Saudi Aramco Finalizes Major Oil Sales to US Companies and India

Saudi Arabia's state oil company has completed sales of ultra-light crude from its massive new gas facility to American energy giants and an Indian refiner. The deals mark the beginning of exports from the $100 billion Jafurah project, which could become one of the world's largest shale gas operations outside the United States.

Saudi Arabia’s national oil company has finalized agreements to sell multiple shipments of ultra-light crude oil from its massive new Jafurah facility to major American energy companies and an Indian refinery, according to industry sources familiar with the transactions.

The groundbreaking $100 billion Jafurah development contains an estimated 229 trillion standard cubic feet of raw gas reserves and 75 billion barrels of condensate. This project represents a cornerstone of Saudi Aramco’s strategy to significantly increase natural gas production and establish itself as a dominant force in the global energy market while diversifying its light crude oil portfolio.

Sources revealed that Chevron has secured two condensate shipments scheduled for delivery this month and in March, while Exxon Mobil Corporation and Indian Oil Corporation have purchased cargoes set for pickup in March. The transactions were completed at premium rates of $2 to $3 per barrel above Dubai pricing on a free-on-board basis.

Industry insiders indicate that Chevron’s initial shipment will likely be delivered to GS Caltex, its South Korean joint-venture refinery operation, while the second cargo may be destined for Star Petroleum Refining in Thailand.

When contacted for comment, Aramco, Exxon, Indian Oil Corporation, and Star Petroleum Refining Company did not provide immediate responses. GS Caltex was unavailable for comment, while Chevron declined to discuss the matter.

The Jafurah development stands as potentially the largest shale gas operation outside American borders and is projected to achieve consistent daily production of 2 billion cubic feet by 2030.

According to previous reports, Saudi Aramco plans to ship between four and six 500,000-barrel condensate cargoes monthly from Yanbu, the kingdom’s eastern coastal port facility.

Condensate represents a valuable non-gas liquid that processing facilities can convert into petrochemical feedstock naphtha and additional refined products, or blend with crude oil for traditional refinery distillation processes.

Technical specifications from a preliminary crude analysis show the Jafurah condensate measures 49.7 degrees API gravity and contains approximately 0.17% sulfur content.

The analysis indicates that roughly 40% of the product yields petrochemical feedstock naphtha, primarily the heavier variety, while the remaining output consists largely of gasoil and kerosene products.