Saudi Arabia’s Aramco is currently evaluating investment proposals from refining major Sinopec Corp and French oil giant TotalEnergies, a source familiar with the matter revealed on Tuesday. The investment, worth a reported $10 billion, would be used for a shale gas development.
Investment plans may include the construction of facilities for exporting the fuel as liquified natural gas. While none of the companies involved have yet commented on the reports, any potential investment deal comes as Aramco looks to clinch a higher share in the United States shale oil market which would require beating the rapidly expanding domestic producers.
As part of a separate deal, Sinopec and TotalEnergies are currently engaged in discussions to invest in the Jafurah development in Saudi Arabia. Jafurah is currently the largest shale gas development outside the U.S., with reserves of an estimated 200 trillion cubic feet of raw gas.
Initially intended for satisfying domestic demand, the Jafurah development is now being positioned to help Saudi Arabia grow its reputation as a global gas exporter.