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A new step from Aramco to accelerate the development of the Jafurah gas field In conjunction with the rise in gas prices globally

  • 19 October, 2021
  • 3:43 pm EEST

Many major oil companies, led by Saudi Aramco, have begun to take serious steps to diversify oil sales, especially with the rise in natural gas prices, which have reached record levels recently.

Many countries view natural gas as a transitional fuel, as it emits less carbon compared to crude oil, which prompted Saudi Aramco to accelerate investment in Jafurah, which is the largest natural gas field in the Kingdom.

 

Jafurah Field

Sources revealed that Aramco has asked companies to send their technical and financial offers for a water desalination plant project in the Jafurah gas field, in the latest step taken by the company to move forward in developing the field, in conjunction with the unprecedented jumps in gas prices in global markets, CNBC Arabia reported.

The Al-Jafurah field is a priority for Saudi Arabia, which is looking to reduce dependence on crude oil exports, as it is estimated that the field contains 200 trillion cubic feet of raw gas.

The Saudi Oil Company expects production to start in 2024, to reach about 2.2 billion standard cubic feet per day of sales by 2036.

 

Competing Companies

The source said that the project, which has a capacity of about 100,000 cubic meters per day, is expected to be contested by a group of local and international companies, including ACWA Power, Viola and Suez.

The source added that the date for selecting the winning bid to implement the project is expected to be later in mid-March.

The Saudi company had announced in the middle of last month the resumption of development of the Al-Jafoura field with the rise in oil prices, and Aramco had requested bids for the field’s cogeneration project.

The Saudi oil giant has entered into talks with potential investors to finance one of the largest gas fields in Jafurah, worth $110 billion.

 

Gas Investments

Informed sources have confirmed that the Saudi Oil Company is considering opening one of the largest unconventional gas fields in the world to foreign investors, as it is looking to finance a $110 billion project to help it diversify into oil sales.

The company is expected to decide on special offers to generate electricity in the giant project in early December of this year.

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