Our Business

Our History

Corporate Values

Saudi Aramco Business

►Exploration

Making petroleum and its products available to the world begins with exploration and development. Exploration focuses on finding oil and gas fields hidden deep underground. Oil is formed in sedimentary rocks and migrates through a sedimentary basin's fluid system. Some is eventually trapped in a variety of geologic environments. It is up to oil exploration teams to locate these traps. These teams are primarily comprised of geologists and geophysicists.

Geologists study rocks, minerals and fossils to determine where oil and gas accumulations are likely to be found. They also understand global plate tectonics and how the basins of the world have evolved over time. Geophysicists study the physics of the earth. They often use seismology, the study of sound within the earth, and seismic surveying, the study of manmade sounds within the earth. Saudi Aramco explorationists primarily look for traps found by geophysicists in areas where geologists have determined that oil is likely to be found.

Once a field is located, development begins. Development entails studying a hydrocarbon reservoir to determine exactly how much oil or gas is present and how it may be safely and effectively extracted or produced. The techniques used in development are similar to those of exploration but are usually done in much more detail and can extend over the life of the field.

Saudi Aramco succeeds by taking a systematic approach to exploration. All exploration studies done by its scientists are kept in libraries, even studies that had negative results. Exploratory wells that were unsuccessful in finding oil or gas, called dry holes, provide valuable information about conditions in the sedimentary rocks thousands of feet down. Oil is generally found in a new basin after a long search, which may take many years, so a systematic approach to exploration and good record keeping are extremely important. The science of oil exploration matured over the last century and is now very sophisticated. Exploration and development require computer specialists to operate the powerful computers necessary for processing, analyzing and mapping the vast stores of data collected.

Two other important groups of specialists are the drillers and the petroleum engineers. The drillers are the ones responsible for the actual drilling of all exploration or development wells. The petroleum engineers become involved during the early development of a field after its initial discovery. They are largely responsible for managing a reservoir. In cooperation with, and using the data supplied to them by the geoscientists and those who directly produce the hydrocarbons, the engineers build highly detailed, 3-D reservoir models and input these models into sophisticated reservoir simulation computer programs that predict the current and future production of a reservoir. ▲

►Oil Operations

Saudi Aramco's oil operations encompass the Kingdom of Saudi Arabia, including territorial waters in the Arabian Gulf and the Red Sea. Totaling more than 1.5 million square kilometers, this area is larger than the combined areas of Texas, California, Oklahoma and Utah, or of France, Spain and Germany. Most production comes from fields in the coastal plains of the Eastern Province in an area extending 300 kilometers north and south of Dhahran.▲

►Gas Operations

The Kingdom of Saudi Arabia is endowed with two major fossil fuel sources, crude oil and natural gas. Worldwide, gas is the fastest growing energy source. Over the last decade, world gas consumption has grown 1.7% per year and is expected to accelerate at a rate of 3.2% per year over the next 20 years. Saudi Arabia discovered the merits of gas as a valuable resource in the 1970s, well before any other hydrocarbon-rich nation in the Middle East.▲

►Refining, Supply and Distribution

Saudi Aramco's responsibilities expanded greatly on July 1, 1993, when a Royal Decree merged into the company all of Saudi Arabia's state-owned oil refineries and distribution and marketing operations that were operated by the Petromin marketing and refining project known as Samarec. Under the same decree, Saudi Aramco assumed Petromin's 50-percent interests in three domestic joint-venture refineries. Saudi Aramco's new refining interests, combined with its Ras Tanura Refinery and its joint-venture and shareholder interests in five other refineries in the United States and the Far East, place the company in the top rank of world refiners.▲

►Shipping

Saudi Aramco sails one of the world's largest fleets of crude carriers and operates terminals which service more than 10 tankers per day.

Vela International Marine Limited

Vela International Marine Limited, a wholly owned subsidiary, was established in 1984 with four ships. It has grown to include 21 very large crude carriers (VLCCs) and seven product vessels. Vela, which transports crude oil to North America, Europe and Asia, has a history of commitment to accident-free voyages and quality maintenance. It has received ISO accreditation for its safe ship operations and environmental practices. In 2004, Vela completed compliance with the International Ship and Port Facility Security Code for its fleet of VLCCs.

Terminals

Saudi Aramco Terminals handle more than 9,000 tankers per year. These terminals are located at Ras Tanura and Ju'aymah on the Arabian Gulf coast and Jiddah, Rabigh, Jaizan, Yanbu' and Duba on the Red Sea coast. All tanker movements within Saudi Aramco terminals are conducted under the direction of highly trained harbor pilots with the assistance of powerful tugboats to safeguard company facilities and the environment. Since the beginning of Saudi Aramco Terminals at Ras Tanura in 1939, the company has committed itself to preventing oil spills. Saudi Aramco takes extensive measures to minimize the risk of spills its ships, marine terminals and visiting tankers. Terminal facilities are maintained to the highest standards, and stringent loading procedures are followed. ▲

►International Operations

Saudi Aramco has grown from essentially an exploration and production company prior to the 1990s to what it is today: an integrated global petroleum enterprise. The company not only markets and exports crude oil, petroleum products, natural gas liquids and sulfur -- it also ships crude oil worldwide through an affiliated company and participates in joint ventures at home and abroad to refine crude oil and market its products. ▲

►Technology and Innovation

Sophisticated oil exploration, production and utilization require oil companies worldwide to develop and employ the latest technologies. Saudi Aramco is a leader in utilizing and developing technologies that efficiently and effectively, yet safely, maximize the extraction and use of oil and gas. The company relies on its state-of-the-art electronic network and its extensive human network to keep it among the leaders in the oil and gas industries.▲

►Support and Services

Saudi Aramco's oil and gas production relies heavily upon Support Services. Without organizations such as Engineering, Project Management, Research & Development, Mechanical Services, Roads & Heavy Equipment, Aviation, Marine, Transportation and Material Supply, the exploration, production, refining and shipping of oil and gas would be impossible.▲

►Environment & Safety

Concern for the environment is one of Saudi Aramco's basic responsibilities and a long-standing company commitment. The Environment Protection Department provides leadership on environmental issues and ensures that the company operates in an environmentally responsible manner. Saudi Aramco has developed a broad array of operational requirements, engineering standards and performance guidelines to direct its commitment. These include sanitary codes, project environmental assessments, air and water quality standards, occupational health regulations, hazardous material communication guidelines, waste management procedures and vital oil spill contingency plans.

Of parallel importance is the commitment to safety. The Loss Prevention Department's mission is to ensure the safety of Saudi Aramco employees and the public, as well as company assets, by identifying hazards, by controlling risks and by educating and motivating company personnel and their families to work and live safely.▲