Business Forum: Oil, Gas, and Petrochemicals - Rafie

US / Saudi Business Opportunities ForumOpportunities in Oil, Gas & Petrochemicals Munir M. Rafie

Objective  Share Business Opportunities Information  $125 billion capital budget New crude oil increments  Refining and petrochemicals

Saudi Arabia Energy to the World  260 Billion barrels of oil reserves (25% of global total)  263 trillion cubic feet of gas reserves  Best country for doing business: 11th of 181

Business Environment: Infrastructure Technologies & Transportation & Education & Health Utilities Communications Logistics Airports Electricity New Technologies Roads

Business Environment: Demographics Population (Millions) 40 35 30 25 20 15 10 5 0 1980 2000 2005 2010 2015 2020 Young, educated current & future workforce

Saudi Aramco  Daily Capacity:  Oil: 12 million barrels (MSC)  Raw Gas: 11 billion cubic feet  Domestic Refining Capacity:  1.9 million bbd refined product World’s Largest Integrated Oil & Gas Company

Looking Forward…“Over the next ten to twenty years, we intend totransform Saudi Aramco from just an oil and gascompany into a fully integrated, truly globalenergy and chemicals enterprise with extensiveoperations in the Kingdom and throughout theglobe.” - Mr. Khalid A. Al-Falih, President & CEO May 25th, 2011

Petrochemicals Saudi Arabia

Looking Forward… Saudi Aramco is a powerhouse energy provider to the world Successful in our core business and expanding our reach into value added petrochemicals Creating new opportunities for investors

Business opportunities Plastics conversion industries Infrastructure projects Advanced technology

Supporting Localization2012-2016 Capital Spending  Saudi Aramco - $125 Billion  Increase Local Content from 25% to 75%Localization makes business sense  Reduces risk  Lowers costs  Shortens response times  Enhances supply chain reliability

Economic Clusters Anchor Projects Well Services Services Offshore Construction Equipment Commodity Advanced Products Manufacturing Technology Steel Products Base Metals Casting and Forgings

Economic ClustersClusters Concept HR QA / QC NDT  Provide a framework for Services Heavy Retail Equip. Records Motor growth Sales Mgmt Repair  Encourage SMEs Valve Anchor Electrical Matl Manuf Industry  Attract local & foreign Casting Training R&D investment Coating Equip.  Create employment Svcs

Equipment Manufacturing Pipes and Structural Steel  $12.0 billion – 25% Local content Columns, Vessels, Exchangers & Valves  $8.0 billion – 20% Local content Compressors, Pumps and Turbines  $5.0 billion – 5% Local content Instruments, Electrical and Transmitters  $5.0 billion – 20% Local content

Equipment Manufacturing Chemicals, Drilling Fluids and Inhibitors  $4.0 billion – 45% Local content Drilling and Producing Equipment  $4.0 billion – 20% Local content Health, Safety, Security and Fire Equipment  $3.0 billion – 5% Local content Construction and General Supplies  $2.0 billion – 20% Local content

Supporting Localization  Business Success Factors already in place  11th easiest place to do business worldwide  Young, well-educated population  Plentiful energy supplies  Geographic access to Asia & Europe  Dynamic spending to nurture growth  Targeted business incentives  National support for localization

The message What  Invest in Saudi Arabia When  Now Why  $125 Billion Opportunity  Strong GDP Growth  Young Educated Population  Modern infrastructure  Targeted incentives How

Investment Support Doing Business With Saudi Aramco

Thank you

US / Saudi Business Opportunities Forum Saudi Arabia Investment Enablers Khalid H. Juraifani

Investment Enablers Saudi Arabia General Saudi Aramco’sInvestment Agency (SAGIA) New Business Development Saudi Industrial Property Organization Authority (MODON)Saudi Industrial Development Supports investors and companies Fund (SIDF) access Saudi Arabia’s Investment Enablers and ensuring long-term Human Resources Development Fund (HRDF) economic sustainability of their businesses. Saudi Arabian Oil Company (ARAMCO)

Investment Enablers Saudi Arabia General “One Stop Shop” GovernmentInvestment Agency (SAGIA) Services: Saudi Industrial Property • Investment license Authority (MODON) • Commercial registrationSaudi Industrial Development • Government services Fund (SIDF) (visa’s, work permits, tax) Human Resources • Economic Cities Authority (King Development Fund (HRDF) Abdullah and Jazan) Saudi Arabian Oil Company (ARAMCO)

Investment Enablers Saudi Arabia General Operator of Saudi Arabias IndustrialInvestment Agency (SAGIA) Cities: Saudi Industrial Property • 18 strategic locations Authority (MODON) (East, West, and Central)Saudi Industrial Development • Developed sites ($3.0 per m2) Fund (SIDF) • Power and utilities ($0.032 Kwh or $0.75 mmbtu) Human Resources Development Fund (HRDF) Saudi Arabian Oil Company (ARAMCO)

Investment Enablers Saudi Arabia General Offer low interest loans in additionInvestment Agency (SAGIA) to technical and marketing support: Saudi Industrial Property • $160 million or 50% of Authority (MODON) project, whichever is lowerSaudi Industrial Development • Effective interest rate as low as Fund (SIDF) 2.0% per year • Show of confidence for Human Resources Development Fund (HRDF) obtaining more loans Saudi Arabian Oil Company (ARAMCO)

Investment Enablers Saudi Arabia General Support training and developmentInvestment Agency (SAGIA) of the National Workforce: Saudi Industrial Property • Shares up to 50% of training Authority (MODON) costSaudi Industrial Development • Pays up to 75% of salary during Fund (SIDF) training • Provides customized programs Human Resources Development Fund (HRDF) as requested Saudi Arabian Oil Company (ARAMCO)

Investment Enablers Saudi Arabia General Champion of local content in oil andInvestment Agency (SAGIA) gas industry: Saudi Industrial Property • Support from feasibility to Authority (MODON) operationsSaudi Industrial Development • Offer 10% price premium for Fund (SIDF) local manufacturers • Show of confidence for Human Resources Development Fund (HRDF) obtaining more business • Potential investor/partner Saudi Arabian Oil Company (ARAMCO)

Business Forum: Oil, Gas, and Petrochemicals - Rafie

by Patrick Ryan

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