Saudi Aramco hikes budget over next 10 years

Saudi Arabia’s state-owned oil company Saudi Aramco is preparing to significantly increase its capital spending by almost 25% over the next decade amid the company’s business expansion plans, the media reported.

The company will reportedly boost its spending to $414 billion. The new spending plan also includes further investment into drilling and well services to enhance its onshore oil and gas capacities while the company aims to maintain its production capacity at about 12 million b/d.

Similarly, Saudi Aramco reportedly established a department to develop wind and solar project amid the company’s plans to diversify its production. Also in late November, Saudi Aramco signed an agreement with Saudi SABIC to develop an oil-to-chemicals project with an investment around $25 billion.

The new 10-year spending plan also came in line with the company’s IPO plans which remain underway for 2018. The company is planning sell %5 of its shares in a public offering to raise as much as $100 billion.