Saudi Aramco
Overview
 
Saudi Aramco officially the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

.
Saudi Aramco is the world's largest and most valuable privately-held company, with estimates of its value in 2011 to be $7 trillion USD.

Saudi Aramco has both the largest proven crude oil reserves, at more than 260 Goilbbl, and largest daily oil production. Headquartered in Dhahran
Dhahran
Dhahran is a city located in Saudi Arabia's Eastern Province, and is a major administrative center for the Saudi oil industry. Large oil reserves were first identified in the Dhahran area in 1931, and in 1935 Standard Oil of California drilled the first commercially viable oil well...

, Saudi Arabia, Saudi Aramco operates the world's largest single hydrocarbon network, the Master Gas System.
Encyclopedia
Saudi Aramco officially the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

.
Saudi Aramco is the world's largest and most valuable privately-held company, with estimates of its value in 2011 to be $7 trillion USD.

Saudi Aramco has both the largest proven crude oil reserves, at more than 260 Goilbbl, and largest daily oil production. Headquartered in Dhahran
Dhahran
Dhahran is a city located in Saudi Arabia's Eastern Province, and is a major administrative center for the Saudi oil industry. Large oil reserves were first identified in the Dhahran area in 1931, and in 1935 Standard Oil of California drilled the first commercially viable oil well...

, Saudi Arabia, Saudi Aramco operates the world's largest single hydrocarbon network, the Master Gas System. Its yearly production is 7.9 Goilbbl, and it managed over 100 oil and gas fields in Saudi Arabia, including 279 trillion
Trillion
-Numbers:Either of the two numbers :* 1,000,000,000,000 for all short scale countries...

 scf
Standard cubic foot
A standard cubic foot is a measure of quantity of gas, equal to a cubic foot of volume at 60 degrees Fahrenheit and either 14.696 psi or 14.73 psi of pressure.A standard cubic foot is thus not a unit of volume but of quantity, and the conversion to normal cubic metres is...

 of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 reserves.

Saudi Aramco owns the Ghawar Field
Ghawar Field
Ghawar is an oil field in Saudi Arabia. It is located in Al-Ahssa, Saudi Arabia. Measuring , it is by far the largest conventional oil field in the world. The field is entirely owned and operated by Saudi Aramco, the nationalized Saudi oil company...

, the world's largest oil field, and the Shaybah Field
Shaybah
Shaybah is a major crude oil producing site in Saudi Arabia and is located approximately 40 km from the northern edge of the Rub' Al-Khali/Empty Quarter desert. It is located about 10 km south of the border to Abu Dhabi, United Arab Emirates, which is a straight line drawn in the desert...

, one of the world's largest of its kind.

History

The origins of Saudi Aramco can be traced back to May 29, 1933, when the Saudi government granted a concession to Standard Oil of California (Socal) which allowed the company to explore for oil in Saudi Arabia. Socal assigned this concession to a wholly owned subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

 called California-Arabian Standard Oil Co. (Casoc). In 1936, with the company having no success at locating oil, the Texas Oil Company
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....

 (Texaco) purchased a 50% stake of the concession.

After four years of fruitless exploration, the first success came with the seventh drill site in Dammam
Dammam
Dammam is the capital of the Eastern Province of Saudi Arabia, the most oil-rich region in the world. The judicial and administrative bodies of the province and several government departments are located in the city. Dammam is the largest city in the Eastern Province and third largest in Saudi...

, a few miles north of Dhahran
Dhahran
Dhahran is a city located in Saudi Arabia's Eastern Province, and is a major administrative center for the Saudi oil industry. Large oil reserves were first identified in the Dhahran area in 1931, and in 1935 Standard Oil of California drilled the first commercially viable oil well...

 in 1938, a well referred to as Dammam No. 7. This well immediately produced over 1500 oilbbl/d, giving the company confidence to continue. The company name was changed in 1944 from California-Arabian Standard Oil Company to Arabian American Oil Company (or Aramco). In 1948, Socal and Texaco were joined as investors by Standard Oil of New Jersey (Esso) which purchased 30% of the company, and Socony Vacuum (later Mobil) which purchased 10% of the company, leaving Socal and Texaco with 30% each.

