Page 11 - MEOG Week 29 2022

MEOG PROJECTS & COMPANIES MEOG

Saudi minister blames lack

of refining for market issues

SAUDI ARABIA SAUDI Arabia’s Foreign Minister has called for nations and IOCs to increase their own invest-
greater investment in the conversion of oil into ments. Aramco’s president and CEO Amin
products, but said crude supplies are not in short Nasser and other officials have been among
supply. the most outspoken about the industry’s lack of
“As of today, we don’t see a lack of oil in the investment in the upstream. While maintain-
market. There is a lack of refining capacity, ing the company’s global “pre-eminence” in the
which is also an issue, so we need to invest more upstream, it does not serve Aramco or Saudi
in refining capacity,” Prince Faisal bin Farhan Al Arabia well to have to tap strategic spare capacity.
Saud said during a visit to Tokyo. The company also has a gross domestic refin-
New and expanded refining capacity is ing capacity of 3.15mn bpd – 2.4mn bpd net
expected to come on stream over the next few – across its wholly owned and domestic joint
months across Africa and the Middle East – venture facilities, with another 1.43mn bpd
which is seen adding around 3.8mn barrels per of net capacity at international JV facilities in
day (bpd) – but much of this is predicted to be China, Japan, Poland, South Korea and the US,
utilised rapidly. with developments and investment plans in train
Crown Prince Mohammed bin Salman to add several hundred thousand barrels to this
(MbS) said this week that Saudi oil production is figure.
unlikely to be able to surpass 13mn bpd, the level Meanwhile, Prince Faisal spoke of Russia’s
majority state-owned oil firm Saudi Aramco has importance to oil market stability. “Russia is an
been working towards since early 2020. integral part of OPEC+, and without co-opera-
Saudi Arabia is also investing heavily to tion in OPEC+ as a collective, it would be impos-
enhance Aramco’s capabilities in the down- sible to properly ensure adequate supplies of oil
stream, but it has repeatedly called on other to the international markets,” he said.™

Week 29 20•July•2022 www. NEWSBASE .com P11