• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 7 hours EU has already lost the Trump vs. EU Trade War
  • 1 hour Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 27 mins Science: Only correct if it fits the popular narrative
  • 4 hours ''Err ... but Trump ...?'' *sniff
  • 54 mins China's Renewables Boom Hits the Wall
  • 14 mins What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 6 hours Tesla Launches Faster Third Generation Supercharger
  • 15 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 7 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 5 hours Crazy Stories From Round The World
  • 1 day Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire

Breaking News:

Russia Plans To Boost Crude Oil Exports

Aramco Eyes $16 Billion Investment In Small/Mid-size Businesses

oil rigs

Aramco is planning to spend some US$16 billion on contracts with small and medium-sized enterprises in a bid to expand cooperation with this segment of the economy, Reuters reports, citing Saudi media.

Every year, the Saudi oil giant spends some US$45.33 billion (170 billion riyal) on various services, Al Arabiya quoted the company’s deputy director of procurement and supply, Mohammed bin Ayed al-Shamri as saying. At least part of this money could be used to stimulate the growth of small and medium enterprises in an economy trying to wean itself off the oil that has been feeding it for decades.

The sum pales in comparison with Aramco’s growth strategy for the future. In addition to several refinery projects in Asia, which will cost it a few dozen billion dollars, the oil giant is also expanding internationally in other ways, eager to diversify away from just crude oil production and exports.

Last November, Aramco’s chief executive Amin Nasser said the company will spend US$500 billion over the next ten years to expand internationally, with a fifth of the total amount earmarked for petrochemical projects and US$160 billion for natural gas projects.

Nasser noted that the investment sum was separate from the US$70 billion it is planning to splash on the acquisition of a majority stake in local petrochemical major Sabic, which Aramco recently said it will fund with a combination of its own cash and money raised through an international bond.

Related: Goldman: The Renewables Revolution Is Good For Big Oil

“We need a major acquisition for us to be in different markets quickly,” Nasser told Bloomberg in November, referring to the Sabic acquisition. Petrochemicals demand is seen by many analysts as the primary crude oil demand driver of the future, so it makes sense that a company the size of Aramco is looking to gain greater exposure to this segment of the industry.

Plans are for Aramco to use almost a third of its daily production rate, or some 3 million bpd of crude oil, to produce chemicals. Also, the company eyes a twofold increase in its refining capacity by 2025. “You can absorb market volatility when you are balanced between upstream and downstream,” the chief executive said. “This is where our strategy is going.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play