In 1950, King Abdul Aziz Ibn Saud threatened to nationalize
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 his country's oil facilities, thus pressuring Aramco to agree to share profits 50/50. A similar process had taken place with American oil companies in Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...

 a few years earlier. The American government granted US Aramco member companies a tax break
Tax break
Tax break is a slang term referring to any item which reduces tax, including any tax exemption, tax deduction, or tax credit. Tax break is also a pejorative term used in the United States to refer to purportedly favorable tax treatment of any class of persons, as in "individuals get a tax break...

 known as the golden gimmick
Golden gimmick
The Golden Gimmick refers to a foreign tax credit deal enacted in November 1950 by the US Government under president Harry Truman between King Ibn Saud of Saudi Arabia and the Arabian-American Oil Company , a consortium comprising Standard Oil of California , Standard Oil of New Jersey , Standard...

 equivalent to the profits given to Ibn Saud. In the wake of the new arrangement, the company's headquarters were moved from New York to Dhahran.

In 1973, following US support for Israel during the Yom Kippur War
Yom Kippur War
The Yom Kippur War, Ramadan War or October War , also known as the 1973 Arab-Israeli War and the Fourth Arab-Israeli War, was fought from October 6 to 25, 1973, between Israel and a coalition of Arab states led by Egypt and Syria...

, the Saudi Arabian government acquired a 25% share of Aramco, increased the share 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) and officially cut all oil supply to Israel by order of the CEO. in addition, Saudi Aramco became a fully owned privately held company with no shareholders or partners in business in 1988 with no governmental control. Today Saudi Aramco is the world's largest, most valuable company in which it clearly controls the globe's economy!

Timeline

  • 1932 Oil is discovered in Bahrain
    Bahrain
    ' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...

    . 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.
  • 1936 Texas Oil Company (which became Texaco, and now Chevron) 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).
  • 1945 Ras Tanura
    Ras Tanura
    Ras Tanura is a city in the Eastern Province of Saudi Arabia located on a peninsula extending into the Persian Gulf...

     Refinery begins operations (eventually becomes the largest oil-refinery in the world).
  • 1948 Standard Oil of New Jersey (which became Exxon and now ExxonMobil) and Socony-Vacuum Oil (which became Mobil and now ExxonMobil) join Socal (now Chevron) and Texaco (now Chevron) 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 break
    Tax break
    Tax break is a slang term referring to any item which reduces tax, including any tax exemption, tax deduction, or tax credit. Tax break is also a pejorative term used in the United States to refer to purportedly favorable tax treatment of any class of persons, as in "individuals get a tax break...

     equivalent to 50% of oil profits, a deal known as the Golden gimmick
    Golden gimmick
    The Golden Gimmick refers to a foreign tax credit deal enacted in November 1950 by the US Government under president Harry Truman between King Ibn Saud of Saudi Arabia and the Arabian-American Oil Company , a consortium comprising Standard Oil of California , Standard Oil of New Jersey , Standard...

    .
  • 1956 Aramco confirms scale of Ghawar
    Ghawar Field
    Ghawar is an oil field in Saudi Arabia. It is located in Al-Ahssa, Saudi Arabia. Measuring , it is by far the largest conventional oil field in the world. The field is entirely owned and operated by Saudi Aramco, the nationalized Saudi oil company...

     and Safaniya, the largest onshore and the largest offshore field in the world, respectively.
  • 1961 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.
  • 1973 Saudi Government acquires 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 Saudization
    Saudization
    Saudization refers to the national policy of Saudi Arabia to encourage employment of Saudi nationals in the private sector, which, as of 2006, was largely dominated by expatriate workers from Southeast Asia and to a lesser extent with western expatriates...

     of 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 Moilbbl per day.

  • 1988 Saudi Arabian Oil Company, or Saudi Aramco, is established.
  • 1988 Oil supply to Israel is officially ceased by order of the President and CEO.
  • 1989 High-quality oil and gas are discovered south of Riyadh — the first find outside original operating area.
  • 1991 Company plays major role combating Gulf War oil spill
    Gulf War oil spill
    The Gulf War oil spill was one of the largest oil spills in history, resulting from the Gulf War in 1991. The apparent strategic goal was to foil a potential landing by US Marines. It also made commandeering oil reserves difficult for US forces....

