Saudi Arabia to faucet huge oil shops after assaults disrupt output

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“Part of the drop will be compensated to clients” from storage facilities, new energy minister Prince Abdulaziz bin Salman said in a statement on the official SPA news agency.

The disruption represents half the output of the kingdom, which is the world’s biggest oil supplier.

About Arabia
The Arabian Peninsula, or simply Arabia (; Arabic: شِبْهُ الْجَزِيرَةِ الْعَرَبِيَّة‎ shibhu l-jazīrati l-ʿarabiyyah, ‘Arabian island’ or جَزِيرَةُ الْعَرَب jazīratu l-ʿarab, ‘Island of the Arabs’), is a peninsula of Western Asia situated northeast of Africa on the Arabian plate. From a geographical perspective, it is considered a subcontinent of Asia.It is the largest peninsula in the world, at 3,237,500 km2 (1,250,000 sq mi). The peninsula consists of the countries Yemen, Oman, Qatar, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates. The peninsula formed as a result of the rifting of the Red Sea between 56 and 23 million years ago, and is bordered by the Red Sea to the west and southwest, the Persian Gulf to the northeast, the Levant to the north and the Indian Ocean to the southeast. The peninsula plays a critical geopolitical role in the Arab world due to its vast reserves of oil and natural gas.
Before the modern era, it was divided into four distinct regions: Red Sea Coast (Tihamah), Central Plateau (Al-Yamama), Indian Ocean Coast (Hadhramaut) and Persian Gulf Coast (Al-Bahrain). Hejaz and Najd make up most of Saudi Arabia. Southern Arabia consists of Yemen and some parts of Saudi Arabia (Najran, Jizan, Asir) and Oman (Dhofar). Eastern Arabia consists of the entire coastal strip of the Persian Gulf.

Saudi Arabia to tap vast oil stores after attacks disrupt output

About stores
Store may refer to:

Riyadh has built five giant underground storage facilities in various parts of the country that can hold tens of millions of barrels of various refined petroleum products, to be tapped during times of crisis.

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Saudi Arabia to tap vast oil stores after attacks disrupt output

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The facilities were constructed between 1988 and 2009 and cost tens of billions of dollars. 

Prince Abdulaziz said Saturday’s explosions also halted supplies of some two billion cubic feet of associated gas — which is extracted along with the crude.

“As a result, ethane and LNG supplies will shrink by 50 percent,” said the minister, adding that domestic supplies of fuel, electricity and water had not been affected.

As markets closely watch the OPEC kingpin’s ability to get its industry back on track, Aramco CEO Amin Nasser said that “work is underway” to restore full production.

Abqaiq is the world’s largest oil processing plant and can handle up to seven million bpd, some 70 percent of total Saudi output.

It is located near Ghawar oilfield, the biggest in the world with reserves of over 60 billion barrels and a daily output capacity of six million bpd. 

The plant also receives crude oil and gas from Shayba oilfield in the Empty Quarter.

Yemen’s Iran-aligned Huthi rebels have claimed responsibility for the attack but US Secretary of State Mike Pompeo blamed Tehran, saying there was no evidence it was launched from Yemen.

“Iran has now launched an unprecedented attack on the world’s energy supply,” Pompeo said.

Last month, an attack also claimed by Huthi rebels sparked a fire at Aramco’s Shaybah natural gas liquefaction facility, close to the Emirati border, with no casualties reported.

The Huthis also claimed a May drone attack on two oil pumping stations on Saudi Arabia’s key east-west pipeline, which caused a days-long shutdown.