Saudi Aramco says it’s likely to ramp up production to meet rising demand
Saudi Aramco is likely to ramp up oil production to meet rising demand, at a time when global oil markets are already awash with crude.
Speaking in a news briefing today, Amin Nasser, the chief executive of Saudi Arabia's state-owned oil company, Saudi Arabian Oil, known as Saudi Aramco, said: "We're seeing an increase in global demand. We're meeting that call on us."
Nasser added that it was in the final stages of preparing options for its initial public offering before presenting them to the supreme council for consideration.
Yesterday, it was revealed that what could become the world's most valuable company would be subject to three-way listing in London, Hong Kong and New York.
Saudi Aramco is also eyeing global expansion and could enter into joint ventures in several countries, such as Indonesia, India, the US, Vietnam and China.
"We are looking at the current market status that, even though challenging, is an excellent opportunity for growth," Nasser said.
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The Kingdom is diversifying its economy away from oil which fell from over $110 per barrel in the middle of 2014 to under $30 in January. Oil prices are currently hovering around $44 due to supply disruptions as a result of the Canadian wildfires.
Saudi Arabia ousted its long-serving oil minister, Ali al-Naimi, over the weekend in favour of Khalid al-Falih, chairman of Aramco who is close to Mohammed bin Salman, the reformist deputy crown prince.
Oil traders, analysts and commentators are keen to see if this will change the Kingdom's oil policy or output, but many have said that such a move is unlikely.