Khurais oilfield expansion may be delayed beyond 2017: report

The expansion of Saudi Arabia's Khurais oilfield is expected to be postponed beyond 2017, while the start-up date is still unknown, Reuters reported, citing unnamed industry sources.

Contractors who were awarded jobs on the field were asked to wait to finalize contracts, one of the sources said, suggesting the expansion process may be delayed beyond 2018.

"The project is important because of the associated gas that comes with the expansion of the oilfield, but Aramco has stretched the timeframe of the field,” another source said. “The picture will be much clearer in November or December.”

Authorities had not given any reasons for the delay and Saudi Aramco was not available for comment, the news agency said. The state-owned oil giant has recently scaled back on some of its projects amid declining oil prices. It has also shelved less important investments and requested discounts on some awarded contracts.

When completed, the Khurais project will boost the field's output by 300,000 barrel per day (bpd) to 1.5 million bpd, and allow it to produce 143 million standard cubic feet per day of associated gas and 34,000 bpd of natural gas liquids.

In 2013, Saudi Aramco’s former chief executive Khalid Al Falih said light sour crude output from the Khurais and Shaybah oilfields would increase by 550,000 bpd in 2016-2017.