Aramco asked to stop oil output capacity expansion

30 January 2024
The kingdom’s energy ministry has directed the Saudi state energy giant to shelve its campaign to achieve a maximum oil production capacity of 13 million b/d by 2027

Saudi Aramco has been directed by the kingdom’s energy ministry to stop its oil production capacity expansion drive.

In a statement on 30 January, Aramco said it had received a directive from the energy ministry to maintain its maximum sustainable capacity (MSC) at 12 million barrels a day (b/d). The state energy giant had previously been set a target of achieving an oil output spare capacity of 13 million b/d by 2027.

Aramco has not said whether its target of raising gas production by 50% by 2030 has also been put on hold or has been left unchanged by the energy ministry.

“It is to be noted that MSC is determined by the state [Saudi Arabia] pursuant to the hydrocarbons law, enacted by Royal Decree M/37, dated 20 December 2017,” Aramco said in its statement.

“The company will update its capital spending guidance when its full-year 2023 results are announced in March,” Aramco added.

In its financial results for the third quarter of 2023, Aramco said it expects 2023 capital expenditure (capex) to be $45bn-$55bn, including external investments. This projected level of spending is at least 20% higher than the company’s $37.6bn capex in 2022.

Aramco’s capex in the third quarter also increased to $11bn, up from $9bn in the same period the year before.

ALSO READ: Aramco focuses on upstream capacity building

MEED's October 2023 special report on Saudi Arabia includes: 

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORTSaudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
BANKSSaudi banks track more modest growth path
> UPSTREAMAramco focuses on upstream capacity building

> DOWNSTREAMSaudi chemical and downstream projects in motion
> POWERRiyadh rides power projects surge
> WATERSaudi water projects momentum holds steady
> GIGAPROJECTSGigaproject activity enters full swing
> TRANSPORTInfrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWERJeddah developer restarts world’s tallest tower

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.