SAUDI ARABIA - Part 2 - The Oil Production Profile & Fields.Saudi production of crude oil and condensates/NGLs (the latter excluded from OPEC OPEC: see Organization of Petroleum Exporting Countries.
in full Organization of the Petroleum Exporting Countries
Multinational organization established in 1960 to coordinate the petroleum production and export policies of its quotas) exceeds 9.6m b/d, with the crude oil output now averaging about 8.6 b/d. Since March 2003 state-owned Saudi Arabian Oil Co. (Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. ) has kept an installed capacity of 12.3m b/d for oil and condensates/NGLs - of which 11.3m b/d is for crude oil. The crude oil capacity will rise 500,000 b/d to 11.8m b/d in the fourth quarter of 2007 under a fast-track mega-project
Judging by Saudi Aramco's announcements in recent years, the Years, The
the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]
See : Time planned capacity increase to 2009 will be 2.4m b/d for crude oil. This means a short-term capacity of more than 13.7m b/d for crude oil; but a part of this, involving sour crudes Sour Crude
The name given to barrels of crude oil that do not meet certain content requirements, such as low levels of sulfur and hydrogen.
Sour crude future contracts are not as popular as sweet crude oil contracts, as this type of oil is harder to refine compared , will be mothballed for use when new refineries with advanced facilities to convert very heavy crudes into premium fuels have been built in the next decade.
Worldwide project costs in the petroleum sector from E&P to the downstream have risen more than three-fold since 2002. This has caused Saudi Aramco and potential partners in export refining JVs, ConocoPhillips and Total, to pause and reflect on the implications of the cost inflation for their projects. A 400,000 b/d refinery planned as a JV for ConocoPhillips and Saudi Aramco is now estimated to cost over $13 bn, while two years ago the budget was about $8 bn. The same is true in the case of a similar plant for Saudi Aramco and Total. If they decide to shelve shelve
v. shelved, shelv·ing, shelves
1. To place or arrange on a shelf.
2. these projects, supposed to convert very heavy Manifa crude, then plans to develop the offshore Manifa field will be affected (see gmt14SaudiFieldsOct1-07).
Because of the cost factor, Saudi Aramco delayed the fourth package on the onshore portion of its 900,000 b/d Manifa field by three months after a Sept. 10-11 meeting in London with contractors. Saudi Aramco only briefed contractors on the first three packages of the development. It opted to reissue re·is·sue
v. re·is·sued, re·is·su·ing, re·is·sues
To issue again, especially to make available again.
To come forth again.
1. the qualification notice for the fourth package before end-2007. Whether or not this package will be delayed further, or suspended, will depend on costs as well as the outcome of deliberations concerning the two refineries (see down14SaudiRefOct1-07).
To help reduce costs, Saudi Aramco has gone through various approaches, including use of new processes and buying huge quantities of steel pipes that would be needed in future. For example, Saudi Aramco now is using a device to measure the expansion or contraction of cement, which will have a concrete payoff. Science specialist Scott S. Jennings of EXPEC Advanced Research Centre designed such a device - the Cement Shrinkage Shrinkage
The amount by which inventory on hand is shorter than the amount of inventory recorded.
The missing inventory could be due to theft, damage, or book keeping errors. and Expansion Tester - as a way to measure those effects. Saudi Aramco has also developed its own drilling processes (see omt13SaudiProspSep24-07).
Jennings was on Sept. 26 quoted as saying its device was so unique that it was patented by the US company and adopted by oil majors around the globe. A standard mix of Class G cement shrinks 2% after it sets. In wells where high pressure is a concern, expansion additives are used to reduce shrinkage during setting. The new device enables engineers to evaluate shrinkage or expansion as materials are heated to temperatures simulating well conditions.
Under US Patent 7,240,545 titled "Test Apparatus for Direct Measurement of Expansion and Shrinkage of Oil Well Cements", Jennings created an instrument to approve or reject certain cements for use in oil and gas wells. Jennings said his Cement Shrinkage and Expansion Tester was designed to fit into existing ultrasonic ultrasonic /ul·tra·son·ic/ (-son´ik) beyond the upper limit of perception by the human ear; relating to sound waves having a frequency of more than 20,000 Hz.
