Saudi Aramco could suspend as many as 23 offshore rig contracts with several drilling contractors according to Energy Intelligence sources. The move comes following the decision by Saudi Arabia earlier this year to halt plans to expand its oil capacity expansion from 12mbpd to 13mbpd by 2027.

• At the start of this week Saudi Aramco had issued suspension notices to six drilling players for up to 18 rigs and is expected to further downsize its offshore drilling fleet according to Offshore Engineer.
• Two planned expansion projects, Safaniyah and Manifa, are on hold.
• The suspension mechanism offers enough flexibility for the rigs to complete new deployments before resuming work in Saudi Arabia post suspension.
• The original term of the suspended contracts will automatically be extended for a period equal to the suspension for each rig.