrels per day of ethane and 500,000 bpd of gas liquids and condensates.

Al-Jafurah is southeast of Ghawar, the world’s largest conventional oilfield.

Unconventional gas refers to reserves requiring advanced extraction methods, such as those used in the shale gas industry.

SPA said the crown prince ordered gas produced from Al-Jafurah to be prioritized for domestic industries, including mining, to support the Kingdom’s Vision 2030 development plan.

(With Reuters/SPA)


Oil prices rise as market awaits deal output deal

Updated 03 December 2020

Oil prices rise as market awaits deal output deal

Oil prices rise as market awaits deal output deal
  • OPEC and its allies create uncertainty with two-day delay to meeting to decide whether to increase production

LONDON: Oil prices rose on Wednesday as the market awaited a pact from producers on output, which many traders expect will continue to be reined in, and Britain’s approval of a COVID-19 vaccine gave hopes for a demand recovery a boost.

Prices were hit earlier by a surprise build in oil inventories in the US and as OPEC and its allies created uncertainty with a two-day delay to a formal meeting to decide whether to increase production in January.

Brent crude oil futures were up 1.9 percent at $48.31 in late afternoon trade in London, while West Texas Intermediate crude was also up about 2 percent to $45.46.

Industry data from the American Petroleum Institute showed US crude inventories rose by 4.1 million barrels last week, compared with analysts’ expectations in a Reuters poll for a draw of 2.4 million barrels.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, a group known as OPEC+, postponed talks on next year’s oil output policy to Thursday from Tuesday, according to sources.

The group this year imposed production cuts of 7.7 million barrels per day (bpd) as the coronavirus pandemic hit fuel demand.

It had been widely expected to roll those reductions over into January-March 2021 amid spikes in COVID-19 cases.

But the UAE said this week that even though it could support a rollover, it would struggle to continue with the same deep output reductions into 2021.

“Energy markets will remain on edge until OPEC+ gets past tomorrow’s meeting. Oil prices should continue to have underlying support as vaccine makers announce start dates for beginning immunizations,” he added.

Britain on Wednesday became the first western country to approve a COVID-19 vaccine, jumping ahead of the US and the EU in what may be a first step toward a return to normal life and boost to oil consumption.