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THE PRODUCTION CAPACITY CHALLENGEAverage well production rates in Haradh-III are 10,000bpd, compared with 3,000 and 6,000 bpd for Haradh-I and II, respectively. This is due primarily to the use ofMRC wells and the previously mentioned technologies,which slashed unit well development costs threefold.If Haradh-III had been developed with conventionalvertical wells, 280 producers would have been required,as opposed to 32 MRCs, as is the present case.Khurais, the fourth largest crude oil field in the world,is the largest integrated project in Saudi Aramcohistory. This increment, which includes production fromAbu Jifan and Mazalij fields, is projected to produce1.2 million bpd of Arabian Light crude oil by 2009.Associated facilities include dehydration and compressionof 450 million scfd of gas, and expansion of SouthernArea seawater injection capacity by 4.5 million bpdto support reservoir pressure in the Khurais andGhawar fields.We operate 10,668miles (17,169 km)of pipeline totransport oil, gasand refined products.In addition, the East/West NGL pipeline capacity willbe increased from 425,000 bpd to 555,000 bpd toaccommodate increased NGL production. Downstreampipelines for stabilized crude oil, NGL, sour gas and fuelgas will also be constructed.The AFK (Abu Hadriyah, Fadhili and Khursaniyah)Development Project is designed to produce andprocess 500,000 bpd of Arabian Light crude and300 million scfd of associated gas by December 2007.The overall Khursaniyah Development Project, whichalso includes a grass-roots gas plant in addition to thecrude processing facility, is creating a significant impacton the local economy. By the end of 2006, nearly$500 million in manufactured materials — nearly halfof the total — was purchased from local vendors, andmore than $1 billion in engineering services, manufactureditems and construction, more than half the total thusfar, was obtained in-Kingdom.OUR UNPRECEDENTED PROGRAM TO EXPAND OUR CRUDE OIL PRODUCTIONCAPACITY REQUIRES THE COLLECTIVE EFFORT OF THOUSANDSOF CONTRACTOR EMPLOYEES, MORE THAN 2,000 OF WHOM ARESAUDI NATIONALS.24 SAUDI ARAMCO