Saudi Arabia to trim oil exports further in February

Adjust Comment Print

That debt sale would force the world's largest oil producer to disclose its accounts to investors for the first time since its nationalization roughly four decades ago.

Saudi Arabian Energy Minister Khalid Al-Falih revealed the plan on Wednesday in Riyadh, adding the company wanted flexibility in funding the Sabic deal, which could cost about US$70 billion.

Saudi Arabia had a target to lower output to 10.311 million bpd as of January 1, when the supply cut accord took effect.

Falih said Saudi production had fallen to 10.2 million bpd, down from the roughly 11 million bpd it was pumping when oil producers chose to end a production cut deal in May.

More news: Person driving blindfolded crashes while playing the 'Bird Box Challenge'

Saudi-led OPEC and Russian Federation agreed on December 7 to curb their total crude oil production by 1.2 mbpd beginning on January 1 for six months, but the plan so far has had little impact on crude prices.

According the estimates given by the Board of Investment, Saudi Arabia is likely to invest $5 to $10 billion in the oil refinery and petrochemical complex at Gwadar.

The most recent market rumors have had it that Aramco could fund the entire US$70-billion price tag for buying 70 percent in Sabic with the upcoming bond issue.

Saudi Arabia pumped oil at record levels in 2018, including output of 11 million barrels a day in November. "We have seen peaks and drops in prices (that are) completely unjustified by the fundamentals".

More news: Democrats block Middle East bill in the Senate over shutdown

Saudi Arabia said the new figures have been backed by an independent third-party certification by leading consultants DeGolyer and MacNaughton (D&M).

The energy ministry said that Saudi reserves were 268.5 billion barrels of oil and 325.1 trillion standard cubic feet of gas at the end of 2017, Arab News reported, citing the official Saudi Press Agency.

The funding programme "will be sustained over time as Saudi Aramco grows and undertakes its capital programme", Mr Al-Falih said. Falih said on Wednesday the kingdom would still go ahead, and list the company by 2021.

More news: Apple Watchers Are Already Looking Toward the Next Next iPhones

Comments