This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.

The History behind Oil Discovery in Saudi Arabia

In 1943, the company in Saudi Arabia’s control changed its name to Arabian American Oil Company (ARAMCO). In addition, several changes were made to the original acknowledgment after the finding of oil.


In 1939, the first amendment gave the Arabian American Oil Company a larger area to search for oil and extended the contract until 1949, increasing the original contract by six years. In return, ARAMCO approved to supply the Saudi Arabian government with a large quantity of free kerosene and gasoline, and to pay higher payments than initially fixed.

Beginning in 1950, the Saudi Arabian government began an outline of trying to enhance government shares of income from oil production. In 1950, an equal profit-sharing agreement was signed, whereby a tax was charged by the government.

This tax significantly increased government revenues. The government sustained this tendency well into the ‘80s. By 1982, ARAMCO’s acknowledgment area was a bargain to 220,000 square kilometers, down from the original 930,000 square km. By 1988, ARAMCO was officially acquired by Saudi Arabia and known as Saudi Aramco.

Share This Post

related posts

On Top