Aramco Receives Directive to Maintain Maximum Daily Production at 12 mln bpd

(FILES) This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
(FILES) This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
TT
20

Aramco Receives Directive to Maintain Maximum Daily Production at 12 mln bpd

(FILES) This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)
(FILES) This picture shows Aramco tower at the King Abdullah Financial District (KAFD) in Riyadh on April 16, 2023. (Photo by Fayez Nureldine / AFP)

Saudi Aramco said Tuesday it will not try to increase its maximum daily oil production to 13 million barrels a day after receiving a directive from the Kingdom’s Energy Ministry.

Aramco said in a statement it would maintain its Maximum Sustainable Capacity (MSC) at 12 million barrels a day.

“It is to be noted that MSC is determined by the State pursuant to the Hydrocarbons Law, enacted by Royal Decree M/37, dated 12/20/2017. The Company will update its capital spending guidance when its full-year 2023 results are announced in March,” added the statement.



British Steel Industry Calls for Help with Electricity Prices

Onshore wind turbines at Little Cheyne Court Wind Farm operate beside electricity pylons in Dungeness, Britain, July 10, 2024. REUTERS/Chris J. Ratcliffe/File photo
Onshore wind turbines at Little Cheyne Court Wind Farm operate beside electricity pylons in Dungeness, Britain, July 10, 2024. REUTERS/Chris J. Ratcliffe/File photo
TT
20

British Steel Industry Calls for Help with Electricity Prices

Onshore wind turbines at Little Cheyne Court Wind Farm operate beside electricity pylons in Dungeness, Britain, July 10, 2024. REUTERS/Chris J. Ratcliffe/File photo
Onshore wind turbines at Little Cheyne Court Wind Farm operate beside electricity pylons in Dungeness, Britain, July 10, 2024. REUTERS/Chris J. Ratcliffe/File photo

Britain's steel industry has called on the government to help with electricity prices that it says can be it 50% higher than those paid by European competitors.

Earlier this week, the sector was hit by a 25% tariff on exports to the US that make up around 9% of the value of Britain's steel exports.

"Uncompetitive electricity prices must be addressed to ensure the steel industry can thrive, secure thousands of jobs, and safeguard national steel production as geopolitical turbulence increases," said Frank Aaskov, Director, Energy and Climate Change Policy at industry group UK Steel.

The group, which represents the country's main steel producers, has called on the government to set fixed electricity prices for the sector via a contract-for-difference, Reuters reported.

Under the system, if wholesale electricity prices rise above a threshold called the strike price, the government would subsidise the difference, and if it fell below a certain level, the steel makers would pay back the difference.

"The strike price could be set at regular intervals to reflect changes in wholesale electricity prices and provide the steel sector with much-needed protection from price volatility,” a report by consultancy Baringa, commissioned by the steel industry said.

The Baringa report said UK producers pay around 68 pounds per megawatt hour (MWh) for electricity, compared with 52 pounds/MWh in Germany and 44 pounds MWh in France.

Last month, the government launched a consultation on a strategy for the steel sector, said it sought to invest 2.5 billion pounds ($3.23 billion) and look at issues including high energy costs.

A government spokesperson said the government was "already bringing energy costs for steel closer in line with other major economies" through a package of measures to support industry.

"This fully exempts eligible firms from certain costs linked to renewable energy policies, particularly those exposed to the high cost of electricity, such as steel."

Steel UK members include British Steel, Liberty Steel and Tata Steel.