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Saudi Arabian Oil Co. (Saudi Aramco) said it will tap inventories to provide the additional 300,000 barrels of crude per day, required by the Ministry of Energy, the oil giant’s chief executive Amin Al Nasser said.
"We have significant stocks of crude, and we closely monitor the market supply and demand," he added on the sidelines of a conference on the company's FY19 financial performance.
"We are evaluating the whole situation in technical and engineering terms and we will map out a plan to boost output," he confirmed.
Commenting on the impact of its cost-cutting strategy on the ongoing projects, Nasser said Aramco is working on restructuring the projects execution phases in line with its strategy without affecting the timetables of these projects.
Nasser also indicated that Saudi Aramco's low production costs meant it could sustain very low oil prices for an extended period, adding that it will capitalize on the increased output despite lower prices.
"Our maximum output capacity is sustainable without the need for any additional building. It does not require any additional capital," he said.
Saudi Aramco's CFO Khalid al-Dabbagh told Reuters on Monday the company was “very comfortable” with $30 a barrel oil prices and that it can meet its dividends commitments and shareholders expectations even with current low oil price
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