Saudi Arabia, the planets largest crude exporter, plans large scale gains in output this year and further global expansion, the CEO of the nation’s state-run producer said, even as international oversupply contributed to a dip in oilcosts from 12 months ago.
Saudi Arabian Oil Co., AKA Saudi Aramco, will increase capacity at the Shaybah field by one third to 1 million barrels per day in the next fortnight and will double natural gas development over the next 10 years, Amin Nasser, CEO, commented to journalists Tuesday at its HQ in Dhahran, eastern Saudi Arabia.
“Even though it may be very hard work, it’s still a fantastic opportunity for us to develop,” Nasser said of the global expansion strategy.
Saudi Arabia is looking to decrease its dependability on crude sales amid decreased prices for its most expensive export. As part of that plan, the king’s increasingly influential son, Deputy Crown Prince Mohammed bin Salman, will sell off stock in Saudi Aramco for the first time, making what could be the planets biggest listed organization.
Anthony Russell, Senior Vice President with Monex BMO Securities said, “I really don’t think the kingdom is worried about a slight dip in crude prices at this moment in time. Saudi Arabia remains at the forefront of the sector and things won’t change amid this reshuffle in the business and political arenas”
The kingdom is leading OPEC members in a fight for market share against higher-cost crude producers not least U.S. shale drillers. Nasser’s predecessor as Chief, Khalid Al-Falih, who was made oil minister Saturday, said he’ll keep Saudi oil strategy the same.
“Saudi Arabia will keep its balanced oil policies. We are still committed to maintaining our position in global energy markets and increasing our role as the world’s most reliable producer of energy,” Al-Falih, who is still Aramco’s chairman, said in a press release Sunday, his first day in his new job.