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UPDATES & LEARNING
Aramco marks a major milestone by successfully extracting first unconventional Tight Gas from the South Ghawar Reservoir
Tags: #Saudi Aramco #Ghawar #Jafurah #Tight Gas
November 14, 2023 - Aramco, one of the world’s leading integrated energy and chemicals companies, has successfully produced the first unconventional tight gas from its South Ghawar operational area two months ahead of schedule. This development supports Aramco’s strategy to increase gas production by more than half, over 2021 levels, through 2030, subject to domestic demand.
Commissioned facilities at South Ghawar have a 300 million standard cubic feet per day (scfd) of raw gas processing capacity and 38,000 barrels per day (bpd) of condensate processing capacity. In response to growing demand for gas, the company will continue its work to more than double the overall processing capacity in order to achieve South Ghawar’s strategic goal of delivering 750 million scfd of raw gas in the near future.
Successful production of tight sand gas at South Ghawar represents Aramco’s second unconventional gas stream, after production commenced at the North Arabia field in 2018 with the delivery of 240 million scfd to customers in Wa’ad Al-Shamal. Work is simultaneously progressing at the giant Jafurah unconventional gas field, which is the largest liquid-rich shale gas play in the Middle East.
Unconventional gas resources — often called tight gas or shale gas — are becoming increasingly important as both global and domestic energy demand continues to grow. We are exploring, running pilot projects, and putting in place the infrastructure required to access new unconventional reserves in fields such as North Arabia, South Ghawar, and Jafurah.
PDO ACHIEVES HISTORIC MILESTONE OF DRILLING 1,500TH WELL AT NIMR OIL FIELD
Tags: #Oman #PDO #Petroleum Development Oman
The 1,500th well, referred to as NM-1500, is part of the Nimr cluster, located in the South of PDO's concession area. Covering a total area of 1,875 km, Nimr is the Company's largest cluster, and boasts the most extensive well stock spread across 23 fields. It contributes more than 12% of PDO's production (around 90,000 barrels per day) and possesses one of the most substantial hydrocarbon growth portfolios.
PDO Managing Director Steve Phimister said: “This historic accomplishment of drilling the 1,500th well in the Nimr cluster underpins our long-term commitment to sustainable growth and maximising value to Oman's economy. We are setting new benchmarks in the energy sector, safely and competitively growing our core business, in terms of both cost and carbon performance". “This achievement is the result of a great cross-functional effort within the organisation and we are immensely proud of everyone involved." The journey to NM-1500 began 43 years ago when the discovery well, NM-1 was drilled in the Nimr-C area, with output starting a few years later following the commissioning of production facilities. The well is still yielding oil today. Oil South Petroleum Manager Junaid Ghulam said: “NM-1500 symbolises the persistence, resolve, sustainability and superb reputation of our Company and its people to produce oil from the most challenging of sub-surface environments, consisting of heavy oil from complex classics with strong aquifers, for decades past and decades to come."
In recent years, “Nimr" has evolved into an efficient well "factory" delivering over 130 new wells a year. NM-1500 was operational just 15 hours after the rig move, a testament to the well-oiled machine that Nimr has become. This achievement was made possible through efficient management of operational issues and effective collaboration between various teams across the company. Notably, the well NM-1000 was drilled in 2013 over a 23-day period in the complex and challenging Middle Gharif sandstone reservoir to a total depth of 2,100 metres and is now in production.
Aramco to Enter South American Retail Market with Esmax Acquisition
Tags: #Aramco #KSA
Aramco, one of the world’s leading integrated energy and chemicals companies, has agreed to purchase a 100% equity stake in Esmax Distribusción SpA (“Esmax”) from Southern Cross Group, a Latin America-focused private equity company. The transaction is subject to certain customary conditions, including regulatory approvals. Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. Its national presence includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant. Aramco’s planned acquisition of Esmax would be its first Downstream retail investment in South America, recognizing the potential and attractiveness of these markets while advancing Aramco’s strategy of strengthening its downstream value chain. This transaction would enable Aramco to secure outlets for its refined products and help expand its retail business internationally. The acquisition would also further unlock new market opportunities for Valvoline branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023.
