Saudi Arabian oil giant Aramco plans huge spending cut for 2021

Saudi Arabia’s state oil company plans to cut capital expenditure to $25 billion or less next year, about half the amount it was originally planning, according to people familiar with the matter.

Saudi Aramco may keep capex, most of which is spent on exploration and production, at a similar level until at least 2023, the people said, asking not to be named as the matter isn’t public yet.

The Dhahran-based firm is having to slash some spending as it looks to keep a promise to pay shareholders a $75 billion dividend this year, despite coronavirus lockdowns causing the price of oil to crash.