Abu Dhabi, UAEThursday 23 May 2019

Saudi says large quantities of gas discovered in Red Sea

Aramco to intensify exploration if feasibility study confirmed

Saudi Arabia's energy minister Khalid Al Falih said an April meeting was "too soon" to talk about extending the supply curbs. Victor Besa / The National 
Saudi Arabia's energy minister Khalid Al Falih said an April meeting was "too soon" to talk about extending the supply curbs. Victor Besa / The National 

Saudi Arabia discovered large quantities of gas in the Red Sea, the kingdom's news agency reported, citing energy minister Khalid Al Falih.

Saudi Aramco will conduct an investment feasibility study of the project and accordingly intensify exploration over the next two years, Mr Al Falih said on March 7 during an inspection tour of projects in King Salman International Complex for Maritime Industries and Services in Ras Al Khair Industrial City.

The oil giant is eyeing potential LNG project acquisitions in the US and also sees opportunities in Russia, India, Pakistan and Indonesia, he said.

The world’s biggest oil producing company is targeting investments in South Africa, where Aramco is undertaking a feasibility study for plans to buy a petrochemical plant, he said.

Saudi Aramco plans to sell a 5 per cent stake as originally planned, within the next two years, Saudi Arabia's Okaz newspaper reported on March 7, citing Al Falih. Aramco delayed its initial public offering slated for this year as it builds up its petrochemicals portfolio and gets ready for the flotation.

The company is currently in talks with the country’s sovereign wealth fund, the Public Investment Fund, to buy a 70 per cent stake in Saudi Basic Industries Corporation, or Sabic, the Middle East’s biggest petchems producer.

Updated: March 8, 2019 03:02 PM

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