MILESTONES AND HIGHLIGHTS

1932

Oil was discovered in Bahrain. Socal begins a year-long series of negotiations with the Saudi government.

1933

Saudi Arabia granted oil concession to California Arabain 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) acquired 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 was exported by barge to Bahrain.

1939

First tanker load of petroleum was exported. (Socal's D.G. Scofield)

1944

Casoc changed its name to Arabian American Oil Company (Aramco).

1945

Ras Tanura Refinery began 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) joined Socal (now Chevron) and (now Chevron) as owners of Aramco.

1950

The US government bestowed upon the US member companies a tax break equivalent to 50% of oil profits, a deal known as the Golden gimmick.

1950

1,700 km Trans-Arabian Pipe Line (Tapline) was completed, linking Eastern Province oil fields to Lebanon and the Mediterranean.

1956

Aramco confirmed scale of Ghawar and Safaniya, the largest onshore and the largest offshore field in the world, respectively.

1961

Liquefied petroleum gas(LPG) - propane and butane - was 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 acquired 25 percent interest in Aramco.

1975

Master Gas System project was launched.

1980

Saudi Government acquired 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 visited Saudi Aramco, Dhahran, on Aramco's 50th Anniversary to inaugurate the Exploration and the Petroleum Engineering Center (EXPEC), a milestone in the Saudization of the company's operations.

1984

Company acquired its first four supertankers.

1987

East-West Crude Oil Pipeline expansion project was completed, boosting capacity to 3.2 million barrels (5,10,000 m3) per day.

1988

Saudi Arabian Oil Company, or Saudi Aramco, was established.

1989

High quality oil and gas were discovered south of Riyadh - the first find outside original operating area.

1991

Company played major role combating Gulf War oil spill, the world's largest.

1992

East-West Crude Oil Pipeline capacity was boosted to 5 million barrels (79,000 m3) per day. Saudi Aramco affiliate purchased 35% interest in Ssang Yong Oil Refining Company (S-Oil) in the Republic of Korea.

1993

Saudi Aramco took 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 export refining company, which became the Saudi Aramco Shell Refining Company (SASREF).

1994

Maximum sustained crude-oil production capacity was returned to 10 million barrels (1,600,000 m3) per day. Company acquired a 40% equity interest in Petron, largest refiner in the Philippines.

1995

Company Completed a program to build 15 very large crude carriers. Saudi Aramco President and CEO Ali I. Al-Naimi is named the Kingdom's Minister of Petroleum and Mineral Resources, and chairman of Saudi Aramco. Abdallah S. Jum'ah was named the CEO, President, and Director of Saudi Aramco.

1996

Saudi Aramco acquired 50 percent of Motor Oil (Hellas) Corinth Refineries and Avinoil from the Vardinoyannis family. Company also assumed 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 established Motiva Enterprises LLC, a major refining and marketing joint venture in the southern and eastern United States.

1999

HRH Crown Prince 'Abd Allah inaugurated the Shaybah field in the Rub' al Khali desert, one of the largest projects of its kind in the world went on stream. The Dhahran-Riyadh-Qasim multi-product pipeline and Ras Tanura Upgrade project were completed. The second Saudi Aramco-Mobil lubricating oil refinery (Luberef II) in Yanbu' commenced operations.

2000

Petroleum Intelligence Weekly ranked 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 was established to administer the government's petroleum interest in the offshore Neutral Zone between Saudi Arabia and Kuwait. New facilities were 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 Plat, capable of processing up to 1.6 billion standard cubic feet per day of non-associated gas, came on stream.

2003

Haradh Gas Plant, 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, inaugurated the 800,000-barrel-per-day (130,000m3/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.

2005

Saudi Aramco and Sumitomo Chemical Co., Ltd signed 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 became known as Petro Rabigh.

2006

Saudi Aramco and Sumitomo Chemical broke ground on Media: PETRORabigh, an integrated refining/petrochemical project. Haradh III completed , yielding 3000,000 bbl/d (48000m3/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. signed agreements with ExxonMobil, 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 celebrated the 75th anniversary of the May 29,1993, signing of the oil concession between the Kingdom of Saudi Arabia and Standard oil of California (Socal). King Abdhullah visited Dhahran to celebrate the 75th anniversary.

2009

Saudi Aramco reached 12 Mbbl/d (1,900,000 m3/d) capacity after completing an expansion program. Also, Petro Rabigh, the company's first petrochemical plant (a partnership with Sumitomo chemicals Co., Ltd.,) began production.

2010

Saudi Aramco unveiled GigaPOWERS and runs a first field test of Resbots.

2011

Saudi Aramco started 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.

In 1984Ali l. Al-Naimi became the first Saudi Aramco President

HISTORICAL HEADWAY OF THE COMPANY


Saudi Aramco operates the world's largest single hydrocarbon network, the Master Gas System. Its 2013 crude oil production total was 3.4 billion barrels (540,000,000 m3), and it manages over one hundred oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet (scf) of natural gas reserves. Saudi Aramco operates the Ghawar Field, the world's largest onshore oil field, and the Safaniya Field, the world's largest offshore oil field.

