Saudi Aramco on Tuesday said it has found 14 new oil and natural gas fields and deposits in the Eastern Region. This announcement is a ”major milestone in the energy sector in the Kingdom,” Energy Minister His Highness Prince Abdulaziz bin Salman said in a statement.
Details of the Discoveries
It includes six oilfields and two oil deposits, as well as two gas fields and four gas deposits. Together, the oil fields and reservoirs are projected to produce 8,126 barrels a day. That figure is a blip on the radar next to Saudi Arabia’s overall output of roughly 9 mbd. But it matters a great deal for the kingdom’s long-term energy independence.
On the natural gas side, the two fields and four reservoirs are capable of producing 80.5 million cubic feet a day of gas. Associated gas is also expected to yield a total of 2.1 million cubic feet of gas per day from the oil fields and adjoining gas reservoirs.
What the Minister Says
His Highness Prince Abdulaziz bin Salman added: “This is just the start regarding oil and gas finds inside the Kingdom. And these discoveries will obviously facilitate the Kingdom’s role in meeting domestic and international energy demands for decades to come.” This statement emphasizes salience of these findings in positioning Saudi Arabia as a central place in energy epicentre of the globe.
Forecasts For Aramco Finances
Aramco is being state-owned and from the Public Investment Fund (PIF), which is around 97.5% government-owned. The major developments are expected to yield favourable financial outcomes. Companies anticipated operating cash flow potential of $9 billion to $10 billion from upstream gas business growth. It also expects cash flow from operations to be around $8 billion to $10 billion in 2030. This is fuelled by growth within its downstream unit. This further justifies Aramco’s conviction on the long term profitability of its business model going forward.
Market Performance
More than 60 percent of the capitalisation of Tadawul, the main Saudi exchange, is made up of Aramco stock, which is down 10 percent in 2023. A phenomenal and sustainable discovery is the reason behind the economic cause of market fluctuation but new discoveries will only be fully appreciated in time. This is because they feed into investor sentiment and share performance going forward.
