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Home › Dodgy Deals ›
Dodgy Deal
Saudi AramcoSaudi Arabia

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2023-08-23 00:00:00
Saudi Aramco's Khurais oil field in Saudi Arabia. Photo: Planet.com via Wikimedia Commons (CC BY SA 4.0)

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2023-08-23 00:00:00
Why this profile?

Why this profile?

A coalition of environmental groups has warned a string of major international banks to step away from facilitating capital for Saudi Aramco, the world’s largest corporate emitter of carbon dioxide. Concerns have also been raised with the banks involved over the horrendous human rights record of the Saudi regime.

What must happen

Banks and other financial institutions must demand that their fossil fuel major clients immediately halt all activities that expand fossil fuel infrastructure, and develop and implement credible phase-out plans for their existing fossil-fuel-based activities, on a timescale aligned with Paris Agreement goals. In the absence of such commitments, banks must stop servicing Saudi Aramco.

About
Sectors Oil and Gas Extraction
Headquarters
Ownership
listed on Saudi Exchange

Saudi Aramco is majority-owned by the Saudi Arabian State.

Subsidiaries

Saudi Aramco, officially the Saudi Arabian Oil Company, is an oil and natural gas company based in Dhahran, Saudi Arabia and was founded in 1933. Saudi Aramco is the largest oil producer in the world. It is one of the largest companies in the world by revenue and, according to Bloomberg, the most profitable company in the world. Saudi Aramco has both the world's second-largest proven crude oil reserves, at more than 270 billion barrels, and the largest daily oil production with more than 13.5 million barrels a day.

Saudi Aramco is the world's largest CO2 emitter, having produced, on its own, almost 5 percent of the world's CO2 emissions between 1992 and 2017. Aramco's operations and the energy they consumed emitted 68 million tonnes of carbon in 2021. In 2035, those emissions, known as its scope 1 and scope 2 emissions, are expected to be 67 million tonnes (FT).

Impacts

Impact on human rights and communities

Human rights violations in Saudi Arabia Saudi Aramco is fully owned by the Saudi Arabian Government. The country has a dubious, highly questionable record when it comes to human rights. The Saudi Government, which enforces Wahhabi religious laws under the absolute rule of the Saudi royal family, has been accused by various international organisations and governments of violating multiple human rights within the country. The strict regime ruling the Kingdom of Saudi Arabia consistently rankis among the "worst of the worst" in Freedom House's annual survey of political and civil rights.

A 2018 Human Rights Watch report noted that "Saudi authorities stepped up their arbitrary arrests, trials, and convictions of peaceful dissidents and activists in 2018, including a large-scale coordinated crackdown against the women’s rights movement beginning in May. In June, Saudi Arabia ended the long-standing ban on women driving, but authorities continued to discriminate against women and religious minorities. Through 2018, the Saudi-led coalition continued a military campaign against the Houthi rebel group in Yemen that has included scores of unlawful airstrikes that have killed and wounded thousands of civilians."

Capital punishment Saudi Arabia still enforces the death penalty. In 2018 at least 149 people were executed (Amnesty International). On April 23, 2019, Saudi Arabia carried out a mass execution of 37 imprisoned civilians who had been convicted mostly on the basis of confessions obtained under torture or written by the accused's torturers. Most of the executed belonged to the country's Shia minority.


Impact on climate

Climate change impacts Data from world-renowned researchers published in The Guardian has revealed how a group of companies, among them Saudi Aramco, are the heaviest contributors to climate change. Details have shown how they have continued to expand their operations despite being aware of the industry’s devastating impact on the planet. Saudi Aramco is way out in front as the top corporate polluter, having contributed 59.26 billion tonnes of carbon dioxide equivalent since 1965, or 4.38 percent of the world's total emissions since that date.

Opposing climate policies In an October 2019 report, investigative journalistic platform The Intercept noted that "the Saudi Arabian Government have a stunning history of undermining action to address the climate crisis and have a concerted effort designed to preserve the profits of Aramco. Saudi Arabia has played a quiet yet powerful role in thwarting proactive climate policy at United Nations conferences and U.S. domestic policy battles alike. Since the Intergovernmental Panel on Climate Change meeting in Madrid in 1995 — when Mohammad Al-Sabban, then a Saudi petroleum official, famously confronted scientists, claiming the science around climate change was not settled — Saudi delegates have maneuvered to push for a series of delays."

