How Aramco became synonymous with the time-tested Saudi-US partnership

Saudi Aramco has become synonymous with the longstanding partnership between the Kingdom and the US. (AFP)
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Updated 16 July 2022
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How Aramco became synonymous with the time-tested Saudi-US partnership

  • To understand the alliance between Saudi Arabia and the US through the oil business requires a look into the past
  • With roots reaching back to the 1930s, Aramco is arguably one of the world’s most successful financial collaborations

DHAHRAN: Saudi Aramco has become synonymous with the longstanding partnership between the Kingdom and the US, and is arguably one of the world’s most successful financial collaborations.

The name “Aramco” is an acronym for Arabian-American Company. The pact between the two countries is like sand, consisting of individual particles gathered together in a vast, integrated collective.

To understand the current alliance between the countries through Aramco, requires a look back to the past.




Ali Al-Naimi, who has been President and CEO of Aramco, was the Saudi Arabian Minister of Petroleum and Mineral Resources from 1995 to 2016. (Supplied)

It started in 1933 when Standard Oil of California set up a new overseas exploration unit after signing a concession agreement with the Kingdom of Saudi Arabia. A subsidiary company, the California Arabian Standard Oil Company, was created to manage that agreement.

Ambitious and optimistic, but without any known track record, drilling began in the Saudi desert in 1935. Geologists had a hunch that they would find something there.

At the time, they used to scout areas in the sweltering Dammam heat and use their observation, and often just guestimates, to determine where to drill. They did so on six different occasions, finding nothing but expensive disappointment.

Then, in 1938, American geologist Max Steineke famously told his team to “keep on drilling.” He struck liquid gold on lucky number seven. That first viable oil well was affectionately named Dammam-7, or “Prosperity Well.” It is a name that is often still used fondly in Dhahran, where the Saudi Aramco headquarters is located.




American geologist Max Steineke. (Supplied)

Fast-forward to this century, as the search for oil and gas became more challenging, the company turned to technology and the 2D seismic exploration program in the 1960s. With the advent of computational power from IBM and Cray in the 1990s and early 2000s, Aramco was able to deploy 3D seismic technology.

This allowed geoscientists to more accurately determine drilling locations from 3D images to create more complex and detailed views of the subsurface at depths of several kilometers. This resulted in an ever-increasing need for massive amounts of data like High Channel Count seismic surveys, and the development of advanced and complex computing power to process it all.

In the 1970s, the Saudi government gradually started to buy additional shares of the company, first 25 percent, then 60 percent, until they owned the company completely by 1980. In 1988, the Saudi Arabian Oil Company, or Aramco, was born and Ali Al-Naimi famously became the first Saudi president and CEO. Prior to that, all the presidents were American men. Many American expats still call Aramco home, and label its camp “Mini America.”

The company went public and was officially listed on the Saudi Stock Exchange (Tadawul) at the end of 2019, right before the COVID-19 pandemic hit.

With increased productivity and world-class technology, the company maintained one foot in America, by way of their subsidiary, Aramco Americas, located in another hot climate in Houston, Texas. Its official website states that it has several core services.




That first viable oil well was affectionately named Dammam-7, or “Prosperity Well.” It is a name that is often still used fondly in Dhahran, where the Saudi Aramco headquarters is located. (Supplied)

This includes managing a network of three US research centers and technology offices in Houston, Boston, and Detroit. In addition, it is tasked with identifying upstream and downstream technologies, best practices and potential technology partners for Saudi Aramco; and sourcing goods and services, including engineering services. A further task is the recruiting and training of Saudi Aramco-sponsored students and employees in North America.

Today, Aramco Americas wears many hard hats. Within that compound, they publish one of the oldest US-based magazines catering to English readers about the Arab and Muslim world.

Their award-winning, bi-monthly print magazine focuses on creating a cross-cultural understanding between the East and West. Their first issue was published in November 1949 with editors in different parts of the world.

