Saudi Arabia’s state-owned petroleum and natural gas firm Saudi Aramco has announced that it will be reorganising its downstream business to support its global growth strategy.
According to the company, the reorganisation is designed to support the company’s vision of becoming the ‘leading’ integrated energy and chemicals company worldwide.
It is aimed at enhancing integration across the hydrocarbon value chain, thereby, allowing the company to increase its financial performance.
The downstream operating model will comprise four commercial business units.
These business units include fuels; chemicals; power; and pipelines, distribution and terminals.
The fuels business unit will include refining, trading, retail and lubes.
Aramco Downstream senior vice-president Abdulaziz Al Gudaimi said: “I am excited that we are launching a new operating model that we believe will help streamline our operations and reinforce our position as a major global energy and petrochemicals player.
“This reorganisation is yet another step in Aramco’s strategy to develop a global integrated downstream business that enhances our competitiveness by maximising our value capture across the hydrocarbon value chain.”
The reorganisation is scheduled for completion by the end of this year.
Earlier this month, Saudi Aramco issued a tender for modification works at its offshore Berri field to its long-term agreement (LTA) pool of contractors.
Last month, Saudi Aramco started cutting hundreds of jobs as it seeks to reduce costs in response to the oil price crash.
In May, the company was also reportedly close to finalising a $10bn loan from a group of banks.