Saudi Aramco's budget for new projects tops $60bn

CASH BOOST: Saudi Aramco plans to invest billions of dollars in oil and gas projects over next five years. (Getty Images)

State oil firm Saudi Aramco plans to spend $60bn on oil and gas projects through 2014, a newspaper reported on Wednesday, citing a contractor in business with the company.

"Saudi Aramco has informed its large local contractors and agents of global firms that it had allocated a budget reaching $60bn ... to carry out oil and gas projects of various sizes up to 2014," Al Watan newspaper reported, citing "one of Aramco's large contractors".

Finance Minister Ibrahim Al Assaf said in November the kingdom planned to invest $100bn in the oil sector until 2014.

Turmoil in world credit markets and tumbling crude oil prices have prompted energy companies globally to review their more expensive projects or cut back on spending to preserve liquidity.

Aramco plans 144 projects until 2014, including eight "giant" projects, it said this month, without giving a timetable.

Last week ConocoPhillips said that the refiner would likely make an investment decision on its Yanbu joint venture refinery in Saudi Arabia.

Conoco and Aramco halted bidding on the construction of the planned 400,000 barrel per day (bpd) Yanbu refinery in November, citing uncertainties in the financial markets.

Conoco said the delay on the project would likely help drive down its construction costs, which had soared as oil prices ran up their record above $147 a barrel in July 2008.

Those costs had been estimated in 2006 at about $6bn. (Reuters)

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