Saudi Aramco Announces Deepwater Drilling Ambitions in the Red Sea

saudi aramcoHOUSTON (Dow Jones)–Saudi Aramco, the world’s largest oil producer, plans to drill its first deepwater exploratory well in the Red Sea by year-end, a company executive said Tuesday.

“We are optimistic about the potential for significant discoveries,” said Amin Nasser, Saudi Aramco senior vice president upstream, at the IHS CERA conference in Houston. “We expect to start drilling in the deepwater by the end of this year.”

Deepwater and shallow water drilling are key components of Saudi Aramco’s long-term goal of finding at least 100 million barrels of energy resources within the Saudi Arabian kingdom in the next several decades, Nasser said. The company is also working on increasing its rate of oil recovery from fields to 70% from 50% in coming years.

“The program was designed to ensure that we continue to have ample spare capacity to meet underestimated energy demand,” he said.

-By Isabel Ordonez, Dow Jones Newswires