Rigzone reported that Saudi Aramco had received $13.9 billion in financing from Samba Financial Group for its previously announced plans to expand its capacity from 11 mbd to 12.5 mbd by 2009.
The kingdom's 2005 oil revenue is expected to rise 54% from last year, thanks to red-hot oil prices sparked by hurricanes and limited spare capacity in the Organization of Petroleum Exporting Countries, the bank said.
Export revenue would reach $163 billion, up from 2004's record $106 billion, with the value of Saudi crude for the year averaging $51 a barrel, above last year's $35/bbl. Production is forecast to average 9.5 million b/d, up from 2004's 9 million b/d.
So what does Matt Simmons have to say about this? It would seem they are putting their money where their mouth is this time. I hope this expansion compensates for any decline they have in other facilities. I guess the skeptics will say wait and see if their production ever gets that high. With revenues like reported above it makes me wonder why they need any financing. Their sales went up $57 billion with, what I woud presume were, essentially the same operating costs, so what are we complaining about Exxon's profits of $9.9 billion/qtr.
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