Aramco CEO Assures Employees of Company’s Strength

Saudi Aramco is well prepared to face the steep drop in oil prices in the short and medium term, and it has made some adjustments in light of the price fall, according to CEO Khalid A. Al-Falih.
Al-Falih said in a memo published in the company’s internal Arabic weekly magazineQafilah that he understands that the current market situation has created ambiguity among company employees and their families about the company's ability to cope with sharply lower oil prices. “That’s why I am here confirming to you that we have strengthened our position when oil prices were high, as we expected this scenario to happen,” Al-Falih said in the memo. “We are able to maintain our long-term commitments, and we will continue our work with high flexibility, efficiency, and wisdom.”

Despite the recent drop in oil prices, Saudi Aramco CEO Khalid A. Al-Falih said the company will "maintain [its] long-term commitments."

The current situation offers an opportunity for Saudi Aramco, he said. “For example, amid these circumstances, we will be able to execute our projects at lower prices because others will be obliged to postpone their projects. This will lead service providers to slash their prices in order to get work,” he said.
Al-Falih said he expects many oil and gas companies will lay off employees, which may offer an opportunity for Saudi Aramco. “We will be able to hire talented people and experts we need to keep our investments going on,” he said.
Meanwhile, Al-Falih said that his company made eight discoveries in 2014, which will help boost the company’s overall reserves. “In addition, our gas production capacity has hit historic levels at 8 billion cubic feet per day,” he said.
By: Abdelghani Henni is the Middle East Editor for the Journal of Petroleum Technology

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