    , the world's largest.
  • 1992 East-West Crude Oil Pipeline capacity is boosted to 5 Moilbbl per day. Saudi Aramco affiliate purchases 35% interest in SsangYong Oil Refining Company (S-Oil) in 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). The company also assumed the Saudi Arabian government's 50% share of the Jubail
    Jubail
    Jubail , is a city in the Eastern province on the Persian Gulf coast of Saudi Arabia. It consists of the Old Town of Al Jubail, which was originally a small fishing village, up to 1975 and the new industrial area....

     export refining company, which becomes the Saudi Aramco Shell Refining Company (SASREF).
  • 1994 Maximum sustained crude-oil production capacity is returned to 10 Moilbbl 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.
  • 1996 Saudi Aramco acquires 50 percent of Motor Oil (Hellas) Corinth Refineries and Avinoil from the Vardinoyannis family. 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 the first in the world for the 11th straight year, for the country's crude oil reserves and production. Aramco Gulf Operations Limited is established to administer 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 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.
  • 2003 Haradh Gas Plant
    Haradh gas plant
    The Haradh Gas Plant is one of the major gas plants in Saudi Arabia. It is located near Haradh village, 300 km southwest of Dhahran. The plant has a capacity of producing 1.6 BSCFD of natural gas and 170,000 BBL/Day of Condensate . The plant processes only non-associated gas. The plant is...

     completed 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 800000 oilbbl/d 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.
  • 2004 Al-Bedaiwi takes charge of company affairs and is named the world's strongest oil man by Forbes.
  • 2005 Saudi Aramco and 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. This becomes known as Petro Rabigh
    Petro Rabigh
    Rabigh Refining & Petrochemical Company is a Saudi Arabia-based company which produces and markets refined hydrocarbon and petrochemicals. The Company was a joint venture between Saudi Aramco and Sumitomo Chemical Co. which is now publicly held...

    .
  • 2006 Saudi Aramco and Sumitomo Chemical break ground on Media:PETRORabigh, an integrated refining/petrochemical project. Haradh III completed, yielding 300000 oilbbl/d of oil. Accords signed for two export refineries—Jubail (with Total) and in Yanbu' (with Conoco-Phillips).
  • 2007 Saudi Aramco subsidiary Saudi Aramco Sino Co. Ltd. signs agreements with ExxonMobil
    ExxonMobil
    Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...

    , Sinopec Corp and the Fujian Provincial Government of China to form two joint ventures: Fujian Refining and Petrochemical Co. Ltd., a refining and petrochemicals venture, and Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC), a marketing venture.
  • 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.
  • 2009 Saudi Aramco reaches 12 Moilbbl/d capacity after completing an expansion program. Also, Petro Rabigh, the company's first petrochemical plant (a partnership with Sumitomo Chemicals Co., Ltd., begins production.
  • 2010 Saudi Aramco unveils GigaPOWERS™ and runs a first field test of Resbots™.
  • 2011 Saudi Aramco starts production from Karan Gas Field, with an output of more than 400 standard cubic feet per day.
  • 2011 Aramco raised selling prices for all crude grades for customers in Asia and Northwest Europe for April shipments and cut prices for customers in the U.S.

Operation

Saudi Aramco operations span the globe, despite being headquartered in Dhahran
Dhahran
Dhahran is a city located in Saudi Arabia's Eastern Province, and is a major administrative center for the Saudi oil industry. Large oil reserves were first identified in the Dhahran area in 1931, and in 1935 Standard Oil of California drilled the first commercially viable oil well...

. Company operations include exploration, producing, refining, chemicals, distribution and marketing.

Exploration

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
Cray
Cray Inc. is an American supercomputer manufacturer based in Seattle, Washington. The company's predecessor, Cray Research, Inc. , was founded in 1972 by computer designer Seymour Cray. Seymour Cray went on to form the spin-off Cray Computer Corporation , in 1989, which went bankrupt in 1995,...

 Supercomputers (CRAY-1M) to assist in processing the colossal quantity of data obtained during exploration. In 2001, Saudi Aramco decided to use Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...

 clusters as a replacement for the decommissioned Cray systems.

Drilling

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 engineers. With the increasing global demand for oil, Saudi Aramco seeks to expand its oil production. To do this the company seeks to expand the number of engineers and geo-scientists it employs.

Refining and Chemicals

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. The following year, a Saudi Aramco subsidiary acquired a 40% equity interest in Petron Corporation, the largest crude oil refiner and marketer in the Philippines.[11] Since then, Saudi Aramco has taken on the responsibility of refining oil and distributing it in the country.

