Saudi Aaramco has established a strong global reputation for meeting the diverse challenges which come with being the world's largest oil company.
Last year was no exception, as the company overcame uncertain global conditions to keep its commitment to supplying crude oil, NGLs and refined products to markets around the world.
The company produced some 7.6 million barrels per day (bpd) of crude oil and condensate last year, exporting about six million bpd. The US remained the largest single market for Saudi Arabia's various crude grades.
Saudi Aramco's shipping subsidiary, Vela International Marine Ltd, delivered more than 1.9 million bpd of these barrels to clients around the world. It also shipped 830,000 bpd of refined products and LPG.
On the downstream front, Saudi Aramco's five domestic refineries registered throughputs of an average of 1.43 million bpd last year, the same rates as 2000.
But while Saudi Aramco's pledge to be a prime crude oil and products supplier remains constant, the company has also evolved to meet future business demands and a changing global economic landscape.
Technology is today the driver of Saudi Aramco's complex systems, and the company has been proactive in developing suitable technologies and then applying them.
Saudi Aramco's projects also reflect changing times. Gas developments are firmly at the forefront, and last year saw the completion of the first of two major gas plants, at Hawiyah, part of the company's plans to expand and develop the Master Gas System - a massive processing and distribution network.
The Hawiyah Gas Plant came onstream in the third quarter of last year - four months ahead of schedule and under budget - to process approximately 1.6 billion cu ft per day of non-associated gas.
Natural gas has been identified as the mainstay of Saudi Arabia's future, and plans are now being put in place which will involve the further development of extensive upstream and downstream facilities, new power generation and water treatment systems, projects which, it is expected, will create major economic opportunities for Saudi nationals.
The growth in natural gas use in the Kingdom for industry will be met by non-associated gas exploration and development programmes, and last year Saudi Aramco continued its policy of selective site development.
By the end of last year Saudi Arabia's gas reserves stood at 224.2 trillion cu ft, 39 per cent of which was non-associated gas. Some 1.94 trillion cu ft of gas was produced last year, a 10 per cent increase on the year 2000, thanks in large part to the early completion of the Hawiyah facility.
Existing gas plant capacity was also increased with a debottlenecking project at Shedgum last year, which saw capacity rise by 400 million cu ft per day and increased the plant's ability to handle non-associated Khuff gas. As of the end of last year, Saudi Aramco's total gas processing capacity was eight billion cu ft per day.
The company made significant oil and gas discoveries at Jufayn, a combined oil and gas find East of the Ghawar field. More than 100 wells were tied in, according to Saudi Aramco, and oil production was enhanced.
These discoveries, in addition to reservoir studies and delineation drilling in existing fields, added 5.5 trillion cu ft of gas to reserves last year.
Saudi Aramco's Parallel Oil Water Reservoir Simulation software was deployed on the development of the offshore Qatif and Abu Sa'fah fields last year.
The company also boosted exploration operations using low-flying aircraft to measure subsurface magnetic fields.
Communications were improved too, the company turning to VSAT satellite communications to link remote areas with Saudi Aramco headquarters in Dhahran. Capabilities were expanded to enable real-time transmission of well data from the field to geoscientists, improving 'live' monitoring and control during drilling operations.
The company's wide-ranging distribution systems were improved last year with the addition of new bulk plants and pipelines, meaning that products could get to market more efficiently. Greater control over the management of Saudi Arabia's strategic storage system was also assumed by the company, ensuring that the country has easily accessible petroleum products in case of a national emergency.
Saudi Aramco continued to leverage the power of Information Technology (IT) to enhance its business systems last year, and thanks to the innovative approach of the company's experts corporate functions have been streamlined by integrating and simplifying complex procedures.
A Business System Integration Program consolidated some 270 separate systems into one at the end of last year, thereby enhancing Saudi Aramco's capabilities and boosting operational efficiencies.
At the same time, the implementation of all the major modules of SAP was progressed, transforming Saudi Aramco's information management systems, including the successful 'Big Bang' roll out of finance and logistics modules - two of the most complex SAP modules ever attempted.
Computing power continued to play an integral role in Saudi Aramco's field operations last year. New facilities were completed at the company's Exploration and Petroleum Engineering Computer Centre (EXPEC).
The company also took its first step towards developing an international e-commerce capability last year, establishing a website for LPG tender sales. The site provides an electronic rendezvous in real-time, thus facilitating the LPG tender process, said the company.
Saudi Aramco maintained its status as a pioneer in the development and application of new technologies to improve its processes.
The company's dedicated Intellectual Assets Management Team developed 15 patent applications and filed two last year, creating opportunities to increase further revenues.
Its technical capabilities received a major boost when the first phase of a state-of-the-art Research & Development facility was inaugurated. By the end of the year more than 550 active research and technology projects were under way.
The company's staff are, of course, at the heart of all the company's complex operations and are considered its most valuable resource.
Not surprisingly, therefore, Saudi Aramco invested more than 10 million man-hours of training time, skills enhancement and career development into its staff last year, which was designated the 'Year of Self Development'.
Computer-based self-learning opportunities were stepped up, and 41 Learning Centres established to add a new dimension to the company's staff training.
Last year also saw the ongoing success of the President's Leadership Challenge (PLC), whereby participants take leave from their regular jobs to engage in intensive leadership-building sessions.
With an eye on the leaders of tomorrow, Saudi Aramco is committed to the hiring and development of the country's youth. As of the end of last year, there were 1,986 participants in the company's Apprenticeship Program and more than 1,200 students on Saudi Aramco scholarships, according to the company.
Saudi Aramco's responsibilities include the environment in which it operates, and the company pours considerable resources into ensuring that the impact of its operations on the Kingdom's land, air and seas are minimised.
The company practices strict preparedness to avoid or respond to accidents, and participates in events such as oil spill exercises, a proven, effective training programme and proof of the company's commitment to keeping its products safely contained.
Safety is also a core consideration across Saudi Aramco's broad scope of operations. Executive Management Safety Reviews were carried out throughout the course of last year, with senior corporate leaders visiting field locations for in-depth reviews of safety practices. Driver training programmes helped keep the company's motor vehicle accident rate to 0.86 per million kilometres, the lowest in the company's history.
Saudi Aramco's activities were not limited to the Kingdom last year, however. With an eye on growth opportunities in new markets, Netherlands-based subsidiary Aramco Overseas Company completed a joint feasibility study last year with ExxonMobil China Petroleum and Fujian PetroChemical Company Ltd which, when approved, will see the construction of a major petroleum/petrochemical complex in China's Fujian province.
In the US, Houston-based subsidiary Saudi Refining Inc signed an agreement last year with Shell and Texaco under which Saudi Refining and Shell will each own 50 per cent of Motiva Enterprises, taking Texaco's share.
