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Aramco continues its hunt for hydrocarbons

27 February 2024

Despite having access to one of the world’s largest oil and gas reserves, Saudi Arabia remains in pursuit of more resources to maintain its long-term oil and gas production potential.

Saudi Aramco, which has exclusive rights over the kingdom’s main hydrocarbons concession, holds the second-largest crude oil reserves in the world. 

As of the end of 2022, Aramco’s reserves stood at 258.8 billion barrels of oil equivalent, including 200.8 billion barrels of crude oil and condensates, 25.2 billion barrels of natural gas liquids, and 201.9 trillion cubic feet of natural gas.

Further to this, the state energy enterprise maintains an active exploration programme, and made several discoveries of natural gas resources last year, GlobalData says in a recently released report.

Among the discoveries made by Aramco in 2023 were two new natural gas fields – Al-Hiran and Al-Mahakik – located in the Empty Quarter in Saudi Arabia’s Eastern Province.

The discovery of the Al-Hiran natural gas field was confirmed after gas flowed from the Hanifa reservoir in the Al-Hiran 1 well, at a rate of 30 million cubic feet a day (cf/d), and 1,600 barrels a day (b/d) of condensates. The Al-Arab C reservoir at the same field also tested gas flows at a rate of 3.1 million cf/d.

The discovery of the Al-Mahakik field was confirmed after gas flowed from the Al-Mahakik 2 well at a rate of 850,000 cf/d.

Upstream workhorse

The majority of hydrocarbons production in Saudi Arabia comes from the Eastern Province, which accounts for more than 80% of the kingdom’s total crude oil production.

The Ghawar oil field, which started production in 1951 and is estimated to still hold 58.32 billion barrels of oil equivalent, “is the workhorse of the Saudi upstream sector,” GlobalData says in the report. 

The Ghawar field accounts for approximately 44% of the kingdom’s total crude oil production as of 2022.

Approximately 59% of Saudi Arabia’s natural gas production comes from associated crude oil production. “This proportion, however, is expected to see a decline in the coming years thanks to the ongoing plans for the development of non-associated gas fields,” the report adds.

Main image credit: Saudi Aramco  

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Indrajit Sen

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