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USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors
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USSaudiForum - Panel 10 - Amy Chua - Business Opportunities in the Oil and Gas Sectors

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The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how …

The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how U.S. companies can participate in Saudi Arabia's expansion.

Saudi Arabia is undergoing an extraordinary economic boom. Massive public investment, rapid private-sector growth and new sector initiatives are driving an expansion projected to offer more than $1 trillion in trade and investment opportunities over the next decade.

This panel of distinguished experts highlighted the business opportunities in the oil and gas sectors.

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    • 1. Cover graphic should fill and not exceed the defined grey box. Our critical Strategies US-Saudi Business Opportunities Forum Keys to building a long term, successful partnership in the Saudi market Amy Chua, VP Marketing & Product Development September 18th 2013
    • 2. SURFACE SYSTEMS Cameron Al Rushaid (CAL) Surface Drilling Primary Facility Type Manufacture Assembly Plant Secondary Facility Type Aftermarket Service Centre Facility Size  Workshop 5,993 sq. m  Office 1,096 sq. m  Storage 1,610 sq. m  No. of Employees 197 Initial Capabilities/Services  Manufacture Surface wellheads  Repair and recertification  Spare Parts Inventory  Indoor & Outdoor Storage Cameron start business in Saudi1970s 2001 2000 to 2006 From 2006 Aftermarket facility for repairs and recertifications Cameron Al-Rushaid JV was initiated New manufacture of Surface wellheads A brief History of Cameron in Saudi
    • 3. Business Opportunities in Kingdom’s Oil & Gas Sector 3  Large reserves of hydro carbons - world largest reserves of conventional crude oil ( ~ 267 bn bbl) - 4th largest natural gas reserves - 5th largest reserves in Shale gas  Pivotal player in the global oil trade with the vast majority of the world’s spare production capacity & leading role in OPEC  Large refining base – set to grow over coming years with major greenfield projects & petrochemical base  Significant up-tapped natural gas reserves  Under explored resources – eg Offshore exploration in Red Sea nascent and EOR activity in the Neutral Zone.  Large investment plan in E&P spend
    • 4. Saudi Aramco Vision and Goals 4 NOC’s Vision: Remain the world leader in the production of petroleum-based energy with commitment to:  Invest in Innovation & Entrepreneurship  Create educational opportunities  Power economic progress  Increase Environmental awareness  Working in partnership for energy sustainability.  Maintain sufficient surplus capacity (Increase production) - Assure Business Continuity - Secure Supply Chain  Increase Local Content  Saudization  Improve HS&E Tactical Goals
    • 5. How Cameron transacted in the Kingdom in the early 2000’s. 5 Aramco Cameron Singapore Order Equipment Al Rushaid Order Equipment Impact:  Production Goals affected - Reliability of overseas supply chain - Security of supply threatened  Domestic Goals at risk - Saudization - Economic progress limited - Technology transfer restricted Local Saudi company
    • 6. The Supply Chain today 6 CAL Purchases Equipment Cameron Al Rushaid Ltd (CAL) Legend Local Suppliers in Saudi Tools Supplies Misc Shop Consumables Supplies Pipe and Make up services Gas (N2) Supplies Locally Provided Goods $ $ $ Communication Services Public Utilities Electricity Supplies Water Supplies Taxes, Utilities & Local Salaries Salaries & GOSI Sub-contract Goods / Services Boxing / Crating Services NDT Services Threading Services Painting Services Torqueing Services Transportation Services Catering Services Housing $  How the models compare - Delivery - Economic Multiplication Factor - Saudization - Transfer of Technology, Knowledge & Skills - Economic Impact
    • 7. Contributing to Saudi’s Economic Progress goal Economic Multiplication Factor 7  Cameron Al Rushaid (CAL) proposed this alternate arrangement to help meet the country’s objectives; - Creation of jobs, direct and within the local business environment - Develop business partnerships (eg subcontract vendors) - Identification of clusters to transfer technology and create sustainable growth  Commitment to the business environment through orders placed by CAL for local services: - Training of personnel with skills currently not available in Kingdom - Encourage development of in-country capabilities by associated suppliers Coating Pipe thread machining and make up Packaging materials & transportation Supply of components & daily consumables  Millions of dollars in total contribution to Saudi local economy in direct investments as well as through the economic multiplication factor.