1. cement analyser cells. Cement slurry slurry,
n a thin mixture of insoluble material floating in liquid.
solids in suspension. Used as a method of feeding pigs—slurry is pumped through fixed lines and delivered to troughs by hoses equipped with gasoline pump fittings. is poured into the cell and separated by a rubber diaphragm diaphragm (dī`əfrăm'), term used to describe any of several large muscles, found in humans and other mammals, which separate two adjacent regions of the body. The most commonly known muscle of this class is the thoraco-abdominal diaphragm. . Water serves as a cushion between a floating piston and the diaphragm. Piston movement indicates shrinkage or expansion. The instrument allows Saudi Aramco to ensure that selected materials are up to the task, saving money on costly repairs or shutdowns and promoting safer operations.
In September 2002, when market watchers began to worry that a US-led war in Iraq could cause a serious oil shortage, Saudi Aramco's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Abdullah Jum'ah told a conference his company could raise its 9m b/d output by 3m b/d "for immediate delivery". Also highlighting Saudi Arabia's supply flexibility, he then said his company could pump up to 5m b/d to the Red Sea terminals of Yanbu' and al-Mo'ajiz. But al-Mo'ajiz terminal and its pipeline from Iraq may be reclaimed re·claim
tr.v. re·claimed, re·claim·ing, re·claims
1. To bring into or return to a suitable condition for use, as cultivation or habitation: reclaim marshlands; reclaim strip-mined land. by Baghdad, with USA being there (see Part 3).
Had it not been for the rapid rise in project costs, Saudi Aramco would have become the world's biggest export refiner by 2012. But already overseas oil refining and retail assets are considerable (see Part 4).
Because of its massive oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints.
Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally , Saudi Aramco has always been able to produce large amounts of light oil, the most commercially attractive form of crude. However, with many of its fields ageing, it has had to start producing large amounts of heavier grades as it looks to increase production, and stem declines of up to 500,000 b/d. To do this, Saudi Aramco wants to increase production capacity to 12.5m b/d by 2009 and 15m b/d by 2015 as part of a $130-150 bn investment programme. A lot of this additional crude will come from the expansion of Arab Light-producing fields such as Khursaniyah and Khurais. Beyond that, however, the potential of an increase in Arab Light production from known deposits will be exhausted.
It will take up to 120 days to reactivate re·ac·ti·vate
1. To make active again.
2. To restore the ability to function or the effectiveness of.
re·ac all of Saudi Aramco's mothballed capacity. But this involves heavy/sour crudes which are not popular on both sides of Suez. The lighter and sweeter grades - Arab Light (AL), Arab Extra Light (AEL AEL Association Electronique Libre
AEL Appalachia Educational Laboratory
AEL Arabisch Europese Liga
AEL Agence de l'Energie
AEL Arab European League
AEL Accessible Emission Limit
AEL Acceptable Exposure Limit
AEL Arquivo Edgard Leuenroth ) and Arab Super Light (ASL ASL - Algebraic Specification Language ) - account for 78% of Saudi Aramco's current production of crude oil, including ASL which is a field condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. excluded from OPEC quota specifications (see breakdown of the capacity by crude type in Vol. 57, OMT 14).
The fields involved in the 2.4m b/d expansion are: Haradh-3, which in 2006 boosted AL capacity from 600,000 to 900,000 b/d; the Abu Hadriyah/Fadhili/Khursaniyah set, to boost AL capacity by 500,000 b/d, from 150,000 b/d of medium and sour grades, by the fourth quarter of 2007; Shaybah, to boost capacity by 300,000 to 800,000 b/d of AEL by 2008; Khurais, to boost capacity by 1.2m b/d of AL by 2009, up from about 150,000 b/d, and Nu'ayyim, to boost capacityh by 100,000 b/d of AL by 2009. This expansion follows a full commissioning of the Abu Sa'fa/Qatif oilfields' development was inaugurated in December 2004. This added an 800,000 b/d of oil production capacity (see gmt14SaudiFieldsOct1-07).
Saudi Aramco will increase its fleet of drilling rigs from about 70 to 110 by 2006 to boost its crude oil and gas production. It says on its website: "The increase is to meet plans to drill several hundred wells in the next several years, part of the ambitious expansion of the company's crude oil and gas programme. This is the most aggressive ramp-up of drilling activity in the history of the oil industry".
Addressing the World Petroleum Congress in Johannesburg, Petroleum and Mineral Resources Noun 1. mineral resources - natural resources in the form of minerals
natural resource, natural resources - resources (actual and potential) supplied by nature Minister Ali al-Na'imi on Sept. 27, 2005, said Saudi Aramco's oil output capacity of 15m b/d could be reached before 2012. Na'imi then said Saudi oil reserves were conservatively estimated. Using state-of-the-art technology, he said, Saudi Aramco will "soon be able to boost our proved oil reserves by 200 bn barrels" to more than 464 bn barrels.