Saudi Aramco full ownership is now with Saudi Arabia. The firm is established as one of the biggest oil refineries in the world. Saudi Arabia has taken control of the Port Arthur refinery in Texas. The deal was announced last year.
Port Arthur Key to Saudi Aramco Full Ownership Transfer
Port Arthur oil refinery is one of the largest in the United States. Consequently, the transfer of Port Arthur holds a lot of significance in Saudi Arabic full ownership transfer.
The Port Arthur can process up to 600,000 barrels of oil each day, leading the oil refineries in North America.
Before Saudi Aramco full ownership transfer, it previously had only 50% ownership via a joint- venture with RDSA (Royal Dutch Shell).
However, Saudi Aramco and Royal Dutch Shell did not go along well. Therefore, the two companies reached a deal to separate their assets in March 2016.
Ownership of Other Terminals
Port Arthur is not the only oil terminal for which Saudi Aramco wants ownership. It is also eyeing to gain ownership for 24 other terminals. The company can sell Shell-branded diesel and gasoline in states of North Carolina, South Carolina, Georgia, Maryland, Virginia, most of the Florida, and eastern half in Texas.
Saudi Aramco IPO
Saudi Aramco is planning to go for IPO (Initial Public Offering) in 2018. Consequently, the company wants to control as many refineries as possible in the United States to get a better valuation. Therefore, Saudi Arabia is expecting to get an estimate of $2 trillion.
Trump’s Push for Energy Self-Sufficiency
Despite Saudi Arabia’s push to gain more market in the United States, Donald Trump wants the United States to become energy independent country. The President in his May 2016 already mentioned that he wants the US to get independence from foes and oil cartels.
In another reference, Donald Trump has warned that he may stop importing oil from the United States if do not commit soldiers to fighting the ISIS.
Low oil prices have badly impacted the economy of the oil producing countries. Saudi Arabia has concerns about the price fetched by Saudi Aramco for the planned IPO in 2018.
Saudi Arabia comes at second place after Canada regarding supplying crude oil to the United States. This deal will allow Saudi Aramco to access a greater number of oil consumers in America. Despite the tensions, the relations between the US and Saudi Arabia are improving over time.