Aramco, the Saudi national oil company, has had a difficult year due to the worldwide coronavirus pandemic.
The company is now looking to conquer new markets, notably in Asia.
But also to develop new industries such as hydrogen.
Aramco relaunches its domestic gas market
Aramco is one of Saudi Arabia’s leading oil and gas companies.
The company wants to focus on growth markets such as Asia, while keeping a close eye on operating expenses.
A resilient player
Despite a difficult year, Aramco proved to be one of the most resilient players.
The company managed to reduce its capex (capital expenditure) budget and thus maintain a positive net profit.
In addition, it raised external financing to meet its commitments, with dividends of $75 million.
StratThe company’s demand-led recovery is also remarkable.
The rapid recovery in Asia and the effective vaccine strategy in the United States have led to significant growth in the oil market.
Meeting domestic demand
The company’s main objective is to meet Saudi Arabia’s domestic demand for gas.
Beyond exports, the primary aim is to provide the country with the energy it needs.
The Ministry of Energy has requested an increase in maximum sustainable capacity to 13 million barrels.
This project has already begun, with new work taking shape.
Developing renewable energies
The company wishes to concentrate on the development of renewable energy.
This major player is now committed to a transition towards more responsible consumption.
Hydrogen development
Aramco is also focusing on the development ofgreen and bluehydrogen.
A major step forward was taken in 2020, with the first shipment of blue ammonia to Japan.
These important advances in hydrogen will enable Aramco to establish itself in the industry.
Sadara Chemical restructuring project
Saudi Aramco has entered into agreements relating to the restructuring of Sadara Chemical Company through senior debt financing.
Sadara is a related party, as it is 65% owned by Aramco.
USD$ 3.7 billion in capital
Aramco and Dow Chemical have agreed to guarantee a total of $3.7 billion in capital.
This corresponds to the senior debt in proportion to Sadara’s stake.
Restructuring procedures
They include a grace period for repayment until June 15, 2026.
The final maturity is scheduled from 2029 to 2038, for all facilities.
Aramco is seeking to rebalance its business.
Between developing new industries, restructuring the Saudi domestic market and conquering new markets, particularly in Asia.
The company is also committed to greener consumption, thanks to the development of hydrogen.
