The Clap
Global energy giant Aramco (2222) has revealed an increase in the confirmed gas and condensate reserves at the Saudi unconventional Jafurah field.
What
Aramco stated that the additional confirmed quantities amounted to 15 trillion standard cubic feet of gas and two billion barrels of condensate.
It attributed its achievement to applying the highest international standards in estimating and developing hydrocarbon resources, ensuring their optimal utilization.
So What
This “major discovery” raises the total reserves at Jafurah to about 229 trillion cubic feet of gas and 75 billion barrels of condensate.
This makes it the “largest unconventional non-associated gas field” in the Kingdom. It is also likely to be the largest shale gas development project outside the United States.
Some Context
It was expected in 2020 that Jafurah would require investments totaling $110 billion.
This comes as Saudi Arabia seeks to develop its unconventional gas reserves, which require advanced extraction methods similar to those used in the shale gas sector.
The country is expected to rank third globally in gas production by 2030, thanks to the giant Jafurah field.
Now What
Aramco has signed 40 institutional purchase agreements worth $6 billion with local suppliers in Saudi Arabia.
This is part of its strategic localization program, according to the company’s statement.
The signed agreements aim to enhance the local supply chain system in the government-majority-owned oil giant.
They also aim to “support the overall value added” to the Saudi supply sector.
The company has also signed two memoranda of understanding with strategic partners.
This is to cooperate in localization and supply chain development.
