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Study of the Saudi Aramco Value Chain

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Study of the Saudi Aramco Value Chain
Study of the Saudi Aramco Value Chain

Study of the Saudi Aramco Value Chain October 2010
Company overview: The Saudi Arabian Oil Company (Saudi Aramco) is a government-owned entity (since 1988 fully government-owned) and the world’s largest oil company in terms of output and managed natural crude oil resources. The company specializes in the exploration, production and distribution of crude oil, petrochemicals and natural gas. Saudi Aramco was established 1933 when Saudi Arabia signed a concession agreement with Standard Oil of California to explore for oil in the country. The group has more than 55,000 employees, circa 500 of which are Canadians. The company is headquartered in Dhahran. Plants are established in Abqiq (near Jeddah), Juaymah (near Dammam) and Yanbu (Arabian Gulf); the solely owned refineries are located in Jeddah, Ras Tanura (Arabian Gulf, near Dammam), Riyadh and Yanbu. Major export shipping terminals are located at ports on the Arabian Gulf and Red Sea, while domestic demand for automotive and aviation products is met through a Kingdom-wide network of strategically situated refineries. Saudi Aramco holds substantial joint venture and investment interests in refining and marketing activities in the USA, South Korea, Japan and China. Representative offices exist in Kuala Lumpur, Malaysia and Shanghai, China for marketing and sales. Through its affiliate, Vela International Marine Ltd. Saudi Aramco owns and operates one of the world’s largest oil tanker fleets. Organizational structure: Saudi Aramco reports to its owner, the Saudi Arabian government, through the Supreme Council of Petroleum and Minerals Affairs. The Supreme Council sets the company’s broader policy and objectives. Saudi Aramco’s Board of Directors is responsible for highlevel planning, budgeting and project decisions. The company’s President is their CEO.
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