Saudi Aramco

From TheBestLinks.com

Saudi Aramco is one of the largest oil companies in the world. Located in Dhahran, Saudi Arabia, this company controls the world's largest oil reserve.

History

Saudi Aramco's history dates back to May 29 1933, when the government of Saudi Arabia signed a concessionary agreement with Standard Oil of California allowing them to explore Saudi Arabia for oil. Standard Oil of California passed this concession to an affiliate called California Arabian Standard Oil Company. In 1936 with the company having no success at locating oil, the Texas Oil Company purchased a fifty percent stake of the concession.

After a long search for oil that lasted around 4 years without success, the first accomplishment they had was in Dammam in 1938, a well referred to as Dammam number 7. The discovery of this well gave the company the hope to continue and flourish. The company name was changed in 1944 to the Arabian American Oil Company (or Aramco) and in 1948 Standard Oil of California and the Texas Oil Company were joined by Standard Oil of New Jersey who purchased 30% and Socony Vacuum who purchased 10%, leaving Standard Oil of California and the Texas Oil Company with equal 30% shares.

In 1973 the Saudi Arabian government acquired a 25% share of Aramco, increased this to 60% by 1974 and finally acquired full control of Amarco by 1980. However the company name did not change until November 1988 when it became the Saudi Arabian Oil Company (or Saudi Aramco).