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Saudi Aramco already at work on Manifa Expansion project

Aramco Manifa Expansion to maintain KSA production

The state-owned Saudi Aramco company is already considering the Manifa Expansion project as part of the Kingdom of Saudi Arabia (KSA) strategy to maintain its full production capacity of crude oil in respect with the Organization of the Petroleum Exporting Countries (OPEC) quotas.

With a production capacity of 12.5 million barrels per day (b/d) of crude oil Saudi Arabia is the largest contributor to the OPEC production.

Saudi-Aramco_Manifa_Expansion_Project_MapSince it was established in September 1960, OPEC countries are keen to represent at least 40% of the crude oil global production in order to control market prices and maintain them at a rather stable level that can preserve the demand from consuming countries and substantial revenues to the exporting countries.

In this strategy, Saudi Arabia is taking the leading role as the biggest player and because of the minimum revenues it requires to sustain its economical development.

In parallel, the uncertainties lasting in Libya, Syria, Iraq combined with the sanctions against Russia may alter the capabilities of these countries to ramp up or even maintain their crude oil production at today level. 

In addition the experience of the US shale gas development has been rich of learning for Saudi Arabia and its future capability to weight on the crude oil market in case the US shale oil should repeat the shale gas evolution.

In this particular context where major events can influence significantly future crude oil prices up and down, Saudi Arabia pays attention to keep its leading role, thus to maintain its production capacity beyond its actual production.

Manifa Phase-2 to exceed Aramco onshore expansions

In that perspective Saudi Aramco has identified number of opportunities to increase crude oil production.

Saudi Aramco will add light crude oil capacity of 300,000 b/d with the Khurais Expansion project and 250,000 b/d with the Shaybah Expansion project.

These Saudi Aramco Khurais and Shaybah Expansion projects should start commercial operations in 2016 and 2017.

Saudi Aramco is ramping up the production at the Manifa offshore project.

Saudi-Aramco_Manifa_Expansion_ProjectInvesting $10 billion capital expenditure to build 27 artificial islands in the shallow water of the Arabic-Persian Gulf along the shore of the Eastern Province of Saudi Arabia, Saudi Aramco is targeting 900,000 b/d production of heavy crude oil and 120 million cubic feet per day (cf/d) of natural gas.

This Saudi Aramco Manifa first phase started production in 2013.

Considering that the new Al-Jubail refinery has been designed to treat heavy crude oil, Saudi Aramco is already working on the Manifa Expansion project.

In increasing the capacity by 600,000 b/d, Saudi Aramco could take a leap from the 900,000 b/d expected from the first phase to 1.5 million b/d that Manifa could reach with this second phase.

With a front end engineering and design (FEED) work to last two years, Saudi Aramco is targeting to make the final investment decision (FID) on Manifa Expansion project by 2017

For more information about oil and gas and petrochemical projects go to Project Smart Explorer

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