Week 2 in Review: Downstream expansion, nonmetallic research, and more
Investments in PKN Orlen in Poland widen Aramco’s presence in the European downstream sector and further expand its crude imports to the country.
Here are some of the most important articles from Aramco LIFE over the past week.
Aramco is expanding its global downstream presence with investments in Poland’s refining, wholesale, and jet fuel marketing segments.
The company has agreed to acquire equity stakes of:
- 30% in a 210,000 barrels per day refinery in Gdansk
- 100% in an associated wholesale business
- 50% in a jet fuel marketing joint venture with BP.
The acquisitions will be made from Polish refiner and fuel retailer PKN Orlen following its proposed merger with Grupa Lotos. Completion of the transaction is subject to regulatory approvals, including from the European Commission.
Aramco and the China Building Materials Academy (CBMA) on Tuesday launched NEXCEL, a new Nonmetallic Excellence and Innovation Center to further advance the use of nonmetallic materials in the building and construction sector.
The center was launched at an event in Beijing, where the center will be located.
NEXCEL will leverage CBMA’s expertise and resources to promote the development and application of nonmetallic technologies that offer superior lifecycle cost, efficiency and environmental advantages over their metal alternatives.
The company recently concluded the 2021 Digital Maturity assessment and scored in the top quartile among the top six global industry peers. The evaluation was done through Gartner, an American research and consulting company, and it included an analysis of 35 admin areas in the organization with more than 470 digital capabilities.
This assessment required more than 700 engagement meetings where a committee reviewed and assessed more than 3,000 unique initiatives, and resulted in more than 250 recommendations corporatewide.
The assessment has shown Aramco’s digital maturity is improving reliably by 56%, surpassing most peers since the first assessment in 2019.
Jamil J. Al-Bagawi has been appointed as the executive director of National Champions effective Jan. 1, 2022.
He had previously served as the chief engineer — a position he assumed in January 2019, after completing multiple acting assignments in the same position commencing December 2016.
Prior to that, Al-Bagawi served as the manager of Operational Excellence from August 2013. Commencing in 2009, he completed assignments (permanent or acting) as manager in several departments, including the Consulting Services Department, Shedgum Gas Plant, R&DC, and the Inspection Department.
Setting a target of channeling 70% of Aramco’s total purchasing from local vendors, manufacturers, and service providers, was an ambitious goal. But today, the company’s In-Kingdom Total Value Add (iktva) program has taken root in its everyday operations. Paired with the Kingdom’s 2030 Vision for economic development, Aramco’s iktva program has made dramatic headway encouraging the manufacturing of critical components, many of them never before produced in the Kingdom.
For Aramco, localization simply makes good business sense. Aramco is a main consumer of industrial assets Kingdomwide, and the way it makes purchase decisions to meet its own needs can have a profound effect on the Kingdom’s economy.
“Seeing the ‘Made in Saudi’ tag more frequently is something to be very proud of, especially when you know your team helps in making this happen,” says Abdullah S. Al Humaid, manager of the Consulting Services Department (CSD).