Saudi Aramco adheres to ministry directive, maintains oil production at 12 million BPD
Saudi Aramco, the global leader in oil production, has confirmed its commitment to maintaining its maximum sustainable capacity (MSC) at 12 million barrels per day (MMBD). This decision comes in response to directives issued by the Ministry of Energy, temporarily halting earlier plans to escalate production to 13 MMBD.
The Ministry’s directive, rooted in the Hydrocarbons Law enacted by Royal Decree M/37 on December 20, 2017, underscores the state’s crucial role in determining MSC. This legislation serves as the cornerstone for Saudi Arabia’s overarching oil production strategies and capacity decisions.
Aramco’s press release emphasized that the company will unveil an update on its capital spending guidance during the full-year 2023 results announcement in March. This impending disclosure holds immense significance for investors and market analysts, offering a crucial glimpse into Aramco’s strategic planning and investment priorities. It is particularly pertinent given the prevailing market conditions and the ongoing global energy transition.
As the energy landscape evolves, Aramco’s decision to adhere to the Ministry’s directive not only reflects a commitment to regulatory frameworks but also raises questions about the company’s adaptability in the face of shifting market dynamics. Investors and industry observers keenly await the detailed insights that Aramco’s forthcoming financial report is expected to provide.
