Saudi Arabia government-owned Saudi Aramco, has discovered four (4) new oil and gas fields.
This was disclosed by Saudi Arabia’s Energy Minister, Abdulaziz bin Salman.
According to the Saudi Press Agency, two of the fields are unconventional deposits with one of them – al-Reesh – having three wells pumping oil at a rate of a combined 10.851 barrels of Arab extra light crude and close to 8 million cu m of natural gas.
The other non-conventional deposit, al-Sirrah, produces mostly natural gas at a rate of 18 million cu m daily, along with 98 barrels of condensate daily.
Another well, also at the al-Sirrah deposit, is yielding natural gas only, at a daily rate of 32 million cu m.
The fourth discovery was made in northern Saudi Arabia, at the al-Ajramiyah well, which is pumping crude at a rate of 3,850 barrels daily.
“The total recoverable reserves of the deposits tapped with the discoveries are yet to be determined,” said Energy Minister Abdulaziz bin Salman.
Saudi Aramco which is the world’s second-largest oil producer, has been struggling with the effects of high oil supply coupled with demand devastation.
The Saudi Arabia Kingdom has been among the most aggressive production control proponents in OPEC+, consistently producing less than its production quota under the latest output control agreement – between OPEC+ and OPEC.
In response to weak price environment, Riyadh – Saudi’s capital – has had revise its 2021 budget, cutting spending plans by 7 per cent.
Riyadh will now spend some $264 billion next year, or 990 billion riyals, as it battles a substantial deficit resulting from the latest oil price collapse on the back of the Covid pandemic.
Earlier this year, the Kingdom was forced by oil market circumstances to implement some unpopular austerity measures, including a triple increase in value-added tax and the cancellation of so-called cost-of-living allowances for much of the population.
While the government insisted these were not austerity measures, the fact of the matter was that the drop in oil revenues threatened the economy of OPEC’s number-one oil exporter.
Saudi Aramco, officially the Saudi Arabian Oil Company is a Saudi Arabian public petroleum and natural gas company based in Dhahran.
As of 2020, it is the sixth largest company in the world by revenue. Saudi Aramco has both the world’s second-largest proven crude oil reserves, at more than 270 billion barrels and largest daily oil production of all oil producing companies.
Saudi Aramco operates the world’s largest single hydrocarbon network, the Master Gas System. Its 2013 crude oil production total was 3.4 billion barrels, and it manages over one hundred oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet (scf) of natural gas reserves.
Saudi Aramco operates the Ghawar Field, the world’s largest onshore oil field, and the Safaniya Field, the world’s largest offshore oil field.
