Aramco’s CAPEX to range between $52-58B in 2025: Nasser

Saudi Aramco’s President and CEO, Amin Nasser

Saudi Aramco’s President and CEO, Amin Nasser, said global oil demand increased by one million barrels per day (bpd), reaching 104.8 million bpd in 2024, with expectations for continued growth in 2025, particularly driven by rising demand in Asian markets, which account for 60% of global growth.

The company has a surplus production capacity of three million bpd, which can be activated quickly and at a limited cost.

Aramco’s capital expenditure (CAPEX) will range between $52 billion and $58 billion in 2025, with 60% of this allocated to exploration and production, and 10% to new energy project, he added in an investor call.

Nasser added that the initial operation of Jafurah gas field is expected to start later this year.

The second phase is on track to reach its full capacity by 2030, providing two billion cubic feet of gas per day.

Aramco is expanding its investments in the gas sector, aiming to increase its saleable gas production by more than 60% compared to the 2021 levels.

This will provide an additional one million bpd for export, along with one million bpd of gas-related liquids. Additionally, the company is working on expanding the main gas network by increasing it by 4,000 km and adding 3.15 billion standard cubic feet per day of capacity by 2028.

Nasser added that he expects gas production to grow by 20-30% by 2030, which will contribute to increasing oil exports and generating additional cash flows ranging between $9 billion and $10 billion.

Nasser also highlighted the progress in blue hydrogen projects, stating that future investments in this field will be contingent on long-term purchase agreements that ensure attractive returns, with a target of producing 2.5 million tons annually by 2030.

Aramco has achieved technological savings of $6 billion over the past two years thanks to the implementation of these technologies, with expectations of achieving an additional $2 billion to $4 billion by 2025, he elaborated.

Regarding blue hydrogen, Nasser confirmed that the company continues to evaluate growth opportunities in this field. Any future investments will depend on signing long-term purchase agreements that provide attractive returns.

The company remains committed to achieving a production target of 2.5 million tons of blue hydrogen annually by 2030.

Nasser went on to say that the initial partnership for exploration and mining of essential minerals within the Kingdom, in collaboration with Maaden, is focused on high lithium concentrations, with commercial production expected to begin by 2027. He noted that the global lithium market is experiencing rapid growth, with expectations of the market tripling in size over the next five years.

Finally, he underlined the importance of artificial intelligence (AI) in improving operational efficiency, stating that advanced technologies have helped reduce production costs to $3.5 per barrel—the lowest globally. He added that Aramco continues to deploy AI solutions in exploration and production operations to enhance operational value.