Saudi Arabia sets oil and gas production limits

Saudi Aramco has received orders from the government to set its maximum sustainable capacity to 12 million bpd, the Saudi NOC announced on Tuesday.

The impact on the country’s mega-projects to expand production, such as the Berri, Marjan, Zuluf Safaniyah, Manifa and Abu Safah developments, was not disclosed.

In 2023, the company posted a capex of between USD 48 billion and USD 52 billion, with a large amount expected to be spent on upstream developments.

The new order is in line with OPEC+ members making oil production cuts of 2.2 million bpd.

Under the agreement made in December 2023, OPEC+ members Saudi Arabia extended its cuts of 1 million bopd to Q1 2024 and Russia curbed production by 300,000 bopd and exports by 200,000 bopd.

Other members also agreed to cut production, including Iraq by 233,000 bopd, the UAE by 163,000 bopd, Kuwait by 135,000 bopd, Kazakhstan by 82,000 bopd, Algeria by 51,000 bopd and Oman by 42,000 bopd.

Earlier in November 2023, the International Energy Agency predicted the oil market could shift into a surplus in 2024.

Oil prices have remained steady in the last weeks, with Brent being traded at USD 82.07 per barrel on Tuesday.