Aramco - Company Introduction

Topics: Petroleum, Saudi Aramco, Saudi Arabia Pages: 5 (1403 words) Published: April 20, 2011
Company Introduction

The roots of Saudi Aramco go back nearly seven decades. In 1933, shortly after Saudi Arabia was unified, the Government granted a concession to Standard Oil of California who recognized the potential of oil as a valuable export commodity and a source of revenue to begin building our nation. Standard Oil of California, the parent company of Chevron, was joined later by several other major oil companies and the venture became known as Aramco - the Arabian American Oil Company. In 1938, after five long years of exploration, oil was discovered in commercial volume when a well named Dammam Number 7, near today's headquarters in Dhahran, began to flow -- and ushered in a new era for Saudi Arabia. Things moved quickly, and in 1939 King 'Abd al-'Aziz visited Ras Tanura to inaugurate the first shipload of Saudi crude oil ever exported. The young Kingdom was now officially launched into the international petroleum industry

Corporate Mission:

Saudi Aramco's mission as an integrated international company is to engage in all activities related to the hydrocarbon industry, on a commercial basis and for the purpose of profit.

Corporate Objective:

Maximize profitability

The company is continuously striving to maximize profitability by focusing on achieving maximum returns from Company assets. Maximizing profitability entails both revenue enhancement and cost reduction. The Company can achieve revenue enhancement through the capture of new business opportunities related to its core oil and gas business, enhancement of efficiency and effectiveness in conducting business and optimization of the business portfolio. The Company can lower the total cost of production by prudent management of resources, capturing synergies and leveraging existing investments in people, processes and technology. The overall return on assets will be maximized by reducing cost, enhancing facilities utilization and identifying equipment inefficiencies to increase capacity, availability and yield. Remain a reliable supplier of oil and gas

This objective focuses on the Company’s ability to meet global and national commitments for both Oil and Gas. This objective can be achieved through enhancements in reserves and production capabilities, operational reliability of facilities, and improvements in logistics. The Company will intensify its efforts to grow the Kingdom’s hydrocarbon reserves and continually upgrade its operational and logistical capabilities. At the same time, the Company recognizes that reliability and maintainability are increasingly important elements in its day-to-day business. In order to remain a reliable supplier of Oil and Gas and achieve world class operational excellence, efforts will be made to systematically measure, analyze and improve drivers of key operational metrics. Efficiently meet the kingdom’s energy demand

Continued economic prosperity and social welfare in the Kingdom will largely depend on the availability of energy in the most economic and cost effective manner possible. This objective covers a wide array of oil and gas exploration, reserves development, facility expansions, improved domestic logistics and promotion of efficient use of energy. Contribute to the development of the kingdom’s economy

This objective focuses on the Company’s position as an enabler for local economic growth, both in terms of employment and in terms of generating new businesses and ideas. The Company is committed to further developing the oil and gas based local industries which in turn could help spawn and grow a wide range of other industries leading to economic diversification. The Company will also promote the establishment of new local businesses in the manufacturing and service sectors. Maximize profitability

The company is continuously striving to maximize profitability by focusing on achieving maximum returns from Company assets. Maximizing profitability entails both revenue enhancement...
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