Saudi Aramco Review

Aramco ... exploring in frontier areas

Aramco ... exploring in frontier areas

Aramco toning up its vast all-round capabilities

Saudi Aramco serves customers throughout the world, and in 2012 the company provided approximately one in every eight barrels of the world’s crude oil. Its crude oil production in 2012 was a 4.3 per cent increase over 2011

SAUDI ARAMCO today is an integrated petroleum enterprise. Historically, the company has focused on crude oil exploration and production, but since the 1980s it has been expanding its business domestically and growing internationally through strategic partnerships.

As the following demonstrates, the company’s skills and knowledge are extensive and the company’s achievements continued to grow during 2012.

Saudi Aramco serves customers throughout the world, and in 2012 the company provided approximately one in every eight barrels of the world’s crude oil. Its crude oil production in 2012 was a 4.3 per cent increase over 2011, and the company’s gas production (raw gas to gas plants) represented an increase of 8.4 per cent.

The company’s crude oil and gas production totals were both the highest in its history. Aramco’s operational highlights in 2012:

• 9.506 million barrels of crude oil production (average per day);

• 10.72 billion standard cubic feet of gas production (average per day);

• 3.479 billion barrels of crude oil production (annual);

• 3.924 trillion standard cubic feet of gas production (annual);

• 199 oil exploration and development wells completed; and

• 100 gas exploration and development wells completed.

Aramco’s reserves:

• 260.2 billion barrels of recoverable crude oil and condensate reserves; and

• 284.8 trillion cubic feet of gas reserves.

To meet global energy demand well into the future, in 2012 Saudi Aramco continued field development across Saudi Arabia, varying from small fields to large and complex ones.

Using industry-leading technology in its kingdom-wide exploration efforts, in 2012 the company focused on exploring frontier areas in the Red Sea and complex reservoirs onshore and offshore.

Discoveries included one oilfield – Aslaf – and two gas fields – Sha’ur and Umm Ramil – bringing the company’s total oil and gas field discoveries throughout its history to 116.

Sha’ur was the company’s first discovery in the marine portion of the Red Sea. Its maximum daily sustainable crude oil production capacity remained at 12.0 mbpd during the year.

Aramco’s gas plants now have a gas processing capacity of 13.23 billion scfd (standard cubic feet per day).

In 2012, the company continued to expand refining capacity and the integration of refining and chemicals facilities as it strived to grow and integrate its downstream operations.

Saudi Aramco’s four wholly owned domestic refineries – at Riyadh, Ras Tanura, Yanbu and Jiddah – have a combined capacity of 1 mbpd.

Domestically, the company continued to meet the kingdom’s demand for fuels and feedstock. Product sales in the kingdom increased from 549.9 million barrels in 2011 to 588.4 million in 2012.

While Saudi Aramco remains committed to being the world’s premier crude oil and gas exploration and production company, it is also focused on maximising the value in each hydrocarbon molecule at its disposal.

Producing chemicals – particularly high-value chemical products – is one way to accomplish this goal. Saudi Aramco already has the knowledge and fundamentals in place in addition to the asset base.

Through the company’s network of subsidiaries, Aramco has a large refining system situated in globally strategic locations and a strong foundation in the chemicals industry through joint venture partnerships.

Aramco’s capability and strong platform in hydrocarbon resources make an expansion into the chemicals business a sound strategic choice. By integrating chemicals production with the company’s refineries – both at home and abroad – Aramco is leveraging its existing and future refining assets to provide additional revenue from a business that is more customer focused and financially stable.

Aramco’s undertakings in petrochemicals further underscore its commitment to increasing opportunities for industrialisation and manufacturing of higher value products and therefore contributing to the job growth and economic diversification that are vital to the company’s and the kingdom’s future prosperity.

Aramco owns and operates kingdom-wide storage facilities for crude oil, refined products, refrigerated liquefied petroleum gas and natural gas condensate.

The firm continued to automate these facilities in 2012 to better manage bulk product sales and make its operations even safer and more efficient.

The company’s storage facilities undergo cyclical upgrades to ensure the highest standard of service and to meet local demand for refined products.

As a result, in 2012, through the company’s 19 bulk plant operations, it supplied 588 million barrels of refined products to about 5,000 domestic bulk customers.

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