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54-448: Jizan has one of the largest megaprojects market in the kingdom with significant infrastructure projects worth many billions of dollars. Saudi Aramco is building a 400,000 bpd refinery with associated terminal facilities on the Red Sea near the city, scheduled for completion in late 2018. The inhabitants of Jizan are Arab and split between Sunni Muslims and Shia Muslims that live in

108-488: A 50% fall in net income for the first half of its financial year, as demand for oil and prices continued to fall due to the coronavirus crisis . On 3 November 2020, Saudi Aramco reported a 44.6% drop in third-quarter net profit amid the COVID-19 pandemic. On 14 December 2020, Saudi state TV announced that an oil tanker carrying over 60,000 metric tons of unleaded gasoline from an Aramco refinery at Yanbu, had been attacked by

162-552: A 70% share in SABIC , a chemicals manufacturing company. In June 2020, Saudi Aramco laid off nearly 500 of its more than 70,000 employees, as global energy firms reduced their workforce due to the COVID-19 pandemic . Most of the workers who lost their job at Aramco were foreigners. On 31 July 2020, Saudi Aramco lost its title as the world's largest listed company by market capitalization to Apple . On 9 August 2020, Saudi Aramco reported

216-652: A barrel, Aramco announced it would increase production to 9.7 million barrels per day (mbpd). Then as prices plummeted, Aramco stated in January 2009, that it would reduce production to 7.7 mbpd. In 2011, Saudi Aramco started production from the Karan Gas Field, with an output of more than 400 million scf per day. In January 2016, the Deputy Crown Prince of Saudi Arabia, Mohammad bin Salman Al Saud , announced he

270-573: A bond issue by an emerging market entity. Aramco announced on Sunday 3 November 2019 its plan to list 1.5% of its value as an IPO on the Tadawul stock exchange . On 9 November 2019, Saudi Aramco released a 600-page prospectus giving details of the IPO. According to the specifications provided, up to 0.5% of the shares were locked for individual retail investors. On 4 December 2019, Saudi Aramco priced its offering at 32 Saudi riyals (approximately US$ 8.53 at

324-494: A few years earlier. The American government granted US Aramco member companies a tax break known as the golden gimmick equivalent to the profits given to King Abdulaziz. In the wake of the new arrangement, the company's headquarters were moved from New York to Dhahran. In 1951, the company discovered the Safaniya Oil Field , the world's largest offshore field. In 1957, the discovery of smaller connected oil fields confirmed

378-476: A fire in two storage tanks. The incident occurred during qualifying for the 2022 Saudi Arabian Grand Prix . On 11 May 2022, Saudi Aramco became the largest (most valuable) company in the world by market cap, surpassing Apple Inc. In August 2022, Saudi Aramco announced that it would acquire Valvoline's petroleum unit for $ 2.65 billion. In March 2023, Saudi Aramco announced that they had seen record profits of $ 161 billion as prices of petrol soared following

432-505: A joint venture. Safaniya Field Safaniya Oil Field ( Arabic : حقل السفانية النفطي ), operated and owned by Saudi Aramco , is the largest offshore oil field in the world. It is located about 265 kilometres (165 mi) north of the company headquarters in Dhahran on the coast of the Persian Gulf , Saudi Arabia . Measuring 50 by 15 kilometres (31.1 by 9.3 mi), the field has

486-532: A message came to the home page apologizing to customers. Computer security specialists said that "The attack, known as Shamoon, is said to have hit "at least one organization" in the sector. Shamoon is capable of wiping files and rendering several computers on a network unusable." Richard Clarke suggests the attack was part of Iran's retaliation for the US involvement in Stuxnet . Security researcher Chris Kubecka , who helped

540-641: A producing capability of more than 1.2 million barrels per day (190 × 10 ^  m /d). The oil field was discovered in 1951. It is considered the largest offshore oil field in the world. When it was first put in production in 1957, it flowed 50,000 barrels per day (7,900 m /d) of crude oil from 18 wells. At the beginning of 1962, it had the capability to handle 350,000 barrels per day (56,000 m /d) from 25 wells. Its reserves amount to around 37 billion barrels (5.9 × 10 ^  m ) of oil and 5,360 billion cubic feet (152 × 10 ^  m ) of natural gas. The main producing reservoir

594-467: A report by Financial Times claimed that Aramco had been bearing the ministry-related expenses; boosting the finance ministry budget allocation. It also included Energy Minister Khalid Al Falih ’s company-related and diplomatic trips, as well as his stays in luxurious hotels. However, an ally mentioned that Falih’s policies have delivered additional oil revenues that far exceeded his expenses. In September 2019, Saudi Arabia appointed Yasir Al-Rumayyan as

