The Minister of Energy, Industry and Mineral Resources Eng. Khalid Al-Falih has confirmed the discovery of large quantities of gas for investment in the Red Sea. He said Aramco is in the process of intensifying prospecting operations in the coming two years.
During his inspection tour of the King Salman Industrial and Maritime Services at Ras Al-Khair Industrial City last week, Al-Falih disclosed that the investment at the King Salman Complex will reach SR60bn. Apart from this, it will contribute to support the GDP with nearly SR17bn, reduce imports by almost SR12bn, provide 80,000 jobs for Saudi citizens and provide safe supplies of marine and industrial supplies of maritime containers in the Kingdom.
He said the quantities of oil in the Red Sea is small and the production costs are high, ranging between $30 and $40, due to the existence of deep areas on the seafloor, with depths between 1,200 and 1,500 meters.
He said: “Aramco aims to invest in South Africa so that it is a platform for entering the African continent, which has promising investment opportunities. The global direction is towards focusing on oil refineries, so as to compensate the difference between oil prices that range between $1–$2 in the program.”
Al-Falih said Aramco investments in the world are continuing. It has promising opportunities in Russia, India, Pakistan and Indonesia, apart from projects in liquefying gas in America.
Aramco is working in the direct sale of gas, so as to deal directly with clients by purchasing from producers and selling to the clients with profit margins, Al-Falih said.
He added: “Aramco plans to purchase a petrochemicals factory in South Africa and the licensing authorities have offered the locations to Aramco. At present, the company is studying the project’s economic feasibility.”
He added: “Aramco is moving towards investment in liquefied gas before starting owning gas projects overseas. Aramco will become one of the biggest five LNG (liquefied gas) producers in the world within 15 years. We will start trade in gas before entering into ownership and production.”
He said that Aramco has opportunities for owning a number of projects. They include “Yamal 2” in the North Pole of Russia, in the US, Australia, aside from the Eastern Mediterranean Sea Project.
