Page 5 - MEOG Week 33 2022

MEOG COMMENTARY MEOG

than last year and considerably more than any on the Hawiyah Unayzah Gas Reservoir Storage
other NOC or IOC, though it noted it would be project, noting that it has reached “an advanced
at the lower end of this range. Q2 capex was up stage, with the injection phase nearing comple-
by 25% y/y to $9.4bn. tion”. The facility is seen providing up to 2 bcf
(57 mcm) per day of gas for reintroduction to the
Operations Master Gas System by 2024.
Nasser was in buoyant mood, saying that Ara- In the downstream, Aramco announced that
mco expects oil demand “to continue to grow its long-awaited, 300,000 bpd Pengerang Petro-
for the rest of the decade, despite downward eco- chemical Co. (PRefChem) facility in Malaysia
nomic pressures on short-term global forecasts.” had finally begun operations in May, noting that
However, he added, “while there is a very it would ramp up to full capacity by the end of
real and present need to safeguard the security the year.
of energy supplies, climate goals remain critical, The plant’s development was hampered by a
which is why Aramco is working to increase pro- string of accidents since Aramco made a $7bn
duction from multiple energy sources – includ- investment to acquire a 50% stake in 2018.
ing oil and gas, as well as renewables, and blue Once at capacity, the PRefChem plant will
hydrogen.” take Aramco’s net capacity from international
The company said it continued to make pro- refining joint ventures (JVs) to 1.52mn bpd in
gress to expand maximum sustainable capacity addition to its 1.46mn bpd domestic wholly
(MSC) from 12mn barrels per day to 13mn bpd owned slate and another 906,000 bpd of capacity
by 2027. Total hydrocarbon production during at domestic JV refineries.
Q2 averaged 13.6mn barrels of oil equivalent Meanwhile, Aramco said that work to inte-
per day, up 600,000 boepd on Q1. No break- grate the operations of Saudi Basic Industries
down was offered for oil and gas, but data seen Corp. (SABIC) – in which it acquired a 70%
by Middle East Oil & Gas (MEOG) suggests that stake for $69bn in 2019 – is “ahead of sched-
Aramco’s crude oil production averaged 10.3mn ule” with synergies offered across procurement,
bpd, a slight increase on Q1, when output aver- stream integration, feedstock optimisation and
aged 10.22mn bpd. maintenance activities. Rights to polymer and
In terms of gas development, it said that it was monoethylene glycol (MEG) from PRefChem
“progressing towards increasing production” as have also been transferred to SABIC.
work continues to construct the 3.1bn cubic feet Amid buoyant operational and financial per-
(88mn cubic metres) per day Jafurah Gas Plant. formance, Aramco has cash on the hip and has
Aramco said it is expected to be completed in paid down previous debts, reducing its gearing
two phases by 2027, with the unconventional ratio – the ratio of net debt to net debt plus total
Jafurah field seen beginning production in 2025. equity – to 7.9% from 14.2% at the end of 2021.
The field is the key focus of Aramco’s gas Upstream is the company’s bread and but-
expansion plans and output will ramp up to “a ter, though, and the MSC expansion projects
sustainable rate” of 2 bcf (57 mcm) per day by including the crude increment programmes at
2030, providing feedstock for hydrogen and the Berri, Dammam, Khurais, Marjan and Zuluf
ammonia production and help satisfy expand- oilfields – targeting 1.5mn bpd of new output –
ing local demand. are likely to account for the majority of its capex
As in Q1, the company provided an update for years to come.™

Week 33 17•August•2022 www. NEWSBASE .com P5