The Saudi Arabian Oil Company (Saudi Aramco), a government-owned entity and the world's largest oil company in terms of output, specializes in the exploration, production and distribution of crude oil, petrochemicals and natural gas.

The company’s oil operations cover Saudi Arabia including territorial waters in the Arabian Gulf and the Red Sea totaling more than 1.5 million sq. km and proven reserves of 259.8 billion barrels of oil. It has a total production capacity of 3 trillion cubic feet of gas, 3.25 billion barrels of crude oil and 399 million barrels of natural gas liquids per year, as of April 2008. Most production comes from fields in a 300-kilometer area in the Eastern Province. Saudi Aramco operates terminals that service more than 10 tankers per day.

Through subsidiaries and partnerships, the company delivers its products to clients in North America, Europe and Asia. Among the dozens of entities that undertake its global business are the Aramco Gulf Operations Company, the Saudi Petroleum International Incorporation in the US, the Saudi Petroleum Overseas in the UK and Saudi Petroleum in Tokyo, Beijing and Singapore, the Aramco Overseas Company in Europe.

The company began developing the Karan Gas Field in 2008 for and estimated SAR37.62 billion (USD10 billion). It will produce 1 billion cubic feet of gas a day, when completed in 2011. Split into two main offshore and onshore packages, Karan will comprise three main facilities, a gas processing unit at the Manifa facility, platforms and power generation units, and sub-sea pipeline.

Saudi Aramco awarded a contract to Halliburton in April 2008 to drill in the offshore section of Saudi Aramco’s Manifa Arabian Heavy Crude Program project. The project, which is expected to be completed in June 2011, will handle 900,000 b/d (barrels per day) of heavy crude plus 90 million cfd (cubic feet per day) of sour associated gas and 65,000 b/d of condensate. The company is planning on investments of SAR33.85 billion (USD90 billion) by 2013.

The company was established in 1933 when Saudi Arabia signed a concession agreement with Standard Oil of California to explore for oil within the country under the name California-Arabian Standard Oil Company (Casoc) until 1944, when it was changed to Aramco. In the 1970s, the government of Saudi Arabia began its gradual acquisition of the company and completely owned it by 1980 and established it under the name Saudi Arabian Oil Company (or Saudi Aramco), in 1988.