Saudi Arabia Idles Drilling Rigs as Pandemic Saps Oil Demand - Bloomberg:
The world’s biggest oil exporter is hitting the brakes in developing some of its crude and natural gas deposits, idling two offshore drilling rigs as the coronavirus batters energy use.
State-run producer Saudi Aramco has suspended work at the two platforms for about a year, according to filings from the contractors. The producer is also delaying a related $18 billion oil and gas expansion project by at least six months, according to people with knowledge of the situation.
Aramco declined to comment on the status of the rigs or the project.
The pullback marks a rare pause in Aramco’s efforts to drill wells, discover fields and expand known deposits to replace the barrels it’s pumping from the planet’s largest conventional oil reserves. The halts also raise questions about the kingdom’s supply of natural gas, much of which is found in crude reservoirs. Saudi Arabia needs gas to generate electricity and make chemicals.
No comments:
Post a Comment