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.
