Gulf Oil and Gas accountACCOUNT

Aramco Steps into Trading, Sees Higher Product Volumes

Source: Reuters 5/7/2012, Location: Middle East

Saudi Aramco Products Trading Co, the top oil exporter's new trading arm, expects its refined oil products trading volumes to rise to 1.5 million barrels per day (bpd) as it aims to capitalize on its strong market position, the firm's chief executive said. Aramco Trading, a subsidiary of state-run Saudi Aramco, which is undertaking a massive increase in its refining capacity, started commercial operations in January.

"Establishing a trading business was natural as the downstream system got more complex," Said al-Hadrami told the Middle East Petroleum and Gas Conference in Bahrain in his first public speech as the president and CEO of the company since its launch.

"Our mandate is for different types of trading with the exception of crude," he said. "Our typical volume per day is around 500,000 to 600,000 bpd and it is likely to rise to 1.5 million bpd in the near future," he said.

Currently the range of products traded includes refined products, condensate and sulphur, while liquified petroleum gas (LPG) will soon be added to the trading portfolio.

The company, based at the state company's Dhahran headquarters, replaces a marketing department. Hadrami said the trading business was going through an evolution in the Middle East with trade flows shifting and trading patterns changing.

"We do not think volatility is always bad but we think it's more manageable in the trading environment than a traditional marketing business," he said.

Aramco is one of the largest exporters of fuel oil and naphtha into East Asia as well as a net importer of gas oil but it had not been taking positions in the market before and therefore operating as a trader is uncharted territory, traders in the region say.

But Hadrami is confident about the capability of the company's workforce and said the majority of their traders are hired internally.

"We lined up the best in house talent and hired selectively outside," he said.

Production News in Saudi Arabia >>

Colombia >>  6/11/2019 - Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, provides an update on operations in Colombia. ...
Norway >>  6/11/2019 - PGNiG Upstream Norway and its partners decided to move to Select Phase of the project during which key technical decisions regarding the field develop...

United Kingdom >>  6/11/2019 - Total has started up production from the Culzean gas condensate field located on Block 22/25a, 230 kilometers off the coast of Aberdeen, in the UK. Wi...
United Kingdom >>  6/11/2019 - Total has started up production from the Culzean gas condensate field located on Block 22/25a, 230 kilometers off the coast of Aberdeen, in the UK. Wi...

Libya >>  6/7/2019 - Mellitah Oil and Gas Company (MOG) has successfully performed a ‘fishing operation’ to recover a production string stuck in the CE02 well of Libya's l...
Russia >>  4/9/2019 - Gazprom Neft Shelf has produced its 10-millionth tonne of oil at its Prirazlomnoye field — a fact confirmed by Andrey Patrushev, Deputy CEO for Offsho...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.