Aramco makes oil, gas discoveries near northern border

Market: Crude oil, Natural gas
30/08/20

State-controlled Saudi Aramco has discovered one new oil field and one gas field in the north of the kingdom, close to its border with Jordan, oil minister Prince Abdulaziz bin Salman announced today.

At the Hadabat al-Hajra gas field, condensate-rich gas flowed from the al-Sara reservoir at the rate of 16mn ft3/d, with around 1,944 b/d of condensate, Prince Abdulaziz said, while at the Abraq al-Tulul oil field, unconventional Extra Light Arab crude flowed at a rate of 3,189 b/d, along with 1.1mn ft3/d of associated gas from the al-Shurura reservoir. The al-Qawwara reservoir at the same field yielded 2.4mn ft3/d of gas and 49 b/d of condensate.

Aramco will drill more wells to delineate the two fields and evaluate their potential and reserves, said the oil minister.

Aramco, which has 261.5bn bl of crude oil and condensate reserves and 237.4 ft3 of gas reserves, recently said it is focusing its exploration efforts on finding more gas for use in power generation and to provide feed for the country's petrochemicals industry.

The company is currently shutting in around 3.5mn b/d of crude production in line with its commitments under the ongoing Opec+ agreement that came into effect on 1 May. But it said earlier this year that it eventually plans to boost its crude capacity to 13mn b/d from 12mn b/d today.

By Samira Kawar

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

09/04/25

Colombian crude gains on US tariff uncertainty

Sao Paulo, 9 April (Argus) — Colombian heavy sour crudes have reached their narrowest discounts to Ice Brent in at least four years, supported by uncertainty surrounding US tariffs and tight supplies of similar grades. Castilla's discount to Ice Brent was $3.50/bl on Tuesday and Vasconia's was at $1.45/bl, $4.40/bl and $3.15/bl tighter than on 2 January, respectively. Castilla has not reached that narrow of a level against the benchmark since early 2021 and Vasconia has not since mid-2019. Outright prices were $60.89/bl for Vasconia and $58.84/bl for Castilla on Tuesday. Colombian crude discounts started to narrow in January after US president Donald Trump mentioned plans for a 25pc tariff on all imports from Mexico and Canada, which produce competing heavy sours. Amid the uncertainty, buyers opted to secure supply that might not face tariffs, sources said, despite delays in tariffs implementation in early February and March. But a sweeping executive order last week excluded energy commodities from tariffs, as well as trade covered under the US-Mexico-Canada free trade agreement (USMCA). Then on Wednesday Trump announced he will pause many of the tariffs on other products for 90 days, but no changes have been announced for energy imports . Despite Trump's tariff exemptions on crude imports to the US, tight availability of heavy supply for US Gulf refiners could still support relative values for Colombian grades. Subbing in Colombian crudes are seen as good substitutes for heavy crude from the US' nearest neighbors, especially Mexican supplies, which are widely used by US Gulf coast refiners. Additionally, Colombia's geographical location makes shipping to the US Gulf coast quicker and less costly compared with other South American countries, such as Ecuador, which also produces heavy sour crude. Further tightening heavy supply for Gulf coast refiners, the US government announced in March that the deadline for the end of Chevron's waiver to produce in Venezuela is 27 May, stopping the flow of crude to the US from its joint venture with state-owned PdV. Chevron brought about 222,000 b/d in Venezuelan crude to the US from January-November 2024. according to the US Energy Information Administration (EIA). Even with the volume representing a fraction of Gulf coast imports, it represents almost 30pc of total Colombian output. Its production reached 760,000 b/d in January, according to oil services chamber Campetrol, citing figures from hydrocarbons agency ANH. Further US tariffs on countries that take delivery of Venezuelan oil and natural gas could also make Colombian barrels more attractive, although Ecuadorean crudes are possible regional supply alternatives too. Meanwhile, Mexico's state-owned Pemex has faced quality issues with its crude production since late last year, which could lead to Gulf coast buyers turning to Colombian barrels as alternatives. Pemex acknowledged issues with salt and water levels in its crude in February but denied that international buyers have rejected shipments because of those concerns. Mexico's policy of expanding domestic refining has also contributed to a decline in crude exports to the US in recent years. Colombian crude values have also likely been supported by firmer competing Canadian crude values at the US Gulf coast. Canadian crude differentials have firmed in part because of upgrader turnaround season in Alberta's oil sands region, slowing production. The shutdown of the 622,000 b/d Keystone pipeline from the region after a spill in North Dakota on 8 April also limited supply, buttressing prices. By João Scheller Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

What do tariffs mean for the global gas market?

