Everything you want to know about Aramco's acquisition plan for SABIC. Reasons and objectives expected

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The Citizen – Riyadh

Saudi Aramco has entered into discussions to acquire a strategic stake in SABIC, although at this early stage it can not be confirmed that the agreement will take place, yet it will not be necessary as much as Saudi Aramco is still evaluating Aramco's master plan:

Aramco has developed a strategic transformation plan that began in 2011 and is intended to transform the company into a business. a leading company in the field of energy to be a world leader in energy and chemicals, to have two options for leadership in ironing (19459017)

The strategy of Saudi Aramco included a rebalancing of the group Over the last few decades, oil and gas production has expanded dramatically in the refining, processing, marketing and chemicals sectors and has achieved the ambition to grow. to be the the ader world of energy and chemicals. Why the chemistry sector? [1945901] Aramco is leading the chemicals sector because it is growing at about 3% faster than the global economy or total fuel demand, and is expected to increase by 50% from now. Over the next 20 to 25 years, investing in chemicals is a way to support Aramco's refining and marketing business, which is also growing

Long-term plan: [19659007] Aramco has an ambitious long-term goal: to convert 2 to 3 million barrels of its oil production into chemicals.

Currently, the majority of global oil consumption is in the transport sector, and also a positive impact on climate change because the end use of oil in the field of chemicals and not in hydrocarbons contributes to reduce carbon emissions. New growth projects such as PetroRabigh and PetroRabigh, and acquisitions and acquisitions such as the acquisition of 50% of the German company Lanxis two years ago.

All Opportunities:

Aramco Looks All The Way And The Potential Acquisition Of A Strategic Participation In SABIC, The Third Largest Saudi Company of the world with which Saudi Aramco has distinguished relations since its creation. 19659003] The acquisition of SABIC by Aramco is expected to take time because the talks are at an early and very early stage, and the agreement is excellent, especially since the discussions of the day are over. agreement must take steps and steps.

The potential acquisition of a strategic stake in SABIC is part of a plan launched several years ago by Aramco and taking into account all local, regional and global options.

What happens after the acquisition?

Economists believe that if the potential agreement is reached, taking into account the relevant regulations, this will inevitably have an impact on the timeline for the plan to provide for the membership of an organization. part of Saudi Aramco.

Achievements of Aramco:

Aramco has achieved several major achievements over the past five years to develop the chemical sector, including giant projects such as the Sadra and Petro Rabigh projects,

. About a year and a half ago, a joint venture with SABIC was announced with a capacity of 400,000 barrels a day to convert oil into chemicals and the company announced that it had invested in a project The technology will make a leap forward in converting crude oil directly to chemicals by 70-80%

All of Saudi Aramco's global refineries have a high goal of converting a high proportion of crude oil into chemicals, such as the joint venture in India and India. Malaysia, as well as Motiva's future investments in the United States.

The competitiveness of Aramco after the acquisition:

The impact of the agreement on the competitive position of Saudi Aramco will certainly strengthen the position Saudi Aramco's competitive, which supports more of a strategic goal for the company, Exploration and production and returns of the trekking sector The returns of the exploration and production sector are negatively affected by lower international oil prices, while refining and chemical revenues are performing well as world oil prices fall. The competitive position of Saudi Aramco is to increase innovation, deepen the production line to high value specialty products and maximize value added per barrel of oil and every cubic foot of gas produced by the company.

However, the growth of electric vehicles requires securing oil markets in new sectors that do not consume oil as fuel, but rather,

In addition, by reducing the growth of oil Carbon footprint associated with the challenges of climate change, the proportion of carbon emissions is lower when oil is consumed as values in the chemical and non-mineral industries.

Acquired Acquisitions:

The potential agreement offers significant opportunities for integration based on the forces of the parties to the operation. Saudi Aramco is the world's most powerful energy producer and one of the world's leading providers of skilled human resources, R & D, innovation and low production costs. These are assets that enhance the success of investment and integration in the chemicals sector. It is well known that oil and gas companies have strong and complementary links with chemical companies.

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