Saudi Aramco Plans to Expand Production
After major reshuffle over the weekend, which saw reassigning Ali-al-Naimi, Saudi Arabia’s two decade long oil minister to the advisor to the court and replaced by chairman of Saudi Aramco, Khalid al-Falih, Saudi Aramco’s chief executive officer said Aramco stands ready to meet global oil demand even in this challenging environment.
According to Amin Nasser, CEO of Aramco, there would be significant output boost in 2016. Over the next couple of weeks, Shaybah oil field production will rise by 33% to 1 million barrels/day. It will also double its gas production over next decade.
Saudi Arabia’s new strongman has indicated weeks back, Saudi production can easily rise to 11.5 million barrels/day, with is more than a million barrels/day higher than current production. Moreover the company is looking for opportunities globally and looking for joint ventures in countries like India, Indonesia, United States, Vietnam and China.
Under the new command, Saudi Aramco will look to capitalize over each opportunity to improve its market share.
Aramco, increase in supply not likely to be good news for Brent benchmark, which has been struggling after reaching $48/barrel in late April.
Brent is currently trading at $43.9/barrel.