- Saudi Aramco
company_name = Saudi Arabian Oil Company
Government-owned corporationof the Kingdom of Saudi Arabia
company_slogan = "Energy to the World"
foundation = 1933
location = flagicon|KSA
Dhahran, Saudi Arabia
Abdullah S. Jum'ah: President, CEO Ali I. Al-Naimi: Minister of Petroleum
num_employees = 51,356 (2006) [ [http://biz.yahoo.com/ic/55/55881.html Saudi Arabian Oil Company Company Profile - Yahoo! Finance ] ]
industry = Oil & Gas
products = Hydrocarbons:
crude oil, natural gas, and petroleum products. Oilfield services: oil exploring, producing, manufacturing, marketing, and shipping
revenue = Undisclosed to public
homepage = [http://www.saudiaramco.com/ www.saudiaramco.com]
Saudi Aramco, the state-owned national oil company of
Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production [ [http://steelguru.com/news/index/2008/03/01/MzgxMjE%3D/Aramco_to_spend_USD_90_billion_to_enhance_production.html SteelGuru - News ] ] . Headquartered in Dhahran, Saudi Arabia, Saudi Aramco also operates the world's largest single hydrocarbon network, the Master Gas System. It was formerly known as just Aramco between the years of 1933-1988, an acronymfor Arabian American Oil Company.
As of end 2006, its yearly production of only
crude oilneared convert|3.4|Goilbbl|m3 and it managed over 100 oil and gas fields in Saudi Arabia alone totaling at least convert|264|Goilbbl|m3 of oil reserves and 253 quadrillionscf of gas reserves [ [http://www.mopm.gov.sa/mopmr/web-resources/documents/pdf/stats_2001_to_2005/CrudeOil_2001-2006.pdf crude oil.xls ] ] [ [http://www.mopm.gov.sa/mopmr/web-resources/documents/pdf/stats_2001_to_2005/Gas%20Statistics%202001-2006.pdf gas.xls ] ] .
Among those fields fully owned by the company are the
Ghawar Field, the world's largest field overall; the Safaniya Field, also the world's largest offshore; and the Shaybah Field, one of the world's largest of its kind [http://www.planning.gov.sa/home/Home/English/Key%20topics/Energy/Documents/Oil%20And%20GasE/oil%20and%20gase11.htm] . It is thought to be by far the world's most profitable company.
Saudi Aramco's history dates back to
May 29, 1933, when the Government of Saudi Arabia signed a concessionary agreement with Standard Oil of Californiaabbreviated as (Socal) allowing them to explore Saudi Arabia for oil. Standard Oil of California passed this concession to a wholly-owned subsidiarycalled California-Arabian Standard OilCo. (Casoc). In 1936 with the company having no success at locating oil, the Texas Oil Company purchased a 50% stake of the concession..
After a long search for oil that lasted around four years without success, the first success came with the seventh drill site in
Dammam, an area located a few miles north of Dhahranin 1938, a well referred to as "Dammam number 7". The discovery of this well, which immediately produced over convert|1500|oilbbl/d|m3/d, gave the company the confidence to continue and flourish. The company name was changed in 1944 from California-Arabian Standard Oil Company to Arabian American Oil Company (or Aramco). In 1948 Standard Oil of California and the Texas Oil Company were joined as investors by Standard Oil of New Jerseywho purchased 30% of the company, and Socony Vacuum who purchased 10% of the company, leaving Standard Oil of California and the Texas Oil Company with equal 30% shares.
In 1950, King Abdul Aziz Ibn Saud threatened to nationalize his country's oil facilities, thus pressuring Aramco to agree to share its profits on oil sales 50/50. A similar process had taken place with American oil companies in
Venezuelaa few years earlier. The American government granted US Aramco member companies a tax breakknown as the Golden gimmickequivalent to the profits lost in sharing oil profits with Ibn Saud.
In 1973 the Saudi Arabian government acquired a 25% share of Aramco, increased this to 60% by 1974 and finally acquired full control of Aramco by 1980. In November 1988 the company changed its name from Arabian American Oil Company to Saudi Arabian Oil Company (or Saudi Aramco).