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648-522: A second with Sinopec , and a third with Repsol . By 2004, Aramco was producing 8.6 million barrels per day (mbpd) out of a potential 10 mbpd. In 2005, Aramco launched a five-year plan to spend US$ 50 billion to increase their daily capacity to 12.5 mbpd by increasing production and refining capacity and doubling the number of drilling rigs. In 2005, Saudi Aramco was the world's largest company with an estimated market value of US$ 781 billion. In June 2008, in response to crude oil prices exceeding US$ 130

702-417: A smaller boat rigged with explosives. In March 2021, Saudi Aramco announced that earnings in 2020 fell by nearly 45% compared with 2019, as lockdowns around the world following the COVID-19 pandemic curbed demand for oil . On 19 March 2021, an Aramco refinery was attacked by six bomb-laden drones. The attack, which was claimed by Houthi rebels, started a fire but caused no injuries or damage, according to

756-460: A total of 624 wells in the field. When Saudi Arabia's oil production peaked in 1980–1981, Safaniya was producing over 1.5 million barrels per day. Today the field still produces 600,000 barrels per day and almost all of Safaniya's oil still comes from the Safaniya formation reservoirs. The Safaniya is also Saudi Arabia's primary supplier of heavy oil at an average API gravity of 27. The Safaniya Field

810-478: Is expected to produce 400,000 barrels per day. Jazan Port and Jizan Regional Airport serve the city of Jizan. Jizan has a hot desert climate ( Köppen : BWh ) with a rainfall below 200 mm per year and an average annual temperature above 30 °C (86 °F). The weather is very hot all year round and its average annual temperature is one of the hottest in the world, as daily lows average over 20 °C (68 °F) and highs over 30 °C (86 °F) even in

864-470: Is the Safaniya which is a cretaceous sandstone in the Wasia formation. Most geologist believe that the Safaniya field and the neutral Zone Khafji field share the same aquifer that continues toward Kuwait's Burgan field. The Safaniya field has several separate geologic production potential at depths between 4,000 and 7,000 feet. It was brought into production in 1957 at about 25,000 barrels per day. By 1993, there were

918-598: Is the largest offshore oil field in the world and is located in the Persian Gulf. The field is an anticline structure with production area of about 65 km long and 15 km wide. It is a series of structures trending NW-SE caused by uplift movement due to the Zagros reverse fault. Regional tectonic events such as compression occurred along eastern part of the Zagros belt during the Campanian which caused uplift and minor erosion of

972-567: Is the single greatest contributor to global carbon emissions of any company in the world since 1965. Saudi Aramco operates the world's largest single hydrocarbon network, the Master Gas System. In 2013, its crude oil production total was 3.4 billion barrels (540 million cubic metres), and it manages over one hundred oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet (scf) of natural gas reserves. Along

1026-568: The Eastern Province , Saudi Aramco most notably operates the Ghawar Field (the world's largest onshore oil field ) and the Safaniya Field (the world's largest offshore oil field ). On 11 December 2019, the company's shares commenced trading on the Tadawul stock exchange . The shares rose to 35.2 Saudi riyals , giving it a market capitalization of about US$ 1.88 trillion, and surpassed

1080-403: The Ghawar Field as the world's largest onshore field. In 1975, the Saudi Arabia second five-year economic plan included a Master Gas Plan. Natural gas would be used to generate power, rather than flaring the gas . The plan counted on using the associated gas , but by 1985, Aramco was able to include a billion standard cubic foot per day (Bscfd) of non-associated gas. This non-associated gas

1134-623: The Jazan region . In the early 20th century, Jizan was a major site for pearl fishing . When World War I began, trade declined, due to ships moving to Al Hudaydah . Today, ambitious projects in transport, renewable energy, tourism and agricultural development are taking place in the Jizan region, particularly in Jazan Economic City , including a US$ 3 Billion aluminium smelter . Jazan is being turned into Saudi Arabia's naval industry hub. Furthermore,

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1188-604: The Persian Gulf War , Aramco was expected to replace much of the oil production removed from the global market due to the embargo of Iraq and occupied Kuwait. This amounted to producing an extra 4.8 million barrels per day (Mbpd) to keep the global oil market stable. In addition, Aramco was expected to provide all of the coalition aviation and diesel needs. Aramco recommissioned 146 Harmaliyah, Khurais , and Ghawar oil wells with associated gas oil separation plants , and saltwater treatment pipeline, that had been mothballed during

