Saudi Aramco CEO says it can sustain 12 million bpd
Saudi Aramco can maintain crude oil production at 12 million barrels per day (bpd) for a year without incurring additional costs, according to chief executive Amin Nasser.
Reuters reports that Nasser projected global oil demand would rise by 1.1 million to 1.3 million bpd this year and by 1.2 million to 1.4 million bpd in 2026, while speaking at the Energy Intelligence Forum in London on 13 October.
Nasser noted that Aramco’s extraction costs stood at $2 (£1.5) per barrel of oil equivalent (boe) for oil and $1 (£0.75) per boe for gas.
“We are determined to remain dominant in oil thanks to a massive resource base, low costs, and one of the lowest upstream carbon intensities across the industry,” Nasser said.
”We also see resilient demand, and the pressing need for long-term investments in supply is now widely accepted.”
Saudi Arabia holds a substantial share of the world’s spare oil capacity that can be brought quickly to the market.
The state-owned oil company halted expansion plans for three chemical projects due to weaker oil prices earlier this month.
”Despite the current downturn, chemicals remain a key long-term growth area, with our proven strengths in both feedstocks and conversion,” Nasser said.
The Saudi-listed oil producer is holding back two joint venture projects at Yanbu on Saudi Arabia’s western Red Sea coast and another facility at Jubail on the Persian Gulf coast.
Meanwhile, Aramco has prioritised investment in international refining and chemical facilities in a bid to meet its goal to turn 4 million barrels a day of crude into petrochemicals.
On October 9, the company completed the acquisition of a 22.5 per cent stake in its refining and petrochemicals joint venture Petro Rabigh.
The oil company acquired Petro Rabigh from Japan’s Sumitomo Chemical for 2.63 billion riyals (£547 million) and raised Aramco’s stake in the petrochemical company to approximately 60 per cent.
Futhermore, Reuters’ report also says Aramco is building an $11 billion (£8.3 billion) petrochemical complex with TotalEnergies at their existing Satorp refinery in Saudi Arabia.
Last month, TotalEnergies said it is expanding in Saudi Arabia due to competitive energy and feedstock costs.
Reuters, Maghrebi.org
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