Aramco Reorganizes Downstream Business
Saudi Aramco said it will reorganize its downstream business by the end of the year to support and enhance integration across the hydrocarbon value chain and better position the group to drive financial performance, value creation and global growth.
The reorganized operating model will include four commercial business units: Fuels (includes refining, trading, retail and lubes); Chemicals; Power; and Pipelines, Distribution & Terminals. The units will be supported by three corporate functions: manufacturing, strategy & marketing and affiliates affairs.
The oil giant added that the reorganization was not a fundamental change to its overall business structure.
On Jun. 17, Aramco completed the acquisition of a 70% stake in compatriot chemical producer SABIC. The shareholding, bought from Saudi Arabian sovereign wealth fund Public Investment Fund for $69.1 million, was part of crown prince Mohammed bin Salman’s drive to diversify the Kingdom’s economy away from oil.
For Aramco, the stake is part of a long-term downstream strategy to grow its integrated refining and petrochemicals capacity and leverage petrochemicals growth opportunities.