The magazine rebranded as Saudi Aramco World in 2000 and renamed AramcoWorld in 2015. The editorial office settled in Houston in 1987, where it still churns out stories today. Their glossy print pages deliver to interested US addresses and to those Aramcons in Dhahran six times a year.

Constantly evolving, they now have a dedicated smartphone app, and an exhaustive photo archive in which 50,000 images can be searched. The print edition of AramcoWorld’s website states that it has some 35,000 subscribers in more than 125 countries.

Aramco Americas has been looking to diversify from oil and gas and to focus on vital areas such as sustainability and the environment. Recently, it initiated a project funded by the National Fish and Wildlife Foundation’s Coral Reef Conservation, in which efforts are being made to help rescue and rebuild important reefs in US and other coastal areas.

 

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Aramco

An acronym for Arabian-American Oil Company, Aramco is synonymous with the longstanding partnership between Saudi Arabia and the US. It started in 1933 when Standard Oil of California set up a new overseas exploration unit after signing a concession agreement with the Saudi government. A subsidiary company, the California Arabian Standard Oil Company, was created to manage that agreement. In 1944, the company was renamed Aramco. In the 1970s, the Saudi government started to gradually buy shares of the company, completing the buyout in 1980. In 1988, the Saudi Arabian Oil Company was born. The company went public and was officially listed on the Saudi Stock Exchange (Tadawul) at the end of 2019, right before the COVID-19 pandemic hit. Now 89 years, Aramco is arguably one of the world’s most successful financial collaborations.


Hamas negotiators arrive in Egypt for Gaza truce talks: media

Updated 5 sec ago
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Hamas negotiators arrive in Egypt for Gaza truce talks: media

  • A top Hamas official earlier accused Israeli Prime Minister Benjamin Netanyahu of trying to derail a proposed Gaza truce

GAZA STRIP, Palestinian Territories/CAIRO: A Hamas delegation arrived Saturday in Egypt for the latest round of talks on a proposed truce and hostage release in Gaza, Egyptian state-linked media Al-Qahera News reported.

Al-Qahera News, linked to Egyptian intelligence services, quoted an unnamed high-ranking source as saying that “there is significant progress in the negotiations” between the Palestinian militant group and Israel, and that the Egyptian mediators have “reached an agreed-upon formula on most points of contention.”

A top Hamas official earlier accused Israeli Prime Minister Benjamin Netanyahu on Friday of trying to derail a proposed Gaza truce and hostage release deal with his threats to keep fighting the Palestinian militant group.

“Netanyahu was the obstructionist of all previous rounds of dialogue... and it is clear that he still is,” senior Hamas official Hossam Badran said by telephone.

Foreign mediators have waited for a Hamas response to a proposal to halt the fighting for 40 days and exchange hostages for Palestinian prisoners, which its chief Ismail Haniyeh has said the group was considering in a “positive spirit.”

A major stumbling block has been that, while Hamas has demanded a lasting ceasefire, Netanyahu has vowed to crush its remaining fighters in the far-southern city of Rafah, which is packed with displaced civilians.

The hawkish prime minister has insisted he will send ground troops into Rafah, despite strong concerns voiced by UN agencies and ally Washington for the safety of the 1.2 million civilians inside the city.

World Health Organization chief Tedros Adhanom Ghebreyesus said the agency was “deeply concerned that a full-scale military operation in Rafah... could lead to a bloodbath.”

“The broken health system would not be able to cope with a surge in casualties and deaths that a Rafah incursion would cause,” an agency statement said.

Badran charged that Netanyahu’s insistence on attacking Rafah was calculated to “thwart any possibility of concluding an agreement” in the negotiations brokered by Egyptian, Qatari and US mediators.

Israeli air strikes killed several more people in Rafah overnight, Palestinian medics and the civil defense agency said.

One bereaved resident, Sanaa Zoorob, said her sister and six of her nieces and nephews were killed.

Two of the children “were found in pieces in their mother’s embrace,” Zoorob said, appealing for “a permanent ceasefire and a full withdrawal from Gaza.”

The war broke out after Hamas’s October 7 attack on Israel resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.