Mohammed Y. Al Qahtani, Aramco Downstream President, said: “This agreement is yet another milestone in our strategy to grow Aramco’s downstream presence globally and expand our retail, lubricants and trading businesses. We are excited by the opportunities it presents, creating synergies with our extensive trading and manufacturing systems. Moreover, it creates a platform to launch the Aramco brand both in Chile and South America more broadly, unlocking significant potential to capitalize on new markets for our products. Esmax is a well-run business in Chile with more than 100 years of experience with quality assets and growth potential. We are excited to have the outstanding people of Esmax join the Aramco family as we continue to execute on our downstream strategy.”
ADNOC and Tabreed Advance the First Project in the Region to Harness Geothermal Energy
Tags: #UAE #ADNOC
Abu Dhabi, UAE – August 14, 2023:
ADNOC and the National Central Cooling Company PJSC (Tabreed), today announced a breakthrough in the first project in the gulf region to harness geothermal energy following the conclusion of testing on two geothermal wells at Masdar City in Abu Dhabi. The landmark project is set to decarbonize the cooling of buildings in Masdar City, further diversify the UAE’s energy mix and support the UAE National Energy Strategy 2050, which aims to grow renewable energy capacity to 14 GW by 2030. The project is enabled by ADNOC’s initial $15 billion allocation towards low carbon solutions and will support its decarbonization plan and net zero by 2045 ambition as well as the Abu Dhabi Climate Change Strategy and UAE Net Zero by 2050 Strategic Initiative. The wells produced hot water at temperatures exceeding 90 degrees celsius (oC) and flow rates of approximately 100 liters per second.
The hot water generated by the heat from the wells will now pass through an absorption cooling system to produce chilled water, which will then be supplied to Tabreed’s district cooling network at Masdar City, accounting for 10% of its cooling needs. Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “Across ADNOC, we are developing and deploying innovative climate technologies and low carbon solutions to deliver on our accelerated decarbonization plan and net zero by 2045 ambition. Geothermal heat is a clean and renewable source of energy abundantly available in the UAE and capable of providing baseload electricity. However, until now, it has remained an untapped source of energy.
By leveraging technological advances, for the first time ADNOC and Tabreed have unlocked this clean energy source to decarbonize one of the most energy intensive sectors in the country.” Currently, the cooling of buildings accounts for the majority of the UAE’s electricity consumption. District cooling offers a sustainable alternative to traditional cooling methods as it is around 50% more energy efficient in its standard operations. Leveraging geothermal heat for district cooling operations has the potential to significantly reduce electricity demand for cooling from the grid, helping to decarbonize one of the most energy intensive sectors in the region.
Khalid Al Marzooqi, CEO, Tabreed, said: “The integration of geothermal energy with district cooling operations represents a significant advancement in the UAE's journey towards diversifying its energy mix and achieving net zero by 2050. We are proud of our collaboration with ADNOC to accelerate our decarbonization efforts in the leadup to COP28, which also underscores our commitment to exploring the latest technologies and harnessing the power of renewables to meet the rising demand for sustainable cooling.” ADNOC is pioneering the development of geothermal energy in the UAE, which can provide a supply of clean baseload energy for electricity generation. Building on the success of the project, ADNOC is also working with several companies to maximize the contribution of geothermal energy in the UAE using the latest drilling and power generation technologies.
Aramco and Stellantis Collaboration Indicates efuel Compatibility with Europea Engine Families
Tags: #Aramco #KSA
Stellantis has concluded that 24 engine families in European vehicles sold since 2014, representing 28 million vehicles on the road, are ready to use advanced drop-in eFuel without any powertrain modification, following months of testing at its technical centers across Europe. The tests were conducted using surrogate eFuels provided by Aramco, one of the world’s leading integrated energy and chemicals companies. Low-carbon eFuel is a drop-in synthetic fuel made by reacting CO2, captured either directly from the atmosphere or from an industrial facility, with renewable hydrogen. The use of low-carbon eFuel has the potential to reduce carbon dioxide emissions from existing internal combustion vehicles by at least 70% on a lifecycle basis, compared to conventional fuels.
