Fossil fuels, particularly oil, have been the driving force behind global industrialization and trade. As a result, oil has had a long-term impact on countries’ economic characteristics, political agendas, and even culture.
Because of its power to influence oil prices, the Kingdom of Saudi Arabia (KSA) has emerged as a key regional player and a significant worldwide player. With 18% of the world’s proven petroleum reserves, it is the world’s most powerful oil producer and exporter.
Profit and market-oriented management, which is autonomous in daily operations, maybe why such businesses succeed.
Saudi Aramco is Saudi Arabia’s largest state-owned oil corporation, and it has become a global leader in hydrocarbon exploration, production, refining, distribution, and marketing. The study examines the organization’s strategies, product lines, local and worldwide operations, critical performance, recent IPO activities, and position in the Kingdom’s economic development and politics in the global oil market context. Aramco manufactures refined products and high-value petrochemicals for domestic and foreign businesses through a combination of its facilities and partner ventures.
Over the last 80 years, Saudi Aramco has established itself as a global leader in hydrocarbon exploration, production, refining, distribution, and marketing, with average daily crude production of 10.5 million BPD and natural gas reserves of 298.7 trillion SCF. The Kingdom’s primary export locations are located at ports on the Arabian Gulf and the Red Sea. At the same time, domestic demand is satisfied by a network of strategically located refineries around the Kingdom. Aramco’s headquarters are in Dhahran, Saudi Arabia, and the company has activities all around the country. More than 65,000 people work for the company around the world. China, Egypt, Japan, India, the Netherlands, the Republic of Korea, Singapore, the United Kingdom, and the United States have subsidiaries and affiliates.
Aramco’s business approach is based on strategic collaboration.
Saudi Aramco produces refined products and high-value petrochemicals for consumers and domestic and foreign industries through a combination of wholly-owned facilities and joint ventures.
- In 2013, Saudi Aramco Total Refining and Petrochemicals Company (SATORP), a joint venture between Saudi Aramco and Total (France), finished its construction. The Saudization rate of the company is over 65%. In addition, the SATORP refinery is the Kingdom’s first producer of petroleum coke and paraxylene.
- Yanbu Aramco Sinopec Refining Company (YASREF) is a Sinopec and Yanbu Aramco joint venture (China). Yanbu Industrial City is home to this world-class petroleum refinery with a daily capacity of 400,000 barrels.
- The Rabigh Refining and Petrochemical Company (Petro Rabigh) is a joint venture between Saudi Aramco and Sumitomo Chemical (Japan). It also houses the Technical Learning Academy, which will train young operators and provide advanced skills to the Saudi workforce. Aramco has maintained its marketing and building cooperation with Sumitomo for the RabighPlus Tech Park, an industrial zone connected with Petro Rabigh. Manufacturers can establish factories to generate products using the latter’s petrochemical feedstock.
- The Jazan Refinery and Terminal, with a capacity of 400,000 barrels per day, will serve as the project’s industrial centre. It’s also part of a larger strategy to promote the Kingdom’s long-term economic growth while also providing job possibilities for Saudis.
- Sadara Chemical Company is a joint venture between Aramco and Dow Chemicals Company, and it is an integral part of Aramco’s plan to become the leader of a worldwide chemical. Sadara, which is based in Jubail Industrial City, has a production capacity of 3 million tonnes of performance plastics and high-value chemicals per year. In 2015, the company started producing. Sadara, with its integrated PlasChem value park, will serve as a hub for chemical conversion facilities, manufacturers, and related service businesses. The project is projected to improve Saudi Arabia’s ability to produce various chemical commodities and create direct and indirect jobs.