Strategy
Positioning Aramco for the future
Aramco's strategy is driven by its belief that reliable and affordable energy supplies, including oil and gas, will be required to meet the world’s growing energy demand, and that its foray into select diversified growth businesses will be value accretive over time.
Within this context, Aramco’s vision is to be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable, and reliable manner.
Aramco strives to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals, aiming to capture value across the energy value chain, and profitably growing its portfolio.
To achieve its vision, Aramco focuses on three strategic themes across its businesses: Upstream preeminence, Downstream integration, Diversified businesses
Upstream preeminence
As the principal engine of value generation, Aramco intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest-cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allow it to effectively respond to changes in demand.
Strategy in action
Aramco plans to increase its sales gas production capacity by approximately 80% by 2030 compared to 2021 production levels.
Downstream integration
Aramco intends to continue the strategic integration of its Upstream and Downstream businesses to facilitate the placement of the Company’s crude oil in larger offtake volumes through a captive system of domestic and international wholly-owned and affiliated refineries, allowing it to capture additional value across the hydrocarbon chain, expand its sources of earnings, and provide resilience to oil price volatility.
Strategy in action
Aramco’s dedicated system of domestic and international refineries provide secure demand for upstream crude production.
Diversified businesses
STRATEGY IN ACTION: Aramco is helping to build a world-class local supply chain through its iktva program.
Our key enablers
Aramco’s strategy requires a number of enablers to be successful, including:
People
Aramco recognizes the need to prepare its workforce for the future to ensure its capabilities match its strategic requirements. This includes advancing technical and professional skills, developing commercial and leadership competencies, supporting the progress of localization, and focusing on equity and inclusion.
Technology
Aramco’s technology program aims to develop new solutions for its Upstream and Downstream businesses, help diversify its product portfolio, and grow its business sustainably.
The program also aims to enable Aramco to grow its business competitively and sustainably in new areas such as digital solutions, new energies, and advanced materials.
Portfolio optimization
Aramco seeks to unlock value, enhance its capital structure, and reallocate capital to higher growth and return investments. It follows a comprehensive and disciplined internal approval process for capital expenditures, new projects, and debt issuances.
How we deliver value
Aramco seeks to deliver value across four dimensions:
Profitability
By reinforcing its competitive positions across its upstream and downstream activities.
Resilience
Both operational and financial, enabling the Board of Directors to declare dividends on a regular basis with a view to building long-term shareholder value. This includes providing sustainable dividend growth through crude oil price cycles and maintaining a strong investment-grade credit rating.
Growth
Both in its traditional oil and gas activities and new businesses.
Sustainability
As a core element of Aramco’s operational philosophy.
