Saudi Arabia-based oil behemoth Saudi Aramco has announced that it will reorganise its downstream business to support its global growth strategy, the media reported.
Aramco, which is one of the largest oil producing company, will expand its downstream business globally. It pumps around 8.5 million barrels per day (bpd) of crude, of which it exports about 6 million bpd.
Aramco said that its downstream model will be divided into four units which are fuels including refining, trading, retail and lubes; chemicals; power; and pipelines, distribution, and terminals.
In a statement, the oil producer said, “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.”
Aramco, which is the world’s most profitable company, is also planning to increase its refining capacity in Saudi Arabia from around 5 million bpd to 8 to 10 million bpd, according to media reports.
Last month, Aramco started laying off employees in response to the coronavirus pandemic, which has severely impacted the demand for oil.
Reportedly, around 500 employees lost their jobs in Aramco, most of them were non-Saudis. Aramco has around 70,000 employees.
Last month, Saudi Aramco completed the purchase of its 70 percent stake in the kingdom’s petrochemical giant Sabic from the Saudi Public Investment Fund in a deal worth $69.1 billion. Reportedly, it is one of the largest ever deals in the global chemicals industry.
The acquisition is in line with Aramco’s decision to expand its downstream, or refining and marketing, business globally.