*1932 Oil is discovered in
Bahrain. Socal begins a year-long series of negotiations with the Saudi government.
*1933 Saudi Arabia grants oil concession to California Arabian Standard Oil Company (Casoc), affiliate of Standard Oil of California (Socal, today's Chevron). Oil prospecting begins on Kingdom's east coast.
Texas Oil Company(now Texaco) acquires 50% interest in Socal's concession. The joint venture became known as the California Texas Oil Company, or Caltex.
*1938 Kingdom's first commercial oil field discovered at Dhahran. Crude is exported by barge to Bahrain.
*1939 First tanker load of petroleum is exported. (Socal’s D.G. Scofield)
*1944 Casoc changes its name to Arabian American Oil Company (Aramco).
Ras TanuraRefinery begins operations (eventually becomes the largest oil-refinery in the world).
Standard Oil of New Jersey(now Exxon) and Socony-Vacuum Oil (now Mobil) join Socal and Texaco as owners of Aramco.
*1950 1,700 km Trans-Arabian Pipe Line (Tapline) is completed, linking Eastern Province oil fields to Lebanon and the Mediterranean.
*1950 The US government bestows upon the US member companies a
tax breakequivalent to 50% of oil profits, a deal known as the Golden gimmick.
*1956 Aramco confirms scale of Ghawar and Safaniya, world's largest oil field and largest offshore field, respectively.
Liquefied petroleum gas(LPG) - propane and butane - is first processed at Ras Tanura and shipped to customers.
*1966 Tankers begin calling at "Sea Island", new offshore crude oil loading platform off Ras Tanura.
Saudi Governmentacquires 25 percent interest in Aramco.
*1975 Master Gas System project is launched.
*1980 Saudi Government acquires 100 percent participation interest in Aramco, purchasing almost all of the company's assets.
*1981 East-West Pipelines, built for Aramco natural gas liquids and crude oil, link Eastern Province fields with Yanbu on the Red Sea.
*1982 King Fahd visits Saudi Aramco, Dhahran, on Aramco's 50th Anniversary to inaugurate the Exploration and Petroleum Engineering Center (EXPEC), a milestone in the
Saudizationof the company's operations.
*1984 Company acquires its first four supertankers.
*1987 East-West Crude Oil Pipeline expansion project is completed, boosting capacity to 3.2 million barrels (510,000 m³) per day.
*1988 "Saudi Arabian Oil Company", or "Saudi Aramco", is established.
*1989 High-quality oil and gas are discovered south of Riyadh - the first find outside original operating area.
*1991 Company plays major role combating Persian Gulf oil spill, the world's largest.
*1992 East-West Crude Oil Pipeline capacity is boosted to 5 million barrels (800,000 m³) per day. Saudi Aramco affiliate purchases 35% interest in SsangYong Oil Refining Company (or S-Oil) of the Republic of Korea.
*1993 Saudi Aramco takes charge of Kingdom's domestic refining, marketing, distribution and joint-venture refining interests by buying Jeddah-based Saudi Arabian Marketing and Refining Company (SAMAREC).
*1994 Maximum sustained crude-oil production capacity is returned to 10 million barrels (1,600,000 m³) per day. Company acquires a 40% equity interest in Petron, largest refiner in the Philippines.
*1995 Company completes a program to build 15 very large crude carriers. Saudi Aramco President and CEO
Ali I. Al-Naimiis named the Kingdom's Minister of Petroleum and Mineral Resources, and Chairman of Saudi Aramco. Abdallah S. Jum'ah is named the CEO, President, and Director of Saudi Aramco.
*1996 Saudi Aramco acquires 50 percent of
Motor Oil (Hellas) Corinth Refineriesand Avinoilfrom the Vardinoyannisfamily. Company also assumes controlling interest in two Jeddah-based lubricants companies, now known as Saudi Aramco Lubricating Oil Refining Company (Luberef) and Saudi Arabian Lubricating Oil Company (Petrolube).
