Tadawul-listed Saudi Aramco — the world largest oil producer — plans to invest $110bn (SAR412bn) to develop the Al-Jafoura gas field, located in the eastern region of the kingdom, with the oil and gas giant having received the regulatory approval for the project.
Al-Jafoura gas field, is the largest non-associated and non-conventional gas field discovered in the kingdom, which will developed in line with the corporate governance system, and in accordance with Saudi Aramco’s highest environmental standards, the state-held Saudi Press Agency, reported.
سمو #ولي_العهد يثني على جهود الشركة الوطنية أرامكو السعودية في تطوير الحقل،بحجم استثمارات تصل إلى 110 مليارات دولار(412 مليار ريال)ستؤدي مراحل تطويره إلى تزايد إنتاج الحقل من الغاز تدريجياً ..— واس الأخبار الملكية (@spagov) February 21, 2020
Al-Jafoura field is estimated to be 170km-long and 100km-wide. The volume of gas resources in the field is estimated at 200 trillion cubic feet of raw gas — rich in gas liquids — which is used as the feedstock for the petrochemical and mineral industries.
The gas field is expected to commence production activities in the beginning of 2024. The field will be developed in stages to gradually increase its gas production capacity to reach about 2.2 billion standard cubic feet per day of selling gas in 2036.
According to SPA, the field will be able to produce about 425 million standard cubic feet of ethane per day, which represents nearly 40% of the current production. In addition it will also produce about 550,000 barrels per day of gas liquids and condensates, which is essential for the petrochemical industries.
The development of Al-Jafoura gas field will positively affect Saudi Aramco’s financial books in a long-term, the company said. Additionally, the financial impact will begin to appear in phases corresponding with the progress made on the development of the field.
Speaking about the discovery, chairman of Saudi Aramco’s board of directors, Yasser bin Othman Al-Ramyan, said that the development of the field will support the kingdom's position in the global energy sector. He added that it will also help Aramco, on an international level, achieve its goal of being the largest integrated energy and chemicals company.