Saudi Arabia Forges Ahead with Jafurah Shale Gas Field Development  

 A view of the Jafurah Shale Gas Field. (Saudi Aramco)
A view of the Jafurah Shale Gas Field. (Saudi Aramco)
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Saudi Arabia Forges Ahead with Jafurah Shale Gas Field Development  

 A view of the Jafurah Shale Gas Field. (Saudi Aramco)
A view of the Jafurah Shale Gas Field. (Saudi Aramco)

Saudi Aramco is pressing ahead with one of its most ambitious energy initiatives to date: the development of the Jafurah unconventional gas field, the largest of its kind in the Middle East, as part of a broader strategy to diversify the Kingdom’s energy mix and boost domestic gas output.

Located in the Eastern Province’s Jafurah Basin, which spans around 17,000 square kilometers, the project is seen as a cornerstone of Aramco’s transformation. The first phase is scheduled for completion in 2025, with plans to ramp up production to a sustained 2 billion standard cubic feet per day (scfd) of gas by 2030, alongside large volumes of ethane, natural gas liquids (NGLs), and condensates.

Speaking during the company’s second-quarter earnings announcement on Monday, Aramco CEO Amin Nasser confirmed that development at the Jafurah Gas Plant remains on track. The company posted net profits of $24.5 billion for the quarter, down from $29.07 billion a year earlier.

Jafurah holds an estimated 200 trillion standard cubic feet of natural gas, making it the richest shale gas play in the region. Aramco plans to invest more than $100 billion over the next 15 years to fully develop the field.

At the Al-Ahsa Investment Forum 2025, Nasser said the project is expected to contribute approximately $23 billion annually to Saudi Arabia’s GDP. It also aligns with Aramco’s goal to increase gas production capacity by over 60% by the end of the decade.

Global partnerships

According to former Saudi oil ministry adviser Dr. Mohammed Al-Sabban, the Jafurah field contains significant unconventional gas reserves, specifically shale gas, and may open the door to further technological partnerships.

“Given the complexity of the geology, Aramco could seek international partners with advanced expertise in shale gas extraction,” Al-Sabban told Asharq Al-Awsat.

He added that Saudi Arabia’s simultaneous expansion in oil, gas, and renewable energy investments positions the Kingdom as a comprehensive energy provider, rather than merely an oil exporter.

Decarbonization and industrial integration

The Jafurah project is also central to Aramco’s decarbonization drive, supporting the company's net-zero emissions target by 2050. It will provide high-value feedstock for the refining, processing, and petrochemicals sectors, including ethane, NGLs, and condensates.

Due to the low permeability and porosity of the basin’s shale formations, the project depends on advanced horizontal drilling and hydraulic fracturing techniques to extract gas from the sedimentary rocks of the Tuwaiq Mountain.

These technical demands classify Jafurah as an unconventional field, requiring specialized equipment and risk management protocols.

Aramco began by drilling both horizontal and vertical wells after confirming vast hydrocarbon deposits, alongside developing talent and creating detailed geologic maps to guide a three-year appraisal phase.

Billion-dollar contracts

On the ground, Aramco has introduced a suite of innovations to boost efficiency and safety. It has deployed mobile drilling rigs that can be relocated in one piece, and implemented advanced fracking practices that allowed the company to drill and complete wells more than five times faster, without traditional rigs, cutting costs and accelerating production timelines.

More than $10 billion in contracts have been awarded for the project’s initial phase, covering the construction of a fully integrated gas supply system. This includes a gas processing facility, an NGL fractionation plant, a gas compression network, and about 1,500 kilometers of pipelines for transportation and distribution, as well as a central power station and electrical infrastructure.

Turning point

Jafurah is not only a gas development megaproject; it is poised to reshape Saudi Arabia’s energy security. Once fully operational, it is expected to offset the equivalent of 500,000 barrels per day of crude oil used for domestic power generation, freeing up those volumes for value-added sectors such as refining and petrochemicals.

By 2030, the field is projected to produce more than 420 million scfd of ethane and up to 630,000 barrels per day of NGLs and condensates, helping to meet surging feedstock demand in the petrochemical industry.

The project is also expected to complement Aramco’s broader plans to scale up production of low-carbon hydrogen and blue ammonia.



HUMAIN, Mistral Collaborate to Advance Sovereign AI in Saudi Arabia and Regionally

Guests at the booth of Saudi AI company HUMAIN during the Future Investment Initiative conference in Riyadh (Company photo)
Guests at the booth of Saudi AI company HUMAIN during the Future Investment Initiative conference in Riyadh (Company photo)
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HUMAIN, Mistral Collaborate to Advance Sovereign AI in Saudi Arabia and Regionally

Guests at the booth of Saudi AI company HUMAIN during the Future Investment Initiative conference in Riyadh (Company photo)
Guests at the booth of Saudi AI company HUMAIN during the Future Investment Initiative conference in Riyadh (Company photo)

Saudi Arabia’s HUMAIN and French Artificial Intelligence company Mistral have announced a strategic collaboration spanning AI infrastructure, advanced model development, and the deployment of AI solutions in Saudi Arabia and across the region.

“Together, the companies will pursue the development and localization of advanced AI models, with initial areas of focus including cybersecurity and voice,” HUMAIN said in a statement on Monday.

“The companies also plan to develop frontier models that perform strongly in Arabic language to help support the broader region. This represents a collaboration in the hundreds of millions of Euros.”

“As part of the collaboration, Mistral will explore using HUMAIN's data center infrastructure to support growing local compute needs,” said the statement.

It added that the two companies also plan to develop a joint go-to-market strategy in the Kingdom focused on bringing advanced AI solutions to regulated industries.

CEO of HUMAIN Tareq Amin said on X that “the collaboration spans AI infrastructure, advanced model development and AI solutions, including plans to develop and localize frontier models with strong Arabic-language capabilities.”

According to the HUMAIN statement, “the collaboration is designed to meet growing demand for sovereign AI: AI that keeps data, intelligence, compute, and operations under the customer's control.”

“That means data can remain within customer-defined boundaries, models can be adapted and owned on open weights, training and inference can run on infrastructure and in jurisdictions the customer chooses, and AI systems can be deployed, governed, observed, and improved over time without ceding control of the learning loop to an external platform.”

The statement stressed its importance in financial services, manufacturing, telecommunications, cybersecurity, and the public sector.


Oil Steadies as Investors Weigh Impact of Latest US Sanctions on Iran

 Tankers anchor near Venezuelan state oil company PDVSA's Jose terminal while waiting to load and discharge, in Puerto La Cruz, Venezuela August 9, 2026. (Reuters)
Tankers anchor near Venezuelan state oil company PDVSA's Jose terminal while waiting to load and discharge, in Puerto La Cruz, Venezuela August 9, 2026. (Reuters)
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Oil Steadies as Investors Weigh Impact of Latest US Sanctions on Iran

 Tankers anchor near Venezuelan state oil company PDVSA's Jose terminal while waiting to load and discharge, in Puerto La Cruz, Venezuela August 9, 2026. (Reuters)
Tankers anchor near Venezuelan state oil company PDVSA's Jose terminal while waiting to load and discharge, in Puerto La Cruz, Venezuela August 9, 2026. (Reuters)

Oil prices recovered ground on Tuesday after settling down more than 2% in the previous session, with investors assessing the impact of the latest US sanctions against Iran.

Brent crude futures rose 27 cents, or 0.3%, to $92.44 a barrel by 0330 GMT, while US West Texas Intermediate crude was up 37 cents, or 0.4%, at $85.38.

Both contracts settled lower on Monday, with US crude oil falling to a one-week low on profit taking after prices rallied over the previous two weeks.

"The market seems largely unfazed by Washington's push for tighter economic pressure ‌on Iran, with ‌traders treating the US effort to nudge partners away from Iranian ‌trade ⁠as marginal rather than ⁠market moving," said ING commodity strategists in a note on Tuesday.

US Treasury Secretary Scott Bessent on Monday unveiled an expansion of sanctions to cut off Iran's economic lifeline, to force an end to the war between them, telling countries they would need to sever their business ties or risk being cut out of the dollar-based financial system.

However, he declined to identify the countries that would be targeted or reveal when those penalties would take effect, saying ⁠he would instead provide them time to comply with ‌the new directive.

While US Defense Secretary Pete Hegseth said ‌on Monday the US would not rule out using military force against Iran, the country is turning ‌towards more economic coercion, which analysts said removed concerns about threats to Middle ‌Eastern oil supply because of the war.

"Markets appear to be pricing economic pressure as a lower-risk path for physical supply than kinetic action, which is why the initial reaction was for oil to move lower rather than spike higher," said Tim Waterer, chief market analyst at KCM.

However, he warned, "Iran still ‌retains the ability to respond by disrupting shipping, which continues to keep a residual premium in the oil price."

Iran is still maintaining it should have control over the key Strait of Hormuz, which before the war started in February typically carried cargoes equal to about 20% of global oil use. On Monday, it named 45 tankers that had broken its rules on crossing the strait and threatened action against them, including confiscating their cargoes.

The supply disruptions as a result of the US-Israeli war on Iran that started on February 28 have caused countries to draw down their commercial and strategic reserves.

On Monday, the Department of Energy reported stocks of crude oil in the US Strategic Petroleum Reserve fell by about 3.7 million barrels to 289.7 million barrels last week, the lowest since November 1982.


Gold Steadies after Hitting over 3-month Peak, US Inflation Data Looms

A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
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Gold Steadies after Hitting over 3-month Peak, US Inflation Data Looms

A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)

Gold held steady after hitting its highest in more than three months on Tuesday, as investor focus shifted to upcoming US inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.

Spot gold steadied at $4,645.67 per ounce by 0651 GMT, after scaling its highest since May 14 earlier. US gold futures rose 0.1% to $4,702.00.

"Looking ahead, we expect dips in gold to be well-supported from ⁠buyers looking for ⁠gold to make its way towards the next upside resistance at $4,900/$5,000," IG market analyst Tony Sycamore said.

Prices rose sharply last week after the US Treasury Department said it would double the size of liquidity support buyback operations for longer-dated notes and bonds. The announcement spurred currency debasement fears.

"These US ⁠dollar debasement fears should see gold be well-supported in the coming weeks, as the Fed has not been sending a clear signal it is ready to fight higher inflation," TD Securities said in a note.

"However, it's too early for the metal to surge to our $5,350/oz target, given the risk rates on the short term may eventually rise as crude grinds higher."

While gold is widely regarded as an inflation hedge, elevated rates can curb its appeal as it is a ⁠non-yielding asset.

Fed Chairman ⁠Warsh's debut speech at the annual Jackson Hole conference this week has taken on added weight as traders and analysts look for guidance about the recent jump in bond yields and for reassurance of his independence from the Trump administration.

The US Personal Consumption Expenditures report, the Fed's preferred inflation gauge, is due on Wednesday.

On the geopolitical front, Iran promised to retaliate against expanded US economic sanctions that Washington said would cut off Tehran's economic lifeline.

Among other metals, spot silver fell 0.7% to $68.43 per ounce, platinum lost 1.1% to $1,854.67 and palladium slipped 1.4% to $1,338.15.