Increased Saudi Natural Gas Reserves for 4th Consecutive Year by 2.2%

According to the Al-Eqtisadiah newspaper, Saudi Arabia’s oil and gas reserves increased by 0.3% for the fourth consecutive year during 2022 to reach 338.4 billion boe, up from 337.3 billion boe by the end of 2021.

In a report based on data from Saudi Aramco, Al-Eqtisadiah’s reporting division indicated that reserves in the Kingdom’s fields are distributed at 261.6 billion barrels of crude oil and condensate (reserves at the end of 2021 itself), and 36.1 billion barrels of oil. natural gas (was 36 bbl by end 2021), up from 246.7 tcf by end 2022 (up from 241.5 tcf by end 2021), of which 156 .9 trillion standard cubic feet is associated gas (compared to 153.7 trillion standard cubic feet at the end of 2021).

The report indicated that the increase in total oil and gas reserves came as a result of a 2.2% increase in natural gas reserves during 2022, the fourth consecutive annual increase as it stood at 233.8 trillion standard cubic feet at the end. 2018, then 237.4 tcf end 2019, then 238.8 tcf end 2020

Al-Eqtisadiah indicated that under the original concession agreement, which continued until 24 December 2017, Saudi Aramco’s hydrocarbon rights in the Kingdom were not limited to a specific period, and therefore the Kingdom’s reserves in the fields operated by Saudi Aramco up to that date were in line with reserves company, however, from December 24, 2017, the concession agreement secured the exclusive right of Saudi Aramco to explore, develop and produce hydrocarbons in the Kingdom, with the exception of resources in the excluded areas, for an initial period of 40 years, which will be extended by the government for another 20 years with provided that Saudi Aramco complies with certain conditions.

In addition, the Concession Agreement may be extended for an additional 40 years after the expiration of the 60 year term, subject to agreement between Saudi Aramco and the Government on the terms of such an extension.

The newspaper said that, based on an initial concession period of 40 years and an extension of 20 years, Saudi Aramco’s total hydrocarbon reserves under management by the end of 2022 were about 258.8 billion oil equivalent barrels, compared with 253.6 billion barrels at the end of 2022. 2022. at the end of 2021, as Saudi Aramco’s oil equivalent reserves include 200.8 billion barrels of crude oil and condensate, compared to 196.9 billion barrels at the end of 2021.

It also included 25.2 billion barrels of liquefied natural gas (the same in 2021) and 201.9 trillion standard cubic feet of natural gas, compared to 194.5 trillion at the end of 2021.

Source: The Economist.

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