Aramco drills 2 gas exploration wells off Duba coast

Dow Jones/DubaiState oil giant Saudi Arabian Oil Co (Aramco) is drilling two gas wells in deep and shallow water in the Red Sea, off the coast of the northwestern city of Duba, the kingdom’s oil minister Ali al-Naimi said yesterday. The first well is located in the north west of Duba city, in the shallow water, while the other well is in the deep water opposite the city, al-Naimi said, according to SPA. Saudi Aramco is also evaluating gas from A-Shoor well, discovered late last year in Duba, in Tabuk province, and more wells would be drilled to evaluate the size of the field, he said. Gas at Shoor flowed at the rate of 10mn cu ft a day when a test well was done at the depth of 17,700 feet, al-Naimi said in October. Aramco chief executive Khalid al-Falih said December that the firm plans to drill seven gas exploration wells in deep and shallow water in the Red Sea, off the coast of the northwestern city of Tabuk. He did not, however, give a timeline for the exploration work. Aramco will also start gas production at its Midyan field in Tabuk, which was discovered in the 1980s, in 2013. The field has significant reserves, and the gas will be used for power generation. Gas from Midyan will be transported by pipeline to a power plant in the coastal town of Duba, 135km southwest of the field. Aramco will drill more wells to appraise the field, which is forecast to produce 75mn cu ft a day of gas and 4,500 bpd of condensate for a 20-year period. Saudi Arabia, the world’s largest oil exporter, plans to greatly increase gas production to meet domestic energy demand and free up crude oil for export.