Even though countries close borders to contain the coronavirus pandemic, Saudi Aramco will meet commitments towards customers.
All international flights into and out of Saudi Arabia stopped by the kingdom to contain the spread of the coronavirus. The Ummrah pilgrimage is also suspended.
Following the failure of the OPEC+ earlier this month to extend production restriction pact, Saudi Aramco will bring an additional 2.6 million barrels of oil per day next month, raising output to 12.3 million bpd as it looks to claw back market share.
Saudi Aramco is also planning to increase its production capacity to 13 million bpd by an unspecified timeline, from currently at 12 million bpd. The capital expenditure for 2020 has been cut by the company in light of the slump in oil prices. Since January, oil prices have lost about 60 percent of its value and are below $30.
For this year, Aramco slashed spending to between $25 billion and $30 billion. Capital expenditure is “currently under review” for next year and beyond. While cash flow fell to $78.3 billion from $85.8 billion in 2018, Aramco’s net profit for 2019 dropped to $88.2 billion from the previous year.
