MOSCOW (MRC) -- Oil giant Saudi Aramco is moving ahead with plans to boost its oil output capacity by 1 million barrels per day (MMbpd) to 13 MMbpd despite spending cuts this year and next year, said Reuters, citing chief executive.
Aramco’s capital spending plan for 2021 will be “significantly lower than previous guidance”, CEO Amin Nasser also said on an analyst and investor call after the company’s quarterly results.
The previous capital spending guidance was USD40 billion to USD45 billion.
As MRC informed earlier, on June 17, Saudi Aramco said it completed the share acquisition of a 70% stake in petrochemicals company Saudi Basic Industries Corporation, or SABIC, from the Public Investment Fund, the sovereign wealth fund of Saudi Arabia, for a total purchase price of Riyal 259.125 billion (USD69.1 billion). However, the transaction terms have been changed to increase the timeline over which Aramco makes the payments by almost three years. An upfront cash payment of 36% of the deal value has also been eliminated from the deal.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.