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Page added on May 1, 2015
Saudi Arabia to restructure Aramco, separate it from oil ministry
Saudi Arabia’s Supreme Economic Council has approved a restructuring of state oil company Saudi Aramco [SDABO.UL] that includes separating it from the oil ministry, Al Arabiya television channel reported on Friday, citing sources.
There are no indications that the move will lead to changes in the fundamental way the world’s top crude exporter makes its oil decisions.
“Saudi Supreme Economic Council agrees on Deputy Crown Prince Mohammed bin Salman’s vision of restructuring oil-giant Aramco,” Arabiya reported on its Twitter account.
“Restructuring of Saudi Aramco includes separation from petroleum ministry,” the channel said.
The Supreme Economic Council is a new body formed by King Salman earlier this year to replace the Supreme Petroleum Council, which used to help set the kingdom’s oil policy.
The new council is headed by the king’s son Prince Mohammed, a move seen by analysts as laying the ground for a generational shift in how Riyadh develops its energy and economic strategies.
The main tenets of Saudi oil policy, including‎ maintaining the ability to stabilize markets via an expensive spare-capacity cushion and a reluctance to interfere in the market for political reasons, are set by the top members of the ruling Al Saud family.
On Wednesday, King Salman appointed Saudi Aramco’s chief executive as chairman of the state oil firm and health minister, as part of a major reshuffle in the OPEC kingpin.
Aramco officials could not be immediately reached for comment on Friday, which is a day off in the Gulf Arab kingdom.
4 Comments on "Saudi Arabia to restructure Aramco, separate it from oil ministry"
Newfie on Fri, 1st May 2015 4:00 pm
Saudi Oil policy includes “the ability to stabilize markets via an expensive spare-capacity cushion”
B— s–t! They are pumping flat out. They have zero “cushion”.
joe on Fri, 1st May 2015 10:04 pm
How will they run the oil if it’s not officially part of the government? I guess it’s implied they recognise that oil is no longer the future, so I guess that message is clear. They won’t be able to swing the market, so they no longer need it to make oil central to their national policies. Though that leaves them much worse off in terms of how the house of Saud forms it’s ideas of itself and what it’s for. If it’s not oil dictatorship then how will it pacify millions of poor people. If they try to industrialise then the changes that will happen in Islam would imply the extension of certain rights which would potentially upset their power. Turkey is fairly industrialised, their islamist government is terrorised by working poor socialists. The US created bin Laden to fight people like them, but they are the genuine answer to terrorism, not gitmo.
Apneaman on Sat, 2nd May 2015 1:56 am
The War Nerd: Bentleys for Houthis!
http://pando.com/2015/04/27/the-war-nerd-bentleys-for-houthis/
Dredd on Sat, 2nd May 2015 1:58 pm
Aramco (Arabian-American Oil Company), the first oil-pimp of Oil-Qaeda (The Universal Smedley – 2). The first poison snake oil salesmen.
Their kids grew up to be bullies.