Aramco Announces Plans For Two Unconventional Exploration Wells
Drilling Activity Details
Drilling Activity Summary
Description
Moscow-based Lukoil will drill two deep unconventional gas exploration wells in Saudi Arabia's Rub al-Khali (The Empty Quarter) region. The first of the two wells will be a 5,800-m test in Mushaib Field, a tight gas play. The second well will be drilled to about the same depth in late 2015. International oil companies, including Shell and Sinopec, have been exploring the region for conventional gas and oil deposits since the mid-2000s. The Kingdom wants gas to help it cover subsidized domestic power demand so it can save oil for more lucrative exports. Aramco is willing to spend up to $3 billion on shale gas development in the Kingdom, but has given no details on the investment. One of the challenges will be adequate supply of water for fracturing. According to Aramco's 2013 annual review, the company is developing new hydraulic fracturing technologies to increase recovery rates and improve cost efficiency, including a CO2-based fracturing fluid. Aramco has a plan to produce 200 MMcf/d of unconventional natural gas by 2018 to supply a new phosphate project and power plant in the north of the country. Lukoil is the operator of the 29,928 sq km Block A in Saudi Arabia's Rub al-Khali with 80% interest in partnership with Saudi Aramco holding the remaining 20%.
Moscow-based Lukoil will drill two deep unconventional gas exploration wells in Saudi Arabia's Rub al-Khali (The Empty Quarter) region. The first of the two wells will be a 5,800-m test in Mushaib Field, a tight gas play. The second well will be drilled to about the same depth in late 2015. International oil companies, including Shell and Sinopec, have been exploring the region for conventional gas and oil deposits since the mid-2000s. The Kingdom wants gas to help it cover subsidized domestic power demand so it can save oil for more lucrative exports. Aramco is willing to spend up to $3 billion on shale gas development in the Kingdom, but has given no details on the investment. One of the challenges will be adequate supply of water for fracturing. According to Aramco's 2013 annual review, the company is developing new hydraulic fracturing technologies to increase recovery rates and improve cost efficiency, including a CO2-based fracturing fluid. Aramco has a plan to produce 200 MMcf/d of unconventional natural gas by 2018 to supply a new phosphate project and power plant in the north of the country. Lukoil is the operator of the 29,928 sq km Block A in Saudi Arabia's Rub al-Khali with 80% interest in partnership with Saudi Aramco holding the remaining 20%.