Aramco Stops Red Sea Deepwater Exploration Work

Source: Reuters 2/1/2015, Location: Middle East

State oil giant Saudi Aramco has put on hold its deepwater oil and gas exploration and drilling activities in the Red Sea because of high costs as it economises in an environment of low crude prices, industry sources said.

The cost of operations in the Red Sea, a new area for Saudi Aramco, was around $1 million per day, said two sources, who declined to be identified because they were not authorised to speak to media.

"It is related to budget cost reduction in the Red Sea offshore," said one of the sources.

Saudi Aramco declined to comment.

The company's chief executive Khalid al-Falih said last week that Saudi Aramco would renegotiate some contracts and postpone some projects because of the plunge in oil prices over recent months. The firm has suspended plans to build a $2 billion clean fuels plant at its largest oil refinery in Ras Tanura, sources told Reuters last month.

However, Falih also said Saudi Aramco would continue investing in key projects, and had earmarked $7 billion to spend on unconventional gas in coming years after investing $3 billion in the past.

A second source said deepwater exploration in the Red Sea had stopped because of several factors, including environmental issues, costs, and the need for further studies to minimise risks.

"One of the most expensive offshore (areas) happens to be in the Red Sea - the depth is different from the Gulf coast. They did discover a lot of oil and gas but they need to do lots of tests. Now with the current prices, they have put it on hold until further notice to collect more data," said a third source.

Saudi Aramco said in its 2013 annual review that it was continuing operations in the Red Sea's deep waters and had made a new oilfield discovery at Al-Haryd.

"It would not be surprising if Saudi Aramco were to suspend exploration in the Red Sea because it is a very complex basin, and no significant discoveries have been announced since the Midyan field complex and the Um Luj condensate discoveries accomplished by the Aramco exploration team of the early 90s," said Sadad al-Husseini, a former top executive at Saudi Aramco and now an energy consultant.


Falkland Islands >>  4/27/2021 - Argos Resources, the Falkland Islands based exploration company focused on the North Falkland Basin, has announced that the Falkland Islands Governmen...
Guyana >>  4/27/2021 - ExxonMobil has made an oil discovery at the Uaru-2 well in the Stabroek Block offshore Guyana. Uaru-2 will add to the previously announced gross disco...

United States >>  4/27/2021 - 88 Energy has provided an update in the NPR-A region of the North Slope of Alaska.

Highlights

- Testing commenced on side...

Bahamas >>  4/23/2021 - BPC, the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and onshore and offshore exploration asset...

Nigeria >>  4/21/2021 - ADM Energy PLC, a natural resources investing company, is pleased to announce it has entered into a non-binding collaboration agreement ("CA") with OE...
Norway >>  4/21/2021 - Equinor and partners Total E&P Norge AS and Vår Energi AS have struck oil and gas in a new segment belonging to the Tyrihans field in the Norwegian Se...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.