Aramco

当初のNatural Gas Initiative　　 Natural Gas Initiative

その後の経緯

歴史と現状　　　Kingdom's Gas Development: Saudi Aramco's Role　　

Gas Operations Latest Developments 　　　　　　　　　その後の経緯
http://www.saudiaramco.com/

The Hawiyah Gas Plant, which became fully operational at the end of 2001, provides an additional 1.4 billion cubic feet per day of sales gas.

The Haradh Gas Plant construction progresses on schedule to meet planned commissioning and start-up at year-end 2003. This new gas plant will provide an additional 1.5 billion cubic feet per day of sales gas.

To meet growing domestic demand, the Kingdom has embarked on a major expansion of its gas industry and the downstream consuming sectors of the economy, particularly petrochemical production and exports and electricity and water desalination facilities.

Subsequent to the Long Term Kingdom Gas Strategy developed by the Ministry of Petroleum and Minerals and Saudi Aramco in 1998, the government invited interested international oil companies (IOCs) to participate in the development of new gas fields, gas production and downstream utilization projects. Gas is targeted to be "an engine of growth" for the Saudi economy.

The so-called Natural Gas Initiative has made substantial progress and has an ambitious schedule ahead to implement some $25 billion worth of projects over the next five to ten years. Progress is being made on three Core Ventures.

Core Venture 1 includes ethane and NGL recovery from the Haradh and Hawiyah Gas Plants, additional new gas development and production, two petrochemical complexes to utilize ethane and NGL and two large power/water generation facilities on the east coast of Saudi Arabia. The IOC consortium selected to develop CV1 includes ExxonMobil, Royal Dutch/Shell, BP and Philips.

Core Venture 2 focuses on gas development in the Red Sea and along the west coast. It includes exploration, development, production and downstream facilities, i.e., petrochemical and power/water plants. ExxonMobil, Occidental and Marathon are in a consortium to develop CV2.

Core Venture 3 comprises gas exploration and production in the Shaybah/Kidan area in the southeastern part of the Kingdom. It will include downstream facilities, as well. A consortium of Shell, TotalFinaElf and Conoco is working to develop CV3.

Speaking recently of these mammoth gas projects, Ali I. Al-Naimi, the Minister of Petroleum and Mineral Resources, said, "We want to see strategic partnerships between foreign and Saudi investors and the state to achieve our goals of economic prosperity." Such partnerships should "build comprehensive industries, starting with gas exploration and extraction ... and ending with vital projects including power generation, water desalination and petrochemicals," he said. "No doubt, the challenges are immense and diverse, the biggest of all being the sustained economic development at a rate that exceeds that of population growth and establishment of a sturdy industrial base capable of competition at the international level."

The three CVs cover an area of 440,000 square kilometers, making it the world’s largest area for hydrocarbon investment. Reviewing the Kingdom’s natural gas industry, the minister referred to the present and future role of gas and highlighted the historical development of this industry in the Kingdom. The development, he said, had passed through four main phases and was now in its fifth phase. The first phase started with oil production in 1938 and lasted through 1975. The fifth phase was launched when the Kingdom invited foreign investment in gas exploration, production and processing, as well as linking these initial upstream resources with downstream processes.

IEEJ：2003 年4 月掲載

http://eneken.ieej.or.jp/trend/pdf/saudi030327.pdf

　現在、複数の外国企業との間で天然ガス開発及び利用プロジェクトの最終交渉を行っている（ガス・イニシアチブ）。ガス・イニシアチブはコアベンチャーと呼ばれる３件のプロジェクトで構成される。
　各プロジェクトの概要は以下のとおり。

表１ サウジアラビアのガスプロジェクト

　　　　　　　　　　　　　　　　　　* プロジェクトリーダー

場所

天然ガス　　natural　gas 天然に地下から産出し，地表条件では気状を成す物質。 原油と別にガスだけ産出するものをnon-associated gas又はガス井ガス(gas-well gas）という。

サウジ詳細地図

Gulf News 2003/7/6

New Saudi gas initiatives need to be attractive
http://www.gulfnews.com/Articles/print.asp?ArticleID=91952

Saudi Arabia's original Natural Gas Initiative (NGI) had been all but totally terminated due to differences between international oil companies (IOCs) and the government. The authorities reportedly intend to make a new revised offer during a meeting in London later this month.