Ned Curic, Stellantis Chief Engineering and Technology Officer, said: “Our priority is providing zero-emission mobility for all with a focus on electrification, while our collaboration with Aramco is an important and complementary step in this journey for existing fleets on the road. We are exploring all solutions to reinforce our ambitious strategy of becoming a carbon net zero company by 2038. Drop-in eFuels can have a massive and almost immediate impact on reducing the CO2 emissions of the existing vehicle fleet, offering our customers an easy and economically efficient option to reduce their carbon footprint — one as simple as choosing a different fuel pump at the station, with no additional modification to their vehicles.” Amer Amer, Aramco Transport Chief Technologist, said: “We are delighted to work with Stellantis, one of the world’s leading automakers, to assess the performance of our fuel formulations that are designed to represent expected eFuel characteristics in its existing vehicle engines. The results of the testing reinforce our view that synthetic fuel can be a drop-in solution in existing vehicles, and when produced via a low-carbon pathway it can play an important role in reducing carbon emissions in the transport sector and supporting an orderly energy transition.” Through its long-term strategic plan Dare Forward 2030, Stellantis aims to halve its carbon footprint by 2030, benchmarking 2021 metrics, and achieve carbon net zero by 2038. Stellantis estimates that the use of low-carbon eFuels in up to 28 million of its European vehicles could reduce up to 400 million tons of CO2 in Europe between 2025 and 2050.
Testing of the surrogate eFuels by Stellantis covers tailpipe emissions, startability, engine power, reliability endurance, oil dilution, fuel tank, fuel lines and filters, as well as fuel performance in extreme cold and hot temperatures. Aramco is currently working on two demonstration plants to explore production of low-carbon synthetic fuels. In Saudi Arabia, Aramco and ENOWA (Neom Energy and Water Company) are working to demonstrate the production of synthetic gasoline for light-duty passenger vehicles. Meanwhile, in Bilbao, Spain, Aramco and Repsol are exploring the production of low-carbon synthetic diesel and jet fuel for automobiles and aircraft. In addition, Aramco is working with motorsport teams and competitions to further test and demonstrate the potential of low-carbon fuel as a drop-in solution to reduce carbon emissions from internal combustion engine vehicles.
ADNOC and Occidental to Advance Direct Air Capture Project in the UAE
Tags: #UAE #Oil & Gas
Abu Dhabi, UAE – October 3, 2023: ADNOC and Occidental announced, today, an agreement to undertake a joint preliminary engineering study for the construction of the first megaton-scale direct air capture (DAC) facility outside the United States (US). The agreement is the first project to reach the technical feasibility stage since the two companies signed a strategic collaboration agreement, in 2023, to explore carbon capture, utilization and storage (CCUS) projects in the UAE and the US. The study will assess the proposed one million tonnes per annum (mtpa) DAC facility to be connected to ADNOC’s carbon dioxide (CO2) infrastructure for injection and permanent storage into saline reservoirs not used for oil and gas production. ADNOC is in the testing phase of the world’s first full sequestered CO2 injection well in a carbonate saline aquifer in Abu Dhabi.Abu Dhabi, UAE – October 3, 2023: ADNOC and Occidental announced, today, an agreement to undertake a joint preliminary engineering study for the construction of the first megaton-scale direct air capture (DAC) facility outside the United States (US). The agreement is the first project to reach the technical feasibility stage since the two companies signed a strategic collaboration agreement, in 2023, to explore carbon capture, utilization and storage (CCUS) projects in the UAE and the US. The study will assess the proposed one million tonnes per annum (mtpa) DAC facility to be connected to ADNOC’s carbon dioxide (CO2) infrastructure for injection and permanent storage into saline reservoirs not used for oil and gas production. ADNOC is in the testing phase of the world’s first full sequestered CO2 injection well in a carbonate saline aquifer in Abu Dhabi.
