Saudi Aramco said on Tuesday that it will be reorganizing its downstream business to support its global growth strategy, aiming to complete it by the end of this year.
The downstream model will be divided into four units: fuels including refining, trading, retail and lubes; chemicals; power; and pipelines, distribution and terminals, Aramco said in a statement.
"This reorganization is designed to enhance the effectiveness and efficiency of Aramco's existing downstream assets, but does not represent a fundamental change in the overall business structure," Aramco said.
Saudi Aramco CEO Eng. Amin al-Nasser said on Monday that oil demand was headed towards recovery, admitting that the oil industry faced one of the most difficult challenges in its history, with global demand in the first part of the second quarter reduced to about 25 million barrels.
On the impact of the coronavirus pandemic on business sectors, he said: “Many sectors have been affected, and countries and companies have deliberately postponed or suspended some projects and delayed final decisions regarding some investments and financing.”
But he added: “We are optimistic that the worst of the pandemic is behind us.”
