Saudi Arabia finds more gas, condensate in Jafurah unconventional field

Saudi Arabia's state-run energy giant Saudi Aramco has found an additional 15 Tcf of natural gas and 2 billion barrels of condensate in the onshore Jafurah unconventional field as the world's biggest oil exporter pushes ahead with efforts to expand gas production.

The discoveries increase the field's proven reserves to 229 Tcf of gas and 75 billion barrels of condensate, energy minister Prince Abdulaziz bin Salman said in a statement reported by the official Saudi Press Agency on Feb. 25.

Studies were undertaken by an unnamed "major independent consulting company" specialized in the field of resource approval, according to the statement.

Saudi Arabia has indicated it would press on with exploration work for gas following its recent suspension of a planned 1 million b/d oil capacity expansion scheduled for 2027. The country's expanding power mix, where gas is set to replace oil burn with additional input from solar and wind capacities was also a determinant in the cancellation of its planned expansion.

Aramco’s unconventional gas program is set to displace up to 500,000 b/d of crude oil used in domestic energy consumption.

Aramco plans to expand gas production by 50% by 2030. The company is spending hundreds of billions of dollars to develop the Jafurah unconventional field.

Saudi Aramco CEO Amin Nasser told reporters on Feb. 12 that savings from the cancellation of 1 million b/d capacity expansion will be redirected toward developing gas projects in the kingdom as well as maintaining oil capacity potential.

"There is a huge expansion in gas. There is a lot of ambition for liquid-to-chemicals," Nasser said.

On Feb. 8, local energy services company Arabian Drilling signed five-year contracts to supply three land rigs to state-run energy giant Saudi Aramco for its unconventional gas exploration program.

New rigs and full crews will be supplied to Aramco for Riyals 850 million ($226.7 million), Arabian Drilling said in a statement to the Saudi stock exchange.

Aramco also entered the LNG business following the acquisition of a minority stake in EIG's MidOcean Energy last September.