Aramco plans contract renegotiations, project postponements

Offshore staff

RIYADH, Saudi Arabia – Saudi Aramco says it plans to renegotiate some contracts and postpone some projects in response to the decline in oil prices.

Saudi Aramco CEO Khalid al-Falih did not specify which projects or contracts would be affected, according to the report by Reuters. He continued to say that Aramco would not balance the global oil market by itself.

“We will have to adjust to the realities of today. We will push some projects into the future, we will stretch some of them, we will renegotiate some contracts,” Falih said.

“I think we got spoiled with $100 oil and we were focused on building capacity and we lost focus on fiscal discipline.”

Reuters reported last week that Aramco had asked oilfield service companies for discounts in the wake of the oil price slide.

01/27/2015

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