- Companies to jointly fund engineering study into first megaton direct air capture facility in the region
- Study to assess utilizing ADNOC’s carbon managemen
- ADNOC is leveraging partnerships and technology to accelerate journey to net zero by 2045
Powered Desalination Plant Phase 1 of the Hassyan Sea Water Desalination Project
Tags: #UAE
Dubai, UAE, 3 October 2023: Dubai Electricity and Water Authority (DEWA), signed a 30-year water purchaser agreement with Saudi Arabia’s ACWA Power for phase 1 of the Hassyan sea water desalination project using solar power. The project is part of DEWA’s efforts to increase its water desalination capacity to 730 MIGD by 2030, from 490 MIGD at present. Last August, DEWA announced ACWA Power as the 'Preferred Bidder' for the construction and operation of the 180 Million Imperial Gallon per Day (MIGD) Sea Water Reverse Osmosis Hassyan Phase 1 Independent Water Producer (IWP) project, with an investment of AED 3.357 billion (USD 914 million). The allocated land area for the project is 252,300 square metres. DEWA achieved a world record by receiving the lowest bid of 0.36536 USD/m³ of desalinated water. This project is the largest of its kind in the world for water production based on Sea Water Reverse Osmosis (SWRO) technology using solar energy. It is DEWA’s first Independent Water Producer (IWP) model project. The water desalination capacity in Dubai is currently 490 MIGD. This capacity will increase to 670 MIGD in 2026 with the completion of this project.
ADNOC to Invest in One of the Largest Integrated Carbon Capture Projects in MENA
Tags: #UAE #ADNOC #UAE #ADNOC #Oil&Gas #UAE #ADNOC #Oil&Gas
Abu Dhabi, UAE – September 6, 2023: ADNOC has announced a final investment decision (FID) to develop one of the largest carbon capture projects in the Middle East and North Africa (MENA) region. The pioneering Habshan carbon capture, utilization and storage (CCUS) project will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of carbon dioxide (CO2) within geological formations deep underground.
Today’s announcement is part of ADNOC’s wider carbon management strategy, which aims to create a unique platform that connects all the sources of emissions and sequestration sites to accelerate the delivery of ADNOC and the UAE’s decarbonization goals. As part of this strategy, the company is implementing several innovative, technology driven pilot projects, including CO2 mineralization and full carbon sequestration in saline aquifers. Using best-in-class technology, the project will triple ADNOC’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,000 gasoline-powered cars from the road per year.
The project, to be built, operated and maintained by ADNOC Gas on behalf of ADNOC, will include carbon capture units at the Habshan gas processing plant, pipeline infrastructure, and a network of wells for CO2 injection. As part of ADNOC’s ongoing decarbonization efforts, CO2 will be permanently stored in reservoirs deep in the sub-surface through the deployment of closed-loop CO2 capture and reinjection technology at the well site. The FID to develop the project fully aligns with ADNOC’s recently announced Net Zero by 2045 ambition and forms part of the company’s initial $15 billion (AED55 billion) decarbonization investment in low carbon solutions.
Musabbeh Al Kaabi, ADNOC Executive Director of Low Carbon Solutions and International Growth, said: “The Intergovernmental Panel on Climate Change has stated that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century. This landmark project, is one of many tangible initiatives that ADNOC is delivering as we accelerate our decarbonization plan to meet our Net Zero by 2045 ambition. “As ADNOC continues its transformation towards a lower carbon future, it is our intention to make further investments to significantly reduce our emissions, including in carbon capture and storage, and push the boundaries of innovation and technology with our partners, to build on our world-leading legacy and industry leadership in carbon management.”
ADNOC has placed sustainability at the heart of its long-term strategy. The company is decarbonizing its operations while also investing in renewables and low carbon fuels, building a global hydrogen value chain, deploying innovative climate technology solutions, and advancing nature-based solutions such as planting mangroves in the UAE.
