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Aramco Seeks Export Capacity Expansion After War Disruption

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Saudi Aramco is exploring how to increase its export capacity as geopolitical tensions disrupt oil flows through the Strait of Hormuz and the Red Sea, company chief executive Amin Nasser said during an earnings call on Tuesday.

"In terms of exporting our crude, we are looking at actively increasing optionality right now," Nasser said based on a call transcript on FactSet. "This is currently under execution."

The company is also looking at identifying other export routes. It has maximized its East-West pipeline to divert crude exports to the Yanbu port following Hormuz disruptions, and has utilized the Red Sea corridor, both via Bab el-Mandeb Strait and the Suez Canal.

"...our engineering team is looking at how can we not only expand what we have, but at the same time identify other routes that we can capitalize on," Nasser noted.

Asked about shipping threats from Houthi rebels in Bal el-Mandeb Strait, Nasser said back-up routes are available through the Mediterranean and the company will establish a contingency plan to maintain 5 million barrels per day of exports.

During supply disruptions, the chief executive highlighted that the company has also maximized throughput and exports from its West Coast refineries and utilized its storage capability across Asia, Europe, and the Middle East.

Once oil flow through the Strait of Hormuz normalizes, Aramco can raise its production capacity to pre-conflict levels within days and to a maximum of 12 mmbbls/d within three weeks, Nasser noted.

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