Aramco plans $40-50 billion Capex in 2022

Saudi Aramco

Saudi Arabian Oil Company (Aramco) said net income increased by 124 percent to $110 billion in 2021, compared to $49 billion in 2020. The increase in net income reflects higher crude oil prices, stronger refining and chemicals margins, and the consolidation of SABIC’s full-year results.

Aramco’s capital expenditure in 2021 was $31.9 billion, an increase of 18 percent from 2020, primarily driven by increased activities in relation to crude oil increments, Tanajib Gas Plant and development drilling programs.

Aramco expects 2022 capital expenditure to be approximately $40-50 billion, with growth expected until around the middle of the decade.

In 2021, Aramco’s average hydrocarbon production was 12.3 million barrels of oil equivalent per day (mmboed), including 9.2 mmbpd of crude oil.

The company also announced its growth strategy, which in its Upstream business includes continuing to raise crude oil Maximum Sustainable Capacity (MSC) to 13 million barrels per day (mmbpd) by 2027, and potentially increasing gas production by more than 50 percent by 2030.

In its Downstream business, Aramco plans to expand its liquids to chemicals capacity to up to 4 mmbpd. Aramco also intends to develop a significant hydrogen export capability and become a global leader in Carbon Capture and Storage (CCS).

Aramco is targeting investment in renewable energy and nature-based solutions, as it pursues its ambition of achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050. This includes an aim to reach near-zero Upstream methane emissions by 2030.

Aramco President & CEO Amin H Nasser said: “Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy, which targets value growth for our shareholders.”