Saudi Arabia capacity increase plans on track

Saudi Arabia is on schedule with plans to boost its crude oil production capacity to 12.5 million barrels per day by 2009, despite rising industry costs, a top official at state oil company Saudi Aramco said on Saturday.

Higher labour and raw materials prices have, however, hit two planned joint-venture refineries, which will now cost more than original estimates of around $6 billion, said Abdulaziz Al-Khayyal, Senior Vice-President for Industrial Relations.
The world’s top oil exporter has fast-tracked oilfield expansion plans to raise output capacity and maintain spare capacity of at least 1.5 million bpd to meet growing world demand or cover unexpected shortfalls in supply.

Reuters