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Saudi Aramco Suspends Red Sea Operations Due to Low Oil Prices

State oil company Saudi Aramco has suspended deepwater exploration and drilling in the Red Sea to conserve cash in an era of low oil prices, according to Reuters.

“The cost of operations in the Red Sea, a new area for Saudi Aramco, was around $1 million per day, said two sources, who declined to be identified because they were not authorized to speak to media,” the news agency reports. One source “said deepwater exploration in the Red Sea had stopped because of several factors, including environmental issues, costs, and the need for further studies to minimize risks.”

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Saudi Aramco declined comment, but Chief Executive Khaled al-Falih had previously said the company would be renegotiating contracts and suspending projects because of low prices. “Falih also said Saudi Aramco would continue investing in key projects, and had earmarked $7 billion to spend on unconventional gas in coming years after investing $3 billion in the past,” Reuters notes. (h/t to Fierce Energy [2] for pointing us to this story)