Saudi Aramco, the largest crude oil exporter in the world is to expand its refining capacity and increase its oil and gas exploration activities.
The company has a $200 billion spending program which it plans to implement over the coming decade with a heavy focus on China and Indonesia.
Aramco's CEO Khalid al-Falih said in a recent interview, "The company plans to boost its global refining capacity to 8 million barrels a day in 10 years, including projects yet to be announced."
According to Al-Falih Aramco will invest $90bn in the next five years to increase refining capacity by 50 percent to 6 million barrels a day.
Most of the capacity to be added to the five-year target will be at refineries in Asia, with the bulk of that in China, al-Falih said. Aramco seeks to tap increasing consumption in China, Asia's biggest energy user, by forming joint ventures with local partners.
The company is also exploring for unconventional gas, including shale and tight gas, in the nation's northwestern region, al-Falih said on January 14. Low gas prices are a "challenge" to developing these hard-to-reach deposits, he said. Aramco's capital spending will probably rise to more than $20bn a year if it develops unconventional gas.
By. Charles Kennedy of Oilprice.com
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Charles is a writer for Oilprice.com More