The Saudi Arabian Oil Company (Aramco) announced the reorganisation of its downstream business to support and enhance integration across the hydrocarbon value chain and better position the company to drive financial performance, value creation and global growth.
The company’s downstream operating model will include four commercial business units: Fuels (includes Refining, Trading, Retail and Lubes); Chemicals; Power; and Pipelines, Distribution & Terminals. These business units will be supported by three corporate functions: Manufacturing, Strategy & Marketing and Affiliates Affairs.
The company noted that this reorganisation is designed to enhance the effectiveness and efficiency of Aramco's existing downstream assets, but will not result in a fundamental change in the overall business structure.
Abdulaziz M. Al Gudaimi, Senior Vice President of Aramco Downstream, said: “I am excited that we are launching a new operating model that we believe will help streamline our operations and reinforce our position as a major global energy and petrochemicals player. This reorganization is yet another step in Aramco’s strategy to develop a global integrated Downstream business that enhances our competitiveness by maximizing our value capture across the hydrocarbon value chain.”
The reorganisation, which is expected to be in place by the end of the year, further strengthens Aramco’s industry leadership in safety, sustainability, efficiency and reliability.
Aramco has a large, strategically integrated global downstream business that leverages the Company’s competitive Upstream position. The Company’s Downstream strategy focuses on creating growth opportunities across the hydrocarbon chain in order to expand the Company’s sources of earnings, providing resilience to oil price volatility and capitalizing on rising demand for petrochemical products.