The downturn in the fossil fuel industry has prompted Saudi Aramco to review its domestic and overseas diversification plans, the Wall Street Journal reported, citing sources familiar with the matter. According to the sources Aramco is reviewing a large natural gas project with Sempra Energy and expansion plans in its Motiva refinery, both in Texas. The report also noted that the state-run oil giant is also suspending investments in refineries in China, Pakistan, and India.
At home, Aramco is deferring by a year a plan to increase its oil production capacity to 13 million bpd from 12 million bpd currently. The company also intends to cut its 2020 capital expenditure to between $20 billion and $25 billion to fulfil a massive dividend commitment of $75 billion. Previously, Bloomberg reported that Aramco is pausing investment in the petrochemical joint venture project with China’s Norinco, but the oil giant later dismissed the report.
