Saudi Arabia revises upward proven oil & gas reserves

Galtero Lara
Enero 10, 2019

Saudi Arabia's total proven oil and gas reserves stood at around 268.5 billion barrels of oil and 325.1 trillion standard cubic feet of gas at the end of 2017, the Saudi Energy Ministry said in statement carried by state news agency SPA on Wednesday.

Addressing a press conference on Wednesday, Minister Khalid al-Falih said that the latest audit "confirms our belief that Aramco is the most valuable company in the world".

OPEC and its allies decided last month to cut their overall output by 1.2 million bpd starting January to shore up sliding prices.

With the calculation of the share of the joint field with Kuwait, the oil reserve makes up 266 billion barrels.

Falih said Saudi production had fallen to 10.2 million bpd, down from the roughly 11 million bpd it was pumping when oil producers chose to end a production cut deal in May.

The country said oil reserves witnessed an increase from 2.2 billion barrels to 263.2 billion barrels while gas reserves increased from 17 trillion cubic feet to 319.5 trillion cubic feet.

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An independent external audit of Saudi Aramco's oil reserves - an essential part of the preparatory work for its planned initial public offering - found the state oil giant to have higher oil and gas reserves than it previously reported, sources familiar with the matter told Reuters in April.

Falih said Saudi oil remains among the cheapest in the world to extract, at only US$4 a barrel.

That the carbon intensity of Saudi Arabia's oil and corresponding gas flaring are among the very lowest in the world, and he called on the industry to use this metric alongside profitability.

That figure is "more than sufficient to bring balance to the market", said Falih, adding that the production cut would trim excess supply.

The kingdom yesterday raised US$7.5 billion, half of the amount it plans to borrow in 2019, said HSBC, one of the banks involved in the operation.

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