The Saudi Arabian Oil Company (Aramco) said it is reorganising its downstream business to support and enhance integration across the hydrocarbon value chain.
Aramco’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 reorganisation is designed to enhance the effectiveness and efficiency of Aramco’s existing downstream assets, but does not represent a fundamental change in the overall business structure.
“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 reorganisation 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,” said Abdulaziz M. Al Gudaimi, senior vice president of Aramco Downstream.
The reorganisation, which is expected to be completed by year end, aims to further strengthen 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. Aramco’s downstream strategy focuses on creating growth opportunities across the hydrocarbon chain in order to expand its sources of earnings, providing resilience to oil price volatility and capitalising on rising demand for petrochemical products.