Saudi Aramco says capex to reach $35 bln in 2021

Khalid Al-Dabbagh, Senior Vice President of Finance, Strategy and Development of Saudi Aramco

Khalid Al-Dabbagh, Senior Vice President of Finance, Strategy and Development at Saudi Aramco, expects capital expenditures to rise from $27 billion (SAR 101 billion) in 2020 to $35 billion (SAR 131 billion) in 2021.

The higher expenditures this year will be driven by better demand, and resumption of investments, which saw a slowdown in 2020, due to the COVID-19 pandemic.

In 2020, Saudi Aramco slashed exploration and production costs from $7.5 to $7 per barrel of oil equivalent (BOE). It also reduced upstream capital intensity from $4.7 to $4 per BOE, Al-Dabbagh added in Q4 2020 earnings call.

On the other hand, Amin Nasser, CEO and President, Saudi Aramco, said the company is maintaining engineering works to boost production to 13 million barrels per day.

Nasser added that he is optimistic for the oil market, expecting a strong recovery in demand going forward.

Saudi Aramco posted a 44% fall in net profit after Zakat and tax to SAR 183.76 billion for 2020, compared to SAR 330.69 billion a year earlier, Argaam reported.