Saudi Aramco downstream strategy to combine organic growth with strategic acquis

Saudi Aramco President and CEO, Mr. Amin H. Nasser told delegates attending the 13th annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum that a key Saudi Aramco objective is to bring its downstream business to the same prominence as its upstream, as the company undergoes substantial expansions in refining, marketing and lubes. In line with the forum theme ‘Exceeding Transformation & Investing in Growth,’ Mr. Nasser commented on Saudi Aramco’s pivotal role in enabling new industrial and business partnerships as well as infrastructure, not only in core oil and gas downstream, but also in advanced technologies and energy-related, value-adding activities.

“Our ultimate target of 8-10 million barrels per day of integrated refining and marketing capacity will create a better balance between our upstream and downstream segments,” Mr. Nasser said.

In a keynote speech before executives and experts from the world’s leading manufacturers, suppliers, and others spanning the chemicals and petrochemicals sector, Mr. Nasser highlighted chemicals as the most promising element of the company’s downstream strategy. He said that chemicals will represent about one-third of world oil demand growth between now and 2030, and nearly half by 2050. Petrochemicals will add nearly seven million barrels per day (bpd) of oil demand by 2050, reaching a total of some 20-mbpd. This growth will be driven by an expanding world population and a growing middle class enjoying more affluent lifestyles.

“Saudi Aramco will make the most of those prospects with chemicals investments of more than $100 billion over the next 10 years – not including a prospective acquisition. We are expanding this business both in Saudi Arabia and in fast-growing overseas markets like China and India, with the aim of converting two million barrels per day of crude oil into petrochemicals – and we may eventually move our target higher to three million barrels.”