Aramco resumes work on offshore oil capacity expansion

State-controlled Saudi Aramco has resumed development work on three offshore crude expansion projects that will provide an additional 1.15mn b/d of capacity by 2024. The company delayed the projects last year after reining in its capital spending in response to a drastic fall in revenues caused by the Covid-19 pandemic-induced oil demand shock.

Aramco has issued tenders for work to increase capacity of the 825,000 b/d offshore Zuluf field by 600,000 b/d, according to a contractor with knowledge of the project. The Zuluf expansion had originally been scheduled to start up in early 2023 but is now expected on stream in late 2023 or early 2024. Meanwhile, work resumed in late March at the 400,000 b/d offshore Marjan field, where capacity will be increased by 300,000 b/d, also by the end of 2023. Capacity of the 300,000 b/d offshore Berri field will rise by 250,000 b/d within the same timeframe.

Aramco had initially said that the three expansion projects would serve to maintain its overall crude production capacity at 12mn b/d, rather than providing a net capacity increase. The Saudi government has since instructed the firm to boost capacity to 13mn b/d.

Engineering contractors have expressed surprise that work on the offshore expansions is being expedited while the onshore Jafura unconventional gas project remains on hold, despite official announcements that it is going ahead. The Jafura project is due on stream in 2024.

By Samira Kawar