Financiers

In 2022 12 commercials banks financed Saudi Aramco via lending and underwriting totalling USD 6.33 billion. See below for more details.

In 2022 Citi, Morgan Stanley and HSBC financed Saudi Aramco's subsidiary Base Oil, totalling USD 988.35 miilion. See below for more details.

In May 2020, Saudi Aramco was financed by a USD 10 billion one-year term loan. The loan was led by HSBC, SMBC and First Abu Dhabi Bank. They were joined by BNP Paribas, Citi, Crédit Agricole, JP Morgan, Mizuho, MUFG and Société Générale as mandated lead arrangers and bookrunners. See below for more details.

For Saudi Aramco's IPO in November 2019 the Joint Financial advisers and Global coordinators were: Citi, Credit Suisse, Goldman Sachs, HSBC, JPMorgan Chase, Merrill Lynch, Morgan Stanley, National Commercial Bank and Samba Capital. The joint bookrunners included: Banco Santander, BNP Paribas, BOCI Asia, Crédit Agricole, Deutsche Bank, First Abu Dhabi Bank, Mizuho, RBC, SMBC, Société Générale and UBS.

In April 2019 six banks - JPMorgan Chase, Citi, Goldman Sachs, HSBC, Morgan Stanley and National Commercial Bank - underwrote Saudi Aramco bonds issuances totalling USD 12 billion via five bonds:

  • a 3 years USD 1 billion bond, maturing April 2022;
  • a 5 years USD 2 billion bond, maturing April 2024;
  • a 10 years USD 3 billion bond, maturing April 2029;
  • a 20 years USD 3 billion bond, maturing April 2039;
  • a 30 years USD 3 billion bond, maturing April 2049.

See below for more details.

Institution type
Finance type
Year
Governance
Bank policies
The following bank investment policies apply to Saudi Aramco:
HSBC
2017-04-26 00:00:00

Environmental Policy

Bank policy
2017-04-26 00:00:00 | HSBC
Morgan Stanley
2019-03-15 00:00:00

Coal and oil & gas policy statements

Bank policy
2019-03-15 00:00:00 | Morgan Stanley
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

The 2024 Global Oil & Gas Exit List: More loss and damage ahead

2023 highest level of oil and gas production in history; 95% of oil and gas companies still expanding; LNG import terminal capacity set to increase by 57%
2024-11-12 | Berlin | urgewald
Blog
BankTrack news BankTrack blog Partner news Partner blog

“Greenlaundering” hiding true scale of banks’ lending to fossil fuel companies

Two-thirds of bank’s fossil fuel financing made through tax havens specialising in secrecy
2024-09-11 | Tax Justice Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

Crédit Agricole advances on climate change, but drags its feet

Despite the adoption of ambitious decarbonization targets, the French bank has allowed room to finance new fossil fuel infrastructure projects such as liquefied natural gas (LNG) terminals, as well as companies developing new oil and gas fields or infrastructure. 
2023-12-14 | Paris | Reclaim Finance
BankTrack news BankTrack blog Partner news Partner blog

How to get African oil out of the ground without Western lenders

Go local, woo traders or head east
BankTrack mentioned
2023-12-12 | The Economist
Blog
BankTrack news BankTrack blog Partner news Partner blog

The financial institutions behind the worst fossil fuel bonds in 2023

2023-11-16 | Reclaim Finance
Blog
BankTrack news BankTrack blog Partner news Partner blog

The 2023 Global Oil & Gas Exit List: Building a Bridge to Climate Chaos

96% of the 700 upstream companies on GOGEL are still exploring or developing new oil and gas fields. 1,023 companies are planning new LNG terminals, pipelines or gas-fired power plants
2023-11-15 | urgewald
Blog
BankTrack news BankTrack blog Partner news Partner blog

UN warns Aramco and its financiers over their role in driving climate-fuelled human rights violations

2023-08-26 | ClientEarth
BankTrack news BankTrack blog Partner news Partner blog

Role of major French banks highlighted in Saudi Aramco bond issue

2023-03-02 | Reclaim Finance
BankTrack news BankTrack blog Partner news Partner blog

