Source: AFP
Saudi Arabia has ordered energy giant Aramco to keep oil production capacity at 12 million barrels per day, abandoning a planned increase, the company said on Tuesday.
“Aramco announces that it has been instructed by the Ministry of Energy to maintain its maximum sustainable capacity (MSC) at 12 million barrels per day” instead of raising it to 13 million bpd, the company said in a statement.
“The company will update its capital expenditure guidance when its full-year 2023 results are announced in March.”
Saudi Arabia is the world’s largest crude exporter and Aramco is the crown jewel of the Gulf kingdom’s economy.
Aramco’s profits are expected to fund Crown Prince Mohammed bin Salman’s sweeping economic and social reform program, known as Vision 2030, which aims to lay the foundations for an eventual post-oil future.
![](https://images.yen.com.gh/images/fa45df524c8c2561.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/fa45df524c8c2561.jpg?impolicy=cropped-image&imwidth=256)
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Riyadh announced the planned capacity increase in October 2021, the same month it pledged to achieve net zero carbon emissions by 2060 – prompting strong skepticism from environmental activists.
Aramco is committed to achieving “operational net zero” carbon emissions by 2050.
This applies to emissions produced directly by Aramco’s industrial facilities, but not to the CO2 produced when customers burn Saudi oil in their cars, power plants and furnaces.
Ahead of the COP28 climate change talks in Dubai last year, Saudi Arabia was among the loudest voices calling for more investment in fossil fuel production, saying it was necessary to combat energy poverty in regions such as Africa.
Tuesday’s announcement was not expected to have an immediate effect on production or exports.
![](https://images.yen.com.gh/images/654c4d7481ac0c34.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/654c4d7481ac0c34.jpg?impolicy=cropped-image&imwidth=256)
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After a series of oil supply cuts dating back to October 2022, Saudi Arabia’s daily output stands at around nine million bpd, well below its 12 million bpd capacity.
Source: AFP