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Aramco sits on the pyramid of global companies in the struggle of giants

Aramco sits on the pyramid of global companies in the struggle of giants

By : Dr. Raja’a Shawkat

Addressing the challenges of the abundance of energy resources at the global level is of great importance, so stability in the energy market is a challenge in itself. As for Aramco, in the year 2022, it deservedly won the throne of companies in being the largest producer of crude oil in the world.

By striking a balance between the production of advanced fields and modern fields to reduce the rate of depletion of their fields to a minimum and at a low cost of production, as well as by concluding fixed-term sales agreements to major consumers globally, allowing customers the ability to visualize future supplies by standardizing prices and delivery terms to major regional demand centers.

     As for Aramco, the Saudi Arabian Oil Company is a globally integrated company that was nationalized in 1988, working in the fields of oil, natural gas, and petrochemicals in all related businesses.

The company has a multinational team of 70,000 employees.

It is the largest company in the world in terms of market value, with a total profit of $111 billion.

High reliability despite the Corona pandemic

               Aramco continued its strong record in the reliability of supply by delivering crude oil and other products with high reliability of 99.9 in 2021 despite the challenges of Corona, achieving for the second consecutive year a level of reliability.

It has also made progress in expanding its business in the refining, processing, and marketing sector by starting the operation of the Jazan refinery with a production capacity of 400,000 barrels per day.

The Year of Excellence Pioneering 2021

                  In 2021, Aramco recorded an increase in net income more than doubled on an annual basis to reach 412.2 billion riyals, and net income increased by 124%. Free cash flows amounted to 403 billion riyals, compared to an amount of 184.3 billion riyals in the year 2020.

 Capital expenditures amounted to 31.9 billion riyals, an increase of 18% over the year 2020.

This is due to the great development in activities related to the production of crude oil. As Aramco President and Chief Executive Officer, Amin bin Hassan Al-Nasser stated (that the year 2021 was very distinguished in terms of financial and operational results and achievements despite the challenges, and the results demonstrate the company’s unwavering focus on the long-term growth strategy)

A new quality partnership.

               In new development and to develop highly efficient engine fuels to reduce total carbon dioxide emissions, Aramco partnered with Hyundai Motors and King Abdullah University of Science and Technology to work in a joint research framework for two years, to develop an ideal fuel formula for use with a new combustion system for the hybrid electric vehicles.

The chief technical administrator, Mr. Ahmed Al-Khuwaiter, emphasized, “With the spread of hybrid electric cars, the real challenge can be finding the optimal fuel for high-capacity combustion systems.

 Therefore, Aramco will provide its practical experience in designing and installing advanced fuels to improve the combustion performance of Hyundai Motors engines.

Aramco is expanding its focus on blue hydrogen and carbon sequestration in the context of activating safe energy resources.

Collaboration and new production line

       In a qualitative step, Aramco transferred the responsibility of marketing and selling some petrochemicals and polymers to SABTECH, and also transferred the responsibility of buying and reselling some SABIC products to Aramco Trading.

It also launched, in cooperation with Total Energy, the first retail station in the Kingdom, with plans to develop a network of more than 200 service stations.

It also launched a new line of lubricant oils for cars under the Aroizen R brand. Aramco also surpassed Apple and topped the pyramid of international companies, recording the highest market value, which rose to 9.24 trillion riyals.

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