    • 8. SURFACE SYSTEMS Welding 3 Sub Arc Welding Units. 13 Other welding units. 1 Cladding Unit. Field Service/Operational Support Onshore Offshore 15 dedicated resident Service Techs Repair & Inspection in accordance to API BOP Drilling Manifolds Gate valves Surface Wellheads OEM Quality Systems  ISO 9001  ISO 29001  API Q1  API 6A,6D.  API 16A,16C,16D Surface treatment Painting Sandblasting Assembly/Testing Assembly Instrumentation Gas testing Pressure testing Machining Fully equipment machine shop 11 Conventional machines 12 CNC machines Storage Outdoor Indoor Contributing to Saudi’s Economic Progress goal Direct investments plus transfer of Technology, Knowledge & Skills into country
    • 9. SURFACE SYSTEMS 1% 1% 16% 27% 2% 53% Bangladeshi Omani Filipino Indian Pakistani Saudi 2013 Nationality of workforce 55 70 0 10 20 30 40 50 60 70 80 2001-2006 2012 2013 2017  Field Service Dept reached 60% Saudization  Asst General Manager, Welding Supervisor, Inventory Manager and FS Manager are Saudi nationals  Further increase in headcount to 205 predicted with Saudization target of 55% by year end  School graduates to be targeted for CAL training  Target set at 70% minimum by 2017 based on training initiatives with Universities/Collages Localhire% Saudization YTD 2013 currently at 53% Contributing to Saudi’s Economic Progress CAL’s Saudization Vision 32 % 48 % 55 % 70 %
    • 10. SURFACE SYSTEMS Contributing to Saudi’s Educational Opportunities Academic Sponsorship followed by Employment  Two year course at SPSP Sponsored by CAL  Attainment of SVQ level 3 after completion. UK City and Guilds structure in use.  CAL has plans in place for 15 students to be sponsored over a 2 year period - 10 mechanical technicians - 5 welders.
    • 11. SURFACE SYSTEMS Increasing Environmental Awareness in country Transfer of Cameron’s HSSE system to CAL  DAWFC – Over 2150 days (Almost 6 years)  2012 Year end Composite score: 88%  PME Certificate received  HSSE Legal Compliance audit carried out in Feb 2013. No major finding reported. 2009 2010 2011 2012 Measurement 2007 2008 2009 2010 2011 2012 2013 YTD TRIR 2.55 1.1 0.98 0.00 0.65 0.82 0.00 Composite Score 59% 51% 74% 82% 88% 88% 91%
    • 12. SURFACE SYSTEMS PROGRAMME DESCRIPTION Lease BOP‘s BOP stacks in stock and currently available for Lease Exchange Manpower increase from 107 to 205 past 5 years Increase head count to support greater in-country manufacturing and field services. Personnel machinists, welders, inspectors and Engineers. Continuous investment in Manufacturing Technology and Capacity Machines such as Mazak CNC Horizontal Borers, Puma Slant Bed CNC Lathes, Mazak Slant turn 60 CNC Lathe, Hankook vertical CNC Turning Lathe have been installed in CAL Forecast ordering based on history Flex planning put into place for BOPs, gate valve and drilling choke spares Price Lists for standard spare parts Eliminate Quotes wait time Visual milestone schedule for all departments Gives ownership and visual focus on important milestones. Focusing on Customer Experience Programs to better serve the customer base
    • 13. SURFACE SYSTEMS 2011 2012 2013 YEE 2014 On/Offshore Trees 0 147 294 370 Gate Valves 561 1429 3100 3870 Spools 435 617 970 1215 DSPOs 206 308 531 670 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Units  2013 shows100% growth in Trees and Valves.  Approx 60% growth in Spools and DSPOs Business growth aligned with Kingdom’s Production goals Continuous Returns on Investments for CAL joint venture
    • 14. Foundation for a long term, successful partnership 14 Kingdom’s Objective Cameron Al Rushaid Solutions Economic Progress  Saudization  Job Creation  Local Manufacturing of Wellhead Systems  Faster Manufacture to forecast with stocking of raw material  Dedicated capacity  Expansion of facility and local manufacturing  Increase usage of local suppliers, vendors & services  Investment in new capabilities  Training  Maximize local content Increase Production  Business Continuity  Security of Supply Innovation & Entrepreneurship  Technology Transfer  Expanded Local Content (I) Ensure alignment of Goals & Objectives
    • 15. SURFACE SYSTEMS  Have aligned visions and goals  Mutual understanding of both parties needs & expectations  Identify and utilize the strengths of each partner  Focus on serving the customer.  Demonstrated performance build trust & confidence Foundation for a long term, successful partnership (II) Grounded by serving the customer
    • 16. SURFACE SYSTEMS

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