Saudi oil production returning to normal, says energy minister
Kingdom will be able to produce 12 million bpd by the end of November, says Prince Abdul Aziz
Oil production at two major Saudi Aramco plants at Abqaiq and Khurais will return to full capacity by the end of this month following attacks on them last weekend, the country’s energy minister said on Tuesday.
Prince Abdul Aziz bin Salman told a news conference in Jeddah that the Kingdom will be able to produce 11 million barrels per day (bpd) by the end of September and 12 million by the end of November.
Production in October is expected to be 9.89 million bpd, he said, and all customers will be supplied in full this month. He added that the Kingdom, the world’s leading oil exporter, needs to take strict measures to prevent further attacks. Oil prices dropped about 6 percent after the minister’s comments, steadying the markets following increases fueled by He added that production at Khurais resumed only 24 hours after the attack and has gradually increased since then. Production at Abqaiq is at 2 million bpd, with output expected to be restored to prior levels by the end of September. “These synchronized attacks were timed to create maximum damage to our facilities and operations,” said Nasser. “The rapid response and resilience demonstrated in the face of such adversity shows the Company’s preparedness to deal with threats aimed at sabotaging Aramco’s supply of energy to the world.”
Separately, King Salman reiterated the Kingdom’s ability to deal with “cowardly attacks.”
“These attacks are not only aimed at vital installations of Saudi Arabia, but threaten the global economy,” he said. He called on the international community to take tougher measures to prevent such attack.
The US has concluded that the attacks on the Saudi oil facilities were launched from Iranian soil, a US official told AFP. It comes as Secretary of State Mike Pompeo traveled to the Kingdom on Tuesday to discuss a response. The subject of Aramco’s stock market launch was also raised during the news conference. “We have said we are ready and will proceed with the (initial public offering) when our shareholder takes the decision,” said Nasser.
The company is pressing on this week with meetings with Saudi bankers about its stock market listing.