THROUGH IT ALL…
King Fah’d leaves a legacy of sucess
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King Fah’d ibn ‘Abd al-’Aziz, 82 is unquestionably an icon, a leader and a father-image in the energy industry.
Right after his demise on August 1, international crude-oil prices rose briefly to a record high of $62.30 a barrel, under-scoring the king’s fundamental global influence during his momentous 23-year rule.
Hours later, Crown Prince Abdullah was crowned as successor, and the price hike was put on halt. Surely, Saudi Arabia, led by King Fah'd in more than two decades knows now how to remain calm and stable in the midst of a storm.
King Fah'd was a steadfast supporter of Saudi Aramco from its birth all the way to its unprecedented growth as it became a fully integrated international petroleum company with the world’s largest reserves.
During his 23 year reign, the oil and gas industry in Saudi Arabia flourished. The government acquired full ownership of the Arabian American Oil Co. (Aramco) in 1980 and changed the company name to the Saudi Arabian Oil Co. (Saudi Aramco) in 1988 to reflect that critical milestone.
Under his rule, the company appointed its first Saudi Aramco President and CEO, Ali I. Al-Naimi. Al-Naimi then became the Minister of Petroleum and Mineral Resources, a position he retains today.
King Fah'd steered a pragmatic course through global oil crises, wars and regional political conflicts to bring Saudi Arabia to a pre-eminent position in world affairs.
King Fah’d left the Kingdom as the largest exporter of crude and natural gas liquids while holding the world’s largest crude oil reserves.
At present, maximum sustained daily oil production capacity was increased by Saudi Aramco to more than 10 million barrels per day (bpd), with projected scenarios from 12-15 million bpd to feed global demand in the future.
Notable projects during the reign of King Fah'd
Giant projects:
Inauguration of Aramco and Petromin oil and gas projects, which formed the nucleus of Yanbu’ Industrial City.
Birth of Saudi Aramco:
On Nov. 8, 1988, the Council of Ministers issued a decree approving the bylaws of the now 100-percent Saudi-owned Saudi Aramco. The King instructed the Minister of Petroleum and Mineral Resources to expand exploration for the benefit of the country.
Gas System:
Key parts of the massive Master Gas System, built by Saudi Aramco, were fully or nearly completed.
International ventures:
- First international joint venture between Aramco and Texaco - Star Enterprise
- Saudi Aramco subsidiary buys 35 per cent of Korea’s SsangYong Oil Refining Co. Ltd. (now S-Oil Corp.)
- Saudi Aramco subsidiary enters a joint venture with Motor Oil (Hellas) Corinth Refineries S.A. and Avinoil Industrial Maritime Oil Co. S.A. in Greece, purchasing a 50 per cent share in Motor Oil (Hellas).
- Saudi Aramco wins 40 percent ownership of Philippines’ Petron Corp., Asia’s largest oil refiner and distributor.
Central Province oil discoveries:
The first oil discovery in the Central Province was at al-Hawtah field in 1989, followed by others in the next several years.
Tanker fleet:
Construction of 15 advanced supertankers was completed in 1995 for Saudi Aramco’s shipping subsidiary, Vela International Marine Ltd.
Shaybah inauguration:
Inaugurated of the giant Shaybah oilfield project, adding 500,000 barrels per day of Arabian Light Crude to the company’s production.
Gas agreements:
Major concession agreements were signed with a number of international oil company consortiums in 2004 to explore for non-associated gas in the Rub’ al-Khali Desert.
Mega projects:
In the past few years, a number of giant industrial projects have been inaugurated by Saudi Aramco, including the Hawiyah, Haradh and Qatif oil and gas projects.
Posted by Editor Offshore Arabia Magazine
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