Saudi Aramco plans to invest USD 40 billion over the next decade as part of its strategy to maintain an oil production capacity of 12 million BOPD and doubling its gas production capacity, according to CEO Khalid Al-Falih.
Speaking recently at the Offshore Northern Seas Conference and Exhibition in Stavanger, Al-Falih said his company plans to solidify its upstream leadership while also diversifying its business portfolio.
“Although our investments will span the value chain, the bulk will be in upstream, and increasingly from offshore, with the aim of maintaining our maximum sustained oil production capacity at 12 million BOPD, while also doubling our gas production,” Al-Falih said. “This will ensure that we efficiently meet the kingdom’s rising energy demand with gas for power and industry, and refined products for transport, while also meeting the global call on our crude oil.”
Al-Falih said that his company must put “its money where its mouth is” by making prudent and timely investments, balancing long-term objectives and short-term interests, and meeting the energy needs of the future while providing attractive investment options and delivering value to shareholders.
To achieve these objectives, Al-Falih said his company has adopted an open network innovation model that integrates capabilities and ideas from around the world through strategic research alliances, through investing venture capital in startup companies that are developing cutting-edge energy technologies, and by establishing global satellite research centers embedded within university campuses.
Al-Falih also emphasized the importance of technology and talent for the oil and gas industry.
“Of course, technology depends to a great extent on talent, which arguably is our most important enabler,” he said.
Cost efficiency is also a key objective for Saudi Aramco as it aims to move into a more agile and more resilient enterprise.
“Operational excellence, business process streamlining, and capital efficiency are helping us strengthen its execution through bold targets: for example, our capital efficiency initiative aims to reduce our capital cost by 20%,” he said.
Abdelghani Henni is the Middle East Editor for the Journal of Petroleum Technology.