Aramco’s giant gas field Jafurah could replace 500,000 bpd of Saudi oil: CEO

Aramco’s giant gas field Jafurah could replace 500,000 bpd of Saudi oil: CEO
The move is part of the Kingdom’s push to commercialize its unconventional resources and expand Aramco’s integrated gas portfolio. (AN)
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Updated 29 November 2021

Aramco’s giant gas field Jafurah could replace 500,000 bpd of Saudi oil: CEO

Aramco’s giant gas field Jafurah could replace 500,000 bpd of Saudi oil: CEO
  • Oil giant expects the production from the Jafurah field to commence in early 2024

RIYADH: Saudi Arabia’s oil giant Aramco has announced the start of its development of its Jafurah unconventional gas field in a press event on Monday. 

The company’s chief executive officer, Amin Nasser, said the field, which it claims to be the largest in the world, could replace 500,000 barrels per day of oil production “at its peak.”

The project comes amid global pressure to transition to cleaner sources of energy, following major climate change-focused events in recent months. 

“This breakthrough in unconventional gas could not come at a better time for the energy transition,” Aramco’s Nasser said, describing gas a “proven, reliable, and affordable energy source.”

He explained gas “emits around half of coal emissions in power generation.”

This project, Nasser added, contributes to the Kingdom’s broader environmental agenda, where the government said it wants to reach net-zero emissions by 2060. 

Once completed, the unconventional gas field is expected to provide approximately 2 billion standard cubit feet per day of sales gas, Nasser said. 

“We managed to reduce drilling cost by 70 percent and stimulation cost by 90 percent since the 2014 cost benchmark, while increasing well productivity six-fold compared with the start of the program,” he explained. 

Nasser highlighted the Kingdom’s aim to generate electricity 50 percent from renewables, and 50 percent from gas.  

Jafurah basin

The Jafurah basin is the largest natural gas field in the Kingdom, stretching 170 kilometers by 100 kilometers, and is estimated to have 200 trillion standard cubic feet of gas. 

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The Jafurah project will not only aid the Kingdom’s environmental ambitions but will also support its petrochemicals industry. 

“Its Ethan and LNG are highly valuable feedstocks for the Kingdom’s petrochemical’s industry,” the Aramco chief said

The field will also be able to produce about 425 million cubic feet of ethane per day, and about 550 thousand barrels per day of gas liquids and condensates.

Saudi Energy Minister Prince Abdulaziz bin Salman earlier said the Jafurah gas field will place the Kingdom third in the world in natural gas production by 2030.


Tanmiah Food appoints Ahmed Osilan as managing director

Tanmiah Food appoints Ahmed Osilan as managing director
Updated 11 sec ago

Tanmiah Food appoints Ahmed Osilan as managing director

Tanmiah Food appoints Ahmed Osilan as managing director

RIYADH: Saudi-listed Tanmiah Food Co. will see executive board member Ahmed Sharaf Osilan take over as managing director for the ongoing term, which shall end on April 4, 2022.

The decision was approved by the company’s board of directors today, Jan. 17.  

The newly elected member, Osilan, will replace Muhammad Sajid Saeed.

Osilan holds a bachelor’s degree in industrial management, and has 20 years of experience in the investment field, having held many leadership positions in the past.

The Riyadh-based food company, which employs more than 1,500 people, has grown to become a major supplier of chicken products.

It operates a veterinary services unit and food processing business.

 


General Motors Middle East appoints Sajed Sbeih as new vice president

General Motors Middle East appoints Sajed Sbeih as new vice president
Updated 17 min 29 sec ago

General Motors Middle East appoints Sajed Sbeih as new vice president

General Motors Middle East appoints Sajed Sbeih as new vice president

RIYADH: Automotive company General Motors Africa and Middle East, or GM AMEO, has appointed Sajed Sbeih to the role of vice president of strategy, product & operations at GM Europe. 

Sbeih was previously serving as the managing director of commercial operations for GM Middle East & Sub-Saharan Africa, according to the company’s statement.

Currently named as GM AMEO chief financial officer, Albert Nazarian has been named as the managing director of commercial operations for GM Middle East & Sub-Saharan Africa.