Currently, Saudi Aramco's refining capacity is more than 4 Moilbbl/d (International joint and equity ventures: 2060 Moilbbl/d, domestic joint ventures: 1,108 mpbd, and wholly owned domestic operations: 995 Moilbbl/d.) This figure is set to increase as more projects go online.

Additionally, Saudi Aramco's downstream operations are shifting its emphasis to integrate refineries with petrochemical facilities. Their first venture into it is with Petro Rabigh
Petro Rabigh
Rabigh Refining & Petrochemical Company is a Saudi Arabia-based company which produces and markets refined hydrocarbon and petrochemicals. The Company was a joint venture between Saudi Aramco and Sumitomo Chemical Co. which is now publicly held...

, which is a joint venture with Sumitomo Chemical Co. that began in 2005 on the coast of the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...

.

List of refineries

List of domestic refineries:
  • Jeddah
    Jeddah
    Jeddah, Jiddah, Jidda, or Jedda is a city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, the largest sea port on the Red Sea, and the second largest city in Saudi Arabia after the capital city, Riyadh. The...

     Refinery (60000 oilbbl/d nominal capacity)
  • Ras Tanura
    Ras Tanura
    Ras Tanura is a city in the Eastern Province of Saudi Arabia located on a peninsula extending into the Persian Gulf...

     Refinery (includes a Crude Distillation
    Distillation
    Distillation is a method of separating mixtures based on differences in volatilities of components in a boiling liquid mixture. Distillation is a unit operation, or a physical separation process, and not a chemical reaction....

     Unit, a Gas Condensate Unit, a hydrocracker, and catalytic reforming
    Catalytic reforming
    Catalytic reforming is a chemical process used to convert petroleum refinery naphthas, typically having low octane ratings, into high-octane liquid products called reformates which are components of high-octane gasoline...

    .
  • Riyadh
    Riyadh
    Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of Riyadh Province, and belongs to the historical regions of Najd and Al-Yamama. It is situated in the center of the Arabian Peninsula on a large plateau, and is home to 5,254,560 people, and the urban center of a...

     Refinery
  • Yanbu Refinery


List of domestic refining ventures:
  • The Saudi Aramco Mobil Refinery Company Ltd. (SAMREF), Yanbu
  • The Saudi Aramco Shell Refinery Company (SASREF), Jubail
  • Petro Rabigh
    Petro Rabigh
    Rabigh Refining & Petrochemical Company is a Saudi Arabia-based company which produces and markets refined hydrocarbon and petrochemicals. The Company was a joint venture between Saudi Aramco and Sumitomo Chemical Co. which is now publicly held...

    , Rabigh
  • Saudi Aramco Lubricating Oil Refining Co. (Luberef)


List of international refining ventures:
  • Fujian Refining and Petrochemical Company (FRPC), People's Republic of China
    People's Republic of China
    China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

  • Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC), People's Republic of China
  • Motiva Enterprises LLC, United States
  • Showa Shell, Japan
    Japan
    Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

  • S-Oil
    S-Oil
    S-Oil Corporation is a petroleum and refinery company, headquartered in Seoul, Korea. It was established in 1976 by old name SsangYong Refinery . It produces petroleum and lubricant products...

    , Republic of Korea

Shipping

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 Marine
Vela International Marine
Vela International Marine Limited is a Saudi Aramco-owned company headquartered on the 7th floor of City Tower 2 in Dubai, United Arab Emirates. Vela, established in 1984, currently owns 29 oil tankers most of which are Very Large Crude Carriers...

 Limited, 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:
1) Exploration and Petroleum Engineering Center Advanced Research Center (EXPEC ARC
EXPEC Advanced Research Center
The Exploration and Petroleum Engineering Center - Advanced Research Center is located in Dhahran, Saudi Arabia. It is a research center that belongs to Saudi Aramco and is responsible for upstream oil and gas technology development...

) which is solely managed by Exploration & Producing and focuses on upstream research, and
2) The Research and Development Center (R&DC), which focuses on downstream research and includes bio-research. Leading research undertaken at these two major facilities provides Saudi Aramco with competitive technology solutions throughout the vast range of its petroleum-related activities.

Saudi Aramco patents

Saudi Aramco patents:

In 2010, Saudi Aramco was granted its 100th patent.

