Oil minister Khalid Al Falih stated that the money would be allocated to maintain and possibly expand spare oil production capacity in Saudi Arabia. The country is an OPEC leader in oil production, with a sustainable production capacity of 12mn bpd. Falih said that Saudi Arabia hasn’t decided if they can expand capacity to 13mn bpd or retain it at current levels.

The Reuters report went on to elaborate on Falih’s plan to ensure there isn’t a shock in supply and spike in prices – he has called upon other oil producers to invest in capacity building measures.

“This spare capacity is not just a natural reservoir that we have. This is a very expensive investment for the kingdom, and some of our partners within OPEC and OPEC+ have elected to invest to maintain (oil capacity) to have the readiness on a short notice,” he said at an energy industry event in Moscow.

Meanwhile, Saudi Arabia has also revealed plans to launch several mega projects, including the construction of an oil refinery at Pakistan’s Gwadar port. According to news sources, Pakistani petroleum minister Ghulam Sarwar Khan said the Pakistani cabinet has approved a proposal to develop a refinery, with the help of Aramco, Saudi Arabia’s state-run oil major.