Aramco has revealed it will not aim to increase its maximum sustainable capacity (MSC) to 13 million barrels per day (bpd), as previously planned, after receiving a directive from the Kingdom’s Energy Ministry.
Instead, Aramco will maintain an MSC of 12 million bpd, the company said in a statement.
Aramco added it will update its capital spending guidance when its full-year 2023 results are announced in March. For 2023, the oil major had set a capex target of $45 billion-$55 billion. Â The company delivered a total hydrocarbon production of 12.8 million barrels of oil equivalent per day in the third quarter of the year.
The move follows the announcement of prolonged production cuts by OPEC+. The group – which controls nearly 80% of global oil reserves – agreed in November to enforce voluntary output cuts of 2.2 million barrels per day (b/d). Saudi Arabia also announced additional cuts for 2024, to prevent an oversupply in the face of slowing global demand.
Benchmark Brent crude traded on Tuesday at around $81 a barrel.