In 2016, ADNOC opened its first carbon capture, transportation and storage facility at Al Reyadah in Abu Dhabi. The facility has the capacity to process up to 800,000 tons of CO₂ per year captured at Emirates Steel Arkan. Building on Al Reyadah, the Habshan carbon capture project could provide for enhanced oil recovery of industry leading low carbon-intensity barrels as well as the production of low-carbon feedstocks such as hydrogen, to help customers decarbonize their operations. ADNOC and Occidental are also working to assess potential investment opportunities in the UAE and the United States in both carbon capture and storage and direct air capture.
As part of its longstanding decarbonization drive, ADNOC currently acquires 100% of its grid power from the Emirates Water and Electricity Company’s (EWEC) nuclear and solar sources, making the company the first major oil and gas company in the world to decarbonize its power at scale though an agreement of this kind. Furthermore, ADNOC is developing a $3.8 billion (AED14 billion) project to build a sub-sea transmission network, which upon completion, could reduce ADNOC’s offshore carbon intensity by up to 50%.
Abu Dhabi, UAE – September 6, 2023: ADNOC has announced a final investment decision (FID) to develop one of the largest carbon capture projects in the Middle East and North Africa (MENA) region. The pioneering Habshan carbon capture, utilization and storage (CCUS) project will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of carbon dioxide (CO2) within geological formations deep underground.
Today’s announcement is part of ADNOC’s wider carbon management strategy, which aims to create a unique platform that connects all the sources of emissions and sequestration sites to accelerate the delivery of ADNOC and the UAE’s decarbonization goals. As part of this strategy, the company is implementing several innovative, technology driven pilot projects, including CO2 mineralization and full carbon sequestration in saline aquifers. Using best-in-class technology, the project will triple ADNOC’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,000 gasoline-powered cars from the road per year.
The project, to be built, operated and maintained by ADNOC Gas on behalf of ADNOC, will include carbon capture units at the Habshan gas processing plant, pipeline infrastructure, and a network of wells for CO2 injection. As part of ADNOC’s ongoing decarbonization efforts, CO2 will be permanently stored in reservoirs deep in the sub-surface through the deployment of closed-loop CO2 capture and reinjection technology at the well site. The FID to develop the project fully aligns with ADNOC’s recently announced Net Zero by 2045 ambition and forms part of the company’s initial $15 billion (AED55 billion) decarbonization investment in low carbon solutions.
Musabbeh Al Kaabi, ADNOC Executive Director of Low Carbon Solutions and International Growth, said: “The Intergovernmental Panel on Climate Change has stated that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century. This landmark project, is one of many tangible initiatives that ADNOC is delivering as we accelerate our decarbonization plan to meet our Net Zero by 2045 ambition. “As ADNOC continues its transformation towards a lower carbon future, it is our intention to make further investments to significantly reduce our emissions, including in carbon capture and storage, and push the boundaries of innovation and technology with our partners, to build on our world-leading legacy and industry leadership in carbon management.”
ADNOC has placed sustainability at the heart of its long-term strategy. The company is decarbonizing its operations while also investing in renewables and low carbon fuels, building a global hydrogen value chain, deploying innovative climate technology solutions, and advancing nature-based solutions such as planting mangroves in the UAE.
In 2016, ADNOC opened its first carbon capture, transportation and storage facility at Al Reyadah in Abu Dhabi. The facility has the capacity to process up to 800,000 tons of CO₂ per year captured at Emirates Steel Arkan. Building on Al Reyadah, the Habshan carbon capture project could provide for enhanced oil recovery of industry leading low carbon-intensity barrels as well as the production of low-carbon feedstocks such as hydrogen, to help customers decarbonize their operations. ADNOC and Occidental are also working to assess potential investment opportunities in the UAE and the United States in both carbon capture and storage and direct air capture.
As part of its longstanding decarbonization drive, ADNOC currently acquires 100% of its grid power from the Emirates Water and Electricity Company’s (EWEC) nuclear and solar sources, making the company the first major oil and gas company in the world to decarbonize its power at scale though an agreement of this kind. Furthermore, ADNOC is developing a $3.8 billion (AED14 billion) project to build a sub-sea transmission network, which upon completion, could reduce ADNOC’s offshore carbon intensity by up to 50%.