Tuesday, 18 January 2011

FT.com / Middle East & North Africa - Gulf shifts focus to domestic energy

Shaybah is Saudi Arabia’s most remote hydrocarbon field, nestled deep in the desolate, sun-scorched expanse of the Rub al Khali desert. In spite of the location, Saudi Aramco, the state-owned oil company, is pressing ahead with a production expansion.

The field’s crude oil output was increased by 50 per cent to 750,000 barrels a day in 2009, and Aramco recently signed a $500m deal with GE Energy to further raise the reservoir’s capacity to 1m barrels.

Perhaps more important, the deal also includes a substantial increase in Shaybah’s gas output, and a plant to process it into liquid form.

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