*1998 Saudi Aramco, Texaco and Shell establish Motiva Enterprises LLC, a major refining and marketing joint venture in the southern and eastern United States.
*1999 HRH Crown Prince 'Abd Allah inaugurates the Shaybah field in the Rub' al-Khali desert, one of the largest projects of its kind in the world goes on stream. The Dhahran-Riyadh-Qasim multi-product pipeline and the Ras Tanura Upgrade project are completed. The second Saudi Aramco-Mobil lubricating oil refinery (Luberef II) in Yanbu' commences operations.
*2000 Petroleum Intelligence Weekly ranks the company No.1 in the world for the 11th straight year, based on the Kingdom's crude oil reserves and production. Aramco Gulf Operations Limited is established to assume management of the government's petroleum interest in the Offshore Neutral Zone between Saudi Arabia and Kuwait. New facilities are under construction in the Haradh and Hawiyah gas plant projects to process gas for delivery to the Master Gas System and on to domestic markets.
*2001 Hawiyah Gas Plant, capable of processing up to 1.6 billion standard cubic feet per day of non-associated gas, comes on stream.
Haradh Gas Plantcompleted two and a half months ahead of schedule.
*2004 HRH Crown Prince 'Abd Allah ibn 'Abd Al-'Aziz Al Saud, First Deputy Prime Minister and Head of the National Guard, inaugurates the convert|800000|oilbbl/d|m3/d|sing=on Qatif-Abu Sa'fah Producing Plants mega project. In addition to the crude, the plants provide 370 million standard cubic feet of associated gas daily.
Saudi Aramcoand Sumitomo Chemical Co., Ltd. sign a joint venture agreement for the development of a large, integrated refining and petrochemical complex in the Red Sea town of Rabigh, on Saudi Arabia's west coast.
*2006 Saudi Aramco and Sumitomo Chemical broke ground on , an integrated refining/petrochemical project. Haradh III was completed, yielding convert|300000|oilbbl/d|m3/d|abbr=on of oil. Accords were signed for two export refineries -- Jubail (with Total) and in Yanbu' (with Conoco-Phillips).
*2008 Saudi Aramco celebrates the 75th anniversary of the May 29, 1933, signing of the oil concession between the Kingdom of Saudi Arabia and Standard Oil of California (Socal). King Abdullah visits Dhahran to celebrate the 75th anniversary.
From its headquarters in
Dhahranon the eastern shores of the Arabian Peninsula, Saudi Aramco manages virtually all of Saudi Arabia's enormous hydrocarbon enterprise. From the giant Ghawarand Safaniyaoil fields, the world's largest onshore and offshore fields, to the leading-edge technology at the Exploration and Petroleum Engineering Center, and from one of the largest and most modern fleets of supertankers to refining and marketing joint ventures around the globe, Saudi Aramco is positioned to continue to play its leading role in meeting the world's demand for oil. Saudi Aramco is responsible for 99 percent of the Kingdom's proven crude oil reserves of 259 billion barrels (41.2 1010m³) -- about a quarter of the world's total conventional oil reserves. That is more than double the total of Iraq, the country with the world's second largest conventional oil reserves, and nearly 12 times the reserves of the United States. Saudi Aramco produces and exports more crude oil than any other company. Recent production has averaged some 8 million barrels (1,300,000 m³) per day. That is more than twice the output of the next highest producer and nearly five times greater than the largest U.S. oil company. Russia as a whole produces almost 9 million barrels of oil per day, however, several different companies pump oil there, while Saudi Aramco is responsible for 99% of Saudi Arabia's oil.
Saudi Aramco maintains a maximum sustained crude production capacity of convert|8.5|Moilbbl|m3 per day. Saudi Aramco ranks among the top ten companies in gas production worldwide. The company is also a leader in both the production and export of natural gas liquids (NGL), and a major producer of refined products. The company produces natural gas in association with crude oil and nonassociated gas from deep, independent gas fields. This gas is used as fuel and feedstock for the Kingdom's backbone industries and utilities, and for export and domestic consumption as NGL. A vigorous programme is currently under way to expand gas production and processing capabilities to meet increasing demand for gas at home to power the Kingdom's robust domestic economic growth.
