It’s mechanically completed, and it’s commissioning…and I expect by the end of this month we will have oil production from Khurais, Abdulaziz al-Judaimi, vice president for new business development at Saudi Aramco said.

We will gradually bring on production…depending on what the market needs we will produce, and adjust our production strategy.

The projects would provide around 1.8 billion cubic feet per day (cfd) of gas, Judaimi said. The projects were integrated in Saudi Aramco’s expansion plan through 2014. The project is projected take around four years to develop, Judaimi said.

To meet soaring demand for gas, Saudi Aramco is speeding up the development of fields non-linked with oil as it has to stick to its present output of eight million bpd to match the decrease in oil demand.

Saudi Aramco has begun to develop Karan oilfield when it awarded contracts in February 2009.

Demand for gas in the country for power and industry is soaring because of an economic boom fuelled by the oil price rally of 2002-2008. As most Saudi Arabia gas is produced in alliance with oil production, volumes fluctuate with oil production.

Saudi Arabia oil prodcution is at its lowest in over six years as the kingdom and OPEC curb output to match rapidly falling demand. This has left gas supply in the kingdom tight.

The 250,000 bpd Shaybah expansion, which would take capacity at the oilfield to 750,000 bpd would be operational by the third-quarter of 2009, Judaimi said. The field had already begun producing oil, Judaimi added.