Gulf Oil and Gas accountACCOUNT

Saudi Aramco to Keep Same Number of Oil, Gas Rigs

Source: Reuters 2/3/2016, Location: Middle East

State oil giant Saudi Aramco is expected to keep the same number of its oil and gas drilling rigs this year despite weak oil prices, industry sources said.

Saudi Aramco has asked oilfield service companies and suppliers again this year for discounts due to a slump in global oil prices. Aramco managed to make big savings last year on drilling costs, the sources say.

"It is a normal situation in drilling activity," said one of the sources who declined to be identified.

Saudi Aramco is now operating around 212 oil and gas rigs; which is a level it has kept steady since 2015. That number does not include water rigs.

"They want to maintain activity but reduce costs, there might be some movements by replacing offshore rigs to land or oil to gas," said a second source.

"Most likely it will stay flat this year, maybe the contracts that expire will not be renewed, but eventually activity will pick up because of the unconventional gas; some of that may move to development phase and that requires more rigs," said a third source.

Saudi Aramco declined to comment.

Saudi Arabia has maintained a high level of oil production at above 10 million barrels per day for most of 2015. A Reuters survey showed that the world's biggest oil exporter pumped 10.25 million bpd in January.

Aramco is continuing to invest in oil and gas production capacity despite cost-cutting due to low oil prices, the company's chairman Khalid al-Falih said last week.

Aramco's plans starkly contrast with governments and oil firms outside the Gulf region, which have been reducing capital spending sharply in response to financial pressures.

U.S. energy firms cut oil rigs for the sixth straight week, data showed on Friday, and were expected to shed more with major U.S. shale oil companies slashing spending plans after crude prices hit 12-year lows.

Last year, industry sources said Aramco may raise the number of its oil and gas drilling rigs to as high as 250 in 2016 but that plan depended on oil prices which last month fell below $30 a barrel for the first time since April 2004.



Rig Equipment >>

Rig Equipment News in Saudi Arabia >>

Oman >>  7/17/2019 - JGC Corporation (hereinafter referred to as "JGC") announced today that it has been awarded a Front End Engineering and Design (FEED) contract under a...
Saudi Arabia >>  7/10/2019 - McDermott International, Inc. (MDR) has been awarded a contract in excess of $1.5 billion for Package 4 of Saudi Aramco's Marjan Increment Development...

Saudi Arabia >>  7/9/2019 - Saudi Aramco has awarded 34 contracts with a total value of $18 billion for the engineering, procurement and construction of the Marjan and Berri incr...
Kuwait >>  7/1/2019 - Kuwait Oil Company (KOC) and Halliburton have signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature (HPHT) e...

Saudi Arabia >>  7/1/2019 - Saudi Aramco and Baker Hughes, a GE company (BHGE) signed a memorandum of understanding to create a new joint venture facility in Saudi Arabia to man...
United Arab Emirates >>  7/1/2019 - DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Charte...

Related Categories: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 

Related Articles: General  Rig Equipment  Rig Operators  Rigs, Coring & Exploration 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

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