Saudi oil attacks: Full production to be restored next week, says source

Saudi Arabia has claimed it will bring its crude output back to full capacity early next week, following the attacks on its Abqaiq and Khurais facilities earlier this month.

A source briefed on the latest developments told Reuters that Saudi oil output has already been restored to 75% of full capacity, as the kingdom works around the clock repairing the damage that took down 5.7 million barrels per day (bpd) of production.

The attacks pushed oil prices up by 20% but coming down after Saudi Energy Minister Prince Abdulaziz bin Salman and Saudi Aramco chief executive Amin Nasser pledged to restore output swiftly.

Saudi officials also said that the world’s top oil exporter would maintain supplies to customers by drawing on its huge oil inventories and offering crude grades from other fields. The kingdom ships more than 7 million bpd around the world.

Alexander Perjessy, a vice president at credit rating agency Moody’s, last week said that the Saudi’s quickly restoring production to normal levels would demonstrate a high degree of resilience to potentially very damaging shocks.

State-run Aramco is preparing for a long mooted initial public offering, which could happen later this year. The firm has a meeting with analysts this week at its headquarters in Dhahran, according to two sources.

@RGNonline