Saudi Arabia Aims for Oil Output Capacity Exceeding 13 Million bpd by 2027, according to Minister

By Yousef Saba and Maha El Dahan

MANAMA – Saudi Arabia is set to increase its oil production capacity by more than 1 million barrels per day, aiming to surpass 13 million barrels per day by late 2026 or early 2027, according to the country’s energy minister.

During an energy conference in Bahrain, Prince Abdulaziz bin Salman indicated that once this production level is achieved, it could be maintained if market demand necessitates it. He emphasized that all investments in oil production would be focused domestically as part of this strategy.

"We have no money to waste on anywhere else," he stated, adding that production levels could fall between 13.2 million and 13.4 million barrels per day.

Regarding the Durra gas field, which is located in a resource-rich area shared with Kuwait, the minister confirmed that both nations are actively advancing its development. He noted that Iran claims to have an interest in the field and views the recent Saudi-Kuwaiti agreement for its development as "illegal."

In April, Saudi Arabia and Kuwait extended an invitation to Iran for negotiations to clarify the eastern boundary of the offshore region and reaffirmed their rights to develop the gas field located there. "We are proceeding with that field, and we encourage Iran to engage in negotiations if they believe they have a stake in it, though that remains just a claim," Prince Abdulaziz remarked, underscoring the collaborative interest of Saudi Arabia and Kuwait in these resources.

MANAGING THE MARKET

On the subject of a U.S. legislative proposal known as NOPEC, which could expose OPEC members and their partners to antitrust lawsuits for coordinating supply cuts that lead to higher global oil prices, Prince Abdulaziz questioned whether this bill would also consider the actions of consuming nations that release oil from strategic reserves to influence the market.

"It is not only OPEC that is trying to manage the market; consumers are also involved. I am uncertain if this NOPEC legislation will apply to all stakeholders or only to producers," he commented at the conference.

Iraq’s oil minister, Ihsan Abdul-Jabbar, reported that OPEC has discussed the proposed bill during regular meetings. "We are currently engaged in internal discussions, so we have no official response at this time," he noted.

Abdul-Jabbar also mentioned Iraq’s current oil production capacity of 4.9 million barrels per day, which is projected to reach 5 million by the end of the year. He added that Iraq, as the second-largest producer in OPEC, aims to boost its capacity to 6 million barrels per day by 2027.

(Reporting by Yousef Saba and Maha El Dahan; Editing by Edmund Blair and Kirsten Donovan)