The integrated programme stipulated exploration and processing of gas plus construction of power stations, water desalination plants and petrochemical schemes. The gas sector was excluded from a negative list that specifies activities prohibiting foreign investments.

Differences
From the onset, the NGI looked complicated in many respects. Despite several rounds of negotiations, the two sides could not agree on a course of action leading to implementation agreements. At the core of the disagreement was the internal rate of return (IRR).

Other restrictions made the gas ventures even less attractive. For example, the offer was valid only for areas of non-associated gas.

Additionally, areas with proven gas reserves were off limits. Also, the two sides disagreed on the interpretation of the seismic surveys. Saudi Aramco, which represented the government, had estimated the three areas to contain 35 trillion cubic feet of gas.

Setback
In January and as part of moves to avoid collapse of the entire deal, the government terminated the second core venture, considered the most difficult to explore. But in early June, the first core venture, the most prized was terminated. Thus, progress on the third core venture, regarded as the easiest of all, remained valid.

→　CV３を変更（当初は下流の石化まで→上流だけ）
　　　　Aramco,Shell,Totalが South rub Al Khaｌi Company設立

Kingdom's Gas Development: Saudi Aramco's Role

Abd Allah S. Al-Saif
Sr. Vice President, Exploration & Producing, Saudi Aramco
Dammam, May 22, 2004

http://www.saudiaramco.com/ 　　　　　　　　　　　　　　　　　　　　　　当初のNatural Gas Initiative

Good morning, gentlemen.
It is my pleasure to participate in this important Gas Conference and to be able to speak to you about Saudi Aramco’s role in the development of the Kingdom’s gas program and our commitment to meet future growth in gas demand that will maximize the Kingdom benefits.
Let me begin with a brief history of the Saudi Gas Program development.

At the direction of the Saudi Government, Saudi Aramco launched the Master Gas System or MGS in late 1970s, to put to use associated gas to develop gas-based industry in the Kingdom.
The processed gas was the main driver for developing the Jubail and Yanbu industrial cities. The Gas development focuses on the domestic use which yields great benefits to the Kingdom.

This slide shows the main components of the MGS in the early eighties:
It consisted of :
　Three gas plants at Berri, Shedgum, and Uthmaniyah,
　Two fractionation centers at Juaymah and Yanbu,
　Yanbu industrial city.

After the start-up of the MGS, the demand for gas grew rapidly.
In the 1980s, when Saudi Arabia’s oil production was low, associated gas production was not sufficient to feed the industries as well as provide fuel for utilities.
In order to meet commitments to customers, Saudi Aramco introduced non-associated gas and modified the gas plants to treat both types of gas.

Simultaneously, an aggressive exploration program started in 1994 and began to add an average of 5 TCF per year to the non-associated gas reserves. By the end of 2003, these reserves stood at almost 97 Trillion Cubic feet .
Armco's efforts in Exploration, Delineation and Development continue
to target the addition of 5 TCF per year.
Based on these reserves, and the increasing demand for gas and gas products, Saudi Aramco built two world class gas processing plants, at Hawiyah and Haradh, which process non-associated gas exclusively.
This is in addition to major expansions in Shedgum and Uthmaniyah Gas Plants.

As shown on this slide, Saudi Aramco has made a number of large investments in facilities which helped meet the growing demand. As of today, our gas plants can process in excess of 9 Billion Standard Cubic Feet per day, and produce 7 billion Standard Cubic of sales gas which is then distributed to Kingdom industries and utilities.
As you can see, the gas availability has always been either equal to or higher than demand. Utilities are a major consumer of Gas as fuel.
However, its consumption fluctuates heavily between the summer and winter season as shown by the yellow line. This results in unutilized gas avails in winter. The Ministry, Saudi Aramco and the Utilities are working together to develop a base load plan that would allow availing the swing volumes to the industries throughout the year.

