Aramco division heads were warned to stay focused on budget and quality during an address from their president and chief executive officer, Khalid Al Falih this month. He also warned that rampant domestic energy demand growth within the Kingdom was a serious challenge for the National Oil Company, and one he would tackle through increased gas development and production.
Saudi Aramco’s position as “best of the best” carries tremendous responsibilities, Al-Falih said recently while speaking to Dhahran-area management before presentations about the company’s 2011-2015 Business Plan, which was endorsed by the Board of Directors at its recent meeting in Beijing.
“While this clearly reflects the board’s trust, it also entails significant responsibility to continuously scrutinize and optimize each and every one of our plans,” Al-Falih said. The basis for the plan is a global economic and oil demand outlook calling for “cautious optimism,” he said, “with emphasis on ‘cautious.’”
Saudi Aramco is “at the peak of the industry and at the peak of the Kingdom’s business enterprises,” Al-Falih said. “We are considered best in class and best in the Kingdom by the best companies.”
The shareholder’s trust and confidence in Saudi Aramco, which is reflected in continued approval of the company’s capital allocations, “is a huge responsibility we carry on our shoulders,” Al-Falih said.
“Fiscal discipline has to be one of the main themes that you take away today,” he said. “We all need to continue to sharpen our business performance and elevate our game. We cannot afford to spend capital dollars on anything less than excellence.”
One of the most significant challenges the company and the Kingdom face during the business plan period is increasing domestic energy demand, which Al-Falih said is escalating continuously. In response to this challenge, he said, “We are increasing our efforts to find and develop gas. … And we will remain engaged in helping to optimize the Kingdom’s energy consumption.”
He also said the downstream outlook is favorable for the company, and while oil remains the mainstay of our business, we will continue to add value through downstream integration with petrochemicals.
While core operations continue to drive Saudi Aramco’s success, Al-Falih credited the company’s support organizations with establishing the foundation on which that success is based. “Without them, none of us could make any progress,” he said.
Al-Falih congratulated the company on its attention to safety and noted that safety is not optional, it is essential for the company to continue in business. Without an exceptional safety record, the company’s “license to do business” is at risk, he said.
Safety carries tremendous importance not only for the industry, but also on a personal level. “Families send their bread earners to work in our facilities every day, and they trust us to send them home safely every night,” he said.
Another topic Al-Falih addressed was ethics. “Saudi Aramco is trusted as an ethical company,” he said, instructing that everyone in the company should avoid any conduct that could be construed as unethical.
“We have a reputation we have earned over the past 77 years, and I’m not going to allow it to be damaged.”