The militants also took some 250 hostages, of whom Israel estimates 128 remain in Gaza.

The army says 35 of them are dead, including 49-year-old Dror Or, a resident of the badly hit kibbutz Beeri, whose death was confirmed by authorities on Friday.

Israel’s devastating retaliatory campaign has killed at least 34,622 people in Gaza, mostly women and children, according to the Hamas-run territory’s health ministry.

Israel has weathered an international backlash over the spiralling death toll.

Pro-Palestinian protests that have rocked US campuses for weeks were more muted Friday after a series of clashes with police, mass arrests and a stern White House directive to restore order.

But similar demonstrations have spread to campuses in Britain, France, Mexico, Australia and elsewhere.

Turkiye announced on Thursday that it was suspending all trade with Israel, valued by the government at $9.5 billion a year.

President Recep Tayyip Erdogan said the move was intended to “force Israel to agree to a ceasefire and increase the amount of humanitarian aid to enter” Gaza.

Yemen’s Iran-backed Houthi rebels, who have carried out months of attacks on merchant shipping in the Red Sea in a costly blow to maritime trade, said they would extend their attacks on Israel-bound shipping to the Mediterranean “immediately.”

Israel’s siege has pushed many of Gaza’s 2.4 million people to the brink of famine.

US pressure has prompted Israel to facilitate more aid deliveries to Gaza, including through the reopened Erez crossing that leads directly into the hardest-hit north.

Food availability has improved “a little bit,” said the World Health Organization’s representative in the Palestinian territories, Rik Peeperkorn.

But he warned that the threat of famine had “absolutely not” gone away.

Five Israeli human rights groups that took Israel to court over restrictions on aid to war-torn Gaza said the state’s insistence that it has met its obligations was “incomprehensible.”

The government had told the supreme court that the steps it had taken went “above and beyond” its obligations under international law.

Gisha and four other Israeli non-profit organizations retorted that the shortages evident inside Gaza indicated “the respondents are not meeting their obligations, not to the required extent nor at the necessary speed.”

The US-based charity World Central Kitchen resumed operations this week, after suspending them in the aftermath of Israeli drone strikes that killed seven of its staff as they unloaded aid in Gaza on April 1.

The group’s kitchen manager Zakria Yahya Abukuwaik said: “We realized after the kitchen closed that many mouths were left hungry.”

World Central Kitchen was involved in an effort earlier this year to establish a new maritime aid corridor to Gaza from Cyprus to help compensate for dwindling deliveries by land from Israel.

The project suffered a new blow Friday when the US military announced high winds had forced troops working to assemble a temporary aid pier off the Gaza coast to relocate to the Israeli port of Ashdod.

“The partially built pier and military vessels involved in its construction have moved to the Port of Ashdod, where assembly will continue, and will be completed prior to the emplacement of the pier in its intended location when sea states subside,” US Central Command said in a statement.

Several Arab and Western governments have also airdropped aid into northern Gaza. Civil defense spokesman Mahmud Basal said one person was killed and several injured when they were hit by falling pallets.


UN official warns famine in northern Gaza is already ‘full-blown’

Updated 04 May 2024
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UN official warns famine in northern Gaza is already ‘full-blown’

  • Israel has killed more than 34,000 Palestinians since Oct. 7 attacks by Hamas
  • There was no immediate comment from Israel, which controls entrance into Gaza

WASHINGTON: A top UN official said Friday that hard-hit northern Gaza was now in “full-blown famine” after more than six months of war between Israel and Hamas and severe Israeli restrictions on food deliveries to the Palestinian territory.
Cindy McCain, the American director of the UN World Food Program, became the most prominent international official so far to declare that trapped civilians in the most cut-off part of Gaza had gone over the brink into famine.
“It’s horror,” McCain told NBC’s “Meet the Press” in an interview to air Sunday. “There is famine — full-blown famine — in the north, and it’s moving its way south.”

