Riyadhi
June 22nd, 2006, 06:19 PM
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Saudi to add 500,000 bpd oil by mid-’07
RIYADH • Saudi Arabia plans to complete by June 2007 its Khursaniyah project to add 500,000 barrels per day (bpd) of Arabian Light crude, six months earlier than previously announced, state oil firm Aramco said yesterday.
A lump sum turnkey (LSTK) contract has been awarded to Snamprogetti, a unit of Italy's Saipem, to build a plant for separating gas and oil under the Khursaniyah development programme.
The contract has been converted from a cost reimbursable basis to speed up the work.
"The drive behind the strategy was the demanding schedule that required the project to be completed by June 2007," Saudi Aramco said in a statement on its website.
Last September, Aramco said the project would be completed by December 2007.
Saipem said in May that the contract includes utilities, production facilities and two separation trains with a total capacity of 500,000 barrels per day.
Aramco said feeds would be received from three production fields, for a total of 500,000 bpd of Arabian Light.
"The processing of the crude from these fields will yield 300 million cubic feet per day of associated sour gas and 15,000 bpd of hydrocarbon condensate, which will be sent over to the neighboring Khursaniyah gas plant," Aramco said.
It said a 1.1 million bpd water injection facility would be required to support production rates as well as a 300 megawatt power plant.
"Another converted LSTK package covering the Khursaniyah gas plant is in the preparation stages for the conversion process as well," the statement said.
Saudi Arabia, the world's largest oil exporter, has speeded up oilfield expansion plans to boost its production capacity to 12.5 million bpd by 2009 to meet world demand, and maintain spare capacity of at least 1.5 million bpd.
In March, the kingdom officially opened its Haradh oilfield project to add 300,000 bpd of crude and raise its capacity to 11.3 million bpd.
Meanwhile, oil climbed towards $70 yesterday after US supplies rose less than expected and due to lingering worries over global crude supply.
Saudi to add 500,000 bpd oil by mid-’07
RIYADH • Saudi Arabia plans to complete by June 2007 its Khursaniyah project to add 500,000 barrels per day (bpd) of Arabian Light crude, six months earlier than previously announced, state oil firm Aramco said yesterday.
A lump sum turnkey (LSTK) contract has been awarded to Snamprogetti, a unit of Italy's Saipem, to build a plant for separating gas and oil under the Khursaniyah development programme.
The contract has been converted from a cost reimbursable basis to speed up the work.
"The drive behind the strategy was the demanding schedule that required the project to be completed by June 2007," Saudi Aramco said in a statement on its website.
Last September, Aramco said the project would be completed by December 2007.
Saipem said in May that the contract includes utilities, production facilities and two separation trains with a total capacity of 500,000 barrels per day.
Aramco said feeds would be received from three production fields, for a total of 500,000 bpd of Arabian Light.
"The processing of the crude from these fields will yield 300 million cubic feet per day of associated sour gas and 15,000 bpd of hydrocarbon condensate, which will be sent over to the neighboring Khursaniyah gas plant," Aramco said.
It said a 1.1 million bpd water injection facility would be required to support production rates as well as a 300 megawatt power plant.
"Another converted LSTK package covering the Khursaniyah gas plant is in the preparation stages for the conversion process as well," the statement said.
Saudi Arabia, the world's largest oil exporter, has speeded up oilfield expansion plans to boost its production capacity to 12.5 million bpd by 2009 to meet world demand, and maintain spare capacity of at least 1.5 million bpd.
In March, the kingdom officially opened its Haradh oilfield project to add 300,000 bpd of crude and raise its capacity to 11.3 million bpd.
Meanwhile, oil climbed towards $70 yesterday after US supplies rose less than expected and due to lingering worries over global crude supply.