1242-605: The Saudi Arabian Oil Company or simply Aramco (formerly Arabian-American Oil Company ), is a majority state-owned petroleum and natural gas company that is the national oil company of Saudi Arabia . As of 2024 , it is the fourth- largest company in the world by revenue and is headquartered in Dhahran . Saudi Aramco has both the world's second-largest proven crude oil reserves , at more than 270 billion barrels (43 billion cubic metres), and largest daily oil production of all oil-producing companies. It

1296-660: The Texas Company (Texaco) purchased a 50% stake of the concession. After four years of fruitless exploration, the first success came with the seventh drill site in Dhahran in 1938, a well referred to as Dammam No. 7 . This well immediately produced over 1,500 barrels per day (240 m /d), giving the company confidence to continue. On 31 January 1944, the company name was changed from California-Arabian Standard Oil Co. to Arabian American Oil Co. (or Aramco ). In 1948, Standard Oil of New Jersey (later known as Exxon) purchased 30% and Socony Vacuum (later Mobil) purchased 10% of

1350-700: The Yom Kippur War , the Saudi Arabian government acquired a 25% "participation interest" in Aramco's assets. It increased its participation interest to 60% in 1974. Aramco continued to operate and manage the former Aramco assets, including its concessionary interest in certain Saudi Arab oil fields, on behalf of the Saudi Arab Government until 1988. In November 1988, a royal decree created a new Saudi Arab company,

1404-611: The 1980s oil price collapse. Daily production increased from 5.4 Mbpd in July to 8.5 Mbpd in December 1990 after a three-month de-mothball effort. Starting in 1990, Aramco embarked on an expansion of crude oil sales in the Asian market. Agreements with South Korea , the Philippines , and China resulted. By 2016, about 70% of Aramco's crude oil sales were to Asia. In May 2001, Saudi Arabia announced

1458-454: The COVID-19 pandemic. The figures eclipsed the numbers posted by ExxonMobil and Shell, who reported $ 55.7 and $ 39.9 billion in profit respectively. In March 2023, Saudi Aramco announced it was going to acquire a 10% stake in China's Rongsheng Petrochemical Co. Ltd, with an estimated purchase price of $ 3.6 billion, and plans to build a new refining and petrochemical complex in northeast China through

1512-497: The Chairman of Aramco. Al-Rumayyan became head of the country’s sovereign wealth fund by replacing Khalid Al-Falih , who was holding the position since 2015. Aramco computers were attacked by a virus on 15 August 2012. The following day Aramco announced that none of the infected computers were part of the network directly tied to oil production, and that the company would soon resume full operations. Hackers claimed responsibility for

1566-611: The Gas Initiative, which proposed forming three joint ventures with eight IOCs for gas exploration on pure upstream acreage. Core Venture 1 included south Ghawar and north Rub' Al-Khali , Core Venture 2 included the Red Sea , while Core Venture 3 involved Shaybah and Kidan. In 2003, Royal Dutch Shell and TotalEnergies formed a partnership with Saudi Aramco in Core Venture 3. In 2004, Core Venture 1 became three separate joint ventures with Saudi Aramco holding 20%, one with Lukoil ,

1620-563: The Mesozoic petroleum system that separates the Jurassic oils from mixing with the Cretaceous oils is a permeable evaporites anhydrite with a thickness reaching up to 287 m. The seal is not well developed along the eastern and northeastern part of Saudi Arabia. This allows Jurassic oils to mix with Cretaceous oils and causes the production of Cretaceous oils mixed with Jurassic oils to be limited to

1674-549: The Safaniya Fields. The Jurassic Petroleum System consists of the Tuwaiq Mountain and Hanifa formations which are thick laminated organic rich lime mudstone units from the Jurassic period and contain a type II kerogen that has excellent source rock potential. The carbon isotope ratios between the oils (avg. δ 13C = - 26.6‰) and the kerogen (avg. δ 13C = - 26.4‰) and bitumen (avg. δ 13C = - 27.1‰) The typical seal rock in

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1728-525: The Safaniya Formation. Jurassic source rocks began oil movement during the Late Cretaceous. The Tuwaiq Mountain source rock reached early stage maturity for oil generation at about 100 Ma and continued to attain its peak oil expulsion in the deeply buried areas at Early Tertiary time, approximately during a period of 65-54 Ma. Hydrocarbons generated then began to accumulate in fold structures around