Saudi Aramco's oil operations encompass the Kingdom of Saudi Arabia, including territorial waters in the
Persian Gulfand the Red Sea. Totaling more than 1.5 million square kilometres, this area is larger than the combined areas of Texas, California, Oklahoma and Utah, or of France, Spain and Germany. Most production comes from fields in the coastal plains of the Eastern Province in an area extending 300 kilometres north and south of Dhahran.
In May 2005, a Saudi Aramco VP announced Aramco's plans to build projects worth about 487.5 billion Saudi Riyals (US $130 billion) in the next 5 years. Due to the unprecedented global demand for oil, Aramco announced that the number of its oil rigs would double by the end of 2006 [http://www.arabnews.com/?page=6§ion=0&article=74723&d=15&m=12&y=2005] .
Saudi Aramco has begun performing tasks that were previously conducted by the American companies in the region. The company has attempted to produce an independent environment; it has begun to perform critical tasks itself, while contracting secondary tasks to companies in the region.
A significant portion of the Saudi Aramco workforce consists of geophysicists and geologists. Saudi Aramco has been exploring for oil and gas reservoirs since 1982. Most of this process takes place at the Exploration and Petroleum Engineering Center (EXPEC). Originally, Saudi Aramco used Cray Supercomputers (CRAY-1M) [ [http://www.spikynorman.dsl.pipex.com/CrayWWWStuff/Cfaqp3.html Cray FAQ Part 3: FAQ kind of items ] ] to assist in processing the colossal quantity of data obtained during exploration. In 2001, Saudi Aramco decided to use Linux clusters as a replacement for the decommissioned Cray systems.
This is the most crucial process and as such accounts for the largest segment of the Saudi Aramco workforce. Drilling new wells efficiently and then maintaining them requires the company to employ a large number of petroleum engineers. Due to the recent surges in oil demand, Saudi Aramco has been pressed to produce more oil and therefore has been (and still is) hiring several petroleum engineers and geo-scientists.
Refining and distribution
While the company did not originally plan on refining oil, the Saudi government wished to have only one company dealing with oil production. Therefore, on July 1, 1993, the government issued a royal decree merging Saudi Aramco with Samarec, the country's oil refining company [ [http://www.jobsataramco.com/Home/Company.aspx Company ] ] . Since then, Saudi Aramco has taken on the responsibility of refining oil and distributing it in the country.
Saudi Aramco has employed several tankers to ship crude oil, refined oil and gas to various countries. It has created a wholly-owned subsidiary company,
Vela International MarineLimited, to handle shipping to North America, Europe and Asia.
Research and development
Saudi Aramco has taken a keen interest in optimizing its processes over the last decade. To this end, it has employed about 500 engineers and scientists specializing in different aspects of the hydrocarbon industry.
There are two R&D entities in Saudi Aramco. The Upstream which is solely managed by Exploration & Producing and the downstream, bio-Researches, and many others which is managed by a different entity. This is to provide focus, resources and necessary budgets to elevate Saudi Aramco, and therefore Saudi Arabia R&D
Saudi Aramco also provides several services to its employees. It maintains a large hospital and provides health insurance for its employees. It also maintains several fire stations, both industrial and residential. Saudi Aramco introduced its Industrial Security over two decades ago. This security force primarily ensures the safety of the company's industrial and residential areas.
Saudi Aramco has operations all over the kingdom and therefore, it often needs to transport employees between operations. It therefore maintains an aviation department with a fleet of over 150 aircraft and over 45 helicopters which is also the largest for a non aviation company.
Aramco Services Company(ASC): HQ in Houston.
*Aramco Overseas Company B.V. (AOC B.V.) - HQ in the
Aramco Associated Company(AAC)
Aramco Training Services Company
Saudi Refining, Inc. (SRI)
Aramco Financial Services Company(AFSC), a wholly owned subsidiary of Saudi Refining, Inc.