Operations

Saudi Aramco operations span the globe, despite being headquartered in Dhahran. 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 palce at the Exploration and Petroleum Engineering Center(EXPEC). Originally, Saudi Aramco used Cray Supercomputers (CRAY-1M) to assist in processing the colossal quantity of data obtained during exploration.In 2001, Saudi Aramco decided to use Linux 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 comapny seeks to expand the number of engineers and geo-scientists it employs.

Refining 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. Since then, Saudi Aramco has taken on the responsibility of refining oil and distributing it in the country. Currently, Saudi Aramco refining capacity is more than 4 million barrels per day (640,000 m3/d) (International joint and equity ventures:2,060 Mbbl/d) (328,000,000m3/d), domestic joint ventures: 1,108 mpbd, and wholly owned domestic operations: 995 Mbbl/d (158,200,000 m3/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, which is a joint venture with Sumitomo Chemical Co.that began in 2005 on the coast of the Red Sea.

List of Domestic Refineries

Jeddah Refinery (60,000 bbl/d (9,500 m3/d) nominal capacity)

Ras Tanura Refinery (includes a Crude Distillation Unit, a Gas Condensate Unit, a hydrocracker, and catalytic reforming.

Riyadh 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,Rabigh

Saudi Aramco Lubricating Oil Refining Co.(Luberef)

List of International Refining Ventures

Fujian Refining and PetroChemical Company(FRPC), People’s Republic of China

Sinopec SenMei (Fujian) Petrolium Co.Ltd. (SSPC), People’s Republic of China

Motiva Enterprises LLC, United States

Showa Shell, Japan

S-Oil, 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 Limited, to handle shipping to North America ,Europe and Asia

Research and Developement

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 Petrolium Engineering Center Advanced Research Center (EXPEC ARC) 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.

Other Service

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 39 aircraft (18 fixed wing and 21 rotor-wing) to provide this support function. 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.

Aramco Associated Company (AAC)

Aramco Training Services Company

Motiva Enterprises

Saudi Refining, Inc.(SRI)

Aramco Financial Services Company (AFSC), a wholly owned subsidiary of Saudi Refining, Inc.

Saudi Petrolium international Inc. (SPI)-HQ in New York.

Bolanter Corporation N.V

Pandlewood Corporation N.V

Saudi Petrolium Overseas Ltd.-HQ in London.

Vela International Marine Ltd.:HQ in Dubai.

Financial Data

Fiscal Year End: December

Revenue: $233.3 billion USD

Revenue Growth (1yr): 43.70%

Employees : 75,441

Employee Growth (1 yr): 4.50%

Oil reserves: 259.9 billion barrels (4.132*10 10 m3)

Production: 8.5 million barrels per day (1,350,000 m3/d)

References
1.

Saudi Aramco Annual Review 2010

2.

Sheridan Titman, McCombs School of Business March 1, 2010. More Thoughts on the Value of Saudi Aramco http://blogs.mccombs.utexas.edu/totman/2010/03/01/more-thoughts-on-the-value-of-saudi-aramco/

3.

http://blogs.mccombs.utexas.edu/titman/2010/03/01/more -thoughts-on-the-value-of-saudi-aramco/

4.

3. ^”Big Oil,bigger oil”.Financial Times. February 4,2010.http://www.ft.com/cms/s/c5b32636-116f-11df-9195-00144feab49a,_i_email=y,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms% 2 F s % 2 F 3 % 2 F c 5 b 3 2 6 3 6 -1 1 6 f – 9 1 9 5 -00144feab49a%2C_i_email%3Dy.html&_i_refer=http%3A%2F%2Ftexascenterprise.org%2 Far ticle%2FWhats-value-saudi-aramco.

5.

In 2006 ,its value was estimated at 781 billion US$ in the FT Non-public 150-the full list

6.

SteelGuru-News.

7.

“Contact Us.” Saudi Aramco. Retrieved on 5 November 2009. “Headquarters:Dhahran,Saudi Arabia Address:Saudi Aramco P.O.Box 5000 Dhahran 313111 Saudi Arabia”

8.

http://www.virgina.edu/igpr/APAG/apagoilhistory.html

9.

http://www.saudiaramco.com/en/home.html#our-company%257Chttp%253A% 252F%252F www.saudiaramco.com%252 Fen%252 Fhome%252Four-history0.baseajax.html

10.

http://www.bloomberg.com/news/2011-07-26/Saudi-aramco-starts-production from-karan-gas-field-in-july-1-.html

11.

Cray FAQ Part 3:FAQ kind of items

12.

http://www.vela.ae/-History-Vela8.html

13.

http://www.thefreelibrary.com/Saudi+Celebrates+100+Patents.-a0242563545

14.

http://www.gilfoilandgas.com/webpro1/MAIN/Mainnews.asp?id=10328

15.

Financial Times:Saudi Aramco revealed as biggest group

16.

FT Non-Public 150

17.

Saudi Arabian Oil Company Profile –Yahoo!Finance