Saudi Arabia will restore its lost oil output of 5.7 million barrels per day (MMbbl/d) by the end of September and has managed to recover oil supplies to the levels they were at prior to weekend attacks on its facilities by drawing from oil inventories.
Energy Minister Prince Abdulaziz bin Salman said oil production in October would be 9.89 MMbbl/d and that the world’s top oil exporter would ensure full oil supplies to customers this month.
He said the kingdom would achieve 11 MMbbl/d capacity by end of September and 12 MMbbl/d by end of November.
“Oil supplies will be returned to the market as they were before 3:43 am Saturday,” he said during aa news conference in the Red Sea city of Jeddah, saying state oil giant Aramco had emerged “like a phoenix from the ashes” after the attack.
He was referring to attacks on Sept. 14 on Saudi Aramco plants in Abqaiq and Khurais, including the world’s largest oil processing facility, which shut down half of Saudi Arabia’s production, or 5% of global output.
Aramco CEO Amin Nasser said the company, which is preparing for an IPO, was still in the process of estimating repair work but that it was “not that significant,” given the company’s size.
Aramco had put out 10 fires in the span of seven hours after the “huge” assault, Nasser said during the news conference.
He said the company was in the process of bringing back oil refining to full capacity and that there were enough crude products to supply the local markets.
Prince Abdulaziz said Riyadh did not yet know who carried out the strikes or why, adding Saudi Arabia would keep its role as a secure supplier of global markets. He said stricter measures needed to be taken to prevent further attacks, but did not elaborate.
The foreign ministry has said that preliminary investigations indicated Iranian weapons were used in the assault, which authorities initially said involved drones.
The parties must now renegotiate a deal that would transfer Breitburn's Permian reserves to investors including Elliott and WL Ross through their participation in a $775 million rights offering.
Sustained lower oil prices may lead to Permian consolidation, the return of tough times to other shale plays and U.S. E&Ps helping rebalance global inventories.
A big crowd turned out for an afternoon honoring industry leaders representing all facets of the energy sector.