Saudi Petroleum International, Inc. (SPI) - HQ in New York.
Saudi Petroleum OverseasLtd. - HQ in London/ Tokyo.
Vela International MarineLtd.: HQ in Dhahran.
* [http://www.technip.com/ Technip Group]
*Fluor Arabia LTD
Rosen Inspection Technologies[http://www.roseninspection.net] [http://NAnwar@Roseninspection.net]
BJ Services Company
Arabian Drilling Company
Dar Al Riyadh
Al Moajil Group
Ahmad Hamad Al Gosaibi & Brothers
Abdulla Fouad Group of Companies
Al Karam Al Arabi for Catering Services Ltd.
Image Systems[http://www.imagesystems-me.com] ]
The Saudi Aramco company issued a statement in 1998 that stated that the company is trying to reduce the amount of lead in their gasoline. Saudi Aramco has already done so by about 50%. The company has Environmental Master Plan to reduce the emissions provided by Capital Programs which already some of them have been completed. Saudi Aramco is a leading company in the region in reducing sulfur emissions, CO2, and flaring. Also, a CEO Dashboard complemented by an annual Environmental Report shows the exact Environmental statistics and Key Peroformance Indicators in terms of air and sea water pollutions.
The "FT's Non-Public 150" by the
Financial Timesand McKinsey - the study of the world’s largest unlisted companies - found that Saudi Aramco is worth an estimated $781 billion USD, dwarfing the $454 billion USD market capitalisation of its rival ExxonMobil(published: December 2006). [ [http://us.ft.com/ftgateway/superpage.ft?news_id=fto121420061732248328 Financial Times: Saudi Aramco revealed as biggest group] ] [ [http://www.ft.com/cms/s/2/5de6ef96-8b95-11db-a61f-0000779e2340.html FT Non-Public 150] ]
Financial data (2006): [ [http://biz.yahoo.com/ic/55/55881.html Saudi Arabian Oil Company Company Profile - Yahoo! Finance] ]
*Fiscal Year End: December
*Revenue: $168 billion USD
*Revenue Growth (1 yr): 12.00%
*Employee Growth (1 yr): (-0.90%)
*Oil reserves: convert|259.9|Goilbbl|m3
List of oil fields: All of those located in Saudi Arabia are owned by Saudi Aramco. Note that the list is not complete.
Discovery! The Search for Arabian Oil
Saudi Aramco Medical Services Organization
Saudi Aramco Residential Camp in Dhahran
Robert Vitalis, "America's Kingdom, Mythmaking on the Saudi Oil Frontier", Stanford University Press, 2006, ISBN 0-8047-5446-2
* [http://www.saudiaramco.com Company site]
* [http://www.aramco.com Company portal]
* [http://biz.yahoo.com/ic/55/55881.html Yahoo! — Saudi Arabian Oil Company Company Profile]
* [http://www.gasandoil.com/goc/company/cnm41463.htm "Saudi Aramco is not a state within a state"]
* [http://www.aramco-brats.com AramcoBrats Website] - An organisation of individuals who grew up in Saudi Arabia as the dependents of expatriate employees of Saudi Aramco.
* [http://www.BratStory.com HOME - The Aramco Brats' Story] - A movie about the individuals who grew up in Saudi Arabia as the dependents of expatriate employees of Saudi Aramco.
* [http://www.cnn.com/2004/WORLD/meast/12/06/oil.security/index.html] - A CNN report about the security of oil in Saudi Arabia. Much of it is about Saudi Aramco security.
* [http://www.aramcoexpats.com Aramco ExPats Website] - Aramco ExPats is an online community of expatriates living and working in Saudi Arabia, their spouses and children, former employees, and annuitants of Saudi Aramco.
* [http://www.indexmundi.com/energy.aspx?country=sa&product=oil&graph=production Saudi Arabia's crude oil production chart (1980-2004)] - Data sourced from the US Department of Energy
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