Saudi Aramco’s capacity put at 10.8 mbpd
Company says expansion projects under way; reports new discoveries
Posted: 07 August 2007
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Saudi Arabia has a sustainable oil production capacity of around 10.8 million barrels per day (bpd) but the level is set to increase when new expansion projects are brought on stream this year, according to Saudi Aramco.
A mega oil venture that will add nearly half a million bpd to the Gulf Kingdom’s output will be completed before the end of 2007 while new discoveries have boosted oil and gas wells managed by Saudi Aramco to more than 100.
Top officials from the government-owned Aramco discussed the company’s projects at a recent meeting in Vienna and said they were satisfied with progress of such projects that have been launched several years ago to boost crude oil and gas production and face growing local and global demand.
“The Executive Committee of Saudi Aramco’s Board of Directors met recently in Vienna to discuss company business matters and to receive management’s presentation of the 2007 Mid-Year Accountability (MYA) report,” Aramco said.
“The MYA covers company operations for the first six months of the year, and this year’s report indicated that Saudi Aramco is meeting all its business objectives, while simultaneously enhancing its reliability, flexibility and capital efficiency,” it said in the statement in earlier this month.
The 2007 MYA included updates on various Saudi Aramco projects and initiatives.
--Crude oil production is optimized to meet demand. Saudi Aramco’s maximum sustainable production capacity is 10.8 million barrels per day.
--Exploratory activities, development drilling and special studies will continue through the year to meet or exceed the target addition of 5 trillion cubic feet of non-associated gas, and to at least replace 2007 crude oil production.
--During the first half of 2007, discoveries included oil in Dirwazah and Mabrook fields, which increases the number of oil and gas fields under Saudi Aramco management to 102.
--The grassroots Khursaniyah Crude Increment is expected to be in operation in December 2007, with a capacity of 500,000 barrels per day of Arabian Light Crude blend from the Abu Hadriya, Fadhili and Khursaniyah fields.
Construction work on the grassroots Hawiyah NGL Recovery Plant and concurrent Hawiyah Gas Plant expansion are ahead of plan, and scheduled for
2008 onstream dates.
--PetroRabigh, a Saudi Aramco joint venture with Sumitomo Chemical, is anticipated to be in operation by year-end 2008. At mid-year, construction was 73 percent complete, with an on-site construction force of 28,500.
“ The Executive Committee commended Saudi Aramco on its performance and achievements during the first half of 2007 and emphasized the need to continue implementing all the company’s programs and budgets without compromising its standards of quality, safety and security, while preserving Saudi Aramco’s track record of success,” the statement said.
In its latest annual review, Saudi Aramco, the world’s largest oil producer, announced that by 2009, it will increase its maximum crude oil production capability by nearly three million bpd, roughly a 20 percent increase over its current capability.
It noted that the new crude oil producing and processing facilities will supply the lighter crude grades most in demand, helping to stabilize global markets and meet growing consumer needs in the mid-term.
“New production increments envisioned for development after the end of this decade will tap some of the Kingdom's heavier crude reserves,” it said.
“One of the central components of our expansion is our drilling program. At a time when worldwide demand for drilling rigs is at historic highs, we increased our drilling rig count by 26 per cent, from 90 to 113 rigs. This total rig count comprised six exploration rigs and 75 development rigs (65 onshore and 10 offshore). In addition, we deployed 32 workover rigs (24 onshore and eight offshore). We drilled 368 new development and 13 exploration wells, and performed 206 re-entries and 136 workovers.”
According to the report, more than 80 percent of all wells drilled in 2006 were horizontal wells with either single or multiple laterals.
It said crude oil increment drilling continued throughout the year, including the completion of 73 wells for the Haradh- III increment.
“We began drilling for three other crude oil increments in 2006: Khurais, haybah and Nuayyim. The Hawiyah gas increment drilling programme was initiated, with 32 wells planned.” |