Executive Director of the World Food Programme Cindy McCain delivers a speech at the first meeting of the Global School Meals Coalition in Paris on October 18, 2023. (AFP)

She said a ceasefire and a greatly increased flow of aid through land and sea routes was essential to confronting the growing humanitarian catastrophe in Gaza, home to 2.3 million people.
There was no immediate comment from Israel, which controls entrance into Gaza and says it is beginning to allow in more food and other humanitarian aid through land crossings.
The panel that serves as the internationally recognized monitor for food crises said earlier this year that northern Gaza was on the brink of famine and likely to experience it this month. The next update will not come before this summer.
One of the US Agency for International Development’s humanitarian officials in Gaza told The Associated Press that on-the-ground preparations for a new US-led sea route were on track to bring in more food — including treatment for hundreds of thousands of starving children — by early or mid-May. That’s when the American military expects to finish building a floating pier to receive the shipments.
Ramping up the delivery of aid on the planned US-backed sea route will be gradual as aid groups test the distribution and security arrangements for relief workers, the USAID official said.
The official spoke on condition of anonymity over security concerns for work done in a conflict zone. They were some of the agency’s first comments on the status of preparations for the Biden administration’s $320 million Gaza pier project, for which USAID is helping coordinate on-the-ground security and distribution.
At a factory in rural Georgia on Friday, USAID Administrator Samantha Power pointed to the food crises in Gaza and other parts of the world as she announced a $200 million investment aimed at increasing production of emergency nutritional paste for starving children under 5.
Power spoke to factory workers, peanut farmers and local dignitaries sitting among pallets of the paste at the Mana nonprofit in Fitzgerald. It is one of two factories in the US that produces the nutritional food, which is used in clinical settings and made from ground peanuts, powdered milk, sugar and oil, ready to eat in plastic pouches resembling large ketchup packets.
“This effort, this vision meets the moment,” Power said. “And it could not be more timely, more necessary or more important.”
Under pressure from the US and others, Israeli officials in recent weeks have begun slowly reopening some border crossings for relief shipments.
But aid coming through the sea route, once it’s operational, still will serve only a fraction — half a million people — of those who need help in Gaza. Aid organizations including USAID stress that getting more aid through border crossings is essential to staving off famine.
Children under 5 are among the first to die when wars, droughts or other disasters curtail food. Hospital officials in northern Gaza reported the first deaths from hunger in early March and said most of the dead were children.
Power said the UN has called for 400 metric tons of the nutritional paste “in light of the severe hunger that is pervading across Gaza right now, and the severe, acute humanitarian crisis.” USAID expects to provide a quarter of that, she said.
Globally, she said at the Georgia factory, the treatment made there “will save untold lives, millions of lives.”
USAID is coordinating with the World Food Program and other humanitarian partners and governments on security and distribution for the pier project, while US military forces finish building it. President Joe Biden, under pressure to do more to ease the humanitarian catastrophe in Gaza as the US provides military support for Israel, announced the project in early March.
US Central Command said in a statement Friday that offshore assembly of the floating pier has been temporarily paused due to high winds and sea swells, which caused unsafe conditions for soldiers. The partially built pier and the military vessels involved have gone to Israel’s Port of Ashdod, where the work will continue.
A US official said the high seas will delay the installation for several days, possibly until later next week. The official, who spoke on condition of anonymity to discuss operation details, said the pause could last longer if the bad weather continues because military personnel and divers have to get into the water for the final installation.
The struggles this week with the first aid delivery through a newly reopened land corridor into north Gaza underscored the uncertainty about security and the danger still facing relief workers. Israeli settlers blocked the convoy before it crossed Wednesday. Once inside Gaza, the convoy was commandeered by Hamas militants, before UN officials reclaimed it.
In Gaza, the nutritional treatment for starving children is most urgently needed in the northern part of the Palestinian territory. Civilians have been cut off from most aid supplies, bombarded by Israeli airstrikes and driven into hiding by fighting.
Acute malnutrition rates there among children under 5 have surged from 1 percent before the war to 30 percent five months later, the USAID official said. The official called it the fastest such climb in hunger in recent history, more than in grave conflicts and food shortages in Somalia or South Sudan.
One of the few medical facilities still operating in northern Gaza, Kamal Adwan hospital, is besieged by parents bringing in thousands of children with malnutrition for treatment, the official said. Aid officials believe many more starving children remain unseen and in need, with families unable to bring them through fighting and checkpoints for care.
Saving the gravely malnourished children in particular requires both greatly increased deliveries of aid and sustained calm in fighting, the official said, so that aid workers can set up treatment facilities around the territory and families can safely bring children in for the sustained treatment needed.
 

