...INTERNATIONAL BUSINESS SAUDI ARAMCO Question 1 - Brief History of the Company Saudi Aramco officially known as the Saudi Arabian Oil Company is a fully integrated, global petroleum and chemicals enterprise oil company based in Dhahran, Saudi Arabia which is owned by the Kingdom of Saudi Arabia. The company originally known as the Standard Oil Company of California had reached a concession agreement to search for oil in Saudi Arabia during the early 1930’s. This concession would be assigned to a separate wholly owned subsidiary known as the California-Arabian Standard Oil Co. also known as CASOC. After a period of time, having found no success in locating oil, the company was joined by the Texas Oil Company in 1936. Failed explorations for locating oil was suffered by the company for a time but four years later, the company had at last met with success, managing to find oil via its seventh drill site located in Damman. The company would later on continue to change its name from the previous California-Arabian Standard Oil Co. (CASCO) to the Arabian American Company Oil Company on the 31st of January 1944. The company then continued to prosper throughout the years, attracting many investors such as the Standard Oil of New Jersey and Socony Vacuum. In 1973, the Saudi Arabian government managed to acquire a 25% stake of the company due to US support for Israel during the Yom Kippur War whereby in 1974, it managed to acquire more shareholdings by a further 60% and alas...
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...The Saudi Arabian Oil Company (Saudi Aramco) is the world's leading oil producing and exporting company. It is a fully-integrated, global petroleum enterprise that manages the world's largest oil reserves – about 260 billion barrels – and also manages the world's fourth largest natural gas reserves. Saudi Aramco is a fully integrated global petroleum enterprise headquartered in Dhahran, Saudi Arabia, participating in exploration & producing, refining, distribution, shipping, and marketing. With around 54,000 employees globally, representing 56 nationalities, the company is 100% owned by Saudi Arabian Government. Saudi Aramco has affiliates, joint ventures and subsidiary offices in China, Egypt, Greece, Japan, Netherlands, Philippines, Republic of Korea, Singapore, United Arab Emirates and the United States.Saudi Petroleum Overseas, Ltd is based in London and provides marketing and ocean transport support services. A subsidiary of Saudi Aramco owns a fleet of oil tankers to transport crude oil to key customers. Saudi Aramco, through subsidiaries, also invests in refineries and distribution networks around the globe. In addition to its headquarters in Saudi Arabia's Eastern Province city of Dhahran, Saudi Aramco has affiliates, joint ventures and subsidiary offices in China, Egypt, Japan, the Netherlands, Philippines, Republic of Korea, Singapore, United Arab Emirates, United Kingdom and the United States. In 2008, Saudi Aramco is celebrating its 75th anniversary...
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...The Impact of multinational companies A case study of the energy industry in Saudi Arabia Abstract Contents 1. Introduction 4 1.1. Rationale of the Research 6 1.2. Aims & Objectives of the Research 7 1.3. Key Research Questions 7 2. Literature Review 9 3. Research Methodology 13 4. Key Findings & Discussion 13 5. Conclusion 16 6. References 16 7. Appendices 16 1. Introduction In this era of globalization, there has been a fundamental change in the way international business is being done. Due to the ease of communication and advances in the sophisticated communication systems more and more companies are becoming global and expanding their operations and creating production facilities away from their home countries. This trend has given rise to today’s Multinational Corporations (MNCs) whose role in the international scene is increasing rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries...
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...Pankantiwar 824-063-440 Rahul Teckchandani 824-521-108 Rajwinder Kaur Sidhu 825-002-736 World Geographies & Cultures: Saudi Aramco World Geographies & Cultures: Saudi Aramco Country Profile Name of Country: Saudi Arabia Source: CIA Factbook (Factbook) Demographics: Population: 27,345,986 * note: immigrants make up more than 30% of the total population, according to UN data (2013) (July 2014 est.) Population Growth Rate: 1.49% (2014 est.) Major languages: Arabic (official) Major religions: Muslim (official) 100% Life expectancy: (at birth) male: 72.79 years ; female: 76.94 years (2014 est.) Literacy Rates: total population: 87.2% ; male: 90.8% ; female: 82.2% (2011 est.) Government: Type of Government: Monarchy Head of Government: King of Saudi : King and Prime Minister ABDALLAH bin Abd al-Aziz Al Saud (since 1 August 2005) Geography: General features : Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen Climate : harsh, dry desert with great temperature extremes Surface area: 2,149,690 sq km Population density: 12.91 / sq.km Largest city by population is: Riyadh Economics: Gross Domestic Product (GDP): $927.8 billion (2013 est.) GDP Per Capita: $31,300 (2013 est.) GDP Growth Rate: 3.6% (2013 est.) Sectoral Share in GDP: Agriculture – 2%, Industry – 62.5%, Services – 35.5% (2013 est.) Major Industries/Products: crude oil production, petroleum refining, basic...