1782-521: The Saudi Arabian Oil Company, to take control of the former Aramco assets (or Saudi Aramco) and took the management and operations control of Saudi Arabia's oil and gas fields from Aramco and its partners. In 1989–90, high-quality oil and gas were discovered in three areas south of Riyadh: the Raghib area about 77 miles (124 km) southeast of the capital. In September 1990, after the start of

1836-618: The US$ 2 trillion mark on the second day of trading. Saudi Aramco's origins trace to the oil shortages of World War I and the exclusion of American companies from Mesopotamia by the United Kingdom and France under the San Remo Petroleum Agreement of 1920. The US administration had popular support for an " Open Door policy ", which Herbert Hoover , secretary of commerce, initiated in 1921. Standard Oil of California (SoCal)

1890-743: The Wasia Formation. The eroded units included the Mishrif Member and most of the Rumaila Member. This caused the Aruma unconformity to form. Because of the impact of the regional tectonic events during this time hydrocarbon traps started to form. Burial stage resumed and deposited the Aruma Formation at the end of the Campanian until the end of the Middle Eocene. In between Middle Eocene to Miocene, there

1944-578: The basin. The main petroleum system of the Safaniya reservoir is the Mesozoic Petroleum System. The Mesozoic Petroleum System can be divided into two smaller petroleum systems, the Jurassic Petroleum System and Cretaceous Petroleum System. These small systems have generated hydrocarbons from the Jurassic to Cretaceous time period and largely contributed to the oil and gas production in the world's largest offshore field in Saudi Arabia

1998-492: The company establish security after the attack, detailed the level of sophistication in her Black Hat USA 2015 presentation and episode 30 of Darknet Diaries. On 14 September 2019, there was a drone attack on two Saudi Aramco plants: the Abqaiq oil processing facility and Khurais oil field . Houthi rebels claimed responsibility for the attack. The attack cut 5.7 million barrels per day (bpd) of Saudi crude output, over 5% of

2052-815: The company, with SoCal and Texaco retaining 30% each. The newcomers were also shareholders in the Iraq Petroleum Co. and had to get the restrictions of the Red Line Agreement lifted in order to be free to enter into this arrangement. In 1949, ARAMCO had made incursions into the Emirate of Abu Dhabi , leading to a border dispute between Abu Dhabi and Saudi Arabia. In 1950, King Abdulaziz threatened to nationalize his country's oil facilities, thus pressuring Aramco to agree to share profits 50/50. A similar process had taken place with American oil companies in Venezuela

2106-451: The company. While the IPO had been vetted by major banks, the IPO was delayed over concerns of Aramco's corporate structure through 2018 into 2019. The September 2019 drone attacks on Aramco's facilities also delayed the onset of the IPO. On 9 April 2019, Aramco issued bonds collectively valued at US$ 12 billion. Its first international bond issue received more than US$ 100 billion in orders from foreign investors, which breaks all records for

2160-459: The deal included BNP Paribas, MUFG, BofA Securities, SMBC Nikko, First Abu Dhabi Bank, Societe Generale, and BOC International. The company has reported a fall in the net profit of its third-quarter for November 2020, due to increased crude prices and a drop in its demand following the COVID-19 pandemic. On 10 March 2020 Saudi Aramco announced a global partnership with Formula One landing a multi-year deal. On 17 June 2020, Saudi Aramco acquired

2214-409: The eastern and northeastern part of Saudi Arabia. The Cretaceous Petroleum System consists of the main reservoir in the Safaniya fields, the Safaniya member. The Safaniya member is a thick sequence of sandstone, siltstone and shale with thin intervals of limestone, coal and varying amounts of ironstone. The Mauddud Formation is intra-formational shales and tight carbonates that seals the reservoirs within

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2268-629: The mildest month of the year, while unlike a lot of tropical cities the summer is even noticeably warmer. It is very humid but parched in some months, making the weather volatile. Sandstorms are quite common in areas further from the sea. The highest recorded temperature was 46.3 °C (115.3 °F) on 15 September 2006, while the lowest was 11.8 °C (53.2 °F) on 7 February 1993. 16°53′21″N 42°33′40″E  /  16.88917°N 42.56111°E  / 16.88917; 42.56111 Saudi Aramco Saudi Aramco ( Arabic : أرامكو السعودية ʾArāmkū as-Suʿūdiyyah ), officially

2322-868: The official Saudi Press Agency. On 21 March 2021, Saudi Aramco signed an agreement to secure China's energy supplies for the next 50 years, and also to develop new technologies to combat climate change. More recently, they signed a deal with a consortium led by EIG. In July 2021, Saudi Aramco appointed former HSBC Holdings Plc Chief Executive Officer Stuart Gulliver to the company's board of directors. In October 2021, Saudi Aramco announced plans to achieve net-zero carbon emissions from its wholly-owned operations by 2060. On 20 November 2021, Houthi fighters took credit for launching 14 drones at military targets in Riyadh, Abha, Jizan, Najran, and Jeddah, and Aramco's refineries in Jeddah. In 2021, The Guardian reported that Aramco