09/04/25

News

09/04/25

What do tariffs mean for the global gas market?

Some countries are considering retaliatory tariffs, while others hope to reduce their trade deficit in order to negotiate lower rates London, 9 April (Argus) — Newly announced US tariffs on goods entering the country and some of the countermeasures already announced by large trade partners are unlikely to cause any direct disruptions to global gas markets. But the indirect effects on gas supply and demand may be huge, stemming from a weaker macroeconomic outlook, fuel substitution and inflationary pressures on infrastructure development. US president Donald Trump on 2 April imposed a minimum 10pc tax on all foreign imports from 5 April,with much higher tariffs on selected countries that briefly came into force on 9 April, before Trump announced a 90-day pause. China is the only exception. It has announced retaliatory tariffs that could disrupt US energy exports, resulting in an escalation that has already brought up the respective levies to 125pc in the US and 84pc in China. These are unlikely to have any direct impact on LNG trade flows, as China had already stopped importing US LNG earlier this year. But disruptions to trade between the world's two largest economies may weigh heavily on manufacturing activity in China, in turn reducing industrial gas demand. And the ripple effects of disruptions to US LPG exports to China may alter fuel-switching economics in the region and beyond. Most other countries in Asia-Pacific have opted not to follow China's lead by retaliating against US tariffs, even though many have warned about the potential for long-term economic disruption. The Japanese government intends to negotiate a better tariff deal and is considering investing in the US' proposed 20mn t/yr Alaska LNG export project as part of wider efforts to reduce its trade surplus with the US. Countries in Asia-Pacific have been hit with some of the highest of Trump's targeted duties. The EU is keeping retaliatory measures on the table, but these are unlikely to include any levy on US LNG. Europe has become much more reliant on LNG imports after losing the bulk of its Russian pipeline supply, and imposing tariffs on energy imports would only reignite inflationary pressures that European countries have tried to curb over the past three years. The bloc says it is ready to negotiate on possibly increasing its US LNG imports to reduce its trade surplus and would zero out its tariffs on industrial imports if the US agrees to do the same. But Trump says this offer is not enough, citing the EU's upcoming Carbon Border Adjustment Mechanism as one of the "unfair trade practices" that justifies a tariff response. Nerves of steel Much greater risks for gas markets may stem from rising infrastructure costs in the US' upstream and midstream sectors, particularly as a result of earlier tariffs imposed on steel and aluminum imports. These present an immediate risk for US LNG developers, particularly for the five projects under construction and the six others expected to reach final investment decisions this year. Metals account for up to 30pc of the cost of building an LNG export plant. An LNG terminal can cost $5bn-25bn to build, depending on its size, with steel used for pipelines, tanks and other structural frameworks. US facilities can be built using some domestic metal, but higher prices for this may lead to construction and final investment decision delays for the country's planned liquefaction projects. US tariffs' primary effect on the domestic gas market stems from duties levied on non-energy goods used by the oil and gas industry, including steel and specialised pipeline components such as valves and compressors, which are imported from overseas. The US remains a net natural gas importer from Canada , but these flows are unlikely to be affected by trade tariffs given the lack of alternative supply sources available to some northern US states. US LNG project pipeline mn t/yr Project Capacity Expected start/FID Under construction Plaquemines 19.2 2025 Corpus Christi stage 3 12.0 2025 Golden Pass 18.1 2026 Rio Grande 17.6 2027 Port Arthur 13.5 2027 Waiting for final investment decision Delfin FLNG 1 13.2 mid-2025 Texas LNG 4.0 2025 Calcasieu Pass 2 28.0 mid-2025 Corpus Christi train 8-9 3.3 2025 Louisiana LNG 16.5 mid-2025 Cameron train 4 6.8 mid-2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

China hikes US import tariffs to 84pc

09/04/25

News

09/04/25

China hikes US import tariffs to 84pc

Singapore, 9 April (Argus) — China will raise import tariffs on US goods by 50 percentage points to 84pc, effective 10 April, the country's State Council said today. The increase matches the hike in US tariffs on Chinese imports imposed by US president Donald Trump earlier today. China does not appear to have exempted any products from its higher tariffs, which will take effect at 12:01am local time on 10 April (4:01pm GMT on 9 April). "The US escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China's legitimate rights and interests and seriously undermines the rules-based multilateral trading system," the State Council said. Trump's targeted import tariffs on the US' main trading partners, including a cumulative 104pc tariff on China, took effect earlier today. China's 84pc tariff increases to around 100pc for some commodities that were caught up in earlier rounds of tariffs announced in February and March, including crude, coal, LNG and some agricultural products. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Ice Brent below $60/bl for first time since Feb 2021

