Week 50 in Review: Formula 1, the CEO’s vision on energy transition, and another pipeline mega-deal
In speaking about the energy transition, Amin Nasser said, “The urgent new quest for our industry is to chart a course that will continue to realistically meet the world’s rising energy needs in a reliable, affordable, and sustainable manner.”
Here are some of the most important Aramco stories of the past week on AramcoLIFE.
Aramco has signed a $15.5 billion lease and leaseback deal involving its gas pipeline network with a consortium led by BlackRock Real Assets and Hassana Investment Company, the investment management arm of the General Organization for Social Insurance (GOSI) in Saudi Arabia, in one of the world’s largest energy infrastructure deals.
This represents significant progress in Aramco’s asset optimization program and is the second such infrastructure transaction by Aramco this year after the closing of the oil pipeline infrastructure deal earlier in June 2021.
Upon completion of the gas pipeline transaction, Aramco will receive upfront proceeds of $15.5 billion, further strengthening its balance sheet. The deal unlocks additional value from Aramco’s diverse asset base and has attracted interest from a wide range of worldwide investors, highlighting the compelling investment opportunity.
Aramco has partnered with F1 in Schools, a global Science, Technology, Engineering and Math (STEM) challenge, to roll out the competition in Saudi Arabia.
Some of the country’s brightest young minds will have the opportunity to compete in the challenge, which involves designing and manufacturing a miniature racing car using computer-aided design and manufacturing tools.
The contest is open to government and private school students aged 9 to 19, working in teams of three to six, and the top team in Saudi Arabia will go through to the Aramco F1 in Schools World Finals, being held in 2022 in the UK. More than 26,000 schools in over 50 countries will be competing to reach the world finals.
Aramco on Sunday announced its entry into Saudi Arabia’s domestic lubricants market, offering consumers a new line of lubricant products under the ORIZON® brand.
Aramco timed the ORIZON® launch to coincide with the inaugural Saudi Arabian Formula 1 Grand Prix in Jeddah, Saudi Arabia. Aramco is a global sponsor of Formula 1.
Aramco has introduced the ORIZON® product line in more than 20 cities including Riyadh, Jeddah and Dammam with more locations planned. ORIZON® products include synthetic and semi-synthetic lubricants for gasoline engines and heavy-duty diesel engines, as well as driveline products, greases and brake fluids. The company has also expanded the brand to include ORIZONPRO® which is a high-performance line for the industrial sector.
The world needs to strengthen its plan for the energy transition to ensure it proceeds smoothly and acknowledge that petroleum will be a crucial part of the global economy’s energy mix for decades to come, Saudi Aramco president and CEO Amin Nasser said at the 23rd World Petroleum Congress in Houston on Monday.
The current approach to the energy transition mistakenly assumes that renewables, such as wind and solar, will be able to scale up quickly, and that commercially viable alternatives to conventional fuels will arrive soon. It also fails to pay enough attention to energy security, economic development, and affordability issues, especially in the developing world, he said.
“The urgent new quest for our industry is to chart a course that will continue to realistically meet the world’s rising energy needs in a reliable, affordable, and sustainable manner,” Nasser said.
On behalf of The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Sa’ud, the King Khalid Award for Sustainability Ceremony was held recently under the patronage of HRH Prince Muhammad bin Abdulrahman bin Abdulaziz, acting Governor of the Riyadh Area, in the presence of HRH Prince Faisal bin Khalid bin Abdulaziz, advisor of The Custodian of the Two Holy Mosques and chairman of the King Khalid Award Committee.
During the ceremony, the North Ghawar Producing Department (NGPD) was announced as a winner of the King Khalid Sustainability Award. The King Khalid Sustainability Award is awarded to national organizations that are distinguished by their innovative application of sustainability in their business practices and all their social, economic, and environmental operations in Saudi Arabia.
HRH Prince Muhammad bin Abdulrahman bin Abdulaziz presented the award to Khaled A. Al Buraik, vice president of Southern Area Oil Operations. “It’s a great honor to win this prestigious award, which receives the gracious patronage of The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Sa’ud. This is a badge of honor for every Saudi Aramco employee,” Al Buraik said.