Aramco News

09 Dec 2019

Bahri Looks to Make LNG Foray

© Mike Mareen / Adobe Stock

Saudi Aramco's shipping arm Bahri has issued an expression of interest (EOI) to charter up to 12 liquefied natural gas (LNG) tankers from 2025, its first foray into the superchilled fuel, industry sources said on Monday.No further details were immediately available and Saudi Aramco declined to comment. EOIs are preliminary enquiries that may or may not turn into full-fledged orders.According to Bahri's website, the national shipping carrier of Saudi Arabia has six business units dealing in oil…

04 Nov 2019

HHI Adds $1.2Bln to Coffer Selling Stake in Refining Unit

Pic: Hyundai Heavy Industries

South Korea's top shipbuilding conglomerate Hyundai Heavy Industries (HHI) Group said that its holding company HHI Holdings Co will receive 1.4 trillion won ($1.24 billion) in proceeds next month from the sale of a stake in its refining unit, Hyundai Oilbank.In April, state-owned Saudi Aramco had agreed to buy a 17 percent stake in HHIs oil processing operations.Hyundai Heavy Industries Holdings said in a regulatory filing that it had signed a sales agreement with Saudi Aramco…

31 Oct 2019

Oil and Gas Industry Adopts VR

Pic: GlobalData

The oil and gas industry is witnessing wide-scale deployment of virtual reality (VR) technology across its value chain, according to GlobalData.According to the report, ‘Virtual Reality in Oil & Gas’, VR is finding its way into upstream, midstream and downstream sectors with applications in the simulation of new processes, analysis of project designs, reviewing of maintenance requirements and planning disaster responses.Ravindra Puranik, Oil and Gas Analyst at GlobalData, said: “Over time…

29 Oct 2019

India, S. Arabia in New Petro Relationship

Indian Prime Minister, Narendra Modi meeting the King Salman bin Abdulaziz Al Saud of Saudi Arabia, in Riyadh, Saudi Arabia on October 29, 2019. Photo: PIB

India and Saudi Arabia have decided to expand its ‘energy relationship’ into next phase to include Saudi partnership in building additional crude oil storage reserves in India, a new refinery on the west coast of India and investment in retail sector in petroleum.Saudi Arabia is its second-biggest supplier of crude oil after Iraq. It sold 40.33 million tonnes of crude oil to India in 2018-19 fiscal, when the country had imported 207.3 million tonnes of oil.India imports around 18 per cent of its crude oil from the Kingdom…

25 Oct 2019

RECSO Hosts First Global Oil Spill conference

AbdulAziz Somali and Majed Saber from Saudi Aramco’s Marine Department brief visitors. Photo: Saudi Aramco

The Regional Clean Sea Organization (RECSO), an oil industry co-operative organisation in the Middle East, has hosted First RECSO Enviro Spill Conference and Exhibition.In delivering the keynote speech at the opening ceremony, Abdulhakim A. Al-Gouhi, vice president of Industrial Services with Saudi Aramco, called on members to collaborate to protect the pristine Gulf environment through prevention, preparedness, and response.“We come together to demonstrate our unlimited commitment toward protecting the marine environment from any harmful effects of pollution…

23 Oct 2019

Oil Stockpiling Builds Ahead of IMO 2020 Rules

EXXON's Rotterdam Refinery (CREDIT: EXXON)

S-Oil, South Korea's third-largest refiner, said on Wednesday that regional refining margins are expected to improve in the fourth quarter on the back of inventory build-up ahead of implementation of stricter rules on marine fuels in 2020.The refiner, whose top shareholder is Saudi Aramco, said in an earnings statement, strong demand for heating oil was also expected to support refining margins, along with the International Maritime Organization (IMO)'s stricter shipping fuel…

08 Oct 2019

Disruptions to Global Shipping Industry Explained

AdobeStock / © Kasto

Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan crude oil tankers.WHAT HAS HAPPENED TO SHIPPING RATES?The cost of chartering a supertanker to send crude oil from one country to another is rising sharply. A South Korean importer paid more than $12 million in shipping costs for one crude shipment from the U.S. Gulf Coast. This was followed by Friday's tentative charter of another crude…

20 Sep 2019

Saudi Attacks, High Demand Leaves U.S. Short on Oil Tankers

© Carabay / Adobe Stock

A disruption in global oil flows following attacks on Saudi Arabian facilities has left U.S. crude exporters without enough tankers to cover rising demand for cargoes, traders and shipping sources said.Missile attacks last Saturday temporarily cut Saudi oil production by more than 5 million barrels per day, or about half the country's output.That set off a scramble for alternative cargoes of crude, particularly in the United States, which lined up available tankers sailing from the Mediterranean, West Africa and continental Europe to pick up cargoes.

19 Sep 2019

Aramco Uses Renewables in Gas Wells

Pic: Saudi Aramco

Saudi Arabian national petroleum and natural gas company Saudi Aramco said that using renewable energy at unconventional well sites in Wa’ad Al-Shamal provides multiple benefits to the company."Not only is it a reliable and less expensive way to power the remote wells, but it also reduces carbon emissions and helps to save hydrocarbons for export by providing natural gas for the region’s power generation," Saudi Arabian Oil Company said.A new collaboration between the Power Systems Renewables Department (PRSD) and Unconventional Resources (UR) is not only saving costs while creating value…

18 Sep 2019

IMI Shipyard Inks VLCC Order with HHI

IMI & Bahri L-R: Mr. Fathi K. Al-Saleem, Chief Executive Officer, IMI Eng. Abdullah Aldubaikhi, Chief Executive Officer, Bahri. Photo: IMI

Saudi Arabia’s International Maritime Industries (IMI) has signed a vessel purchase agreement (VPA) with the National Shipping Company of Saudi Arabia (Bahri) and a subsequent sub-contract agreement with South Korean shipbuilder Hyundai Heavy Industries (HHI) to build one very large crude carrier (VLCC).Hyundai Heavy will transfer architectural designs and related technological know-how for the building of very large crude carriers (VLCCs) to IMI. It will build one 319,000 DWT…

18 Sep 2019

Aramco Rapidly Restores Production Capacity

Photo: Saudi Aramco

Saudi Arabia's oil and gas giant Saudi Aramco announced that it will fully restore its production capacity by the end of September, in light of the Saturday's drone attacks that caused disruptions on around half of the country's oil capacity.Prince Abdulaziz Bin Salman, Minister of Energy, and HE Yasir Rumayyan, Chairman of Saudi Aramco, Mr. Nasser said: “The terror attacks on our plants at Abqaiq and Khurais were timed to create maximum damage to our facilities and operations.

16 Sep 2019

Oil Price Spike after Saudi Attack Temporary

Graph: Rystad Energy

The drone attack on the world’s largest oil processing facility, Abqaiq in the heart of Saudi Arabia’s oil industry, forced Saudi Aramco to shut in 5.7 million barrels per day (bpd) of crude production, which equates to 7% of the current global crude and condensate production.Rystad Energy says that oil price spike will be short-lived. Bjørnar Tonhaugen, head of oil market research at Rystad Energy said: “The bullish reaction in oil prices will likely be limited by Saudi Arabia’s vast quantities of crude in storage…

16 Sep 2019

At Least Two Empty Oil Product Tankers Diverted from Saudi Port

©Patrick Deenik/ MarineTraffic.com

At least two refined product tankers that were due to load at Saudi Arabia's Jubail port in mid to late September have been diverted, data from analytics firm Vortexa showed.The moves come after attacks on Saudi Arabia's oil infrastructure on Saturday that cut the country's crude output by more than half and reduced its refinery runs by an unknown amount.Saudi Arabia is typically a net exporter of diesel but Aramco Trading Co, the trading arm of state oil producer Saudi Aramco…

15 Sep 2019

Aramco Suspends 50% of Production

Amin H. Nasser. Photo: Saudi Aramco

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company’s total output.Saudi Aramco said the production of 5.7 million barrels of crude a day had been suspended after drone attacks on the world’s largest oil processing plant at Abqaiq – near Dammam in the Eastern Province – and the country’s second-largest oilfield at Khurais, about 200 kilometers away.Earlier, the oil giant said that emergency crews contained fires at its plants.After visiting the incident locations, Amin H.

15 Aug 2019

Saudi Aramco, World’s Most Profitable Co, Again

Image: Saudi Aramco

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

12 Aug 2019

PG Flow to Supply Mud Agitators for MMA

MMA Chieftain (Photo: MMA Offshore)

Australian provider of marine solutions and expertise to the offshore oil and gas industry, MMA Offshore orders mud agitators for its AHTS MMA Chieftain, which is operating in the Middle East region.Norwegian pump and liquid handling specialist PG Flow Solutions will supply a set of PG-Submix 80 hydraulically driven mud agitators to the AHTS (anchor handling tug supply vessel), plus hydraulic power unit and control system. This proven solution meets with the stringent demands of Saudi Aramco…

06 Aug 2019

NSER Wins $600mln Contracts in S. Arabia

Photo: National Energy Services Reunited

National Energy Services Reunited (NESR), a provider of integrated energy services in the Middle East and North Africa (MENA) and Asia Pacific regions, has been awarded contracts worth US$660 million by Saudi Aramco for coiled tubing, stimulation and cementing services for a five year period.The contract is with the National Petroleum Technology Company, a subsidiary of NESR, for coiled tubing and N2, stimulation services and cementing services for a period of five years with possible extensions of up to two years.Mohammed Y.

31 Jul 2019

KBR Wins Aramco Offshore Contract

Image: Saudi Aramco

American engineering company KBR, Inc., announced that it has been awarded a project management contract by Saudi Aramco to provide project management services for Saudi Aramco's offshore program.KBR will provide project management and engineering services for existing and new offshore facilities to maintain and increase crude production levels to meet Saudi Aramco's maximum sustained capability for production under the company's capital program under the terms of this six-year contract.KBR's Saudi joint venture company…

31 Jul 2019

Oil, Gas Jobs Moves from Shale to Offshore

 Graph: Rystad Energy

With offshore market gaining momentum the main driver of employment is shifting from shale to offshore.According to new analysis by energy research firm Rystad Energy, increased activity in onshore shale basins such as the Permian in the US held employment in the oilfield service industry steady from 2016 to 2017.However, the offshore industry has now taken the lead, gradually increasing the overall headcount of the top 50 oilfield service companies from 2017 to 2018, the report said.“This is a clear effect of the increase in offshore sanctioning.

15 Jul 2019

SPARK Joins OSC for $450mln Biz Incubator

Photo: Saudi Arabian Oil Co.

Saudi Aramco's King Salman Energy Park (SPARK) and Dubai-based Oilfields Supply Center Ltd. (OSC) signed an agreement to establish OSC as an anchor tenant at SPARK.OSC will develop a business incubator called the Common User Supply Base (CUSB) in collaboration with Saudi Aramco, to support the oil and gas industry in the Kingdom and the region, as well as help accelerate the growth of small and medium-sized enterprises (SMEs) in the energy sector.OSC plans to invest around USD 450 million over the next two years…

10 Jul 2019

Saudi Arabia, HHI to Build Marine Engines, Pumps

Saudi Arabian Industrial Investments Co (Dussur) has signed a joint venture with Saudi Aramco and Hyundai Heavy Industries to manufacture engines and marine pumps for marine and electric power plants, it said in a statement on its website.The venture will be located in the kingdom's Eastern Province at Ras Alkhair, and the marine engine manufacturing facility will be the first in the Middle East and North Africa region, the statement said.Reporting by Nafisa Eltahir

28 Jun 2019

Hyundai Signs MoUs with Saudi Aramco

Photo: Saudi Aramco

As part of its long-term downstream growth and diversification strategy, the Saudi Arabian national petroleum and natural gas giant Saudi Aramco signed an agreement with South Korea's Hyundai Heavy Industries (HHI), and The Saudi Arabian Industrial Investments Company (Dussur).The agreement will establish a joint venture (JV) for a world class engine manufacturing and after sales facility in Saudi Arabia. Under the partnership, Saudi Aramco will own 55% of the JV, while HHI and Dussur will own 30% and 15% respectively.Meanwhile…

28 Jun 2019

Bahri Orders First VLCCs from IMI

Photo: Bahri

Bahri, the world's largest owner and operator of very large crude carriers, has signed a Memorandum of Understanding (MoU) to build its first very large crude carrier (VLCC) at the International Maritime Industries (IMI) yard in Saudi Arabia.The agreement signed with IMI and Hyundai Heavy Industries (HHI), one of the partners in IMI, sees Bahri committing the new mega-shipyard its first order before the end of July 2019.Following the placing of the order, IMI will engage HHI as a sub-contractor to build the vessel in South Korea.

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