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...Issues Facing Saudi Arabia Saudi Arabia is a developing country in the Arabian Gulf region that has been growing dramatically over the past two decades. Saudi Arabia's 2011 population has grown tremendously and is estimated to now be about 26.1 million, including about 5.6 million resident foreigners. Until the 1960s, most of the population was nomadic or semi-nomadic but now due to rapid economic and urban growth, more than 95% of the population is settled now. Out of that 26 million people in Saudi Arabia, is has been found that the annual per capita income is anywhere from $11,500 to 24,500. This sounds kind of ridiculous because the country is known to the world to be oil rich. At first glance, one would view economic statistical indicators and convey the fact Saudi Arabia is a developed nation. However, close analysis of political and social statistical indicators would suggest that their standard of living and individual freedoms are severely suppressed. Believe it or not, this 'developed' nation has abnormalities in its statistical indicators which are similar to those that characterize third world nations. As a person who was born into this culture and is originally of Saudi Arabian descent, I find these statistics hard to believe. During my time there I never witnessed despair or poverty. These indicators and information is why I chose to research this topic and see for myself what this once wealthy nation is in fact doing now. Economic Success Saudi Arabia was...
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...Energy in Saudi Arabia Table of Contents Subject | Page | Introduction | 2 | Consumption of Energy | 3 | Renewable Sources of Energy in Saudi Arabia | 4 | * Solar | 5 | * Nuclear | 5 | * Wind | 6 | * Waste –to- Energy | 6 | * Geothermal | 6 | Water | 7 | Water Desalination | 7 | World’s Largest Solar Powered Desalination Plant | 8 | Al- Midra Tower | 9 | Conclusion | 11 | References | 12 | Introduction Saudi Arabia is the world's top oil exporter and producer. Saudi Arabia's economy is petroleum-based; Oil actually accounts for 90% of the country's exports and nearly 75% government revenues. Oil is also the major source of energy in Saudi Arabia. A lot of energy is used to desalinate water. Water is scarce in a country that is surrounded by sea from East and West. Desalination consumes a lot of energy, although improvements had been made to make it more efficient. In this report, I will discuss the current and future energy sources in Saudi Arabia. In addition, I will talk about the water desalination in Saudi Arabia. Finally, I will talk about one building in Saudi Arabia that got LEED Platinum award from United States Green Building Council (USGBC) assessment. Consumption of Energy Saudi Arabia's economy is petroleum-based; Oil actually accounts for 90% of the country's exports and nearly 75% government revenues. The country has one of the largest reserves of natural gas in the Arabia Gulf Region. Its...
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...Saudi Cement Company: “Survival is the name of the game in a very competitive industry” Dr. Salem M. AL-Ghamdi King Fahd University of petroleum and minerals Dhahran, Saudi Arabia Abstract This is a case study on a Saudi Arabian company known in the cement industry. Saudi Cement Company (SCC) is a Saudi joint company established in 1955. The company is listed in the Saudi stock market. The information was collected through a structured questionnaire and from secondary data. The case write-up fits a case study in a strategic management undergraduate and graduate course. Information was organized to provide insights on how the company evolves overtime with an emphasis on strategic issues such as vision and mission, internal analysis via company’s current operation, External analysis using Porter five force model and major strategic issues Keywords: Strategy and policy, Saudi cement industry, Porter five force model, vision and mission, SWOT analysis. COMPANY BACKGROUND Saudi Cement Company (SCC) is a Saudi Joint Company established in 1955. The principal object of the company is to produce cement and cement products and to invest in the cement fields. SCC operates two cement plants in the Hofuf Plant and Ain Dar Plant in the Eastern Province of Saudi Arabia, located about 36 km apart and are both at an approximately equal distance of around 120-130km from King Abdulaziz Port at Dammam. Below is a brief history of the Company: ...
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...the Saudi Arabian concession, developed originally by Chevron and Texaco, to guarantee access to strategic supplies of foreign oil. In the end, tradition and company preferences prevailed, and it was Exxon and Mobil rather than the US government which joined Chevron and Texaco to form Aramco after the war. Other countries, with fewer inhibitions about state participation in strategic industries, had long been involved in securing oil supplies for their strategic and economic needs. These states saw control of foreign oil as integral to their international power and prestige. Their activities, especially in the Middle East, also helped to bring down the old oil regime. Serpents in Eden Economic theory tells us that an industry where firms make huge profits soon attracts new firms whose competitive behavior reduces profits for all. This is exactly what happened in the international oil industry. The success of even imperfect cartel arrangements made oil vastly profitable and oil companies among the world's largest and richest firms. As a result, the seven oil majors were increasingly faced with competition from small private firms like Occidental and Getty. These independents were politically active and willing to do whatever was necessary to protect their interests. For example, when NIOC was reorganized, a group of US independents demanded and received a share of the lucrative Iranian concession. Competition also came from state-owned firms. The French oil company...
