[Asia Economy Reporter Jeong Hyunjin] Saudi Arabia's state-owned oil company Aramco is set to actively pursue shale gas development in the eastern Jafurah region. It is expected to become the largest shale gas production area outside the United States, the world's biggest shale gas producer.
On the 24th (local time), Amin Nasser, CEO of Aramco, told a major foreign media outlet that Aramco has been developing shale gas drilling technology that injects seawater at high pressure to extract oil resources. This statement came after Aramco announced on the 22nd that it had received approval for the Jafurah shale gas project.
Saudi Arabia is pushing forward a $11 billion (approximately 13.37 trillion KRW) project to develop shale gas plants in the eastern Jafurah region and other areas. This project is being carried out as Saudi Arabia faces challenges in market share due to the increased shale oil supply from the United States over the years. If successful, Saudi Arabia is expected to become the world's third-largest gas supplier by 2030. Currently, the United States and Russia hold the first and second positions globally.
Oil companies have faced difficulties building shale gas-related facilities outside the United States. Various factors such as lack of specialized technology, necessary resources including water, infrastructure shortages, and distance from large population centers have affected this. CEO Nasser emphasized that the Jafurah region is located near the Gulf, making access to seawater relatively easy, and it is close to the Ghawar oil field, the world's largest oil field, allowing easy utilization of existing infrastructure for energy transportation. He said, "This (project) is very economical and can significantly reduce costs."
In particular, CEO Nasser stated, "We will use seawater." He added, "Many people believe that shale gas drilling technology requires enormous amounts of water and that it would be difficult to do this outside the U.S. because we are not rich in water resources. However, we will use seawater."
Aramco has been digging canals since 2013 for the Jafurah shale gas project. Until recently, it has worked with U.S. oilfield service companies such as Schlumberger, Halliburton, and Baker Hughes to develop methods for drilling and extracting oil and gas. CEO Nasser announced plans to invite bids from companies to participate in this project.
Aramco's market capitalization on this day was $1.7809 trillion.
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