GlobalData report: Aramco delays major investment as Covid-19 has longer term impacts

GlobalData report: Aramco delays major investment as Covid-19 has longer term impacts

Aramco has faced a tough time in 2020 so far. Just months after its long-awaited IPO in December 2019, the impacts of Covid-19 on the company are clear to see. Aramco has been forced to delay two large expansion projects at the Marjan and Berri complexes as the virus' impacts have been far reaching and damaging for the global economy, oil prices, and demand, according to GlobalData.

Conor Ward, oil and gas analyst at GlobalData, comments: "These expansion projects aimed to add a significant amount of production to the company's portfolio. However, the impacts of Covid-19 now represent a long-term impact and along with the OPEC+ production cuts, Saudi Arabia is likely to see significantly reduced output than would have been planned.“

In commitment with the agreed OPEC+ production cuts,