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...CEPCO (Civil and Electrical Projects COntracting) is a leading construction company with corporate headquarters in Jeddah, Saudi Arabia, and offices throughout Saudi Arabia and the Middle East. CEPCO has been in business since 1977 and provides construction services in the fields of Civil & Infrastructure, Electrical, Electromechanical, Oil, Gas & Power. CEPCO executes projects for civil and electrical projects in Saudi Arabia and in GCC countries, especially in the field of 69 up to 380 kV Cable Systems, Delivery, Installation and Testing of 110 kV Transformers and Substation Construction. They are qualified Turnkey-General Contractors with Saudi Electricity Company – Western, Eastern, Southern and Central Regions. CEPCO has executed a number of projects and had a turnover in excess of $150 million in 2007, and $500 million until end of 2008. In addition to construction services, CEPCO is an authorized agent for world class manufacturers and provides related support and field services. As a privately owned company, CEPCO's current strategy is to enhance its growth by building the company's resources and depth of services provided. Contents [hide] 1 Project fields 1.1 Civil and Infrastructure 1.2 Electrical 1.3 Electromechanical 1.4 Oil, Gas and Power 2 Trade 2.1 Authorized agents 2.2 Associates/Partners 3 References Project fields[edit] Civil and Infrastructure[edit] Specialized for turn-key contracts for water distribution, rainwater evacuation schemes...
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...Historical, Current state of the issue and Emergence of Saudi Arabia as free market Historical Saudi Arabia is a total monarchy ruled by King Abdallah bin Abdul Aziz Al Saud. Saudi Arabia has appeared to be satisfied with advance in economic. As a primary for oil producer and exporter, Saudi Arabia controls the whole Organization of Petroleum Exporting Countries. Saudi Arabia’s free market economy has incredible changes in a relatively short term of time. I t has grown from agricultural base community into the regional and global economic power with a modern infrastructure. Petroleum is a fundamental part of the Saudi Arabia’s economy comprising 45 percent of the country’s GDP. Saudi Arabia is the world’s largest producer and exporter of oil, accounting for 20 percent of the oil reserves. GDP in 2010 was estimated at USD622BN ( USD 24,200 per capita). GDP growth in 2010 was 3.7%. Petroleum is an integral part of the Saudi economy comprising 45 percent of the country’s GDP. Saudi Arabia is the world’s largest producer and exporter of oil, accounting for 20 percent of the world’s oil reserves. GDP in 2010 was estimated at USD622 BN (USD 24,200 per capita). GDP growth in 2010 was 3.7% Saudi Arabia was first graded in the 1996 Index, and its economic freedom score has declined since then by 6.1 points. Rating gains in trade freedom, investment freedom, and the management of government spending have been overwhelmed by substantial double-digit declines in property rights, freedom...
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...their oil production. Other countries such as China, are focused on purchasing interest in foreign reserves and use their expertise to import the oil to their country. There are many new technologies such as 3D seismic, hydraulically fracturing and directional drilling. These new technologies have opened up new levels of oil discovery increasing its production all around the world, also these technologies is making the production of oil in America much more important than others in the world. Also, there is a greater focus than ever before on the impact of energy production and consumption, in this case oil. Some nations like the UK and the US have very ambitious goals in which they are looking to begin the construction of new nuclear plants that are safer than the older models this will bring a more cost-effective oil. To accomplish this the oil companies have to invest a huge amount of money so they require a large amount of government subsidies and loans to encourage the investment. This has been difficult because the governments have struggle with large deficits and debts so their willingness to back new projects has been difficult in the last years. Despite all of this the supply of oil has been steady. Better science, technology and engineering are being applied to exploration, production and conservation of oil. Mature economics like the US and leading nations in Europe are being benefitting greatly for the steady supply of oil, with steady growth in shale oil fields...
