Font Size

- Aa +

Tue 9 Jul 2019 05:29 PM

Font Size

- Aa +

Saudi Aramco awards $18bn contracts to boost output at oil fields

State oil company of Saudi Arabia will add a combined 550,000 barrels a day of capacity at its Marjan and Berri oil fields

Saudi Aramco awards $18bn contracts to boost output at oil fields

Saudi Aramco, the world’s largest crude exporter, awarded $18 billion in contracts to boost output capacity at two offshore deposits even as the kingdom and its OPEC partners restrict actual production.

The state oil company of Saudi Arabia will add a combined 550,000 barrels a day of capacity at its Marjan and Berri oil fields, it said Tuesday in a statement. Aramco awarded 34 contracts, with half of them going to Saudi firms, according to the statement.

The statement didn’t identify any of the 16 companies that won the contracts, nor did it specify when the Marjan or Berri projects would be completed.

Aramco, officially known as Saudi Arabian Oil Co, plans to bring about 1 million barrels a day of oil capacity online by 2023 in order to compensate for reductions at some other fields. Aramco plans to maintain production capacity of 12 million barrels a day even though it regularly produces about 10 million barrels daily.

Saudi Arabia, with the world’s biggest reserves of conventional crude, has long drawn on its prolific deposits to help balance global oil markets. Riyadh seeks to keep some spare capacity ready and available for rapid use in order to respond quickly to any shortages.

The Organization of Petroleum Exporting Countries and allies including Russia agreed this month to extend production cuts into 2020 to try to prop up prices amid surging US supplies.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.