Saudi Arabia’s state oil company Saudi Aramco is reviewing its diversification and investment plans domestically and internationally as lower oil prices and delivering on a promised dividend have put pressure on the company, according to an exclusive Wall Street Journal report.
Two of the projects and plans being reviewed are in Texas. 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 WSJ.
It is also considering pausing investments in refineries in China, India and Pakistan, according to the report, which cited unnamed people familiar with the company’s plans. Neither the WSJ nor Reuters were able to get an official comment from the company.
The report also said Saudi Aramco is delaying plans by a year to boost crude production capacity to 13 million barrels a day, from currently about 12 million.
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 initial public offering last year.