Also, Ajai Shankar, former finance director, is appointed as the company’s new chief financial officer.  

This comes in line with the company’s global growth strategy and efforts to support its vision of Zero Crashes, Zero Emissions and Zero Congestion.


Saudi energy minister: OPEC+ has worked hard to stabilize oil markets

Saudi energy minister: OPEC+ has worked hard to stabilize oil markets
Updated 32 min 20 sec ago

Saudi energy minister: OPEC+ has worked hard to stabilize oil markets

Saudi energy minister: OPEC+ has worked hard to stabilize oil markets

The Organization of Petroleum Exporting Countries and its allies, known as OPEC+, has done a lot to ensure the stability of the oil market, the Saudi Energy Minister has said.

Speaking at the Abu Dhabi Sustainability Week Summit on Monday, Prince Abdulaziz bin Salman emphasized the importance of a stable market, adding that the Kingdom enjoys good relationships with OPEC+ members.

OPEC+ has consistently resisted pressure from countries such as the US to raise oil production plans above the agreed rate of an extra 400,000 barrels a day.

Prince Abdulaziz also said that Saudi Arabia is engaging in many events globally with the aim of demonstrating the initiatives taken to boost sustainability.

In addition, while the energy sector faces some challenges in terms of technology, the minister said that young people are expected to welcome this with excitement as they try to satisfy their ambitions.


UAE seeks to capture 25% of the hydrogen market, energy minister says

UAE seeks to capture 25% of the hydrogen market, energy minister says
Updated 39 min 1 sec ago

UAE seeks to capture 25% of the hydrogen market, energy minister says

UAE seeks to capture 25% of the hydrogen market, energy minister says

The UAE aims to obtain a quarter of the global hydrogen market, the country’s energy minister said on Monday.

Speaking during the Abu Dhabi Sustainability Week Summit, Suhail Al Mazrouei said the UAE is in discussions with many countries who are interested in blue and green hydrogen.

The minister also talked up the importance of the circular economy, saying that adopting it makes sense commercially and helps in creating job opportunities in the country.

According to Al Mazrouei, the UAE is one of the leaders in the shift to this type of economy, which emphasizes the reuse, repair and recycling of existing materials and products as much as possible.


Saudi stocks poised to extend winning streak, omicron fears subside: Closing bell

Saudi stocks poised to extend winning streak, omicron fears subside: Closing bell
Getty Images
Updated 17 January 2022

Saudi stocks poised to extend winning streak, omicron fears subside: Closing bell

Saudi stocks poised to extend winning streak, omicron fears subside: Closing bell

RIYADH: Saudi Arabia’s main TASI index ended higher for the seventh straight session, buoyed by strong investor sentiment stifling any lingering omicron fears.

TASI advanced 0.5 percent to close at 12,166 points after starting the session with mild gains, while the parallel market Nomu edged down by 0.4 percent to 26,180 points.

Tadawul group, owner of the Saudi Exchange, led the gainers as it added 5.8 percent to reach SR160 ($45) — its highest closing value since listing.

This was supported by advances in the Kingdom’s utility provider ACWA POWER Co., its largest lender the Saudi National Bank, and oil giant Saudi Aramco, up 0.2, 1.4 and 0.4 percent, respectively.

ACWA POWER re-appointed Mohammad Abdullah Abunayyan as chairman of the board of directors for another three years.    

In the financial sector, Alinma bank was up 0.9 percent to a record high of SR27.9 and the Saudi British Bank, known as SABB, gained 1.9 percent.

Shares of Saudi franchise retailer Fawaz Abdulaziz Alhokair Co. surged 3.7 percent. 

Earlier, the retailer submitted a filing to the Capital Market Authority for capital decrease, followed by capital increase through rights issue of SR1 billion.

Saudi Pharmaceutical Industries and Medical Appliances Corp., or SPIMACO, was up 1.5 percent after it sealed a deal with Swiss-based Vifor Pharma to localize the production of an injection.

In the oil market, Brent crude was down to $85.7 per barrel after crossing $86 earlier in the morning, and US WTI crude oil reached $83,7 per barrel as of 3:37 p.m. Saudi time.