 


The UN warns Sudan’s warring parties that Darfur risks starvation and death if aid is not allowed in

Updated 04 May 2024
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The UN warns Sudan’s warring parties that Darfur risks starvation and death if aid is not allowed in

  • At least 1.7 million people in Darfur were experiencing emergency levels of hunger in December
  • Sudan plunged into chaos in mid-April 2023, when long-simmering tensions between the military and the paramilitary forces broke out into street battles

UNITED NATIONS: The United Nations food agency warned Sudan’s warring parties Friday that there is a serious risk of widespread starvation and death in Darfur and elsewhere in Sudan if they don’t allow humanitarian aid into the vast western region.
Leni Kinzli, the World Food Programme’s regional spokesperson, said at least 1.7 million people in Darfur were experiencing emergency levels of hunger in December, and the number “is expected to be much higher today.”
“Our calls for humanitarian access to conflict hotspots in Sudan have never been more critical,” she told a virtual UN press conference from Nairobi.
Sudan plunged into chaos in mid-April 2023, when long-simmering tensions between its military led by Gen. Abdel Fattah Burhan, and the paramilitary Rapid Support Forces commanded by Mohammed Hamdan Dagalo, broke out into street battles in the capital, Khartoum. Fighting has spread to other parts of the country, especially urban areas and the Darfur region.
The paramilitary forces, known as the RSF, have gained control of most of Darfur and are besieging El Fasher, the only capital in Darfur they don’t hold, where some 500,000 civilians had taken refuge.
Kinzli said WFP’s partners on the ground report that the situation in El Fasher is “extremely dire” and it’s difficult for civilians wanting to flee the reported RSF bombings and shelling to leave.
She said the violence in El Fasher and surrounding North Darfur is exacerbating the critical humanitarian needs in the entire Darfur region, where crop production for staple cereals like wheat, sorghum and millet is 78 percent less than the five-year average.
On top of the impact of escalating violence, Kinzli said, “WFP is concerned that hunger will increase dramatically as the lean season between harvests sets in and people run out of food.” She said a farmer in El Fasher recently told her that her family had already run out of food stocks and is living day-to-day, an indication that the “lean season,” which usually starts in May, started earlier.
Kinzli said she received photos earlier Friday from colleagues on the ground of severely malnourished children in a camp for displaced people in Central Darfur, as well as older people “who have nothing left but skin and bones.”
“Recent reports from our partners indicate that 20 children have died in recent weeks of malnutrition in that IDP camp,” she said.
“People are resorting to consuming grass and peanut shells,” Kinzli said. “And if assistance doesn’t reach them soon, we risk witnessing widespread starvation and death in Darfur and across other conflict-affected areas in Sudan.”
Kinzli called for “a concerted diplomatic effort by the international community to push the warring parties to provide access and safety guarantees” for humanitarian staff and convoys.
“One year of this devastating conflict in Sudan has created an unprecedented hunger catastrophe and threatens to ignite the world’s largest hunger crisis,” she warned. “With almost 28 million people facing food insecurity across Sudan, South Sudan and Chad, the conflict is spilling over and exacerbating the challenges that we’ve already been facing over the last year.”
In March, Sudanese authorities revoked WFP’s permission to deliver aid from neighboring Chad to West Darfur and Central Darfur from the town of Adre, saying that crossing had been used to transfer weapons to the RSF. Kinzli said restrictions from Sudanese authorities in Port Sudan are also preventing WFP from transporting aid via Adre.
Sudanese authorities approved the delivery of aid from the Chadian town of Tina to North Darfur, but Kinzli said WFP can no longer use that route for security reasons because it goes directly into besieged El Fasher.
On Thursday, gunmen in South Darfur killed two drivers for the International Committee of the Red Cross and injured three ICRC staff members. On Friday, UN humanitarian chief Martin Griffith called the killing of aid works “unconscionable.”
Kinzli said the fighting “and endless bureaucratic hurdles” have prevented WFP from delivering aid to over 700,000 people in Darfur ahead of the rainy season when many roads become impassable.
“WFP currently has 8,000 tons of food supplies ready to move in Chad, ready to transport, but is unable to do so because of these constraints,” she said.
“WFP urgently requires unrestricted access and security guarantees to deliver assistance,” she said. “And we must be able to use the Adre border crossing, and move assistance across front lines from Port Sudan in the east to Darfur so we can reach people in this desperate region.”


