New MEED rankings table for Middle East's national oil companies

The study scored NOC's in ten key areas of activity, including commercial performance, downstream investment, freedom from political interference, commitment to staff training, and environmental protection. Scores out of ten were awarded under each of the criteria, with these then analysed to provide an overall company performance ranking.

Saudi Arabia's state oil company, Saudi Aramco, scored highest in a comprehensive survey of the region's ten biggest national oil companies carried out in early May. Combining statistical performance indicators with expert opinion from top industry executives in the public and private sector, leading analysts and senior academics, the survey put Aramco at the top with a score of 80 out of a possible 100.

MEED's editor-in-chief Sean Brierley commented,
"The Saudi oil giant has outperformed its regional counterparts in almost all categories. When it comes to production, technology development and commercial performance it is head and shoulders above the competition."

"Saudi Aramco falls short on just two measures - its effectiveness in partnering with other companies and its record on the environment. Time will tell whether they will replicate here, the other high standards they have set."

The Abu Dhabi National Oil Company (ADNOC) and Qatar Petroleum were tied in second place with 73 points, and Algeria's Sonatrach and Petroleum Development Oman also scored well. However, the study went on to reveal that the region's other five major producers all failed to make the grade, with the national oil companies of Kuwait, Egypt and Iraq being the worst performers.

The top ten ranking list reads (scores out of 100):

Saudi Aramco 80/100
ADNOC (Abu Dhabi) 73/100
2. Qatar Petroleum 73/100
Sonatrach (Algeria) 63/100
Petroleum Development Oman 60/100
National Iran Oil Company 46/100
6. National Oil Corporation (Libya) 46/100
Egyptian General Petroleum Corporation 45/100
8. Iraq National Oil Company 45/100
8. Kuwait Petroleum Corporation 45/100

The study highlighted the crucial importance of political independence, quality of personnel and development of technology to the performance of state oil firms. All were notable failings in the worst-ranked companies.

It also drew attention to the challenge presented to international oil companies by the onset of an era in which national oil companies are expected to dominate. If the major foreign oil firms are to maintain their strategic position in the market, they too will need to adapt to the new environment.

The study is published in the latest issue of MEED (out in the Middle East on Sunday 20 May) and is available both in print and online versions. It is published as MEED prepares to host the region's leading petrochemicals conference "Gulf Petrochemicals 2007" at the Ritz Carlton, Bahrain Hotel & Spa, on 4th-5th June 2007.