“We are looking at the current market status that, even though challenging, is an excellent opportunity for growth”, he told reporters during a rare media visit to company facilities in Dhahran.
Advertisement
While Nasser did not specify if increased capacity would translate into a corresponding increase in crude output, he said Aramco would meet the heightened domestic demand as electricity consumption in the country surges during the summer months.
Oil prices dropped to their lowest level in over a decade earlier this year as producers pumped more oil than the world needed. According to Reuter’s estimate, the wildfire has knocked out about half of the crude output from the sands, or 1 million barrels per day.
The move will see Shaybah’s capacity rise from 750,000 barrels to one million barrels a day. Changes included replacing the high-ranking governor of the Saudi central bank and creating new departments like the Commerce and Investment Ministry.
Deputy Crown Prince Muhammad Bin Salman, second deputy premier and minister of defense, first announced in April the decision to sell less than 5% of Aramco in an Initial Public Offering (IPO), valuing the company at between $2 trillion and $2.5 trillion. As was evident in the recent Doha meetings, Saudi Arabia’s stance on only accepting a collective oil production freeze went beyond Al-Naimi.
At about 0330 GMT, US benchmark West Texas Intermediate for June delivery was up 75 cents at $45.41 a barrel while North Sea Brent was up 51 cents at $45.77.
Al-Falih’s mega-ministry will oversee the products that make up more than half of Saudi Arabia’s economy.
Reuters quoted Nasser as saying that until that date, the maximum sustainable output capacity of Saudi Aramco stands at 12 million barrels per day.
Naimi was one of the most powerful figures within the Opec oil cartel but his influence has recently appeared to have been curbed by the growing power of Prince Mohammed.
Advertisement
He added that the kingdom was unlikely to limit production to stabilize prices after members of the Organization of the Petroleum Exporting Countries, along with Russian Federation, failed to agree to a freeze last month. “They were also discounting their crude back then”, said Amrita Sen, chief oil analyst at Energy Aspects.
