RIYADH — Saudi Aramco on Tuesday announced the reorganization of its downstream business to support and enhance integration across the hydrocarbon value chain and better position the company to drive financial performance, value creation and global growth. The reorganization, which is expected to be in place by the end of the year, aims to strengthen Aramco's industry leadership in safety, sustainability, efficiency and reliability. In a statement carried by Saudi Press Agency, the company said that its downstream model will be divided into four units: Fuels including refining, trading, retail and lubes; chemicals; power; and pipelines, distribution and terminals. These business units will be supported by three corporate functions: Manufacturing, strategy and marketing and affiliates affairs. "This reorganization is designed to enhance the effectiveness and efficiency of Aramco's existing downstream assets, but does not represent a fundamental change in the overall business structure," the company said in the statement. Abdulaziz M. Al Gudaimi, senior vice president of Aramco downstream, said: "I am excited that we are launching a new operating model that we believe will help streamline our operations and reinforce our position as a major global energy and petrochemicals player. This reorganization is yet another step in Aramco's strategy to develop a global integrated downstream business that enhances our competitiveness by maximizing our value capture across the hydrocarbon value chain." Aramco has a large, strategically integrated global downstream business that leverages the company's competitive upstream position. The company's downstream strategy focuses on creating growth opportunities across the hydrocarbon chain in order to expand the company's sources of earnings, providing resilience to oil price volatility and capitalizing on rising demand for petrochemical products. Lat month, Aramco completed its purchase of a 70 percent stake in SABIC, the world's fourth-largest petrochemicals company, for $69.1 billion.
