Strategic business relationships around the world mean more opportunities for growth and diversification. The journey from raw materials to refined products and chemicals requires major investments in strategic partnerships, infrastructure, technology and people.
We are partnering with leading companies from around the world to strengthen our downstream integration and achieve greater sustainable competitive advantage from exploration, production and marketing.
By pursuing global ventures and partners, we are also creating new jobs and more business for service and materials suppliers in our local in-Kingdom supply chains.
Pursuing partnerships for mutual development
We partner with leading companies around the world in a variety of sectors to contribute to economic growth in the country and to expand opportunities for local businesses in Saudi Arabia.
A selection of our key partners, ventures and affiliates:
Saudi Aramco Trading Company (ATC)
Saudi Aramco Trading Company (ATC), our wholly owned subsidiary for trading petroleum products, plans to integrate base oil producing affiliates and establish global base oil product slates under the Saudi Aramco brand for Groups I, II, and III, with the capacity to produce 4.7 million tons per year, representing 14% of global base oil demand. In late 2016, Aramco Trading Company (ATC), began volume exports of Group I base oil under the new brand name aramcoDURA®.
In addition to commencing exports of aramcoDURA®, ATC celebrated five years of successful operations and remained focused on creating more value from trading operations and maintaining reliability and profitability from our refined products portfolio.
Sadara Chemical Co., our joint venture with The Dow Chemical Company, is the largest integrated chemicals plant ever built in a single phase. Having the capacity to produce three million tons of performance plastics and high-value chemicals per year, it has been hailed a ‘game changer’ in the regional chemical industry.
Strategically located in Jubail Industrial City, Sadara and its integrated PlasChem value park will become a hub for chemical conversion plants, manufacturers, and associated service industries, potentially generating thousands of direct and indirect jobs for Saudis.
In 2016, Sadara marked a historic landmark with the startup of its mixed feed steam cracker, making it the first chemicals facility in the GCC countries to crack naphtha. The cracker, which breaks ethane and naphtha to form new molecules, including ethylene and propylene, enables the production of a diversified range of plastics and chemical products designed to meet the rigorous standards of sectors such as advanced packaging, construction, electronics, furniture, and the automobile industry.
The Saudi Aramco Total Refining and Petrochemicals Company (SATORP) in Jubail, is our joint venture with France’s Total. Roughly 80% of the refinery’s construction activities have been executed by domestic subcontractors and the company has an overall Saudization rate of nearly 65%.
Recently, we began exploring the development of a world-class chemicals complex and associated value park to be integrated with SATORP and other existing sites in Jubail, further amplifying the economic benefits made possible by our downstream investments.
Fujian Refining & Petrochemical Company (FREP), is our joint venture with ExxonMobil, China Petroleum and Petrochemical Company Limited (Sinopec) and the Fujian provincial government. FREP is a key element in our Asia chemicals strategy and is long recognized for its outstanding environmental performance by the local community and government.
In China, our crude oil exports account for nearly 10% of the country’s demand. Our portfolio of downstream assets in China is designed to benefit energy and feedstock consumers and maximize returns on the Kingdom’s hydrocarbon resources.
Our investment in South Korea’s S-OIL, one of the country’s leading refiners, complements our downstream ventures in China and Japan and creates new opportunities along the value chain in the major energy markets in Asia.
Two projects are underway to enhance its refinery’s competitiveness, create a more diversified portfolio, and improve profitability. The first project involves upgrading low-value residue to high-value olefin and gasoline products. The second project involves new facilities to produce polypropylene and propylene oxide, and recover ethylene.
Our joint venture with German specialty chemicals company LANXESS, is a milestone on our journey to increase our participation in the chemicals sector. Arlanxeo is a world leader in the development, production, marketing, sale, and distribution of synthetic rubber and elastomers used in the global tire industry, auto parts manufacturing, construction, and oil and gas industries.
The joint venture helps unlock the full economic potential of the Kingdom’s hydrocarbon resources, and potentially enables opportunities for further economic diversification and job creation.