Saudi Arabia’s state-owned oil company Saudi Aramco has confirmed that it is in the process of renewing a standby revolving credit facility.

The new arrangement will replace the current $4bn facility raised in November 2010 via a syndicate of local, regional and international banks, the oil major said in a statement seen by MEED.

It said the facility would help the company “maintain financial flexibility”, but did not elaborate of the purpose of the loan.

The statement follows reports in Bloomberg that Saudi Aramco was in talks with the banks and that the new facility could be increased up to $10bn.

The deal is reportedly due to close in the first quarter of the year.

Aramco is the world’s largest oil exporter and, in light of the decline in oil prices, has recently been reassessing where and how it will spend its money.

Earlier this year the company decided to postpone the rehabilitation of its 550,000 barrel-a-day (b/d) Ras Tanura refinery.

However other projects remain in development.The oil company is currently tendering the $5bn Fadhili gas plant and maintaining its commitment to increase the gas output of the kingdom.