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To: thackney
They have some production that cheap, but they didn’t spend $17 billion on Manifa for a whim.

Manifa is 1/10 Saudi Arabia's daily production. It's a shallow water well, so cash costs should be low. Freeport McMoran's deep water GOM cash cost was $12.

63 posted on 01/13/2015 2:39:31 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Zhang Fei

The CGES revealed that estimates of investment intensity per peak daily barrel range from the ultra-cheap $2,500 (per peak daily barrel) for development of the Haradh III zone of the supergiant Ghawar oilfield to $10,000 for the massive Khurais et al development and finally $17,500 for the Manifa field, the most expensive development in Saudi Arabia.

http://www.rigzone.com/news/oil_gas/a/127903/CGES_Manifa_Is_an_Expensive_Development/?all=HG2

Manifa produces a sour crude, so called because it contains hydrogen sulfide, a poisonous, highly corrosive gas which must be removed in a stabilizer before the oil can be pumped into the hold of a tanker.

http://www.aramcoworld.com/issue/196306/manifa-profile.of.a.decision.htm

We’re about to see it from KSA’s Vanadium laced Manifa oil field. It is heavy sour with a lot of vanadium in it (which corrodes the tanks and pipes of a refinery). It is so bad that KSA is building their own refineries for that oil and will sell the output, funding the cost of corrosion of tanks and pipes themselves.

http://www.zerohedge.com/article/goldman-presents-three-scenarios-where-wti-brent-headed-and-why-firm-has-been-wrong-directio


66 posted on 01/13/2015 2:59:14 PM PST by thackney (life is fragile, handle with prayer)
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