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    Aramco 'To Double Gas Production in a Decade' - CEO

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Summary

Saudi Aramco plans to be the world's leading energy-chemicals company by 2020, Amin al-Nasser, the company's CEO said.

by: Murat Basboga

Posted in:

Natural Gas & LNG News, Corporate, Investments, Infrastructure, Saudi Arabia

Aramco 'To Double Gas Production in a Decade' - CEO

Saudi Aramco, the state owned oil giant, aims to double natural gas production over the next ten years, Amin al-Nasser, CEO of the company, said on May 10. In a press briefing in Dhahran, he said that the current crude market is 'challenging' but good for growth, quoted by Dow Jones Newswires.

Saudi Aramco will continue to expand and is eyeing opportunities abroad, he said. "We aim to be the world's leading energy-chemicals company by 2020," he added.

Earlier this year, Nasser said that the top oil exporter was planning to raise its gas output to 23bn ft3/d, from around 12bn ft3/d now. Saudi Aramco also plans to raise its refining capacity to between 8mn b/d and 10mn b/d from its current capacity of around 5.4mn b/d.

Separately, Saudi Arabia is preparing to list the national oil giant Saudi Aramco in London, as well as in New York, Hong Kong and Riyadh, by 2018, The Daily Telegraph reported.

According to people with links to the Saudi authorities, the government is hoping to persuade China's Sinopec and US's ExxonMobil and UK's BP, to acquire strategic stakes in Aramco, the article reported. The sources said the overseas oil groups would receive guaranteed access to Saudi upstream operations for the long term in exchange for refinery deals or high-end upstream technology.

Saudi Arabia deputy crown prince Mohammed bin Salman Al Saud reaffirmed on April 25 the Kingdom's plans to list the state oil company, with a free float of 5% or less. The kingdom is pushing for a listing in 2017, according to a previous interview with the prince, who said parent company Aramco will be offered to the public as well as a number of its subsidiaries. He also said that 5% of Aramco's equity will be sold at a value of between $100bn and $150bn, the report said.

The sources said that it has the lowest cost of production of all the major oil producers, and would be in the best position anywhere to capitalise on an uptick in oil and gas prices.

 

Murat Basboga