Saudi Aramco requested to cut max capacity target back to 12 mbpd

By Aya Anwar On Jan 30, 2024

Saudi Aramco said on Tuesday it was directed to lower its planned maximum sustainable oil production capacity from 13 million barrels per day (bpd) to 12 million bpd, a source with direct knowledge of the matter told Reuters.

The change also was not a result of technical issues, but a directive from the government, the source said. “If the government decides to go the other way, the company is ready,”

The move in no way reflects a change of views on future oil demand scenarios, the source added.

Aramco is expected to provide an update on its capital expenditure plans when it announces its 2023 full-year results in March.

The Saudi Energy Ministry had called the oil giant in March 2020 to boost its maximum output to 13 million bpd, during a market share dispute with Russia at the time. In May 2020, however, Riyadh and Moscow went back to working together on production levels through the Organization of the Petroleum Exporting Countries (OPEC+), which is still in charge of coordinating output and is led by Saudi Arabia and its allies led by Russia.

barrels per day barrels per day (bpd)Moscow Oil output oil output cuts OPEC OPEC members Organization of the Petroleum Exporting Countries