09/04/25

News

09/04/25

Ice Brent below $60/bl for first time since Feb 2021

London, 9 April (Argus) — Front-month Ice Brent crude futures prices today fell below $60/bl for the first time since 8 February 2021. The June contract hit an intra-day low of $59.77/bl at around 10:20 GMT, lower by 4.8pc on the day. The front-month has not settled below $60/bl on any trading day since 5 February, 2021. Accumulated losses in the futures contract are now more than $15/bl, or more than 20pc, since a combination of broad US tariffs and a surprise acceleration of Opec+ output return on 3 April ended around a month of consistent price gains. US tariffs on imports from a range of key trading partners take effect today. A 10pc baseline tariff on imports from nearly every foreign country already went into effect on 5 April. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Tokyo may use Alaska LNG as leverage in US tariff talks

09/04/25

News

09/04/25

Tokyo may use Alaska LNG as leverage in US tariff talks

Osaka, 9 April (Argus) — Tokyo will likely use the possibility of purchases from the US' proposed 20mn t/yr Alaska LNG export project, as part of wider efforts to reduce the US' trade deficit with Japan, to negotiate for a better tariff deal. US president Donald Trump's 10pc tariff on imports from all countries took effect on 5 April, with exemptions for some commodities . The higher "reciprocal" taxes are due to enter into force at 12:01 ET (04:01 GMT) on 9 April, including Japan at 24pc. The Japanese government on 8 April held its first ministerial task force with prime minister Shigeru Ishiba attending, to discuss potential measures against new US tariffs. Details are still under consideration, but Ishiba is ready to use every possible method to mitigate the impact of looming US tariffs on the Japanese economy, as he sees this as a "national disaster". Japan, a long-standing ally of the US, is unlikely to respond in kind to the US tariff and will instead seek mutually beneficial solutions. Ishiba is aiming to present Trump with a package of measures across a wide range of issues, such as in the energy, agriculture, shipbuilding and automobile sectors, rather than piecemeal requests. The package could include Japan's stance on the Alaska LNG project and ethanol developments, Ishiba stated on 7 April when responding to questions in the Diet. Tokyo may use the Alaska LNG as part of its tariff negotiation, as buying more US LNG could ease Japan's trade surplus against the US. The trade imbalance between Japan and the US stood at ¥8.64 trillion in 2024, equivalent to about $58.6bn at current exchange rates, Japanese customs data show. Japan's LNG purchases from the US rose by 15pc on the year to 6.34mn t in 2024, accounting for nearly 10pc of the country's total LNG imports. Japan has committed to continuing strengthening energy security and co-operation with the US, as well as South Korea, leveraging US LNG along with other energy sources and technologies in a mutually beneficial manner, the countries said in a joint statement after the trilateral foreign ministers' meeting in Brussels on 3 April, just after Trump announced the baseline 10pc taxes on 2 April. Ishiba had already mentioned the idea of ramping up purchases of US LNG, as well as ethanol, ammonia and other resources, when he visited Trump in Washington in February . But he emphasised the importance of stable and reasonable prices for such LNG imports. Alaska LNG has made little progress in recent years and is yet to secure any offtake agreements. But it has drawn interest, after Trump devoted one of his first executive orders to the development of Alaskan energy. South Korea's energy minister expressed the country's interest in the project during a visit in late March , while Taiwan's state-owned CPC signed an initial agreement to invest in and purchase LNG from the project, according to Taiwan's Ministry of Economic Affairs . Auto deal But it remains unclear if a possible purchase of Alaska LNG alone would satisfy Washington and help reduce tariffs. The Trump administration has expressed strong dissatisfaction against Japanese non-tariff barriers on US car deliveries. "US automakers face a variety of non-tariff barriers that impede access to the Japanese and Korean automotive markets, including non-acceptance of certain US standards, duplicative testing and certification requirements, and transparency issues", the US government said on 2 April. Japan imported around 23,000 units of passenger vehicles from the US in 2023, according to the industry group Japan Automobile Importers Association, and this is near one-tenth of all deliveries from European nations. Tokyo appears to be struggling to find breakthrough solutions on this decades-long bilateral economic issue. There must be a variety of reasons on why American cars are not coming into the Japanese market, while Japanese cars are selling well in the US, said the Japanese minister for trade and industry Yoji Muto on 8 April. "We still need more time to figure that out." Ishiba on 8 April appointed the minister of state for Economic and Fiscal Policy, Ryosei Akazawa, as a negotiator for the trade talks with the US government. By Motoko Hasegawa and Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more