Aramco Sells Oil From Jafurah Field as Huge Saudi Project Starts

Article content(Bloomberg) — Saudi Aramco sold oil from its $100 billion Jafurah project in the first reported export from the massive natural gas development.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentJafurah is Aramco’s first unconventional field, developed using the type of hydraulic fracturing, or fracking, techniques pioneered in the US shale patch.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe deposit, which Chief Executive Officer Amin Nasser calls the company’s crown jewel, will produce massive amounts of natural gas once at capacity, expected in 2030. It also has plentiful volume of liquid fuels that will boost the company’s returns, Nasser has said. Article contentArticle contentThe oil that Aramco sold is condensate, a light oil liquid that’s often found in gas deposits, according to traders with knowledge of the purchases. It will go to buyers in Asia for loading later this month or in early March, the traders said. Aramco declined to comment on the sales.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSaudi Arabia, already a global oil giant and the world’s top crude exporter, is striving to ramp up gas production as the country seeks to power its ambitious growth targets. The most populous Gulf state has outlined an economic transformation plan requiring hundreds of trillions of dollars to build new industries like technology, tourism and manufacturing.Article contentWhile some of that spending is being rolled back or under review, the kingdom needs growth to create jobs for a burgeoning population and to build an economy that can withstand the eventual decline of demand for oil.Article contentJafurah’s gas output, trapped in hard-to-access deposits below Saudi Arabia’s desert sands, is planned primarily to meet the kingdom’s growing electricity demand. It will also help free for export about 1 million barrels a day of crude oil that the country has had to burn for power until now, and pump out more than 600,000 barrels a day of natural gas liquids and condensate by 2030. Article contentArticle contentCompanies including energy majors and refiners in Asia bought several spot cargoes of the condensate, according to the traders who asked not to be identified as they’re not authorized to speak to the media. The quality is similar to light crudes, which can be processed to have a higher yield of products like plastic feedstocks, including naphtha, or gasoline.Article contentThe deposit with an estimated 200 trillion standard cubic feet of gas could “outclass US shale plays long-term” because of the greater size of its resources, lower investment costs and more liquid fuels available, Bank of America analysts wrote in 2024.Article contentTrending Trump privately weighs quitting CUSMA trade deal he negotiated Economy BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement The problem of the Toys 'R' Us $36-million gift card mountain Retail & Marketing As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trump privately weighs quitting CUSMA trade deal he negotiated Economy BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement The problem of the Toys 'R' Us $36-million gift card mountain Retail & Marketing As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News