Saudi Aramco plans to regain market share after OPEC deal ends

Saudi Arabian Oil Co. (Saudi Aramco), the world’s largest crude exporter, is planning to regain its lost market share after the OPEC-led oil production pact ends by focusing on its refining and petrochemicals expansion strategy, Reuters reported, citing CEO Amin Nasser.

“We had to cut our allocations to certain markets based on the (OPEC) agreement... hopefully, we will regain these markets as soon as this deal ends,” he said, adding, the company has started discussions with several potential partners in Asia, Europe and the United States.

In the interview, Nasser confirmed the company will continue to abide by the production targets set under the deal.

Last month, OPEC and a group of non-member oil producers, led by Russia, agreed to extend until the end of 2018 their agreement to cut oil production by a combined 1.8 million barrels per day (bpd). The deal requires Saudi Arabia to maintain its production below 10.058 million bpd.

As part of its downstream expansion plans, Aramco seeks to raise its total refining capacity to 8 million-10 million bpd from around 5.4 million bpd now, Reuters reported.

Commenting on the plan, Nasser said the Saudi oil giant is currently looking at Russia and has held talks with Rosneft on possible joint investments.

He added that the company is also in talks with PetroChina, China’s second-largest state-run refiner, to invest in its Yunnan refinery which started operations this year.

The company expects to finalize the Yunnan joint venture agreement soon, Nasser said.

Aramco recently announced plans to increase its spending to $414 billion over the next ten years, including on infrastructure and drilling.