Aramco to Expand by 61%
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Author: Saudi Press Agency
Released 18 December 2005
JEDDAH, 18 December — Saudi Aramco, which has approved its operating plan for the next year, anticipates a 61 per cent increase in the number of development wells to be drilled in 2006 to support current production and future increase in demand, an official statement said on Wednesday.
Saudi Aramco's executive committee, chaired by its CEO Abdallah S. Jumah, approved the operating plan, net direct expenditures budget and manpower budget for 2006, all anticipating a significant surge in activities in all the company's operations, the statement said.
Abdullah Al-Saif, senior vice president for exploration and production, said the plan was based on the company's 2006-2010 business plan, which focuses on increasing Saudi Aramco's contribution to the Kingdom's revenues and on actively promoting development of the local economy. He commended the efforts of Aramco employees in strengthening the company.
The statement said that due to an unprecedented corporate push to increase oil output to help meet burgeoning global demand, Saudi Aramco's new plan anticipates that the company's drilling-rig fleet will be more than doubled from year-end 2004 through 2006.
It added that the company also plans to carry out four mega-projects and seek new business opportunities in petrochemicals and other derivative products to further develop the Kingdom's industrial base, provide more jobs for Saudis and stimulate economic growth.
The committee expressed satisfaction with the company's achievements in 2005, given the volatile business and energy markets. It also stressed the need to place top priority on safety in the coming year: The committee stressed: "There can be no compromises when it comes to the safety of our operations and our people. Meanwhile, according to a statement issued by the Royal Commission for Jubail and Yanbu recently, Saudi Aramco has earmarked about SR18.75 billion to establish and operate an oil refinery in the Western region.