Saudi Arabia and the state oil company “Saudi Aramco“ are seeking partnerships with other countries to expand strategic oil reserves. The reason is the expectation that demand for the raw material will increase by 3 million barrels per day after the war in Iran, said the company's CEO Amin Nasser.
Earlier, Nasser indicated that “Saudi Aramco“'s response to incidents is already more than six times faster than the average for the oil industry. Saudi Arabia's output recovered to about 8 million barrels per day in September.
Production falls below 7 million barrels per day
For most of the first six months of the Iran war, Saudi output was below 7 million barrels per day. Before the conflict, the country was producing more than 10 million barrels per day, according to the International Energy Agency.
The war began after an Israeli-American attack in late February. The drop in production and risks to the transportation of the raw material have increased pressure on major producers to maintain larger stocks and seek additional supply options.
Drones inspect damage during incidents
„Saudi Aramco“ uses drones for inspections to assess damage while incidents are still unfolding. About 90 percent of repair materials are produced domestically or stored in local warehouses.
“Today, our teams can handle multiple incidents at once, and we continue to develop that capacity,” said Amin Nasser.The company is also exploring alternative export routes that bypass the Strait of Hormuz, the Bab el-Mandeb and the Suez Canal. Nasser did not provide details on the possible routes.
The search for international partnerships is part of Saudi Arabia’s efforts to increase the resilience of its oil supplies in the event of further disruptions. At the same time, the recovery of production to around 8 million barrels per day indicates a partial return to levels before the worst period of the conflict.
Sources: bta.bg