Saudi Arabian state-owned firm Saudi Aramco has received a directive from the Ministry of Energy to increase its output from 12 million barrels per day (Mmbpd) to 13Mmbpd from April.
The news comes after the collapse of the OPEC+ agreement and the start of an oil price war between Saudi Arabia and Russia.
Meanwhile, the Abu Dhabi National Oil Company (ADNOC) has also decided to increase its crude oil supply capacity to markets to 4Mmbpd from April.
ADNOC CEO Sultan Ahmed Al Jaber said: “Today, as a result of the steps we’ve taken over the last four years, ADNOC is far stronger and better positioned to respond to current market conditions.
“Our focus on driving performance, profitability and efficiency has made us more resilient, agile and responsive to market dynamics. These guiding principles remain unchanged as we move forward with projects across our value chain.
“In line with our production capacity growth strategy announced by the Supreme Petroleum Council, we are in a position to supply the market with over 4Mmbpd in April.”
ADNOC will also accelerate plans to increase the capacity target to 5Mmbpd.
According to Bloomberg’s market data, supplying that much crude to the market would mean adding more than 1Mmbpd to the total pumped by the UAE in February.
Last month, Saudi Aramco received regulatory approval to develop the Jafurah non-associated gas field in the eastern province of Saudi Arabia.
In November, ADNOC invested AED1.8bn ($489m) to upgrade its Bab onshore field located approximately 160km south-west of Abu Dhabi.