(MENAFN) Saudi Aramco, the state oil giant, said that it has asked oilfield service companies for discounts on its drilling costs, adding that it expects to keep its overall rig count steady this year, after it deployed 210 oil and gas rigs in 2014, marking an exceptionally busy year, Arabian Business reported.
The company said that its plan to cut drilling costs is the result of the global plunge in oil prices that resulted in oil losing almost 60 percent of its value since the decline started in June.
"Aramco are asking for 20 percent discounts, some complied, others negotiated, it is part of a plan to reduce cost. The company is optimizing costs to maintain the current production. Will service companies be able to offer more discounts? If oil prices remain low, this could result in releasing some rigs," an industry source said.
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