This slide shows the MGS as it stands today including the two new gas plants and the sales gas supply to Riyadh and Yanbu.
Today the Kingdom ranks among the highest in per capita gas consumption and value addition. Saudi Arabia is a leading exporter of gas-derived petrochemicals and remains the world’s largest exporter of NGL.
In addition to being used as feedstock, gas fuels much of the Kingdom’s electricity and water desalination facilities.

With the guidance of the Government, a gas strategy was developed to ensure continuity of supply to meet kingdom needs well into the future. This strategy assumes that gas demand will reach 12 BCFD by 2025.
The next wave of growth will come from two sources.
First, from additional investments within Saudi Aramco. The Company has allocated major capital investments to install facilities to recover ethane and NGL from Hawiyah and Haradh gas plants. The recovery project is due to start in 2008 and most of the products from this project have already been committed to Petrochemicals.
Saudi Aramco will continue to expand gas facilities as demand occurs.

The Kingdom’s gas strategy also envisioned inviting foreign companies to participate in the Kingdom’s gas sector. The strategic driver for the government’s opening of upstream gas development is to attract foreign investments.
This Strategy culminated with the recent signing by H.E. Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources of the four gas agreements with 6 major International Oil Companies which marked a historic milestone for the Kingdom and Saudi Aramco.

The four exploration/development gas agreements covering the Rub’al-Khali basin include Shell, Total,
Lukoil, Sinopec, ENI and Repsol along with Saudi Aramco as indicated on the slide.
You have already heard from each of these companies and I will not discuss the specific plans of each joint venture.

Rub al-Khali : map
In the south of the Kingdom is the famous Rub al-Khali (the Empty Quarter), a massive, trackless expanse of shifting sand dunes - one of the largest sand deserts in the world - which covers an area of more than 250,000 square miles (650,000 square kilometers) and extends to 1,200 by 500 kilometers.

Saudi Aramco will play an active part in the entire business of these joint ventures ーfrom operation, technology exchange and application to day-to-day management and representation to the Board of each of these four joint ventures.
Saudi Aramco has loaned some of the Company's best talent to these ventures to exchange ideas, knowledge and the unique insight gained from years of working on Saudi gas geology, reservoirs and appropriate technologies.
The Company is also counting on exchanging fresh insight from the skills, know-how and the talent that the partner companies will bring to the venture.
Saudi Aramco will provide logistical support as needed and only when it can't be found locally.
The comprehensive agreements between the IOC's and the Government of Saudi Arabia that were recently signed addressed in details the commitment to Saudization, Environmental protection and the utilization of local Infrastructure and services.

In other words, Saudi Armco's stewardship role for Saudi gas will continue, with added scope and greater responsibilities. And yet the fundamental purpose of the stewardship remains the same as it was when we started this journey three decades ago: To create the maximum value and to provide the greatest benefits to the Kingdom and its people from Saudi gas resources.

In summary,
The master Gas system has served as the cornerstone of the Kingdom’s industrialization over the past 3 decades.
Saudi Aramco will continue the expansion of the Master Gas System to meet future demand..
We are most certain that the joint ventures will complement Saudi Aramco effort toward satisfying this demand.
Saudi Aramco is committed to make these JV’s a success with participation in their governance and Management. Saudi Aramco loanees to these companies will actively participate in technical exchanges, operations and management of these companies.
These agreements and the massive foreign investment they will bringprovide another chapter in Saudi Armco's effort to leverage the Kingdom’s abundant hydrocarbon reserves for the Kingdom’s economic well being and those of our partners.

2003/7/17

Shell, Total strike Saudi gas deal　　　　　　　　　　　　　　　　　　　　背景
http://www.pipelinedubai.com/press/pr_0818.htm

The Royal Dutch/Shell Group of Companies and Total signed an agreement with the Government of the Kingdom of Saudi Arabia, to form a Joint Venture with Saudi Aramco for the exploration of gas in an area of 200,000 km2 in the southern part of the Rub Al-Khali (the Empty Quarter).

