Saudi Aramco Company was officially known as the Saudi Arabian Oil Company (formerly the Arabian-American Oil Company) or Aramco. Company Headquarters located at Dhahran city, in the country of Saudi Arabia. This company is a state-owned enterprise that specializes in petroleum and natural gas.
Aramco Company is one of the largest companies in the world according to its revenue as of 2020. Saudi Aramco Company is the 2nd largest company in the world with reserves more than 270 billion barrels (43 billion cubic meters) of crude oil. It also has the largest daily oil production of all oil producing companies.
In 11th May 2022, Saudi Aramco overtook Apple Inc Company to become the world’s largest (and most valuable) company by market cap.
The Master Gas System, operated by Saudi Aramco, is the largest single hydrocarbon network in the world. Crude oil production totaled 3.4 billion barrels (540 million cubic meters) in 2013.
In 2013, Saudi Aramco, the operator of the world’s largest hydrocarbon network known as the Master Gas System. It had produced a total of 3.4 billion barrels (540 million cubic meters) of crude oil.
Saudi aramco company operates more than a hundred oil and gas fields in Saudi Arabia, including 288
4 trillion standard cubic feet (scf) of natural gas reserves. As the world’s leading oil and gas Company, Saudi Aramco manages the Ghawar field. It was the largest onshore oil field in the world. Similarly, “the Safaniya field” the largest offshore oil field globally.
On 11 December 2019, the Company’s shares commenced trading on the Tadavul Stock Exchange. Shares rose to 35.2 Saudi riyals, giving it a market capitalization of about US$1.88 trillion. It was breaching the US$2 trillion mark in a second day of trading.
As per the 2020 Forbes Global 2000, Saudi Aramco Company was ranked as the 5th-largest public company globally. It is the operator of the world’s largest hydrocarbon network, the Master Gas System. In 2013, the company produced a total of 3.4 billion barrels (540 million cubic meters) of crude oil. Saudi Aramco Company origins are date back to World War I.
The US administration popularized the “Open Door Policy” initiated by Commerce Secretary Herbert Hoover in 1921.
Standard Oil of California (SoCal) is one of the US companies seeking new sources of oil from abroad. Its subsidiary, Bahrain Petroleum Company (BAPCO), discovered oil in Bahrain on May 30, 1932 through the Standard Oil Company of California (SoCal).
This event increased interest in the oil potential of the Arabian mainland. On 29 May 1933, the government of Saudi Arabia granted a concession to SoCal in preference to a rival bid from the Iraq Petroleum Co.
In 1949, there were conflicts between Aramco and the Emirate of Abu Dhabi. It resulted in a dispute over the border between Abu Dhabi and Saudi Arabia. In 1950, King Abdulaziz threatened to nationalize his country’s oil fields. He pressures Saudi Aramco to share the profits 50/50.
In 1975, Saudi Arabia implemented a five-year economic plan that included a master gas plan. The plan aimed to use natural gas to generate power instead of burning it. The plan relied on using associated gas. But in 1985, Aramco was able to add an additional one billion standard cubic feet per day (BSCFD) of non-associated gas.
This non-associated gas is produced from the Cuff Formation a limestone formation 650 meters (2,130 ft) below the oil-producing Arab Zone.
In 1994, Aramco discovered more non-associated gas in the deep Jaff sandstone formation. It built plants at Hawiya and Harad to process it. This increased the capacity of the master gas system to 9.4 billion SCFD.
In 2001, Saudi Arabia announced the Gas Initiative. It was proposed the creation of 3 joint ventures with 8 international oil companies for the exploration of clean upstream gas areas. Core Venture 1 includes South Ghawar and North Rab al-Khali. Core Venture 2 includes the Red Sea. Core Venture 3 includes Shayba and Kidan.
In 2003, Royal Dutch Shell and Total Energies are entered into a partnership with Saudi Aramco in Core Venture 3. In 2004, the Core Venture 1 was split into three distinct joint ventures. Here Saudi Aramco holding a 20% interest in each.
In 2004, Aramco had a production rate of 8.6 million barrels per day (MPBD) out of a total capacity of 10 MBPD. In 2005, Aramco launched a five-year plan. The plan aims to spend US$50 billion to increase the company’s daily capacity to 12.5 mbpd. The plan includes increasing production and refining capacity and doubling the number of drilling rigs. In 2005, Saudi Aramco was the world’s largest company with a market value of US$781 billion.
In June 2008, with crude oil prices above US$130 per barrel, Aramco announced an increase in production to 9.7 million barrels per day (mbpd). As prices fell in January 2009, Aramco said it would cut production to 7.7 mbpd.
In the year 2011, Saudi Aramco Company started production from the Karan gas field. It’s producing more than 400 million scf per day. In January 2016, Saudi Arabia’s Deputy Crown Prince, Mohammed bin Salman Al Saud, announced plans to list shares of state-owned company Saudi Aramco.
In addition, he said he plans to sell 5% of the shares to build a larger sovereign wealth fund. On 26 April 2017, Saudi security forces thwarted an attack attempt by an unmanned boat. The attack was from Yemen on an Aramco oil distribution facility.
As per reported by “The Wall Street Journal” newspaper, in September 2018, Aramco Company was considering a US$1 billion venture-capital fund. The fund would be used to invest in international technology companies. In June 2019, the Financial Times reported that Aranko was bearing the ministry’s expenses.
Ex Energy Minister Khalid Al Falih’s business and diplomatic trips, as well as his stays in luxury hotels are all covered by the company. However, a friend pointed out that Falih’s policies resulted in excess oil revenue exceeding his expenses.
Saudi Arabia appointed Yasir Al-Rumayan as Aramco chairman in September 2019. Al-Rumayan becomes head of the country’s sovereign wealth fund. He replaces Khaled al-Falih, who has been in the post since 2015.
