Final decision to proceed with $3bn Saudi oil field project has not been taken
- Aramco is still weighing up costs of oil field expansion
- Oil major was due to make decision in June
Contractors are still waiting for a decision by Saudi Aramco on the fate of the $3bn Khurais oil field expansion in Saudi Arabia, as the state oil producer weighs up the costs.
Saudi oil and gas sources told MEED earlier this year that Aramco was due to make a decision in June on whether to go ahead with the expansion, but has yet to make a final decision.
The oil major had already taken steps to manage cash flow by extending the execution phase of Khurais by another 12 months.
Two other pipeline packages are included in the expansion and will be constructed by two local contractors.
The packages and contractors are:
- Mazlij-Abu Jifan pipeline Saudi KAD Construction
- Seawater pipeline HAK Group
If Aramco sticks to its original plans, 300,000 barrels a day (b/d) of oil will be added to the fields current capacity of 1.2 million b/d.
Khurais is located adjacent to the Ghawar oil field, one of the worlds largest, in the Eastern Province of the kingdom. The field began operations in 2009 and produces 1.2 million b/d of light Arabian crude, 320 million cubic feet a day (cf/d) of gas and 80,000 b/d of natural gas liquids (NGLs).
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