Aramco Says Saudi Oil Rig Decline Due to Completion of Projects
by Bloomberg | Verity Ratcliffe
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*this article was not written by Roseland Oil & Gas
The number of active oil rigs in Saudi Arabia fell after several oil-field projects aimed at maintaining production capacity were completed, said Aramco Chief Executive Officer Amin Nasser.
Another factor was the kingdom’s decision in January 2024 to maintain its maximum sustainable capacity, or MSC, at 12 million barrels a day, scrapping plans to boost it to 13 million barrels a day, Nasser said.
“The rig count was the result of completing certain projects and reducing the MSC,” Nasser said on a call with analysts on Tuesday. “That came with the association of laying off certain rigs.”
The number of active rigs targeting oil in the kingdom dropped to its lowest in more than two decades in July, according to Baker Hughes data. The active rig count is an important metric for analysts following global oil markets. Including production testing, completions or workovers rigs and those under mobilization, there are more than 230 drilling rigs across Saudi Arabia, Baker Hughes said on Sunday.
While Saudi oil drilling has slowed, activity related to natural gas has surged. Aramco plans to increase gas production by more than 60% by 2030, compared with 2021 levels, said Nasser. “That will require a good number of rigs,” he added.
by Bloomberg | Verity Ratcliffe
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas