Word: aramco
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Dates: during 1970-1979
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...Aramco now operates under the shadow of nationalization. The company is indeed a plum - the world's biggest oil producer sitting atop the world's largest reserves. Aramco's average well yields 12,000 bbl. per day, as compared with the average U.S. well's 18 bbl. Its refinery and port complex at Ras Tanura on the Persian Gulf can turn out more product (600,000 bbl. per day), store more oil and load more supertankers than any other facility on the globe...
Whenever the takeover happens, Petromin stands to expand greatly. Today it markets the Saudi government's share of the crude produced by Aramco and operates a refinery, a drilling company and a shipping line. Ultimately, it plans to expand into petrochemicals and to market Saudi oil worldwide...
PETROMIN, Saudi Arabia's company, has enormous potential because of the country's vast reserves, estimated to be 132 billion bbl. At present, it stands in the shadow of the world's biggest oil-producing firm, Aramco, which pumps virtually all of the 7.3 million bbl. produced daily in Saudi Arabia. King Faisal's government holds the largest share of Aramco (25%) in partnership with Exxon, Standard of California, Texaco and Mobil. The government has contracted to take over 51% of Aramco by 1982-and, according to reports last week, may demand 100% much sooner...
Overseas, the threat to Exxon is even greater. Incoming Venezuelan President Carlos Andres Perez has pledged to take over all foreign oil concessions, including plants and equipment, long before present agreements expire in 1983. The Saudi Arabian government has already bought 25% of Aramco, has negotiated an agreement to take over 51% by 1982, and will probably exert control much sooner...
Choice Area. It is clear, though, that producing governments will increasingly call the tune. Saudi Arabia has already slowed an ambitious Aramco expansion program, and will likely permit output to rise only slowly from the present 7.3 million bbl. a day even after the embargo ends; Faisal's government has little need for the revenues that additional sales would bring. Thus Aramco has next to no chance of boosting production to 20 million bbl. a day by 1982, as it once planned. That Saudi policy alone will keep worldwide oil supplies tight for years to come...