Saudi Aramco Overview
Saudi Aramco, also known as the Saudi Arabian Oil Company, is a national petroleum and natural gas company of Saudi Arabia headquartered in Dhahran, Saudi Arabia. It is one of the world’s largest oil and gas companies, engaged in exploration, production, refining, distribution and marketing.
Saudi Aramco History:
The history of Saudi Aramco dates back to the discovery of oil in Saudi Arabia in 1938. In that year, a subsidiary of Standard Oil of California (now Chevron Corporation) received a concession to explore for oil in the area. This led to the discovery of oil in commercial quantities in 1939 and the establishment of the California Arabian Standard Oil Company (CASOC) in 1944. Partnership in Company.
Over the years, Saudi Aramco has expanded its operations in the region by discovering large oil fields such as Ghawar and Safaniya. In 1980, the Saudi government increased its stake in the company to 60% and in 1988, it acquired full ownership of the company.
Saudi Aramco Operation:
Saudi Aramco’s operations are divided into four main business segments: Upstream, Downstream, Chemicals and Power. The upstream segment is responsible for the exploration, production and processing of crude oil and natural gas. The downstream segment is responsible for the refining and marketing of petroleum products. The chemical division is responsible for the production and marketing of petrochemical products. Electricity Department is responsible for generation and distribution of electricity.
Saudi Aramco Upstream:
Saudi Aramco has a large portfolio of oil and gas fields, the largest of which is the Ghawar oil field, the largest conventional oil field in the world. The company also has significant reserves in other fields such as Safaniya, Marjan, Juluf and Beri. In addition, the company has exploration and production operations in other countries such as the United States, China and South Korea.
Saudi Aramco Downstream:
Saudi Aramco has the world’s largest single-site crude oil refinery in Ras Tanura, Saudi Arabia, with a capacity of 550,000 barrels per day. The company also has other refineries in the region, with a total refining capacity of more than 4 million barrels per day. Besides, the company has marketing and distribution operations in Saudi Arabia and other countries.
Saudi Aramco Chemicals:
Saudi Aramco is a major player in the global petrochemical industry, with a wide range of products such as ethylene, propylene, polyethylene, polypropylene and aromatics. The company has significant manufacturing facilities in Saudi Arabia and joint ventures in other countries such as China and South Korea.
Saudi Aramco Strength:
Saudi Aramco is also involved in electricity generation and distribution in Saudi Arabia. The company operates several power plants with a total capacity of 15,000 MW. Also, the company is investing in renewable energy projects like solar and wind power.
Saudi Aramco Ownership and Finance:
Saudi Aramco is a wholly state-owned company, with the Saudi Arabian government owning 98.5% of the company’s shares. The company does not disclose its financial information publicly, but it is considered one of the most profitable companies worldwide, with an estimated revenue of more than $200 billion per year.
In December 2019, Saudi Aramco went public, listing 1.5% of its shares on the Saudi Stock Exchange (Tadaul). The IPO raised $25.6 billion, making it the largest IPO in history.
Conclusion:
Saudi Aramco is one of the world’s largest and most important companies, with significant influence in the global oil and gas industry.
