Saudis to manage oil resources while increasing production

Monday, October 4, 2004

Saudi Arabia has embarked on a strategy to maintain a low depletion rate of its oil reserves.

A senior official of the state-owned Saudi Aramco told a conference in Houston on Sept. 27 that the strategy called for the depletion of its oil fields by one to three percent annually. Nasen Saleri, Aramco's manager of reservoir management, said this strategy would remain in effect until at least 2030, Middle East Newsline reported.

Saleri told the Society of Petroleum Engineers Annual Technical Conference and Exhibition that the Saudi decision to increase production to 10 million barrels of oil per day would not violate Aramco policy. He said Saudi production has reached 9.8 million barrels per day because Armaco could not find buyers for some of its heavier crude oil at the price sought by Riyad.

Aramco was also considering increasing output capacity to up to 15 million barrels per day, Saleri said.

Copyright 2004 East West Services, Inc.

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