Saudi Arabia to boost Red Sea gas exploration: Al-Falih

Saudi Arabia has already discovered large quantities of gas in the Red Sea, and Aramco will intensify exploration in the region over the next two years, Saudi Press Agency (SPA) reported, citing Khalid Al-Falih, the Kingdom’s energy minister.

Oil quantities in the Red Sea are limited and can be costly to extract, as it exists about 1,200-1,500 meters deep, Al-Falih said on Thursday during a tour at King Salman International Complex for Maritime Industries and Services in Ras Al Khair Industrial City.

Saudi Aramco plans to invest in South Africa for its promising investment opportunities, he said, adding that the world is focusing on refineries to compensate for the $1 to $2 variation in oil prices due to raw material specifications.

Al-Falih also said that he expects higher global demand for diesel, pointing out that in 2020 the derivatives industry will see a great challenge, which will decrease demand for heavy oil and ship fuel.

The expected demand for diesel will revamp refineries in order to be able to meet the global market changes, he added.

Aramco continues with its global acquisition plan, as it has promising opportunities in Russia, India, Pakistan, and Indonesia, in addition to the liquefied natural gas (LNG) projects in the United States, Al-Falih said.

Saudi Aramco works on direct sale of gas by directly dealing with customers through buying from producers and selling to customers for a profit margin, in order to get to know the market before investing in LNG, he said.

Al-Falih added that Aramco plans to acquire a petrochemicals plant in South Africa, and it’s currently conducting the feasibility study.