Saudi Aramco traces its history to 1933, when Saudi Arabia granted an oil concession to Standard Oil of California (now Chevron). Commercial oil was found at Dammam No. 7 in 1938, and the venture became the Arabian American Oil Company (Aramco) in 1944, owned by Socal, Texaco, Exxon and Mobil.
Nationalization
During the 1970s the Saudi government bought out the American partners in stages, taking 25% in 1973, 60% in 1974 and full ownership by 1980. Saudi Aramco was formally established in 1988.
The Ghawar Field and Low Costs
Aramco operates Ghawar, the largest conventional oil field ever found, and Safaniya, the largest offshore field. Large, high-pressure reservoirs give it some of the lowest lifting costs in the industry, so it stays profitable at prices that strain higher-cost producers.
Spare Capacity and OPEC+
With a maximum sustainable crude capacity of 12.0 million barrels per day, Aramco gives Saudi Arabia the largest spare capacity in OPEC+. Production levels are set by government policy, which ties Aramco's volumes to OPEC+ decisions.
The IPO and Vision 2030
In December 2019 Aramco listed 1.5% of its shares on the Saudi Exchange, raising $29.4 billion. The state later transferred shares to the Public Investment Fund and sold more in a June 2024 secondary offering. Dividends to the government and PIF help fund Vision 2030.
2026
The Iran war that began on February 28, 2026 disrupted Gulf shipping. Aramco's realized crude price rose to $108.1 per barrel in Q2 2026 and adjusted net income reached $33.4 billion for the quarter, while loadings at the Red Sea port of Yanbu resumed in late September after a pipeline disruption.
