Saudi Arabia has separated its State oil company Aramco from the Oil Ministry, according to State outlet Al Arabiya.
The Supreme Economic Council reportedly agreed with Deputy Crown Prince Mohammed bin Salman’s plan for restructuring Aramco, the largest energy company in the world.
Mohammad bin Salman, head of the Council and also Defense Minister, was named Deputy Crown Prince by his father King Salman on Wednesday.
At the same time, Saudi Aramco’s Chief Executive Officer, Khaled Al-Falih, was named chairman of Aramco as well as Health Minister. He takes over the role from departing Oil Minister Ali Al-Naimi, who held the post since 1995.
The separation of Aramco from the Oil Ministry — effectively separating day-to-day operations from policymaking — is not expected to lead to changes in the Saudi approach, amid a global oil price that has been halved since last June.
However, the step could pave the way for a member of the Royal Family to become Oil Minister for the first time in Saudi history.
Earlier this year, King Salman promoted another of his sons, Prince Abdulaziz bin Salman to Deputy Oil Minister from Assistant Oil Minister.
Prince Abdulaziz has been a long-serving member of the Saudi delegation to OPEC.
