Aramco Says July Attacks Had No Material Impact on Operations

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(Bloomberg) — Saudi Aramco said attacks on its assets last month have had no material impact on its operations, and the company is working to expand its oil export capacity as the Strait of Hormuz remains disrupted by the Iran war.

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Chief Executive Officer Amin Nasser made the comments on a call, after the Saudi energy giant reported that key infrastructure was targeted in July attacks. It’s the first time the company has acknowledged the incidents since they happened, after oil traders were poring over images of what appeared to be tank fires and flaring at various sites across the kingdom last month.

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“Certain facilities of the company were targeted and the impact was not material operationally or financially,” the CEO said. “The same thing applies for July. No material impact on our capabilities, even with the July attacks.”

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Since the Iran war started, Aramco has diverted much of its export volume to the country’s western port of Yanbu due to the persistent disruption to flows through Hormuz. Nasser said the company is continuing to look at ways to expand its export capacity, including potentially increasing the size of the east-west pipeline that so far has proved a vital lifeline to both the kingdom and the oil market during the war. 

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“Right now we are looking at all of that and we are trying to be ready for the future with additional optionality and capability for our exports,” Nasser said. 

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Saudi authorities reported attacks on the country last month and Aramco said it defers to the government in discussing security issues. This is the first time Aramco has commented on operational impacts since the latest round of strikes and didn’t provide specifics on which facilities suffered damage or were still being repaired.

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While Nasser acknowledged there had been some interruption to operations, he said the company’s full production capacity of 12 million barrels a day remained available. Aramco could ramp up to that level within three weeks if asked to do so by the government, he added.

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Threats from Yemen’s Houthi militant group to Saudi exports in the Red Sea haven’t impacted export volumes, the CEO said. The group last month said it would impose a blockade on Saudi shipments. The kingdom is working on contingency plans around the waterway, Nasser said. 

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Aramco earlier reported a 33% increase in second-quarter profit to $33.4 billion as it benefited from a war-driven surge in oil prices. That exceeded the combined earnings of ExxonMobil Holdings Corp. and Chevron Corp. 

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