SAUDI Arabia celebrates the 75th anniversary of the May 29, 1933, concession agreement with American company, Socal seeing a record oil bonanza of $260 billion and an ambitious five-year master-plan by its flaghip oil company Saudi Aramco to increase its fresh drilling activity by a third and hike investments levels by 40 per cent.

Oil revenues were at an average of $43 billion per year throughout the 1990s and amount to nearly $700 million per day. The lower oil prices in 2009 and 2010 mean that some of the headline numbers will not look as good, but the underlying picture will remain very healthy and in real terms economic growth will be stronger.
Rising oil prices are expected to have a positive impact on the Saudi economy. The current account surplus may touch an all-time high this year and economic growth and the budget surplus will also be exceptionally strong.
Total exports are now projected at $290 billion, compared with just $39 billion in 1998.
Aramco will bolster the number of wells drilled around Saudi Arabia to 248, compared with an original target of 187. Investment on projects will be increased to $13.7 billion from $10.7 billion under the plan.
Much of the increase in drilling activity will be aimed at sustaining the kingdom’s production target of 12.5 million barrels per day, which it expects to reach by the end of 2009.
However, given Saudi Arabia’s success in both discovering fresh finds and redeveloping previously mothballed fields, such as Manifa, it appears the company may seek to boost capacity beyond 12.5 million bpd.
Saudi Oil Minister Ali Al Naimi says that as long-term oil demand forecasts fell and alternative fuel supplies increased, there was no need to go beyond next year’s production capacity level. Saudi Arabia has previously said it could take its production capacity up to 15 million bpd.
Naimi says the world has plenty of oil – enough reserves today to satisfy demand over the next 50 years – and said insufficient investment posed the biggest threat to meet the world’s rising energy needs.
The Saudi Aramco plan also includes a $4.1 billion commitment to upgrade existing facilities at the kingdom’s landmark Ras Tanura refinery, compared with an initial investment of $2.39 billion.
Aramco recently cancelled a planned 125,000-bpd refinery upgrade at Ras Tanura, increasing speculation it is considering a partnership with Saudi Basic Industries Corporation (Sabic) to integrate the refinery with a petrochemicals plant.
However, the budget for some plans has been cut. The oil giant has committed $1.45 billion to the Karan gas facility to hit prod-uction of 1.5 billion cubic feet a day (cf/d) by 2012. This marks a $50 million drop from its previous budget and comes despite rapidly rising demand for gas across the region, which has provoked concerns over a potential shortage of supply for industrial users and power plants.
In Saudi Arabia alone, natural gas demand is expected to reach 14.5 billion cf/d by 2030, compared with the current 5.5 billion cf/d.
The national oil company will spend $2.58 billion on offshore maintenance and new drilling, compared with $2.25 billion previously, marking a new emphasis on the kingdom’s offshore fields.
Much of Aramco’s offshore development has focused on the Safaniyah, Marjan, Berri and Zuluf fields, but further devel-opment is needed, mostly to provide relief to the ageing Ghawar field, the world’s largest onshore field.
Aramco has devoted $1.15 billion for maintenance of Safaniyah, the largest offshore oil field in the world, which boasts production of about 1.7 million bpd. It includes the installation of 67 kilometres of crude transmission lines, along with a substation and an offshore sub-sea cable.
Other parts of the five-year programme include a $3 billion investment to cover maintenance work and drilling on Aramco’s onshore fields, compared with a previous estimate of $2.2 billion.
Along with the increase in the number of wells being drilled, about 450 km of additional in-field flowlines for processing at the central Abqaiq facility will be constructed.
The superlative success achieved by Saudi Aramco over the years is unparalleled, thanks to the efforts of a lot of mind and muscle power from its employees, both past and present.
The efforts of all those people will be remembered, when celebrations kick off at Saudi Aramco facilities across the kingdom as the company marks the 75th anniversary of the  concession agreement that allowed Socal to begin exploring for oil in Saudi Arabia.
“World-class organisations are successful because they have been able to realise a bold vision,” says president and CEO Abdallah S Jumah, who notes that Saudi Aramco is particularly fortunate in that its vision remains fresh thanks to the support of the kingdom’s leaders throughout the company’s history.
“No company can be successful, however, without the hard work and dedication of employees at all levels and in a variety of different disciplines, and in our case, the efforts of people of many nationalities. Our company’s success over the past 75 years is truly cause for celebration,” he says.
The day of celebrations starts with an inaugural event in Dhahran, where Jumah will deliver a speech that will be video-streamed live on the company’s Intranet so employees all across the company could watch.
Later that morning, celebrations will take place at 11 sites across the kingdom, each with a member of corporate or executive management delivering a keynote speech. At each of the sites, a film will be shown, and there wllbe a display of photographs depicting the company’s rich history.
