Saudi Aramco has released its latest Annual Review, titled Energy is Opportunity, highlighting the company’s key results and accomplishments in 2015
HE Khalid A. Al-Falih, Minister of Energy, Industry and Mineral Resources and chairman of the board of directors of Saudi Aramco said that, despite the low oil price environment, in 2015 Saudi Aramco delivered another record year of crude oil and gas production, as well as making significant rapid progress in its continued domestic and international downstream expansion. These results, delivered through focused operational efficiency and fiscal discipline, have consolidated the Kingdom of Saudi Arabia’s position in international energy markets, he said.
Amin H. Nasser, president and CEO, Saudi Aramco said that the company’s long-term approach has allowed it to stay resolutely focused on its commitments to create value, deliver new technology solutions, and accelerate the development of human capital.
Nasser added that in 2015 Saudi Aramco recorded its highest level of crude oil production, brought on-stream major value-addition projects in both upstream and downstream, and opened two new research centres in Beijing and Detroit.
Saudi Aramco produced an average of 10.2 mn bpd of crude oil in 2015, a new all-time record. Total raw gas processing averaged 11.6bn standard cubic feet per day, also an all-time record. Saudi Aramco's share of refining capacity stood at 3.1mn bpd. In addition, with new refineries going online, exports of petroleum products increased by 38 per cent, thus maximising the value of hydrocarbons.
Saudi Aramco’s exports to major markets increased substantially during the period from 2014 to the end of 2015 – for example, exports to China, Japan, South Korea and India grew by 4.5 per cent, 2.8 per cent, 3.5 per cent and 18 per cent respectively.
The Review highlights that in 2015 the company’s plan to integrate its refining network with chemicals production and associated value parks reached a major milestone with the startup of the Sadara Chemical Company. In addition, the SATORP and YASREF joint venture refineries came fully on-stream and the Jazan Refinery and Terminal projects are well underway. The expansion of Petro Rabigh, the integrated refining and petrochemical venture with Sumitomo Chemical of Japan, was steadily advanced toward its startup in 2016.
The 2015 Annual Review also highlights Saudi Aramco’s contributions to the overall social and economic development of Saudi Arabia, including the In-Kingdom Total Value Add (IKTVA) initiative that is designed to double the percentage of locally produced energy-related goods and services contracted by the company to 70 per cent.
In an interview with Reuters, Nasser said that Saudi Aramco is gaining market share and pushing for greater efficiency, as it acts as a "bridge" to a future when the nation relies less on energy exports.
Nasser also told Reuters that the oil giant was pressing on with preparations for its partial privatisation via a stock market listing, which he said lay at the heart of Riyadh's "Vision 2030", a long-term economic plan headed by Deputy Crown Prince Mohammed bin Salman.
Saudi Arabia has been pursuing a strategy of raising output and fighting for market share against higher-cost rivals such as U.S. shale producers - as well as fellow OPEC member Iran which has stepped up production and exports since the lifting of international sanctions.
"We are preserving our market share which continues to increase year-on-year," Nasser said in the interview.
