RIYADH, Saudi Arabia, May 1 (UPI) -- The government in Riyadh sanctioned a restructuring plan that would break oil company Saudi Aramco off from the nation's oil ministry, sources said Friday.
Citing undisclosed sources, Saudi-owned pan-Arab news channel al-Arabiya reported the country's Supreme Economic Council approved a restructuring plan offered by Deputy Crown Prince Mohammad bin Salman.
The crown prince was appointed as defense minister earlier this week amid a government shake-up. Saudi Aramco Chief Executive Khaled al-Falih was named chairman of the company and health minister, the news channel reported.
Saudi Aramco said in a Wednesday briefing of its annual spring meeting the board of directors "focused on deeper re-examination of the framework and investment profile in light of what happened in the crude markets over the past nine months since prices peaked in July and then began a rapid downslide."
Brent rallied in early April after Aramco said it was raising its price for Asian buyers in a sign of improving global demand.
Prices for Asia were cut after the Sunni-led kingdom hinted that it needed to protect its market share against the glut of oil from shale reserves in the United States. That drove oil prices lower and put a strain on corporate spending in exploration and production.
The CEO was quoted as saying Wednesday the oil company was surviving the downturn in the crude oil market with its board members engaged and supportive of a forward agenda. The company, he said, is operating nonetheless in "a volatile environment."
