Saudi Arabia Turns Development Focus Offshore

Saudi Aramco has stepped up contract awards to develop key offshore fields to offset production declines elsewhere. The aim is to maintain crude production capacity of around 12.5mn b/d.

Saudi Arabia is currently producing at just under 10mn b/d and has production capacity of 12.5mn b/d. But with a natural decline rate of around 6%, it must add some 600,000 b/d of extra production each year just to stand still ( MEES, 5 June 2015 ).

The kingdom looks to be increasingly focusing on its offshore assets to provide this additional crude, signing a number of contracts with service companies in recent months. Five firms are prequalified to tender for projects offshore Saudi through Long Term Agreements (LTA): Italy’s Saipem and US firms McDermott and Dynamic Industries, a JV of Mumbai-headquartered engineering firm L&T and Houston-headquartered offshore services firm EMAS Chiyoda Subsea, and the UAE’s NPCC. (CONTINUED - 423 WORDS)


chart Saudi Arabia Offshore Rig Count Well Below 2015 Heights