Saudi Arabia: Management Strategy Saudi Aramco to Restructure Downstream Business
Saudi Aramco aims to enhance its performance and competitiveness by reorganising its downstream business. The move is in line with the company’s vision of becoming the world’s preeminent integrated energy and chemicals company.
Dhahran/Saudi Arabia – The Saudi Arabian Oil Company (Aramco) recently 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 (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.
This 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.
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 reorganisation is yet another step in Aramco’s strategy to develop a global integrated Downstream business that enhances our competitiveness by maximising 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 capitalising on rising demand for petrochemical products.