Saudi Aramco’s oil, gas production hit record high in 2016

Saudi Aramco’s crude oil and gas production hit a record high in 2016, the company’s annual report showed.

Average crude oil output rose by 300,000 barrels per day (bpd) in 2016 to 10.5 million bpd, compared to 2015.

Crude oil and condensate reserves slightly declined to 260.8 million bpd in 2016, from the previous year.

Daily gas production also hit a record high to 12 billion cubic feet in 2016, while gas reserves rose to 298.7 trillion cubic feet from 297.6 trillion cubic feet in 2015.

"We achieved remarkable results in 2016, despite the fact that this year was a difficult year in the oil industry due to low oil prices and weak growth in the global market," said chief executive officer Amin Nasser.

“The prevailing and emerging challenges have reinforced our determination to create additional value for the company and enable the continued growth of the Kingdom’s economy,” he added.

In 2016, the company discovered two new oil fields, Jubah, 300 kilometers (km) north of Dammam, and Sahaban, 280 km south of Dammam, in addition to a new gas field, Hadidah, 470 km south of Dammam.

The world’s largest oil producer in 2106 successfully executed a drilling and work-over schedule. It also made significant progress on the following major projects:

- The second 250,000 bpd expansion project at Shaybah, located in the Rub’ al-Khali or Empty Quarter, came on-stream in 2016, raising its overall production capacity to 1 million bpd of Arabian Extra Light crude oil— double the facility’s original capacity.

- The company continued drilling wells to increase the production capacity of Khurais field, located 150 km southeast of Riyadh, by 300,000 bpd to raise current capacity to 1.5 million bpd from 1.2 million bpd by mid-2018.

The total number of fields regrouped to 130 fields by year-end, as the number reflects the grouping of some areas as subdivisions of larger fields, where these areas are parts of continuous geological structures, the report said.

The company also resumed work on its unconventional gas program, as it  completed wells in northern Saudi Arabia to help meet the commitment to deliver 55 million standard cubic feet per day (scfd) of gas by year-end 2017 to industrial and electrical power facilities in the Wa’ad Al Shamal industrial city project.

In addition, it completed wells in South Ghawar and the Jafurah Basin.

“Our ongoing success in adding gas reserves—especially nonassociated gas— provides the domestic economy with additional and cleaner potential energy, and supplies of fuel and feedstock that can be harnessed for greater opportunity,” the company added in the report.