Saudi Aramco is likely to raise additional debt, estimated at 40 billion Saudi riyals ($10.66 billion) until 2026 to fund its expansion plan, Aljazira Capital said in a report.

However, as of now, the oil giant is unlikely to see raising new loans after 2026.

Despite the $40 billion capital expenditure (capex) savings over 2023 to 2028 arising out of maximum sustainable capacity (MSC) expansion cancellation, the Saudi oil giant maintained its capex between SAR180 billion and SAR 220 billion this year.

The company has raised the natural gas production target from 50% to 60% of 2021 levels by 2030, the report said.

The brokerage expects Aramco’s capex to remain elevated over 2024-2026, peaking in 2025. The primary focus will be on increasing natural gas production, expanding downstream operations, developing new energy projects like blue hydrogen and maintaining and expanding upstream facilities.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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