BlackRock-led investors in Aramco pipelines to get $4.5 bln in bond sale

2023-02-09 | Reuters
Blog
BankTrack news BankTrack blog Partner news Partner blog

Throwing fuel on the fire: GFANZ members provide billions in finance for fossil fuel expansion

2023-01-17 | Paris, France /Nijmegen, Netherlands | BankTrack, Reclaim Finance
BankTrack news BankTrack blog Partner news Partner blog

Saudi Aramco bets on being the last oil major standing

2023-01-12 | Financial Times
BankTrack news BankTrack blog Partner news Partner blog

Saudi Aramco bets on being the last oil major standing

2023-01-12 | Financial Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

These U.S. banks are financing climate chaos through fossil fuel expansion

An overview of RAN's new report, Wall Street’s Dirtiest Secret: How fossil fuel expansion depends on big bank finance
2022-11-10 | Rainforest Action Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

NGOs release the 2022 Global Oil & Gas Exit List

Oil and gas industry willing to sacrifice a livable planet
2022-11-10 | Berlin / Sharm el-Sheikh | urgewald
BankTrack news BankTrack blog Partner news Partner blog

Revealed: the ‘carbon bombs’ set to trigger catastrophic climate breakdown

Oil and gas majors are planning scores of vast projects that threaten to shatter the 1.5C climate goal. If governments do not act, these firms will continue to cash in as the world burns
2022-05-12 | The Guardian
Blog
BankTrack news BankTrack blog Partner news Partner blog

HSBC customer of 65 years and member of 10th Gurkhas confronts shareholders with video message over fossil fuels at AGM

Huge van-mounted digital screen parked outside HSBC AGM playing video of long-standing customer, 83-year-old Christopher Martin.
2022-04-29 | London | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered Bank hit with protests on opposite sides of the world as fossil fuel vote approaches

It's the only UK bank facing a shareholder-proposed climate change resolution at its AGM this year
2022-04-19 | Jakarta, Kalimantan, London | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

Net zero vs zero ambition - the choice at Standard Chartered AGM

No further update on last year's climate policy, as rival banks leave Standard Chartered isolated on climate
2022-03-29 | United Kingdom | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

NGOs release the first “Global Oil & Gas Exit List” at Glasgow COP

2021-11-04 | Glasgow | urgewald
Blog
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered’s new climate policy aims for failure

Announced on the eve of the COP26 climate summit in Glasgow, Standard Chartered Bank’s new climate policy upholds the bank’s status as a climate laggard, according to environmental finance organisation Market Forces
2021-10-28 | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered shareholders challenge bank to live up to net zero promise on fossil fuels

2021-10-07 | Market Forces
BankTrack news BankTrack blog Partner news Partner blog

Japan’s SMBC advising on Aramco’s gas pipeline deal: CNBC Arabia

2021-09-26 | Arab News
BankTrack news BankTrack blog Partner news Partner blog

Plastic Waste Makers Index

Unveiling the source of the single-use plastics crisis
2021-06-01 | Minderoo Foundation
Blog
BankTrack news BankTrack blog Partner news Partner blog

Revealed: HSBC’s dirtiest deals will emit more pollution than Brazil or Canada

As HSBC prepares for its AGM on 28 May, new research reveals that a selection of HSBC fossil fuel financial transactions over the last five years will emit 523 million tonnes of CO2 every year for decades to come
2021-05-27 | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

More than half of Europe’s bank directors too compromised to end fossil fuel finance

2021-04-07 | DeSmog
BankTrack news BankTrack blog Partner news Partner blog

Saudi oil giant understates carbon footprint by up to 50%

2021-01-21 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

Saudi Aramco discovers two new oil and gas fields: energy minister

2020-08-30 | Dubai | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Saudi Aramco closes US$10bn loan

2020-05-12 | London | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Aramco Close to Inking $10 Billion Deal With Group of About 10 Banks: Sources

2020-05-07 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Saudi Arabia is selling a portion of its most profitable company

2019-12-11 | Pri.org
BankTrack news BankTrack blog Partner news Partner blog

Saudi Aramco IPO: climate change fears cause banks to miss out on millions in fees

BankTrack mentioned
2019-11-21 | The Independent
Blog
BankTrack news BankTrack blog Partner news Partner blog