Hamas ‘only thing standing between the people of Gaza and a ceasefire’: Blinken

Updated 04 May 2024
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Hamas ‘only thing standing between the people of Gaza and a ceasefire’: Blinken

  • ‘We wait to see whether, in effect, they can take yes for an answer on the ceasefire and release of hostages’
  • But official says US cannot support a major military operation going into Rafah
WASHINGTON: US Secretary of State Antony Blinken said Hamas was the only holdup to a Gaza ceasefire as the militants prepared to send a delegation back to Cairo on Saturday for talks.
“We wait to see whether, in effect, they can take yes for an answer on the ceasefire and release of hostages,” Blinken said late Friday.
“The reality in this moment is the only thing standing between the people of Gaza and a ceasefire is Hamas.”
Blinken pointed to difficulties in negotiating with Hamas, which the United States considers a terrorist group and does not engage with directly and which Israel has vowed to eliminate.
“The leaders of Hamas that we’re indirectly engaged with — through the Qataris, through the Egyptians — are, of course, living outside of Gaza,” Blinken said.
“The ultimate decision-makers are the folks who are actually in Gaza itself with whom none of us have direct contact.”
Blinken was addressing a dinner at the McCain Institute’s Sedona Forum in Arizona two days after meeting Israeli Prime Minister Benjamin Netanyahu and other top leaders on his latest visit to the Middle East.
Ahead of his talks with Blinken, Netanyahu vowed to push ahead with an assault on the southern Gaza city of Rafah to root out Hamas regardless of the outcome of negotiations for a temporary ceasefire that would involve the release of hostages.
President Joe Biden’s administration has repeatedly warned Netanyahu’s government against moving on Rafah, where some 1.4 million Palestinians have taken shelter after fleeing the Israeli assault in response to the October 7 attack by Hamas.
Blinken said that Israel, which counts on the United States for military and diplomatic support, has yet to present “a credible plan to genuinely protect the civilians who are in harm’s way” in Rafah.
“Absent such a plan, we can’t support a major military operation going into Rafah because the damage it would do is beyond what’s acceptable,” Blinken said.

France condemns attack on Red Cross in Sudan

Updated 04 May 2024
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France condemns attack on Red Cross in Sudan

PARIS: France on Friday condemned “in the strongest terms” an attack on an International Committee of the Red Cross convoy in war-torn Sudan that killed two staff and injured three others.
“France calls on all parties to the conflict to respect their obligations under international humanitarian law, which obliges them to protect humanitarian and health staff and guarantee complete, safe and unhindered humanitarian access,” said French foreign ministry spokesman Christophe Lemoine.
The ICRC said gunmen killed two drivers and injured three staff in South Darfur on Thursday as they returned from a humanitarian mission.
A brutal conflict between the Sudanese army led by General Abdel Fattah Al-Burhan and the paramilitary Rapid Support Forces of his ex-deputy Mohamed Hamdan Dagalo has torn the country apart for more than a year.
The war has killed tens of thousands of people and forced millions more to flee their homes in what the United Nations has called the “largest displacement crisis in the world.”
It has also triggered acute food shortages and a humanitarian crisis that has left the northeast African country’s people at risk of starvation.