Aramco VP Claims Little Increased Demand For Light Oil - Meanwhile, Khursaniya Still Not Online

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MANAMA, May 25 (Reuters) - Saudi Arabia's Khursaniyah oilfield expansion project is not yet pumping, but large parts of its 500,000 barrels per day capacity are ready, an official at state oil giant Saudi Aramco said on Sunday.

The world's top oil exporter had planned to bring Khursaniyah online in December. The expansion is the largest single boost to global oil capacity for several years. But delays in construction of a plant to process gas produced at the oilfield have prevented the start up, Khalid al-Falih, Aramco's executive vice president of operations, told Reuters.

"The gas plant is a major delay. It's really a disappointment," Falih said. "All of it will be ready in a few months." Aramco could bring on most of Khursaniyah's capacity if needed, Falih said. But gas would have to be burnt off, which Aramco wanted to avoid, he added.

The field produces light crude, and Falih said Aramco had seen little increased demand for that type of oil from its customers. Most recent demand growth was for medium and heavy grades, he added.

Ed. - emphasis added.

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http://uk.reuters.com/article/oilRpt/idUKL256564420080525?pageNumber=1&virtualBrandChannel=0