Saudi Arabia's national oil company Saudi Aramco has released its 2019 results, posting a nearly 21% decrease in its net income to US$88.2bn, due to lower crude oil prices and production volumes, reduced refining and chemical margins and a US$1.6bn impairment charge related to the Sadara Chemical Company.
In 2019, its average crude oil and condensate production declined by 2.9% to 13.2 mboe/d, including 9.9 mb/d of crude oil (-3.9% on 2018), while its total hydrocarbon reserves under the Concession Agreement increased by 0.7% to 258.6 Gboe in 2019, including 201.9 Gbl of crude oil and condensate, 25.7 Gbl of NGLs and 190.6 tcf (5,394 bcm) of gas. In addition, Saudi Aramco's gross refining capacity stood at 6.4 mb/d and its net refining capacity at 3.6 mb/d.
In December 2019, Saudi Aramco completed the largest initial public offering (IPO) in the world. The company plans to transfer all its downstream activities into a separate legal entity by the end of 2024. It will also become one of the largest petrochemical producers in terms of production capacity, once the US$69.1bn acquisition of a 70% equity interest in SABIC is closed (expected in the first half of 2020). Saudi Aramco will develop the Jafurah unconventional gas field in the Eastern Province in phases, after having secured regulatory approval in February 2020. The field is estimated to hold 200 Tcf (5,660 bcm) of gas and the first phase of production is expected to start in early 2024.