Saudi Aramco

Topics: Petroleum, Saudi Arabia, Peak oil Pages: 12 (2549 words) Published: September 23, 2013
Saudi Aramco
(Saudi Arabian American Oil Co)
Eman Yanes, Student ID: H00028866
Final Project
Int. Business Emerging Markets
Liverpool University
May, 2013
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Abstract:
“Saudi Aramco-Saudi Arabian American Oil Co” was an American global Energy company that entered the Saudi

market in 1933 then became 100% Saudi company in 1988, to end up in 2012 as the biggest company in the

world. This dramatic shift had historical and political circumstances with changed economic conditions. The paper shows the company: history, strategy and projects internally and internationally. It also shows us the innovation key role played in the global organizations growth and Leadership role.

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Introduction
“Saudi Aramco-Saudi Arabian American Oil Co” that was established in (1933) ranked as “the biggest energy

company in the world, generating more than $1 billion a day in revenues” (Forbs, 2012). It is also ranked as “the largest company in the world in terms of market value by 781 billion, according to study results conducted by Britain's Financial Times newspaper in conjunction with Mackenzie British petroleum consulting”.

Its working areas can be classified into three sections: “Exploration and production business - Refining,

marketing and distribution - Staff development”. It works hard on all these areas to achieve its strategic intent that is “In 2020, Saudi Aramco is the world’s leading integrated energy and chemicals company focused on maximizing Income, facilitating the Sustainable”.

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WHO WE ARE AND WHAT WE DO – (Saudi Aramco 2012 Annual report)

1. Exploration and production

“161 oil search and development wells completed”. The company operates on the exploration and production (monopoly right given by the Saudi government) with the ongoing work on the development of technologies

relevant, in collaboration with the most important research centers in the world. In addition to local centers in

“King Abdul-Aziz City for Science, Technology and Innovation” and “King Abdullah University of Science and 4

Technology”, which work hand by hand on continuous developing researches and techniques to increase production. All of these organizations support the company exploration & production by coordinating with the Aramco R&D centers.

2. Refining, marketing and distribution
“According to the company 2012 Annual report, the company increased its refining capacity significantly to a competitive global level to be ranked as sixth in the world refining capacity, with 4.02 million barrels per day”.

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3. Staff development
The company believes that the real investment in human. The real reason behind Aramco success and growth unable it to become the largest company in the world is due to the efficiency of its employees and their continuous efforts and loyalty. In order to prepare new qualified generations, the company follows two tracks: First:

Adopting creativity and innovation: Aramco worked on youth initiatives and creative investment through giving the

chance to these youth by incubation and R&D centers. The company has obtained “2012 World Oil Awards”, “Innovative Thinker Award 2010” and “New Horizons Award” for a “game-changing” invention. Second:

Transferring knowledge (early) from generations that have gained extensive experience to new generations: “The Company

has developed a strategic plan to make 40% of the company's employees under the age of 30, in order to prepare them early for higher positions”.

They have applied for their (5600 employees) “knowledge transfer programs, mentoring programs, and changes to the organizational culture to maximize the creativity and potential for leadership among young workers” .

The company provides the best services and programs for its employees in: (health, education and housing). In addition to ensure healthy and safe places of work, where the company proudly announced that the injuries rate in 2012 reached 8.3% only.

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References:  “Shaping tomorrow-2012 annual report” (2012) “Saudi Aramco” [Online], Available online from:
http://www.saudiaramco.com/content/dam/Publications/Annual%20Review/AnnualReview2012/2012Ann
ualReview_EN.pdf (Accessed: 27 May 2013).
 Guerrera,F. Hoyos,C. (2006) “Saudi Aramco revealed as biggest group”, FINANCIAL TIMES [Online],
Available online from : http://www.ft.com/cms/s/0/0ea4c450-8bb1-11db-a61f0000779e2340.html#axzz2Sq7MNnqi (Accessed: 25 May 2013).
“Aiming Higher- Saudi Aramco 2011 FACTS & FIGURES”(2013) Saudi Aramco [Online] Saudi Aramco ,
Available online from :
http://www.saudiaramco.com/content/dam/Publications/Annual%20Review%20Facts%20and%20Figures/F
acts%20and%20Figures%202011/2011-Facts-Figures-Eng.pdf (Accessed: 25 May 2013).
 “Our history” (2013), “Saudi Aramco” [Online], Available online from:
http://www.saudiaramco.com/en/home.html (Accessed: 25 May 2013).
 “FT: Non-Public 150 Companies Worth $7 trillion, Dominated by Oil and Private Equity” (2006) “Metrics
2.0 Business and marketing intelligence” [Online], Available online from :
http://www.metrics2.com/blog/2006/12/15/ft_nonpublic_150_companies_worth_7_trillion_domina.html
(Accessed: 26 May 2013).
May 2013).
 “Board of Directors Report 2011- Rabigh Refining & Petrochemical Company” (2011) Petro Rabigh
[Online], Available http://www.petrorabigh.com/en/Financial_Statements/BOD_2011_eng.pdf (Accessed:
27 May 2013).
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