Saudi Aramco

Saudi Aramco is the Saudi Arabian Oil Company, a national oil and gas company founded following a concession agreement concluded in 1933 CE. [1]

The company began its first commercial oil production in 1938 CE, and the Kingdom's ownership of it was completed in 1980 CE, before it was formally established under its current name in 1988 CE. [1] Its activities form part of the economic transformation drive led by Saudi Vision 2030.

In 1933 CE the Kingdom of Saudi Arabia signed a concession agreement for oil exploration with the Standard Oil Company of California (SOCAL), which led to the establishment of the California Arabian Standard Oil Company (CASOC). [1]

Drilling began in 1935 CE following a geological survey, and the first commercial oil production was achieved in 1938 CE from Dammam Well No. 7, known as the "Prosperity Well." [1]

In 1950 CE the 1,212-kilometre Trans-Arabian Pipeline (Tapline) was completed, linking the Eastern Region to the Mediterranean Sea and expanding the distribution of crude oil. [1]

In 1951 CE the Safaniyah field, the world's largest offshore oil field, was discovered after two years of exploration in the shallow waters of the Arabian Gulf. [1]

The Saudi government progressively increased its stake in the company, reaching 25% in 1973 CE and 60% in 1974 CE, until the Kingdom's ownership of the company was completed in 1980 CE. [1]

In 1988 CE the Saudi Arabian Oil Company (Saudi Aramco) was formally established. [1] Engineer Ali bin Ibrahim Al-Naimi assumed its presidency as its first Saudi president in 1984 CE, and then became its first president and chief executive officer in 1988 CE. [1]

In 2017 CE Saudi Aramco fully acquired Motiva, becoming the sole owner of North America's largest single-site crude oil refinery, in Port Arthur, Texas. [1]

On 16 April 2023 CE, His Royal Highness the Crown Prince and Prime Minister announced the completion of the transfer of 4% of Saudi Aramco's total shares from state ownership to the Saudi Arabian Investment Company (Sanabil Investments), wholly owned by the Public Investment Fund. [2]

On 7 March 2024 CE, the completion of the transfer of 8% of the company's total shares from state ownership to companies wholly owned by the Public Investment Fund was announced, bringing total state ownership to about 82.186% of the company's shares. [3]

On 2 June 2024 CE, Saudi Aramco announced the start of a secondary public offering of 1.545 billion ordinary shares, equivalent to 0.64% of the company's total shares, at a price range of SAR 26.70 to 29.00 per share. [4]

The offering comes within the company's activity on the Saudi financial market, supervised by the Capital Market Authority. [4]

Saudi Aramco's net income for the 2025 fiscal year reached about SAR 392.5 billion (USD 104.7 billion); cash flow from operating activities reached SAR 510.8 billion (USD 136.2 billion), while total shareholder distributions amounted to SAR 320.4 billion (USD 85.5 billion). [5]

In the results for the second quarter and first half of 2026 CE, adjusted net income reached SAR 125.2 billion (USD 33.4 billion) for the second quarter and SAR 251.9 billion (USD 67.2 billion) for the first half, with a base dividend of SAR 82.1 billion (USD 21.9 billion) for the second quarter. [6]

The company began production at the Jafurah field, the Middle East's largest unconventional gas field, and commenced operations at the Tanajib gas plant. [7]

The company's plan aims to increase sales gas production capacity by about 80% by 2030 CE compared with 2021 levels, reaching about 6 million barrels of oil equivalent per day. [7]

The iktva (In-Kingdom Total Value Add) programme achieved its 70% local content target, with a plan to raise it to 75% by 2030 CE, and a cumulative contribution exceeding USD 280 billion to the Kingdom's gross domestic product. [8]

Saudi Aramco and the Saudi Arabian Mining Company (Ma'aden) signed a shareholders' agreement to establish a joint venture for mineral and hard-rock mining exploration, owned 51% by Ma'aden and 49% by Aramco, covering the Transition Zone known as "Zone-4" over an area of about 182,000 square kilometres, nearly 10% of the Kingdom's area, and focused on copper and energy-transition minerals. [9]

Saudi Aramco signed a shareholders' agreement with Linde and SLB to develop one of the world's largest carbon capture and storage (CCS) hubs in Jubail in the Eastern Province. [10]

Under the agreement, Aramco owns 60% of the project, while Linde and SLB each own 20%, and the first phase is expected to capture and store up to nine million metric tons of carbon dioxide annually, with construction to be completed by the end of 2027 CE. [10]

Q: When was Saudi Aramco established? A: The company goes back to a concession agreement concluded in 1933 CE that led to the establishment of CASOC, and it was formally established as the Saudi Arabian Oil Company (Saudi Aramco) in 1988 CE. [1]

Q: When was the first commercial oil production achieved in the Kingdom? A: In 1938 CE, from Dammam Well No. 7, known as the "Prosperity Well." [1]

Q: When was the Kingdom's ownership of the company completed? A: In 1980 CE, after its stake was raised to 25% in 1973 CE and then 60% in 1974 CE. [1]

Q: How was state ownership of the company's shares distributed after the transfers to the Public Investment Fund? A: 4% was transferred in 2023 CE to Sanabil Investments, then 8% in 2024 CE to companies wholly owned by the Public Investment Fund, bringing total state ownership to about 82.186%. [2][3]

Q: What are the company's targets in gas and local content? A: Increasing sales gas production capacity by about 80% by 2030 CE, reaching about 6 million barrels of oil equivalent per day, and raising local content in the iktva programme to 75% by the same year. [7][8]