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...In pre-Islamic times, apart from a small number of urban trading settlements (such as Mecca and Medina), most of what was to become Saudi Arabia was populated by nomadic tribal societies in the inhospitable desert.[38] The Islamic prophet, Muhammad, was born in Mecca in about 571 A.D. In the early 7th century, Muhammad united the various tribes of the peninsula and created a single Islamic religious polity. Following his death in 632, his followers rapidly expanded the territory under Muslim rule beyond Arabia, conquering huge swathes of territory (from the Iberian Peninsula in west to modern day Pakistan in east) in a matter of decades. In so doing, Arabia soon became a politically peripheral region of the Muslim world as the focus shifted to the more developed conquered lands.[39] From the 10th century to the early 20th century Mecca and Medina were under the control of a local Arab ruler known as the Sharif of Mecca, but at most times the Sharif owed allegiance to the ruler of one of the major Islamic empires based in Baghdad, Cairo or Istanbul. Most of the remainder of what became Saudi Arabia reverted to traditional tribal rule.[40][41] In the 16th century, the Ottomans added the Red Sea and Persian Gulf coast (the Hejaz, Asir and Al-Ahsa) to the Empire and claimed suzerainty over the interior. One reason was to thwart Portuguese attempts to attack the Red Sea (hence the Hejaz) and the Indian Ocean.[42] Ottoman degree of control over these lands varied over the next four...
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...state-owned company with the major career is mechanical fabrication and installation. Through 50 years of non-stop development, Lilama has grew up with the permanent employees of around 20.000. At present, Lilama is the leading EPC contractor in Vietnam with many national major projects such as Uong Bi Extension Thermal Power Plant, Dung Quat Oil Refinery, Son La Hydro Power Plant…. One of the strategic orientation and development goals is standardize and consolidate in order to lead Lilama to become a large industrial corporation in Vietnam and Asia, professional EPC contractor and manufacturer of mechanical equipment, has brand-name in the world and participate in the global product chain. The Middle East’s market is very huge, especially this market includes many big corporations such as Technip, Samsung, Hyundai, Bechtel, SK… Although financial crisis happened in 2008 but the owner of oil refinery plants in the Middle East still invested billions of dollars in upgrade, innovation, new plants construction. To realize that Lilama is the partner who has reality qualification, professional project management according to international standard, thus, in 2009, on the occasion of official visit of the Prime Minister in the Middle East countries, Lilama signed the cooperation agreement with Technip (French Contractor) in the Middle East market when Technip has contract. In October, 2009, Technip won 02 EPC contract belong to Jubail Oil Refinery Project in Saudi Arabia due to...
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...Hedging Jordanian Oil Purchases' Risk and Costs Using Oil Futures Contracts During 1998-2007 Dr. Asa'ad Hameed O. AL-ali ; Mohammed Murdi Al Rawad Abstract This study aims to investigate whether using futures contracts will reduce the Jordanian imported petroleum price risk and decrease the Jordanian petroleum purchases invoice. To achieve the objectives of this study, ten years-hedge simulation conducted on the real imported quantities to generate assumed comparable cases for the unhedged and hedged costs of the Jordanian monthly purchases. The study sample consisted of Jordanian monthly imported quantities of crude oil during the 1998-2007 period. Weekly spot prices of Saudi Arabian Light Crude and the daily futures prices of NYMEX Cushing Crude Oil Futures Contracts 1 (one month) and 4 (4 months) were also used. Constant cross hedge strategy conducted for hedging the Jordanian imported petroleum needs. The NYMEX Cushing Crude Oil Futures Contracts 1 and 4 employed to hedge the Saudi Arabian light crude oil over the study period as a proxy for the Jordanian petroleum purchases. The results demonstrate that the constant cross hedge strategy with the NYMEX oil futures contract 4 proved to be successful in hedging the price risk of the Jordanian imported petroleum and decreases the purchases invoice. While that of NYMEX oil futures contract 1 increases the price risk of the Jordanian imported petroleum, but at the same time decreased the purchases...
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...Economic Environmet. Macroeconomics. Dña. Susana Garcia Andión Dña. Iria Regueiro Espiñeira D. Ernesto Rodríguez Cuervo D. Cesar González Soto D. Damián Rodriguez Estévez 2012 GAS WORLWIDE ENVIRONMET 10/02/2012 INDEX. 1. Introduction. 2 2. Major world producers, exporters, importers and reserve holders. 3 * Producing Countries. * Exporting Countries. * Proved Reserves. * Importing Countries. 3. Leading players at “gas game”. 6 * Russia. * Qatar. * Saudi Arabia. * USA. * Turkmenistan. * China. * Canada. * Spain. 4. Largest companies. 8 * National Iranian Oil. * Saudi Arabian Oil. * Qatar General Petroleum Corporation. * Iraq National Oil Company. * Petroleos de Venezuela SA. * Gazprom Group. 5. Main pipelines. 11 6. Conclusion. 12 BIBLIOGRAPHY. 14 1. INTRODUCTION. Petrol is currently the “star” resource when analyzing world energy resources according to their relative weigh and its price’s impact on world economy. On the other hand, renewable energies tend to focus attention when innovation or sustainability is the main analysis factor. Maybe because these are most common approaches, we have consider that focusing on gas might be a pretty original one, once it was the third main world energy...
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