Saudi Arabia plans more drilling, despite oil prices decline
Saudi Arabia plans to spend $1.5 billion on drilling in 2002 to increase oil and gas production capacity, despite the decline in crude prices, according to the Petroleum Intelligence Weekly.
State oil company "Saudi Aramco is planning to spend as much as $1.495 billion on its development drilling budget in 2002, an increase of almost 50 percent over its 2001 drilling budget," the New York-based newsletter said.
"A recent version of Aramco's drilling forecast for next year shows plans to drill 324 wells," onshore and offshore, PIW added in this week's edition. "But a further cut in Saudi Arabia's crude production quota might force the state oil giant to soon revise its spending forecast back down," it said.
PIW was referring to the decision taken last week by the Organization of Petroleum Exporting Countries, of which Saudi Arabia is a leading member, to cut output by 1.5 million barrels per day if non-OPEC producers cut by 500,000 bpd. OPEC's move aims at propping up crude oil prices which fell below $20 per barrel in September. — (AFP, Nicosia)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)