New Delhi, May 10 (IANS) Saudi Arabian Oil Company (Aramco) president and CEO Amin H. Nasser said on Sunday that the oil giant’s East-West Pipeline has reached its maximum capacity of 7.0 million barrels of oil per day and is proving to be a crucial alternative to the Strait of Hormuz for ensuring energy supplies to world markets.
Aramco announced a 25 per cent increase in its quarterly profit as it increased exports via a pipeline that bypasses the Strait of Hormuz, after the Iran war stopped normal ship movement through the vital waterway.
The Saudi Arabian national oil company, which is the world’s top oil exporter, posted a net profit of $32.5 billion for the three months ending March 31, up from $26 billion in the same period last year.
“Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment. Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz,” said Aramco CEO Nasser.
CEO Amin Nasser warned of potential long-term oil market disruption lasting until 2027 if the Strait of Hormuz remains closed.
Aramco is utilising its East-West pipeline to its maximum 7 million barrels-a-day capacity to bypass the closed Strait of Hormuz, transporting more crude to the Red Sea.
Profits have also jumped due to the surge in global oil prices, which have shot past the $100 per barrel mark.
CEO Amin Nasser warned that if trade remains curtailed, the market may not normalise until 2027. He added that about 1 billion barrels of oil have been lost from the market.
The Samref refinery in Yanbu faced an aerial strike, highlighting risks to the alternative export routes.
However, the company continues to provide substantial payouts to the state despite the volatile situation. It is manoeuvring through a severe regional crisis by redirecting exports via the Red Sea, which has acted as a critical lifeline.
–IANS
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