Saudi Aramco, officially known as the Saudi Arabian Oil Company, is the world’s largest integrated oil and gas company, headquartered in Dhahran, Saudi Arabia. Founded in 1933 as a joint venture between Saudi Arabia and the Standard Oil Company of California (now Chevron), Saudi Aramco has grown into a global energy giant. The company plays a crucial role in the global energy market, producing over 10 million barrels of oil per day, and it holds the world’s second-largest crude oil reserves.
Saudi Aramco is known for its vast operations in oil exploration, production, refining, distribution, and marketing. In addition to oil, the company is involved in natural gas production and petrochemical manufacturing. The 2019 IPO of Saudi Aramco was the largest in history, giving it a market capitalization of over $2 trillion, making it the most valuable company globally. Aramco’s contributions extend beyond energy, as it is deeply involved in Saudi Arabia's Vision 2030 plan, which aims to diversify the country’s economy.
CEO and Founder of Saudi Aramco
Saudi Aramco's journey began in 1933 when a concession agreement was signed between Saudi Arabia and the Standard Oil Company of California. Over time, the Saudi government acquired full ownership, transforming it into the national oil company. The current President and CEO of Saudi Aramco is Amin H. Nasser, who has been at the helm since 2015. Nasser has played a pivotal role in modernizing the company and guiding it through its historic IPO in 2019, making Aramco the world's most valuable publicly traded company. Under his leadership, Saudi Aramco has also focused on sustainability, exploring alternative energy sources while maintaining its dominance in the oil industry.
List of Top Subsidiaries and Joint Ventures Under Saudi Aramco
Saudi Aramco has expanded its operations globally by acquiring and forming joint ventures with various companies. Below is a list of the top subsidiaries and joint ventures under Saudi Aramco, along with their approximate valuations:
| Company Name | Year Acquired/Founded | Valuation | Industry |
|---|---|---|---|
| SABIC (Saudi Basic Industries Corporation) | 2020 (Acquired) | $69 Billion | Petrochemicals |
| Aramco Trading | 2011 (Founded) | $30 Billion | Oil Trading |
| Motiva Enterprises | 1998 (Acquired) | $15 Billion | Oil Refining (U.S.) |
| S-Oil Corporation | 1991 (Acquired) | $7 Billion | Oil Refining (South Korea) |
| Saudi Aramco Total Refining and Petrochemical Co. (SATORP) | 2008 (Joint Venture with Total) | $10 Billion | Refining and Petrochemicals |
| Luberef (Saudi Aramco Base Oil Company) | 1978 (Founded) | $3 Billion | Base Oil Manufacturing |
| Arlanxeo | 2016 (Acquired) | $4 Billion | Synthetic Rubber |
| Vela International Marine | 1984 (Founded) | $2 Billion | Oil Shipping |
| Sadara Chemical Company | 2011 (Joint Venture with Dow Chemical) | $20 Billion | Petrochemicals |
| Yanbu Aramco Sinopec Refining Company (YASREF) | 2012 (Joint Venture with Sinopec) | $8 Billion | Oil Refining |
FAQs About Saudi Aramco
Q1: When was Saudi Aramco founded, and by whom?
A: Saudi Aramco was founded in 1933 as a joint venture between Saudi Arabia and the Standard Oil Company of California (now Chevron). The Saudi government gradually took full control of the company.
Q2: Who is the current CEO of Saudi Aramco?
A: The current CEO of Saudi Aramco is Amin H. Nasser, who has been leading the company since 2015.
Q3: What is Saudi Aramco’s role in the global oil market?
A: Saudi Aramco is the world’s largest oil producer, with a production capacity of over 10 million barrels of oil per day, making it a critical player in global energy markets.
Q4: What is Saudi Aramco’s most valuable acquisition?
A: Saudi Aramco’s most valuable acquisition is Saudi Basic Industries Corporation (SABIC), which was acquired in 2020 for $69 billion.
Q5: How did Saudi Aramco become the world’s most valuable company?
A: Saudi Aramco became the world’s most valuable company after its record-breaking IPO in 2019, with a valuation exceeding $2 trillion.
Q6: Is Saudi Aramco involved in renewable energy?
A: Yes, Saudi Aramco is investing in renewable energy and sustainability initiatives as part of Saudi Arabia's Vision 2030 plan to diversify the economy.
