Saudi Aramco to spend USD200 in energy projects

19 Jan 2012

(MENAFN) Saudi Aramco unveiled plans to invest USD200 billion in oil and gas explorations and doubling refining capacity during the next decade, Bloomberg reported.

The state-run company also plans to build refineries in China and Indonesia as part of the programme, said CEO Khalid Al Falih.

Aramco will invest USD90 billion in the next five years to increase refining capacity by 50 percent to 6 million bpd, Al Falih said.

He also said that he was confident about reaching final terms on a plant with the state-run China National Petroleum Corp. (CNPC) to be built in southern Yunnan province. The companies have agreed on the scope of the project, including the refinery and marketing.

Aramco seeks to tap increasing consumption in China, Asia’s biggest energy user, by forming joint ventures with local partners, he added.

Aramco and Sinopec signed an agreement earlier this month to develop a refinery in the Saudi city of Yanbu at a cost of as much as USD10 billion.

The world’s largest crude exporter is expanding refining and petrochemical production to meet domestic demand and export refined products to lucrative markets.

The company plans to boost its global refining capacity to 8 million bpd in 10 years, including projects yet to be announced, Al Falih said.

Saudi Arabia’s December crude output rate was 9.76 million barrels a day, the Organisation of Petroleum Exporting Countries (OPEC) said in a report.