Saudi Arabia-based oil behemoth Aramco is putting its plan to develop multi-million dollar petrochemical projects on hold to save cash and preserve dividend, Bloomberg reported.
Aramco is delaying its projects after crude oil prices fell to a record low this year and also the Covid-19 crisis, which has hammered the demand for oil.
Bloomberg said in its report, “The world’s biggest oil company is scaling back plans to construct a $20 billion crude-to-chemicals plant at Yanbu in eastern Saudi Arabia, according to one person, who asked not to be identified because they aren’t authorised to speak to the media. It’s also reviewing an earlier decision to buy 25 percent of Sempra Energy’s Texas LNG terminal — which would cost several billion dollars and has already taken some staff off the project, according to a separate person.”
Aramco reported a 73.4 percent fall in its second quarter net profit which stood at $6.57 billion.
Last month, Aramco discovered two new oil and gas fields in the Northern region of Abraq Al Toloul and Al Jof, according to Saudi Arabia’s energy minister.
Prince Abdulaziz bin Salman said the new oil field discovered by Aramco in Abraq Al Toloul produces nearly 3,189 barrels per day (bpd) of crude oil, along with 1.1 million cubic feet of natural gas.
He revealed that the Aramco will go ahead with its plan to boost output capacity despite a significant cut in its capital expenditure for 2020 and 2021.
Aramco pumps around 8.5 million barrels per day (bpd) of crude, of which it exports about 6 million bpd.