Aramco official outlines shale E&P challenges

4/16/2012

Aramco official outlines shale E&P challenges

DHAHRAN -- An official at Saudi Aramco has explained that developing shale gas in the Kindom will be “a challenge”, according to a Bloomberg report.

Adnan Kanaan, general supervisor for gas reservoir management at Aramco, told a conference in Khobar in Saudi Arabia that the depth of reservoirs and likelihood of very low permeability will make hydraulic fracturing in the country difficult. Kanaan said Saudi has “great potential” as a shale gas producer, according to Bloomberg.

In January Aramco CEO Khalid Al-Falih confirmed that Aramco was in the early stages of a shale gas E&P program, which was followed by comments by Aramco’s head of exploration.

"If we can get it by 2020, that will be good," General Manager of Exploration Ebrahim Assa'adan told Bloomberg in January. "We are in the reconnaissance phase, shooting regional seismic programs and drilling all over the country."

Arabia sells gas locally at a subsidized price of 75 cents per million British thermal units, reports Bloomberg.

Contrary to earlier indications that Aramco would attempt shale gas exploration alone, Kanaan said that Schlumberger, Halliburton and Baker Hughes are likely to be involved.

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