Saudi Arabia's minister of energy and mineral resources, Khalid Al Falih, confirmed the discovery of "large quantities of gas" in the Red Sea, the Saudi Press Agency (SPA) reported Thursday.
According to SPA's story, the minister pointed out that state-run energy giant Saudi Aramco would intensify exploration operations over the next two years after confirming the feasibility study of the project.
Al Falih did not give an estimate as to the amount of natural gas discovered in the region, yet, he explained that the quantities of oil in the Red Sea are low and expensive to produce, ranging from $30-$40, since the resources are located in deep areas of the seabed at depths between 1,200 and 1,500 meters.
He added that Saudi Aramco aims to invest in South Africa as a platform to enter the African continent, which he said "carries promising investment opportunities".
He confirmed the company's plans to buy a petrochemical plant in South Africa, adding that the company is currently studying the feasibility of the project.
Al-Falih also said that Saudi Aramco's acquisitions worldwide are ongoing with promising opportunities in Russia, India, Pakistan and Indonesia, in addition to gas liquefaction projects in the U.S.
He explained that Saudi Aramco is testing the LNG market prior to making direct investment in production by acquiring LNG from producers for direct sales to Saudi Aramco's customers.
By Hale Turkes