Saudi Aramco continues push to expand downstream segment
The giant company sees the importance of strengthening its downstream offering, with recent and planned investments into the segment.
Saudi Aramco Senior Vice President of Downstream Abdulaziz M. Al-Judaimi participated in a panel discussion at the India Energy Forum titled: “Outlook for Refining and Petrochemicals.”
Judaimi noted that relations between the Kingdom and India are growing more strategic in nature, adding that, as the largest supplier of energy to India, Saudi Aramco has always had a long-term commitment to the country’s energy security. He added that Saudi Aramco is tapping into India’s world-leading growth, in large part by investing in its energy future as part of the company’s own downstream strategy.
Judaimi highlighted that the closer cooperation between Saudi Aramco and Indian energy entities is reflected in the partnership with RRPCL and ADNOC on the Ratnagiri mega-refinery and petrochemicals complex in Maharashta this year. He noted that nearly $2 billion in material-service sourcing with Indian companies to date; and the opening of the Aramco Asia India office in 2017.
“Investing in India’s value chain from oil supply, marketing and refining to petrochemicals and lubricants is a key part of Saudi Aramco’s global downstream strategy,” said Al-Judaimi. “Chemicals, especially, can enhance India’s energy sector, adding long-term value to the country’s resources, providing quality products for India’s and Asia’s rapidly expanding middle classes, and positioning India for accelerated economic growth as a manufacturing hub – all of which align with Saudi Aramco’s own intent to expand our global business portfolio and downstream network.”
With Saudi Aramco's pending aquisition of a controlling stake in petrochemicals company SABIC, the company is making a clear push towards diversifying its offering with a focus on downstream, while expanding in the region.