Shell, as leader of the Consortium, will retain a participation of 40 per cent of the new Joint Venture, with Saudi Aramco and Total each 30 per cent participation.

2004/4 Shell　

Shell and Saudi Aramco join Total in the South rub Al Khali Company
http://www.shell-me.com/english/apr04/profiles2.htm

"Saudi Aramco is truly proud of its relationship with shell, and that cuts across the whole business," says Khalid Al-Falih, Vice President of New Business Development at Saudi Aramco Chairman of the new South Rub Al Khali Company Limited (SRAK).

(Natural Gas ) Initiative was to span both upstream and downstream operations.

Unfortunately, it became clear that these Core Ventures as originally conceived were too commercially and technically complex, and that it would not be feasible to implement their downstream elements," he says.

"The result was that, in consultation with the IOC consortium led by Shell, the Saudi Government restructured Core Venture 3 to focus on the upstream," he continues. "This resulted in the signing last year of a contracted for the exploration and development of 210,000 square kilometers of the Rub Al Khali desert and the formation of the South Rub Al-Khali joint venture."

http://www.shell-me.com/english/apr04/profiles1.htm

The South Rub Al Khali Company Limited (SRAK) was formed in December 2003 with three shareholders: Shell with 40 per cent and Saudi Aramco and Total, each with a 30 per cent shareholding.

2004/3/7 AP

Foreign firms move into Saudi
http://www.finance24.co.za/Finance/Companies/0,6778,1518-24_1494720,00.html

In a milestone agreement, Saudi Arabian officials signed contracts with foreign oil executives on Sunday to explore jointly for natural gas in the country's vast southern desert known as the Rub al-Khali, or Empty Quarter.


Saudi Aramco, the state-run oil concern, took a 20% share in each of the three contracts awarded. Its partners are Lukoil Holdings of Russia; China Petroleum & Chemical Corp., or Sinopec; and a consortium comprising Italy's Eni SpA and Repsol-YPF of Spain.

May 18, 2001 Exxon Mobil

ExxonMobil Selected as Leader in Saudi Gas Venture
http://www.exxonmobil.com/Corporate/Newsroom/Newsreleases/Corp_xom_nr_180501.asp

Exxon Mobil Corporation announced today that the Kingdom of Saudi Arabia has selected ExxonMobil as the leader in a significant project, Core Venture 2 in the Saudi Arabian Natural Gas Initiative, and that ExxonMobil has also been selected to participate in the implementation of another major project, Core Venture 1.

The two projects, known as Core Ventures 1 (Northern Rub' al Khali) and 2 (Red Sea) could result in a total estimated industry investment of over US$20 billion and are designed to underpin the Kingdom's goals of economic growth and job creation by developing and providing energy to diverse industries.

ExxonMobil will become the lead, majority participant in Core Venture 2 and a significant participant in Core Venture 1. Following the signing of Preparatory Agreements, ExxonMobil will work with the Saudi Government and other participants to define and evaluate each Core Venture element, and develop project execution plans.

Core Venture 1 will significantly expand the Kingdom of Saudi Arabia's power, water desalination, petrochemical and gas system and provide for exploration and development of the Kingdom's gas resources in the Northern Rub' Al-Khali region. The project includes field production and gathering facilities, gas processing and fractionation plants to recover and separate liquids from existing and new gas production, gas and liquids transmission and downstream investment in power, petrochemicals and water desalination. The project includes up to 4000 MW new power generation capacity integrated with water desalination, and two new petrochemical facilities, one each on the east and west coasts of Saudi Arabia.

Core Venture 2 includes development of discovered gas resources in Northwest Saudi Arabia, power and desalination facilities in that region and exploration in the Northern Red Sea with the opportunity for additional investment in chemicals, power and desalination facilities on the West Coast depending on exploration success.

