Aramco courts majors for gas ventures

RIYADH, April 11, 2017 – Saudi Aramco is looking to international oil majors to help tap Saudi Arabia’s gas resources, people familiar with talks to that end said on Tuesday.

Aramco has reportedly engaged in talks with BP and Chevron on ramping up gas production in the country in an effort to reduce the use of oil for power generation. Using gas for electricity production and thus increasing the volume of crude available for export could also help Saudi Aramco’s valuation ahead of its planned initial public offering.

According to the 2016 BP Statistical Review of World Energy, Saudi Arabia boasts natural gas reserves of 8.3 tcm (294 tcf), placing it third in the Middle East and sixth in the world.

Industry sources speaking to Reuters also said Aramco had discussed investing in gas ventures abroad with Italy’s Eni. The latter has substantial gas operations in Egypt, Libya and Mozambique.

The majors declined to comment on the matter, the agency wrote.

Saudi Aramco is working to double gas production to some 23 bcf [651 mcm] over the coming 10 years. An overarching gas strategy is reportedly in the works, with people familiar with the plans stating it could be unveiled within months.

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