Houthi Missile Strike Ignites Fire at Saudi Aramco's Historic Oil Hub

A missile attack by Yemeni Houthi rebels struck an administrative building within Saudi Arabia's state energy giant Aramco, hitting the historical heart of the kingdom's oil industry and causing a fire. Authorities confirmed that the incident resulted in no casualties.

The targeted complex serves as the central command for the world's largest oil exporter, housing critical research and development facilities, energy operations, and thousands of employees along with their families. Residents living near the site described a terrifying experience, with one woman telling The National, "This was the loudest explosion I have ever heard in my life." Another resident reported seeing smoke and flames emanating from the area following the attack.

While specific details about the attack remain limited, the site is of immense importance to Aramco. It functions as the primary hub for the company's oil, gas, and energy operations. Historically, Aramco, then known as the Arabian American Oil Company, relocated its headquarters from New York City to Dhahran in 1952. Dhahran is also significant as the location where the first commercial oil discovery in the kingdom was made in 1938 at the well known as "Prosperity Well" (Dammam No 7). The Saudi government progressively acquired full ownership of the company, completing the buyout in 1980, and it was subsequently renamed Saudi Arabian Oil Company (Aramco) in 1988.

The Aramco headquarters in Dhahran is part of an expansive complex covering 58 square kilometers. This complex includes a substantial residential area that reportedly houses 11,000 individuals, comprising employees and their families. The Dhahran district also features a research and development center, the Expec Advanced Research Centre, established in 2008 and since enhanced with a building dedicated to upstream research and development. Additionally, the complex is equipped with a large-scale cooling plant operated by Saudi Tabreed, boasting a 32,000 refrigeration-tonne capacity and incorporating thermal storage tanks for energy efficiency. A 16-kilometer chilled water piping network supplies cooling to various sites, meeting Saudi Aramco's requirements.

Within the Dhahran area is also Ithra, the King Abdulaziz Centre for World Culture, developed by Aramco as a public cultural and creative destination. Since its opening in 2018, Ithra has attracted over four million visitors.

The Dhahran area has experienced attacks in the past. During the Gulf War on February 25, 1991, an Iraqi Scud missile struck a US Army barracks in the vicinity, resulting in the deaths of 28 American soldiers and injuring 110.

Other Aramco facilities in the Eastern Province have also been targeted previously. On September 14, 2019, multiple drones and missiles struck Saudi Aramco’s Abqaiq and Khurais oil processing centers, leading to a shutdown of approximately 50% of the country's crude oil production. Although claimed by the Houthis, this 17-minute assault involving 18 drones and three low-flying missiles caused a spike in oil prices and disrupted over 5% of global oil supply. Saudi Arabia announced two weeks later that oil output had been fully restored.

Further incidents include an attack on an Aramco plant in Jizan in March 2022 by the Houthis using an explosive-laden drone. Additionally, a gas station in Khamis Mushait and a power station in Dhahran were also hit. In early March of the current year, following the commencement of the Iran war, a fire erupted at Aramco’s Ras Tanura refinery, the kingdom's largest with a capacity of 550,000 barrels per day, due to drone attacks. Operations at Ras Tanura, which hosts one of the world's largest oil export terminals and a significant refining facility on Saudi Arabia's Gulf coast, were halted for 16 days. This port handles a substantial portion of Saudi crude exports.

Other sites attacked this year include Satorp in Jubail, a joint venture between Saudi Aramco and TotalEnergies with a processing capacity of 465,000 bpd, and one of the world's largest export refining platforms. Samref in Yanbu, a 400,000 bpd Aramco-ExxonMobil joint venture, was also affected.

Earlier this month, Aramco's chief executive, Amin Nasser, stated that the company possesses the strategic reserves and flexibility to isolate or shift output as necessary. He informed the Energy Intelligence Forum in London that Aramco can make its maximum sustainable production capacity of 12 million bpd available within days, adding, "Our system is intact." Aramco, majority-owned by the Saudi government, is listed on the Tadawul exchange and is scheduled to release its third-quarter financial results on November 3.