Aramco Reorganizes Downstream Business
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.