Notable patents that Saudi Aramco holds are:

1. GigaPOWERS™

The EXPEC ARC debuted GigaPOWERS™ on Jan. 23, 2010 to a live audience at their auditorium. GigaPOWERS™ is a second generation innovation of POWERS (Parallel Oil, Water and Gas Enhanced Reservoir Simulator) that was created in 1997 and is a high-resolution reservoir simulator to model and predict the performance of super-giant reservoirs. (See reservoir simulation
Reservoir simulation
Reservoir simulation is an area of reservoir engineering in which computer models are used to predict the flow of fluids through porous media.-Uses:...

 for more information).GigaPOWERS™ did that job with giga
Giga
Giga is a unit prefix in the metric system denoting a factor of billion . It has the symbol G.Giga is derived from the Greek γίγας, meaning 'giant'...

-cell reservoir simulation
Reservoir simulation
Reservoir simulation is an area of reservoir engineering in which computer models are used to predict the flow of fluids through porous media.-Uses:...

 technology, which meant that the models could hold more information and produce better reservoir simulations.

GigaPOWERS™ set a new industry record for being able to simulate reservoirs at seismic or near-seismic resolution. Previously, scientists simulated this by averaging the simulation model cells in order to reduce their number, thus reducing the amount of information in the model. However, with the innovation of GigaPOWERS™, models of more than one-billion cells were simulated. This makes it easier to study the performance and predict the behavior of oil fields, so that engineers and scientists can create better strategies when producing those fields.

2. Resbots™

Other services

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 currently maintains and operates a fleet of 79 airplanes to provide this support function. In addition, Saudi Aramco has maintained an elite group of security forces to protect its high officials from possible attacks.

Also, Saudi Aramco has intensive career development programs under the Career Development Department. These includes PDP (Professional Development Program) for fresh graduates and ADP (Advanced Degree Program) for Master and PHDs studies.

Associated companies/subsidiaries

  • Aramco Services Company (ASC): HQ in Houston.
  • Aramco Overseas Company B.V. (AOC B.V.) - HQ in The Hague
    The Hague
    The Hague is the capital city of the province of South Holland in the Netherlands. With a population of 500,000 inhabitants , it is the third largest city of the Netherlands, after Amsterdam and Rotterdam...

    .
  • Aramco Associated Company
    Aramco Associated Company
    Aramco Associated Company, with offices at George Bush Intercontinental Airport in Houston, owns, operates and leases a variety of aircraft used in Saudi Aramco’s operations....

     (AAC)
  • Aramco Training Services Company
    Aramco Training Services Company
    The Aramco Training Services Company runs an international visitor exchange program to train employees of Saudi Aramco and a related Houston company, the Aramco Services Company , and their affiliates. The program's operators also aim to foster mutual understanding between people in the United...

  • Motiva Enterprises
    Motiva Enterprises
    Motiva Enterprises, LLC, is a 50–50 joint venture between Shell Oil Company and Saudi Refining...

  • Saudi Refining
    Saudi Refining
    Saudi Refining, Inc., with headquarters in Houston, purchases and sells crude oil and maintains a significant inventory of crude oil outside the United States. SRI has an interest in a limited liability company known as Motiva Enterprises, LLC. Motiva refines and markets petroleum products in the...

    , Inc. (SRI)
    • Aramco Financial Services Company
      Aramco Financial Services Company
      Aramco Financial Services Company is a wholly owned subsidiary of Saudi Refining, Inc., and ultimately of Aramco Services Company.AFSC serves as the financial guarantor for the Certificates of Financial Responsibility issued by the Coast Guard to the tanker fleet owned and operated by Vela...

       (AFSC), a wholly owned subsidiary of Saudi Refining, Inc.
  • Saudi Petroleum International
    Saudi Petroleum International
    Saudi Petroleum International, Inc., headquartered in New York City, provides marketing support services to Saudi Aramco in the Western Hemisphere and arranges the scheduling, loading, storage, transportation and delivery of crude oil sold by Saudi Aramco or Saudi Refining to refiners in the United...

