Saudi Aramco discloses its growth strategy for upstream business

Logo of Saudi Arabian Oil Co. (Saudi Aramco)

Saudi Arabian Oil Co. (Saudi Aramco) disclosed today, March 20, its strategy to expand the upstream business, which included increasing the sustainable maximum production capacity to 13 million barrels per day (bpd) by 2027, and the possibility of increasing gas production by more than 50% by 2030.

In a statement, the company said that in 2021 its hydrocarbon production averaged 12.3 million barrels of oil equivalent per day (boe/d), of which 9.2 million bpd were crude oil.

In its downstream business, Aramco plans to expand the conversion capacity of up to 4 million bpd of liquids into chemicals to create additional and sustainable value from an oil barrel, and also eyes developing its hydrogen production and export capabilities and become a global leader in carbon storage.

The firm aims to invest in renewable energy and green natural solutions, as it pursues its ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050.

This will also include near-zero methane emissions in upstream segment by 2030.

With regard to capital expenditures in 2021, it noted that it reached SAR 119.6 billion ($31.9 billion), an increase of 18% over 2020, due to the growth of activities related to crude oil production increase projects, Tanajib Gas Plant and developed drilling programs.

Saudi Aramco expects capital expenditure for 2022 to reach about SAR 150-187.5 billion ($40-50 billion), with further growth expected until about the middle of the current decade, in line with its belief in the need for sustainable new investments to meet growing demand, given the decline in investments in the energy sector worldwide.

According to data compiled by Argaam, Aramco reported an over twofold rise in net profit after Zakat and tax to SAR 412.4 billion in 2021, compared to SAR 183.8 billion a year earlier. Net profit for Q4 2021 stood at SAR 121.4 billion.