CAIRO — Saudi Aramco plans to invest $110 billion to develop unconventional gas reserves in Saudi Arabia’s Jafurah field, the state news agency SPA said on Friday.
It said the development plans were reviewed by the Saudi High Commission for Hydrocarbons in a meeting chaired by Crown Prince Mohammed bin Salman.
The Jafurah deposits are estimated to hold 200 trillion cubic feet of wet gas and the phased development of the field is expected to gradually increase production to 2.2 trillion cubic feet by 2036 if fully completed, SPA said.
It said the field was expected to produce 130,000 barrels per day of ethane and 500,000 bpd of gas liquids and condensates.
Prince Mohammed said development of the field would over 22 years provide the government with an annual net income of $8.6 billion and contribute $20 billion to the kingdom’s gross domestic product per year, according to the agency.
Jafurah is southeast of Ghawar, the world’s largest conventional oilfield.
Aramco has identified huge gas resources in the country, the world’s top oil exporter, and is working to develop unconventional reserves in South Ghawar and Jafurah deposits in eastern Saudi Arabia, a Saudi official said previously.
Unconventional gas refers to reserves requiring advanced extraction methods, such as those used in the shale gas industry.
Saudi Arabia aims to become gas exporter by 2030.
SPA said Prince Mohammed had ordered gas produced from Jafurah to be prioritised for domestic industries, including mining, to support the kingdom’s Vision 2030 development plan.
*Alaa Swilam; Ghaida Ghantous; Editing: Christina Fincher, Kirsten Donovan – Reuters