Saudi Aramco Announces Full Restoration Of Crude Output Following Attacks
Just as it had promised, Saudi Aramco has now reportedly restored its crude production facilities back to full capacity following the coordinated attacks just a few weeks ago.
The company claims that its production has now reached 9.9 million barrels per day, or roughly a little bit over its production levels prior to the attacks.
According to Saudi Aramco's chief executive officer of its energy trading unit, Ibrahim Al-Buainain, the company managed to restore its output to those levels on September 25. The executive made the announcement this week at a conference in Fujairah in the United Arab Emirates.
Al-Buainain clarified that the company's output reached 9.9 million barrels per day on the 25th, but its production really depends on the market and its capacity. The official even boasted that it can easily surpass that level if it needs to.
Even with the attacks, Saudi Aramco stated that it still had managed to meet the demand of all of its customers around the world. The company also stated that it did not miss any contracted shipments while it was restoring its facilities.
To offset its own lack of production, Aramco reportedly bought refined products on the market to make up for the shortfall. The company also reportedly offered some of its buyer's other grades of oil to meet its commitments.
The actions were done by the company's subsidiary, Saudi Aramco Products Trading Co, which is responsible for buying and selling crude produced by other countries.
The attack on Aramco's facilities on September 14, which were done with missiles and a swarm of drones packed with explosives, managed to knock down half of the company's overall crude output.
The loss of production accounted for about 5 percent of the global crude supply. The attack rocked the global oil market, sending prices skyrocketing.
Analysts had initially predicted that the attacks would send prices higher by as much as $10 per barrel. Fortunately, price increases were immediately placed under control as Aramco vowed to restore full output in as little as two weeks. While the company has managed to restore its output, some investors still continue to express security concerns over the company's operations in the region.
To ease concerns over possible future disruption, Aramco announced that it will be building various redundancies into its systems. These redundancies are meat to allow the company to be more resilient to attacks on its facilities in the Khurais fields and its Abqaiq processing plant.