Oil company Saudi Aramco is reviewing plans to expand at home and abroad in the face of sharply lower oil prices and a heavy dividend burden, the Wall Street Journal reported on Sept. 2, citing people familiar with the matter.
Aramco will review a $6.6 billion plan to add petrochemical output at its Motiva refinery in Texas, as well as a big natural-gas project with Sempra Energy in the same state, according to the report.
The state-run company is also pausing investments in refineries in China, India and Pakistan, the WSJ said.
Oil companies globally have been cutting spending across the board to shore up cash as the industry contends with a realization that lower crude prices could be the norm for a long period of time after the COVID-19 pandemic sapped fuel demand.
In Saudi Arabia, Aramco is delaying plans by a year to boost crude production capacity to 13 million bbl/d, from currently about 12 million, the report added.
The company plans to cut its capital spending to between $20 billion and $25 billion this year to pay a $75 billion dividend it pledged to investors during its IPO last year, the Financial Times reported last month.
Aramco did not immediately respond to a Reuters request for comment.
Former Enron Corp. CEO Jeffrey Skilling has been holding meetings, hoping to win backing for a new energy venture, the Wall Street Journal reported citing unnamed sources.
Private equity firm KKR & Co. Inc. said on Dec. 26 it and Alberta Investment Management Corp. would jointly buy a 65% stake in TC Energy Corp.'s Coastal GasLink Pipeline in Canada.
Last year, Iberdrola sold a stake in a solar thermal plant in south-central Spain, leaving it with no solar capacity in its home country.