He will be replaced by Khaled al-Falih, a former Health minister, who also spent 30 years working for the state-owned Saudi Aramco, largely as chairman of the oil conglomerate.
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Aramco, which will continue to build its oil production and refining capacity, is also keen on expanding globally, and is looking at potential joint ventures in several countries, including Indonesia, India, the U.S., Vietnam and China. Aramco is the biggest oil company in the world and controls around 10 per cent of global output.
Deputy Crown Prince Mohammed bin Salman, who is leading the reform charge, recently said he hopes that Saudi Arabia will be able to survive without oil revenues by 2020, the Wall Street Journal said.
Brent crude plunged to less than half of its annual average of more than $100 a barrel from 2011 through 2014, adding urgency to the push for changes in Saudi Arabia and other energy exporters in the region.
Al-Falih has given no indication that he will alter Saudi Arabia’s current production policy.
The CEO’s remarks come at a time of great change for Saudi Arabia’s oil policy.
Despite this, Zanganeh said Iran had succeeded in doubling its oil exports since the lifting of nuclear-related sanctions against the country in January, according to Tasnim.
Crude is sliding on Monday, down more than 2.5% after opening overnight slightly higher.
“I don’t think too much is going to change at this stage”, said Craig Erlam, senior market analyst at Oanda, based in London. He told CNBC that a listing would take at some point because of the sheer size of the company.
Indeed, in a story he wrote for the Iranian oil ministry magazine Iran Petroleum, Akbar Nematollahi, the head of the ministry’s public relations, said increased politicization in OPEC – which the Islamic Republic disapproves of – would make any agreement unlikely for now.
The most powerful man in the global oil industry was just fired, and crude oil prices are falling in response.
Aramco does not say how much tax it pays, but Qamar Energy’s Robin Mills estimates the rate at 93% since the company hands almost all its revenue to the state.
Globally, the oil market has risen about 75 percent since hitting 12-year lows of around $27 or lower in the first quarter of 2016, buoyed by falling US production, unexpected supply constraints in Libya and the Americas as well as a weaker dollar.
The government overhaul is the first step in the country’s plan to reduce its growing $98 billion budget deficit.
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Naimi has always tried to use Saudi financial muscle and oil supply scale to drive out higher-cost producers or rivals during oil market downturns.
