DHAHRAN, 20 June 2007 -- Saudi Aramco adopts a strategy of expanding its activities such as refining crude oil, manufacturing petrochemicals and value-added products, as the company aims at diversification of Saudi economic sources.

Adel Al-Tabib, vice president of Saudi Aramco for development and coordination of joint projects, addressing a conference at "China Petrochemical Fuchs 2007" in Shanghai recently, said Saudi Aramco is also increasing its capabilities by drilling new wells as well as producing, refining and marketing crude oil. The company aims to maintain its production capacity at a maximum of 12 million bpd by early 2009, he added.

The company's refining capacity has been growing fast with fully owned projects and joint projects, he said.

Besides undertaking refining and marketing, the company focuses on petrochemical projects in joint ventures in China, Korea, United States, Philippines, Japan and, of course, in Saudi Arabia. When all the new projects are fully commissioned, Saudi Aramco will become one of the top manufacturers of polyolefin in the world," he said.

Moreover, Al-Tabib said the development projects of Saudi Aramco are two-pronged. One is at the domestic front with its cooperation with giant multinationals in joint ventures in the Kingdom such as the PetroRabigh project with Sumitomo Chemical. Another instance is Saudi Aramco's recent signing of a memorandum of understanding with the Dow Chemicals to set up a refinery complex and integrated petrochemical materials at Ras Tanura. These two projects would provide the basis for several other downstream industries. Aramco is also cooperating with ConocoPhilips and Total to build refineries for heavy crude.

In the international front, Saudi Aramco plans to increase production capacity of the S-Oil Petrochemical Company in South Korea, embark on a joint venture for the expansion of Petron in the Philippines and the expansion of Port Arthur refinery facility in the United States. Aramco also intends to cooperate with Sinopec and ExxonMobil to launch more international projects.

By Faiz Al-Mazrouei

© Arab News 2007