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Oil Reserves in Saudi Arabia
- By Oil and Gas Author
- Published 08/30/2006
- Petroleum Pipeline , Offshore Drilling , Oil and Natural Gas Prices , Environment and Pollution , Liquefied Natural Gas LNG , Exploration and Discoveries , Natural Gas Petroleum , Crude Oil Petroleum
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View all articles by Oil and Gas AuthorSaudi Arabias long-term goal is to further develop its lighter crude reserves, including the Shaybah field, located in the remote Empty Quarter area bordering the United Arab Emirates. (In June 2005, the UAE said it wanted to amend a 1974 border pact which gave the Saudis rights to Shaybah, which lies 80 percent in Saudi territory and 20 percent in UAE). Shaybah contains an estimated 15.7 billion barrels (or higher) of premium grade 41.6o API sweet (nearly sulfur-free) Arab Extra Light crude Oil, with production as of May 2005 at around 500,000 bbl/d. Overall, the Shaybah project cost around $2.5 billion, with production starting in July 1998. According to Oil Minister Naimi (October 1999), the development of Shaybah showed that "the cost of adding...capacity - that is, all the infrastructure, producing and transportation facilities - necessary to produce one additional Barrel of oil per day in Saudi Arabia is, at most, $5,000 compared to between $10,000 and $20,000 in most areas of the world." Plans are to increase Shaybah output by as much as 300,000 bbl/d in the next few years. The Shaybah complex includes three gas/oil separation plants (GOSPs) and a 395-mile Pipeline to connect the field to Abqaiq, Saudi Arabias closest gathering center, for blending with Arab Light crude (Berri and Abqaiq streams). In addition to oil, Shaybah has a large Natural Gas "cap" (associated gas), with estimated reserves of 25 trillion cubic feet (Tcf). Gas production of 880 million cubic feet per day (Mmcf/d) is reinjected, along with natural gas liquids (NGLs). A possible gas recovery project could be implemented within 5 or 6 years, potentially for use in petrochemical production.
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