Part IV: Fixed Assets of Saudi Aramco

On the next page, you can find the Property, Plant and Equipment Footnote of Aramco's 2020 Annual Report. Using the information provided in the note, please answer the questions below. All numbers in the questions below and in the footnote are in presented in SAR millions.

1.How much did Aramco pay to purchase/develop, acquire, and construct additional Refinery and Petrochemical Facilities in 2020?

2.Assume that Aramco received a total of 500 in cash from selling Refinery and Petrochemical Facilities and there are no asset retirements in 2020.

a.At the time of sale, what was the accumulated depreciation of the Refinery and Petrochemical Facilities that were sold?

b.At the time of sale, what was the original cost of the Refinery and Petrochemical Facilities that were sold?

c.Calculate the total amount of gain or loss that Aramco recognized on these asset sales.

SAUDI ARAMCO NOTES TO FINANCIAL STATEMENTS 6. Property, plant and equipment Refinery and Crude oil petrochemical Gas and NGL General Construction- facilities facilities facilities service plant in-progress Total Cost January 1, 2020 537,299 231,049 396,400 108,582 291,482 1,564,812 Additions 8,965 4,881 484 6,144 102,024 122,498 Acquisition (Note 4) 150,889 28,424 179,313 Construction completed 67,333 24,853 58,232 28,937 (179,355) Currency translation differences 7,158 (2) 816 7,972 Transfers and adjustments (17) 40 (724) (1,922) (2,614) Transfer of exploration and evaluation assets 1,102 1,102 Retirements and sales (1,717) (4,900) (362) (3,509) (121) (10,609) December 31, 2020 611,863 413,939 454,794 139,428 242,450 1,862,474 Accumulated depreciation January 1, 2020 (271,105) (78,033) (174,300) (59,360) (582,798) Charge for the year (23,910) (23,189) (17,476) (8,135) (72,710) Currency translation differences (4,568) (4,568) Transfers and adjustments 9 (215) 32 (47) (221) Retirements and sales 699 4,572 345 1,667 7,283 December 31, 2020 (294,307) (101,433) (191,399) (65,875) (653,014) Property, plant and equipment - net, December 31, 2020 317,556 312,506 263,395 73,553 242,450 1,209,460