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.

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

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower