Giant's next steps

Saudi Aramco will spend almost $19bn by 2008 to buttress its position as the world’s leading oil producer. But gas and oil products are increasingly important to the company’s strategy. James Gavin reports

AFTER A lengthy drilling hiatus, senior executives at Saudi Aramco are proposing a reactivation of its oil exploration and production programme. In the long term, it is looking to raise output, despite shut-in capacity of more than 2m barrels a day (b/d). According to Khalid al-Falih, the head of the state-owned giant's business-development unit, excess capacity will be maintained as a buffer as production grows, primarily to ensure prices are kept stable. Over the next five years, Aramco plans five increments in crude capacity. These fields will be developed for the first time, in order to compensate for natural depletion elsewhere. Aramco chiefs will spend the next few years digging deep i