Saudi Aramco, under the leadership of Chief Executive Amin Nasser, is eyeing further investments in China, capitalizing on the country’s strong and increasing oil demand.
During a media call, Nasser disclosed these intentions alongside revealing a net profit drop of 24.7% to $121.3 billion for the year, attributed to lower oil prices.
Aramco’s focus on China has seen a series of deals aimed at enhancing its refining and petrochemical operations within the country, reflecting China’s burgeoning market.
Nasser expressed optimism about the global oil market’s outlook for 2024, forecasting a growth of approximately 1.5 million barrels per day, with demand expected to reach 104 million barrels daily, up from 102.4 million in the previous year.
Despite a directive from the Saudi government to halt its production capacity expansion at 13 million barrels per day, favoring a 12 million barrels per day ceiling, Aramco continues with projects that contribute to this target.
These efforts include developments at Zuluf, Marjan, and Berri fields, projected to collectively add significant daily crude production volumes.
Addressing the adjustments necessitated by the government’s directive, Nasser assured that Aramco’s strategy would involve managing production decline and integrating new outputs from ongoing projects to align with the 12 million barrels per day capacity limit.
This approach is expected to maintain the company’s operational rig count steady.
Furthermore, Aramco is exploring opportunities beyond its traditional oil business, including potential partnerships in the liquefied natural gas (LNG) sector.
Nasser mentioned collaboration with MidOcean Energy for LNG projects outside Australia and expressed interest in the U.S. LNG market, though specifics remain under wraps.
Talks are also ongoing regarding Aramco’s investment in a joint venture between Renault and Geely for combustion and hybrid engines, alongside early-stage investigations into lithium extraction from oilfield brine, highlighting Aramco’s strategic pivot towards critical minerals and alternative energy sources.
These moves signal Aramco’s adaptation to the evolving energy landscape and its commitment to securing a diversified and sustainable future.