2008/5/14 Saudi Aramco

Saudi Aramco and Total confirm Jubail Refinery Project

The Saudi Arabian Oil Company (Saudi Aramco) and Total have both confirmed their decision to invest in a 400,000 barrel per day world-class, full-conversion refinery in Jubail, Saudi Arabia.



In a comprehensive, joint Front-End Engineering and Design (FEED) study launched in May 2006, Saudi Aramco and Total have selected state- of- the- art proven technologies for a full conversion refinery scheme geared to maximizing the production of diesel and jet fuels. In addition, the project will produce 700,000 tonnes per year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y of polymer grade propylene.

A joint venture company for the refinery will be formed during the third quarter of 2008. Saudi Aramco will initially own 62.5% of the company and Total will own the remaining 37.5%. Subject to required regulatory approvals, the parties are planning to offer 25% of the company to the Saudi public while the two founding shareholders each intend to retain a 37.5% ownership interest. Saudi Aramco and Total will share the marketing of the refinery’s production.

May 16, 2008 Saudi Aramco

Saudi Aramco and ConocoPhillips Confirm Yanbu Export Refinery Project

The Saudi Arabian Oil Company (Saudi Aramco) and ConocoPhillips today announced they have approved continued funding for the development of the Yanbu Export Refinery Project.

The Saudi Aramco and ConocoPhillips project would construct a grassroots, 400,000 barrel-per-day, full-conversion refinery in the Yanbu Industrial City, in The Kingdom of Saudi Arabia. The refinery is being designed to process Arabian heavy crude which would be supplied by Saudi Aramco. The refinery would produce high-quality, ultra-low sulfur refined products that will meet current and future product specifications. Saudi Aramco and ConocoPhillips would each be responsible for marketing one half of the refinery's production. The refinery is targeted to start up in 2013.


ConocoPhillips and Saudi Aramco are planning to form a joint-venture company, with equal interests to own and operate the proposed new refinery. Subject to required regulatory approvals, the parties plan to offer an interest in the refinery to the Saudi public.

May 25, 2008 Reuters

Saudi Aramco eyes $129 bln investment in next 5 yrs

State oil giant Saudi Aramco plans to invest $129 billion on new energy projects in the next five years, the company's executive vice president of operations said on Sunday.

About $70 billion of the total would be spent by international and domestic joint ventures, and the remaining $59 billion on projects solely undertaken by Aramco, Khalid al-Falih told Reuters.

The $129 billion figure is nearly $40 billion higher that previous estimates given by Saudi official for expansion.

"We are updating our figures all of the time. This figure includes more projects," Falih said. This includes refinery projects in the United States and China, a second phase of the Saudi-based PetroRabigh 2380.SE, and a giant petrochemical plant at Ras Tanura to be built by Dow Chemical.

2008/7/12 Saudi Aramco

Accord Inked with SABIC for Marketing Polyolefin Products of Fujian Joint Venture

Sino Saudi Aramco Company Ltd, a wholly owned subsidiary of Saudi Aramco, signed a mutual cooperation agreement with SABIC Shenzhen Trading Company Ltd, a SABIC subsidiary in the People’s Republic of China.

The agreement was signed on the afternoon of Saturday, July 12, 2008, at the offices of the parent company, Saudi Aramco, in Dhahran.

Under this agreement, SABIC Shenzhen Trading Company Ltd will market Saudi Aramco Sino Company Ltd’s 25 percent share of polyolefin products produced by the Fujian Refining and Petrochemicals Company of the People’s Republic of China.


This agreement is regarded as one of the significant pillars in the progress of the strategic partnership between SABIC and Saudi Aramco, and the agreement is expected to boost and support the strong leading position of SABIC in the field of production and marketing of polyolefins, worldwide.


The project’s products will include such polyolefins as Liner low density polyethylene (LLDPE), at a production capability of 400,000 tons annually, high density polyethylene (HDPE), at a production capacity of 400,000 tons annually. The project will also produce polypropylene (PP), at a production capacity of 470,000 tons annually.



The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.