    , Inc. (SPI) - HQ in New York
    New York
    New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

    .
  • Bolanter Corporation N.V.
  • Pandlewood Corporation N.V.
  • Saudi Petroleum Overseas Ltd. - HQ in London
    London
    London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

    .
  • Vela International Marine
    Vela International Marine
    Vela International Marine Limited is a Saudi Aramco-owned company headquartered on the 7th floor of City Tower 2 in Dubai, United Arab Emirates. Vela, established in 1984, currently owns 29 oil tankers most of which are Very Large Crude Carriers...

     Ltd.: HQ in Dubai
    Dubai
    Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

    .

Environmental record

Saudi Aramco issued a statement in 1998 stating that the company is trying to reduce the amount of lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...

 in their gasoline and has already done so by about 50 percent.

The company has an "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 Performance Indicators in terms of air and sea water pollutions.

Financial data

The "FT's Non-Public 150" by the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....

 and McKinsey
McKinsey & Company
McKinsey & Company, Inc. is a global management consulting firm that focuses on solving issues of concern to senior management. McKinsey serves as an adviser to many businesses, governments, and institutions...

 - the study of the world’s largest unlisted companies — foundember 2006).

Financial data (2011):
  • Fiscal Year End: December
  • Revenue: $790 billion USD (World's most valuable)
  • Revenue Growth (1 yr): 63.70%
  • Employees: 55,441
  • Employee Growth (1 yr): 4.50%
  • Oil reserves: 259.9 Goilbbl
  • Production: 12 Moilbbl/d

See also

  • List of oil fields: All of those located in Saudi Arabia are owned by Saudi Aramco.
  • Abqaiq
    Abqaiq
    Abqaiq, or in Arabic Bqaiq , is a Saudi Aramco camp in the interior of the Eastern Province of Saudi Arabia, located in the desert 60 km southwest of the Dhahran-Dammam-Khobar metropolitan area. The camp was built in the 1940s by ARAMCO...

  • Golden gimmick
    Golden gimmick
    The Golden Gimmick refers to a foreign tax credit deal enacted in November 1950 by the US Government under president Harry Truman between King Ibn Saud of Saudi Arabia and the Arabian-American Oil Company , a consortium comprising Standard Oil of California , Standard Oil of New Jersey , Standard...

  • Thomas Barger
    Thomas Barger
    Thomas Barger was an American geologist, explorer, miner, businessman and former CEO of the Arabian American Oil Company .-Biography:...

  • Discovery! The Search for Arabian Oil
    Discovery! The Search for Arabian Oil
    Discovery! The Search for Arabian Oil is a non-fiction book written by Pulitzer Prize winning American author Wallace Stegner.Written by Stegner in the late 1950s the book was originally serialized in fourteen parts in the magazine Saudi Aramco World in 1970-71 and later published in Beirut Lebanon...

  • Saudi Aramco Medical Services Organization
    Saudi Aramco Medical Services Organization
    Saudi Aramco Medical Services Organization is the complex of company-operated and privately contracted hospitals that serve Saudi Aramco employees and their dependents, numbering about 500,000 total...

  • Saudi Aramco Residential Camp in Dhahran
    Saudi Aramco Residential Camp in Dhahran
    Saudi Aramco Residential Camp in Dhahran, casually known by its inhabitants as the Dhahran Camp, is the residential community built by Saudi Aramco for its employees...

  • List of corporations by market capitalization


  • Shaybah
    Shaybah
    Shaybah is a major crude oil producing site in Saudi Arabia and is located approximately 40 km from the northern edge of the Rub' Al-Khali/Empty Quarter desert. It is located about 10 km south of the border to Abu Dhabi, United Arab Emirates, which is a straight line drawn in the desert...

  • Max Steineke
    Max Steineke
    Max Steineke was a famous American petroleum geologist, and Casoc's Chief Geologist who is referred to as the discoverer of oil in Saudi Arabia under Standard Oil of California contracts with the Saudi government in the 1930s. He graduated from Stanford University in 1921 with an AB degree in...

  • Ras Tanura
    Ras Tanura
    Ras Tanura is a city in the Eastern Province of Saudi Arabia located on a peninsula extending into the Persian Gulf...

  • Yanbu
  • Udhailiyah
    Udhailiyah
    Udhailiyah [pronounced Ew'd Aleea] is a small oil company compound in the interior of the Eastern Province of Saudi Arabia located in the desert southwest of the Dhahran-Dammam-Khobar metropolitan area. Built by the national oil company Saudi Aramco, Udhailiyah has a population of approximately...



External links

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