The move is aimed at supporting its global growth strategy and enhancing integration across the hydrocarbon value chain. The changes are to become effective by year-end, it said in a statement.
The downstream operating model will be divided into Fuels (includes refining, trading, retail, and lubricants); Chemicals; Power; and Pipelines, Distribution & Terminals. These units will be supported by three corporate functions: Manufacturing; Strategy & Marketing; and Affiliates Affairs.
Aramco has recently completed the purchase of a 70% stake of petrochemicals giant SABIC. Its strategy is to create growth opportunities across the value chain to expand its sources of earnings, providing resilience to oil price volatility and capitalizing on rising demand for petrochemical products.
“This reorganization is designed to enhance effectiveness and efficiency of Aramco’s existing Downstream assets, but does not represent a fundamental change in the overall business structure,” Aramco said.
The launch of the new operating model “will streamline our operations and reinforce our position as a major global energy and petrochemicals player,” noted Abdulaziz M. Al Gudaimi, VP of Aramco Downstream.
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