Reuters: Saudi Aramco abandons Red Sea exploration

Saudi Aramco will scrap its deepwater exploration plans in the Red Sea.

According to Reuters, which quoted unnamed industry sources, the company has deemed deepwater offshore exploration works too expensive in the current low oil prices environment.

One of the sources told the news agency that other than the fact that exploration in the area is costly, reportedly $1 million per day, Saudi Arabia’s national oil company is also looking after potential environmental issues.

Saudi Aramco did not reply to an e-mail seeking comment, sent by Offshore Energy Today.

According to Saudi Aramco’s 2013 annual report, in 2013, the company produced 3.4 billion barrels of oil, about one in every eight barrels of the world’s crude oil production.

Offshore Energy Today Staff