Saudi Arabia’s giant oil company Aramco is enhancing its big data unit and artificial intelligence technology to connect its assets, aiming to maximize profits and provide support in making various decisions, from investments to acquisitions, according to a senior executive quoted by Reuters.
In 2022, Aramco launched a unit called “Global Optimizer” as part of its operations in the processing industries. It was created as part of a comprehensive overhaul initiated by the giant government oil company in 2021.
Through a comprehensive renewal process, Aramco aims to implement investments that better reflect the company’s multi-stakeholder position and respond quickly to market changes.
Aramco also conducts special asset reviews with the aim of increasing revenues.
Moufti stated that Aramco is continuing to explore potential deals, such as acquiring a stake in Pakistan Petroleum Limited, as well as refineries in Asia, without delving into further details.
Aramco is currently in talks to purchase a stake in Shandong Yulong Petrochemicals Company, following a series of investments made in Chinese refineries. It also acquired a stake in the liquefied natural gas company MidOcean Energy, listed shares of its Luberef base oils unit on the stock exchange, and there are also plans to sell additional shares.
Advanced business models like Global Optimizer lead to additional profits ranging between a dollar and a half to two dollars per barrel before interest, taxes, according to Oliver Wyman, a management consultancy firm advising the project.
The consultancy estimates that major oil companies make profits ranging from 4 to 7 dollars per barrel of oil.
Moufti stated, “We have built high capability for optimization, trading, risk management, and uncertainty management.” He added that high-quality assets and business acumen could further increase these figures, if not higher.
As a result, the Saudi economy heavily relies on Aramco’s profits. The Kingdom directly owns a 90.19 percent stake in the company, while the Saudi Public Investment Fund holds an 8 percent stake.
Analysts expect Aramco’s net profits in 2023 to reach around 122 billion dollars, according to LSEG financial data.
Moufti said, “The challenge lies in how to maintain the highest possible level of profits before interest, taxes, and depreciation. A group of refineries is likely to contribute fully to achieving additional profits through proven global performance, while other refineries still possess immense potential and contribute to increasing profits for Aramco’s partners in joint projects, enhancing shareholder returns.”