2376-452: The region. At the eastern side of the basin oil generation and expulsion began about 75 Ma. By 50 Ma the oil had expanded westward and started filling structures that had formed during the late Cretaceous. Today the Hanifa and Tuwaiq Mountain source rocks in the east have passed through the oil generation window but may also still be within the oil generation window. In the western part of the basin

2430-460: The southern and western outskirts of the city are a place which the Kingdom wants to turn into its agricultural hub due to its underground water resources as well as the rich and diverse soil. Jazan Refinery is a megaproject under construction and owned by Saudi Aramco . The Refinery will process heavy and medium crude oil to create liquefied petroleum gas , sulfur, asphalt, benzene, and paraxylene. It

2484-461: The spread of the computer virus. The virus hit companies within the oil and energy sectors. A group named "Cutting Sword of Justice" claimed responsibility for an attack on 30,000 Saudi Aramco workstations, causing the company to spend months restoring their services. The group later indicated that the Shamoon virus had been used in the attack. Due to this attack, the main site of Aramco went down and

2538-507: The time) per share. The company generated subscriptions of total amount equals US$ 119 billion representing 456% of total offer shares. It raised US$ 25.6 billion in its IPO, making it the world's largest IPO, succeeding that of the Alibaba Group in 2014. The company commenced trading on Tadawul on 11 December 2019, with shares rising 10% to 35.2 riyals, giving the company a market capitalization of about US$ 1.88 trillion, and making Saudi Aramco

2592-419: The world's largest listed company. The entire Tadawul has a market capitalization of US$ 2.22 trillion. According to a bourse filing made by Aramco, the likes of Goldman Sachs , HSBC , Morgan Stanley , JPMorgan , and NCB Capital were hired by the company for organizing investor calls prior to the planned transaction. The document published by one of the other banks said to be involved in the deal showed that

2646-406: The world's supply. There were discussions by Saudi Arabian officials on postponing Aramco's IPO, because the attacks "sidelined more than half of the kingdom's output" of oil. Since around 2018, Saudi Arabia had been considering to put a portion of Saudi Aramco's ownership, up to 5%, onto public trading via a staged initial public offering (IPO), as to reduce the cost to the government of running

2700-530: Was a stop in deposition events due to structural growth and non-deposition in the area. The last major event in the burial history of the area was Plio-Pleistocene Zagros orogeny which resulted in folding with NW-SE trends and uplift in the Persian Gulf area. Saudi Arabia covers a large part of the Arabian Basin which is the primary producer of oil and gas. The basement structures beneath the Arabian Basin have controlled sediment deposition and structural growth of

2754-495: Was among those US companies seeking new sources of oil from abroad. The Saudi Arabian government granted a concession to SoCal in preference to a rival bid from the Iraq Petroleum Company . The concession allowed SoCal to explore for oil in Saudi Arabia. SoCal assigned this concession to a wholly owned subsidiary , California-Arabian Standard Oil ( CASOC ). In 1936, with the company having had no success at locating oil,

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2808-517: Was considering listing shares of the state-owned company, and selling around 5% of them in order to build a large sovereign wealth fund . On 26 April 2017, Saudi security forces thwarted an attempted attack on an Aramco oil distribution center involving an unmanned boat from Yemen. The Wall Street Journal reported in September 2018, Aramco was considering a US$ 1 billion venture-capital fund to invest in international technology firms. In June 2019,

2862-576: Was not trying to diversify at the same rate as other oil companies, such as Shell and BP. Rather, Aramco announced in 2021 that the company intended to increase crude capacity from 12m barrels a day to 13m barrels by 2027. In February 2022, following crude's ascent to nearly $ 95 per barrel, Saudi Arabia's Aramco boosted oil prices for clients in Asia, the United States, and Europe. In March 2022, Houthi fighters attacked an Aramco storage site in Jeddah causing

2916-512: Was produced from the Kuff Formation , which is a limestone layer 650 metres (2,130 ft) below the oil producing Arab Zone. In 1994, Aramco discovered more non-associated gas in the deeper Jawf sandstone formation, and built plants in Hawiyah and Haradh to process it. This increased the capacity of the Master Gas System to 9.4 billion scfd. In 1973, following US support for Israel during

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