Failure of Aramco IPO gives a black eye to bank CEOs and a warning to investors

2019-11-20 | London, UK | BankTrack, 350.org, Earthworks, Friends of the Earth US, Global Witness, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, ShareAction, Sierra Club
BankTrack news BankTrack blog Partner news Partner blog

Banks set to cash in on the Saudi Aramco IPO want you to know they’re still serious about climate change

BankTrack mentioned
2019-11-14 | Fortune
BankTrack news BankTrack blog Partner news Partner blog

Western banks funding Saudi Aramco IPO betraying climate change promises

2019-11-05 | Newsweek
BankTrack news BankTrack blog Partner news Partner blog

Aramco IPO: These are the banks and advisers on world's biggest sale

2019-11-03 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

Annoucement of intention to float on Tadawul

2019-11-03 | Saudi Aramco press release
BankTrack news BankTrack blog Partner news Partner blog

NGOs highlight environmental and human rights concerns to banks over Saudi Aramco IPO

2019-10-17 | Business & Human Rights Resource Centre
BankTrack news BankTrack blog Partner news Partner blog

Banks warned over Saudi Aramco by environmental groups

2019-10-17 | The Guardian
Blog
BankTrack news BankTrack blog Partner news Partner blog

Environmental groups warn banks against climate and human rights implications of underwriting Saudi Aramco offering

2019-10-17 | Nijmegen, the Netherlands
BankTrack news BankTrack blog Partner news Partner blog

10 reasons not to invest in the Saudi Aramco IPO

2019-10-16 | Forbes
BankTrack news BankTrack blog Partner news Partner blog

Revealed: the 20 firms behind a third of all carbon emissions

2019-10-09 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Saudi Arabia denies its key role in climate change even as it prepares for the worst

2019-09-18 | The Intercept
Resources
Documents
Links
2023-05-16 00:00:00

CSR report 2022

Annual report
2023-05-16 00:00:00 | Saudi Aramco
2023-04-04 00:00:00

Annual report 2022

Annual report
2023-04-04 00:00:00 | Saudi Aramco
2023-04-13 00:00:00

Press release: European banks among biggest drivers of fossil fuel expansion

2023 Banking on Climate Chaos - Europe press release
NGO document
2023-04-13 00:00:00 | BankTrack, Les Amis de la Terre France, Reclaim Finance, ReCommon, Urgewald
2021-06-01 00:00:00

Plastic Waste Makers Index

Unveiling the source of the single-use plastics crisis
NGO document
2021-06-01 00:00:00 | Minderoo Foundation
2019-03-31 00:00:00

Human Rights Watch World report 2018 - Saudi Arabia

NGO document
2019-03-31 00:00:00 | Human Rights Watch
2019-04-01 00:00:00

Saudi Aramco - Base Prospectus 1 April 2019

Company document
2019-04-01 00:00:00 | Saudi Aramco

Saudi Aramco's ethics and governance webpage

Saudi Aramco's sustainability webpage

Saudi Aramco's climate change webpage

Updates

2020

2020-05-12 00:00:00 | Saudi Aramco closes US$ 10 billion loan

Saudi Aramco, the world’s largest oil producer, has closed a US$ 10 billion one-year term loan with a group of core relationship banks. The loan was led by HSBC, SMBC and First Abu Dhabi Bank as coordinators, bookrunners and mandated lead arrangers. First Abu Dhabi Bank also acted as facility agent. They were joined by BNP Paribas, Citi, Crédit Agricole, JP Morgan, Mizuho, MUFG and Société Générale as mandated lead arrangers and bookrunners.

2020-04-22 00:00:00 | Saudi Aramco picks HSBC, Japan's SMBC for $10 billion loan: sources

Saudi Aramco has chosen HSBC and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to coordinate talks with other banks for a loan of about $10 billion the oil giant plans to seek, two sources close to the matter said. HSBC declined to comment and SMBC could not be immediately reached for comment.

2019

2019-11-03 00:00:00 | Saudi Aramco announces Initial Public Offering (IPO)

Saudi Aramco, the world’s largest integrated oil and gas company, wholly owned by the Government of the Kingdom of Saudi Arabia, announced its intention to proceed with an initial public offering on the Main Market of Tadawul, the Saudi Stock Exchange (Saudi Aramco press release).

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