Saudi Arabia is an absolute monarchy located in Western Asia, with an economy heavily dependent on oil exports. The state oil company Saudi Aramco has the world's second largest oil reserves and production, and has adopted a strategy of expanding refining capacity and securing overseas markets to sustain its business into the future. This includes constructing new refineries abroad through joint ventures and focusing downstream investments in high-growth Asian markets.

1. Gizem Yalçın
Saudi Arabia
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2. Description of Country
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3.  Saudi Arabia, officially the Kingdom of Saudi
Arabia (KSA).
 It is a sovereign Arab state in Western Asia constituting the
bulk of the Arabian Peninsula.
 Saudi Arabia is geographically the 15th largest state in Asia.
 Saudi Arabia has since been an absolute monarchy,
effectively a hereditary dictatorship governed
along Islamic lines.
 The state has a total population of 28.7 million, of which 20
million are Saudi nationals and 8 millions are foreigners.
 The state's official language is Arabic.
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4. Economy in Saudi Arabia
 Petroleum was discovered on 3 March 1938 and followed
up by several other finds in the Eastern Province.
 Saudi Arabia has since become the world's largest oil
producer and exporter, controlling the world's 2nd
largest oil reserves and the 6th largest gas reserves.
 The kingdom is categorized as a World Bank high-income
economy with a high Human Development Index
(38th) and is the only Arab country to be part of the G-20
major economies.
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5. Basic Indicator of Saudi Arabia
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7.  However, the economy of Saudi Arabia is the least diversified in
the Gulf Cooperation Council, lacking any significant service or
production sector (apart from the extraction of resources).
 The state has attracted criticism for its treatment of
women and use of capital punishment.
 Saudi Arabia is a monarchical autocracy.
 It has the 4th highest military expenditure in the
world and SIPRI found that Saudi Arabia was the world's
second largest arms importer in 2010–2014.
 Saudi Arabia is considered a regional and middle power.
 In addition to the GCC, it is an active member of
the Organisation of Islamic Cooperation and OPEC.
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9. • The Saudi Arabian Oil Company,
national petroleum and natural gas company based
in Dhahran.
• It is one of the largest companies in the world by
revenue.
• Saudi Aramco has both the world's 2nd largest proven
crude oil reserves, at more than 270 billion barrels and
2nd largest daily oil production.
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10. History of Aramco
 Saudi Aramco's origins trace to the oil shortages of World
War I and the exclusion of American companies from
Mesopotamia by the United Kingdom and France under
the San Remo Petroleum Agreement of 1920.
 The US Republican administration had popular support for
an "Open Door policy" initiated in 1921. Standard Oil of
California (SoCal) was among those US companies seeking
new sources of oil from abroad.
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11.  Through its subsidiary company, the Bahrain Petroleum
Co. (BAPCO), SoCal struck oil in Bahrain in May 1932.
 This event heightened interest in the oil prospects of the
Arabian mainland.
 1933, the Saudi Arabian government allowed SoCal to explore
for oil in Saudi Arabia.
 After four years of fruitless exploration, the first success came
in Dhahran in 1938.
 In 1944 the company name was changed from California-
Arabian Standard Oil Co. to Arabian American Oil Co.
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12.  In 1948, Standard Oil of New Jersey purchased 30%
and Socony Vacuum 10% of the company, with SoCal and
Texaco retaining 30% each.
 The newcomers were also shareholders in the Iraq Petroleum
Co. and had to get the restrictions of the Red Line
Agreement lifted in order to be free to enter into this
arrangement.
 In 1950, King Abdulaziz threatened to nationalize his
country's oil facilities, thus pressuring Aramco to agree to
share profits 50/50.
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13.  In 1988, a royal decree created a new Saudi Arab company, the
Saudi Arabian Oil Company, to take control of the former
Aramco assets and took the management and operations
control of Saudi Arabia's oil and gas fields from Aramco and its
partners.
 In 2005, Saudi Aramco was the world's largest company with
an estimated market value of $781 billion.
 In 2016, the Deputy Crown Prince of Saudi
Arabia, Mohammad bin Salman Al Saud, announced he was
considering listing shares of the state-owned company, and
selling around 5% of them in order to build a large sovereign
fund.
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14. Two Strategies Expansion
 Saudi Aramco has adopted two priciples when pursuing
downstream investments.
o 1) To secure the refining capacity equivalent to half of the
upstream ( oil production capacity)
o 2) To prioritize securing the outlet for Saudi Arabian crude
oil rather than taking management control with more than a
%50 share.
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15.  Aramco’s investment projects in the refining sector both in
the Kingdom and abroad.
 Total capacity addition will be 2.67 million thereby
propelling Aramco into world-class downstream status.
 Two new rafineries to be constructed and operated by joint
are ventures with foreign companies.
 Aramco chosen France’s Total and Us maker
ConacoPhillips as its partners.
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16.  The overseas expansion projects most of the efforts are devoted
the Asian Market.
 Because this region that will continue to see expansion in oil
consumption in the coming years.
 A spate of export rafinery construction draws significant
attention Japanese oil community because the units may
drastically change the product market balance in Asia.
 New rafineries on the Asian Market is limited.
 Since most of the products from these export refineries will be
exported to Western Markets.
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17. Expansion Projects
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18. Distribution of Saudi Aramco's crude oil exports
in 2016
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19. Conclusion
 All of the observed strategies by Aramco have clear
missions and targets are well developed.
 The state energy firm’s extensive expertise and
experience in the oil and gas business.
 Aramco will continue to be a very reliable global oil
supplier.
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