Saudi Aramco World has invited youth to use new media to share their creative energy through the “Real Arabia” contest.
The magazine has been published for nearly 60 years to help English-language readers learn more about the Arab and Islamic worlds. The contest was in that spirit. “We wanted to let our readers be introduced to a “Real Arabia” by the most creative (and ‘energetic’) young people who know our home country,” its Web site says.
“Real Arabia” means “you, your life, where you are,” the site says. It’s “what feels real to you, today.”
All through last year the company had been holding a series of celebrations to generate enthusiasm and excitement among its employees and friends worldwide.
The theme of the celebrations was “Energy for Generations,” and focused on the human side of the company – past, present and future – as well as its commitment to the Kingdom of Saudi Arabia and global prosperity. Company pioneers and exemplars of the Saudi Aramco spirit were spotlighted and honoured.
“Saudi Aramco is a very special company,” says Naimi, chairman of the board of Saudi Aramco.
“The 75th Anniversary is an opportunity to celebrate its great achievements over the years and to highlight the company’s role in contributing to the future of the kingdom and the world economy,” Naimi says.
Jumah says: “We view this as an opportunity to connect the company’s remarkable past with the exciting promise of the future. It will also allow us to send a big ‘thank you’ to our current and retired employees, to the people of kingdom and to all those with whom we partner.”
The company had set up a 75th anniversary project team under the direction of Nasser Al-Nafisee, previously manager of Central Community Services Department. The team worked out details of a wide range of activities, events and programmes to be unveiled in the lead-up to the anniversary year.
“My team members and I have been talking to company employees inside and outside the kingdom to solicit their ideas about the anniversary programme. Everyone we talked to, without an exception, shared with us a sense of excitement and pride,” says Nafisee.
“We want to make this landmark occasion very special,” he adds. “It will let us tell the fascinating story of Saudi Aramco in a fresh and innovative way to our people in the company, in Saudi Arabia and around the world.”
In September last, the team launched an informative 75th Anniversary newsletter for employees with the theme “Countdown to a Milestone.” A Web site packed with information on the anniversary was also launched then.
Activities involved employees, retirees, company partners and other audiences.
Naimi says: “I am experiencing all the joys of the company’s 75th anniversary of the signing of the Concession Agreement in 1933, when the kingdom’s founder, King Abd Al-Aziz, gave the nod to his Minister of Finance, Shaykh Abd Allah as-Sulayman, to sign the articles of agreement.”
“This far-seeing decision ushered in the historic Saudi oil and development legacy, which thrust the Kingdom onto the world stage and ultimately made it an influential global force.”
A significant focus of the anniversary was the role Saudi Aramco plays in contributing to the economic development of the Kingdom of Saudi Arabia and global economic stability.
In line with this focus, the announcement of the 75th Anniversary Year was marked by the unveiling of the anniversary “Energy for Generations” theme and logo.  The theme acknowledges the multiple generations of company pioneers and employees who have contributed to Saudi Aramco’s growth and the kingdom’s economic development spanning eight decades. The Saudi Aramco 75th Anniversary logo brings to life the “Energy for Generations” theme and was used on a wide range of celebratory materials throughout the anniversary year.
Energetic, colourful and modern, the logo is a uniquely crafted symbol designed to project the joy, passion and pride associated with the 75th Anniversary celebrations.  Comprising the numerals “75” at the core of a radiating energy dot pattern, it reflects both the human aspect and technical excellence associated with the company.
The three colours – blue, orange and green – in which the logo will appear are based on the clarity, vibrancy and purity associated with energy.
“It is important that we acknowledge the inspiring role played by every generation that has helped to build and grow this great company,” Jumah says.  “We look forward to celebrating 75 years of human achievement and, most importantly, the talented and dedicated people who have contributed to our success and who will continue to be part of our fabric and growth in the future.
“This is also a moment we can use to look forward with excitement and confidence to our achievements to come, and the legacy we are building now, for future generations as a world leader mindful of our global responsibility,” adds Jumah.
The 75th Anniversary events will be complemented by a number of special publications and other key initiatives due to be unveiled during the course of 2008.  The company has developed a special internal website for employees that is dedicated to the 75th anniversary, while an internal monthly newsletter will also carry news and updates on events throughout the year.
“This is a momentous milestone in our company’s history, through which we wish to signify the depth of our appreciation to all of those who have contributed to our success,” says Nafisee.  “We are certain that the events planned for the anniversary year will excite, empower and inspire as we showcase the story of Saudi Aramco’s success, while uniting our people in a spirit of celebration during this landmark year,” Nafisee adds.