Saudi Arabia will partner with Halliburton as it hopes to unlock a natural gas revolution similar to the shale boom that began in the U.S. more than a decade ago, Houston Chronicle reported.
State oil company Saudi Aramco signed a three-year contract Sunday with the North American fracking leader to handle the hydraulic fracturing and completions of its unconventional gas wells. Saudi Arabia hopes to rely much more on its domestic gas to power the Kingdom’s electric grid, the newspaper reported.
“This is a great opportunity to provide a tailored application of Halliburton technology, logistics management and operational excellence to maximize Saudi Arabia’s asset value,” Jeff Miller, Halliburton’s chief executive, said in a statement at Sunday’s signing ceremony in Saudi Arabia. Mr Miller was quoted on NYT.
“We welcome their expertise,” said Amin H. Nasser, Saudi Aramco’s chief executive, speaking of Halliburton. Mr Nasser was quoted on NYT.
As per a report published on Society of Petroleum Engineers’ website – Halliburton said it will utilize an integrated approach to support Saudi Aramco’s increased recovery and meet production targets by providing project management, hydraulic fracturing, coiled tubing, wireline and perforating, completion tools, and testing services. The terms of the contract were not disclosed.
The contract will “further improve the economics of Saudi Aramco’s unconventional resources program,” Saudi Aramco said in a statement. “The new agreement will provide lump sum turnkey stimulation services which include major hydraulic fracturing and well intervention operations,” the statement added.
Saudi Aramco’s unconventional resources development program targets three areas: Northern Kingdom, South Ghawar, and Jafurah/Rub’ Al-Khali.
Over the last year, Saudi Aramco has awarded $4.5 billion in contracts to international oil service companies to increase its gas production. But a number of European companies have failed in their efforts to recover gas at an economical price.