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Aramco to halt production capacity expansion

November 22/2011

(Arabian oil and gas) -- Saudi Aramco will not continue to increase its production capacity, and will instead focus on natural gas and integrating its expanding downstream operations, says Khalid al-Falih, CEO of Saudi Aramco.

The downstream [refining] is increasingly growing in scale to equal, and sometimes eclipse, the level of spending we are doing in upstream [oil production], al-Falih told journalists gathered in Riyadh, according to a Reuters report. In the short to medium term, our focus is on gas."

Referring to Saudis requirements under OPEC, Falih said Saudi Aramco has more spare capacity than the kingdom is obligated to or has committed to ... so it wouldn't make sense" to increase capacity by more than 12 million barrels per day. Saudi Arabia had previously committed $100 billion for projects targeting increased oil production capacity, but will now halt this once the Kingdom has the capacity to pump 12 million barrels per day.

Perspectives of development of the polymers markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit is organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers' presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.

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