Downloaded 79 times
Uploaded byThe Middle East Association
Opportunity Arabia 2014: Joep Straathof
The document presents an overview of Saudi Aramco, highlighting its significant oil and gas reserves, global refining capabilities, and strategic focus areas such as upstream leadership and innovation. It outlines business opportunities for potential partners, local manufacturing initiatives, and the role of Aramco Overseas Company in facilitating supplier relations and technology. The presentation emphasizes Saudi Aramco's commitment to local supply chain development and employment of Saudi nationals.
More Related Content
Similar to Opportunity Arabia 2014: Joep Straathof
Opportunity Arabia 2014: Joep Straathof
- 1. Doing Business withSaudi Aramco Opportunity Arabia 11 Edinburgh, United Kingdom Joep Straathof October 9, 2014
- 2. Presentation Outline • SaudiAramco > Introduction > Focus areas > Business opportunities > Partnering • How to proceed with Aramco Overseas Company
- 3. Saudi Aramco Introduction Fullyintegrated energy enterprise 260.2billion barrels oil reserves 1 in 8barrels of the world’s total crude oil production 4.9million bpd global refining capacity 288.4trillion scf gas reserves
- 4. A history oftransformation
- 5. We believe energyhas the power to transform
- 6.
- 7.
- 8. Continued focus onupstream leadership 121 Oil & gas field discoveries to date 1 billion Cell resolution for reservoir simulation
- 9. A new driverof value creation Benefits of unconventional gas: 4. Optimize Kingdom’s energy mix 3. Reinforce Saudi Aramco’s position as a reliable global supplier of energy 2. Re-allocate crude for higher value applications 1. Supplement the Kingdom’s gas supply
- 10. A global, integratedrefining business 1.0 Millions of barrels per day Domestic wholly-owned refineries: Ras Tanura - 550k bpd Riyadh - 120k bpd Jidda - 90k bpd Yanbu - 240k bpd International joint venture refineries: Motiva - 1,070k bpd S-Oil - 669k bpd Fujian - 240k bpd Showa Shell - 395k bpd Sekiyu K.K. 2.4 Millions of barrels per day Domestic joint venture refineries: Petro Rabigh - 400k bpd SAMREF - 400k bpd SASREF - 305k bpd SATORP - 400k bpd 1.5 Millions of barrels per day
- 11. A global, integratedrefining business Ras Tanura Refinery Jubail Refinery Jiddah Refinery Yanbu Refinery Petro Rabigh JV with Sumitomo Chemicals SAMREF JV with Mobil Yanbu Refining Company SASREF JV with Shell Saudi Arabia Refining Ltd SATORP JV with Total Motiva JV with Shell S-Oil Equity Venture in Korea Fujian JV with FREP Showa Shell Skiyu K.K. JV with Shell Texas, USA South Korea China Japan
- 12. Our competitive edgein a rapidly changing world Innovation in: SafetyChemicals CatalysisOil Upgrading Seismic Processing Reservoir Simulation Desulfurization Carbon Management
- 13. A global, competitiveSaudi energy services sector Enable industrial clusters Support local manufacturing Encourage investment Prepare local workforce Facilitate entrepreneurship Foster localization
- 14.
- 15. Projects CURRENT FUTURE YASREF JV withSinopec Jazan Jazan refinery and terminal project Sadara JV with DOW Chemical Co. Shaybah NGL recovery plant Khurais Khurais central processing facility Wasit Wasit Gas Plant Midyan NGL Recovery Plant Petro Rabigh JV with Sumitomo Chemical SAMREF JV with ExxonMobil Yunnan Province JV with PetroChina Fadhili Fadhili Gas Plant Program Ras Al Khair JV with SembCorp and Bahri
- 16. Material Spend including Localization 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Pipesand structural steel Columns, vessels, exchangers and valves Compressors, pumps and turbines Instruments, electrical and transmitters Chemicals, drilling fluids and inhibitors Drilling and producing equipment Health, safety, security and fire equipment Construction and general supplies CapitalBudget($Bln.)
- 17. Supplier Preference In-Kingdom Manufactured Goods Imported Goods Warehousedby Local Stockists Goods Imported by Local Vendors Imports through Out-of-Kingdom offices
- 18. Material Spend including Localization 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Pipesand structural steel Columns, vessels, exchangers and valves Compressors, pumps and turbines Instruments, electrical and transmitters Chemicals, drilling fluids and inhibitors Drilling and producing equipment Health, safety, security and fire equipment Construction and general supplies Localization CapitalBudget($Bln.)
- 19. Localization of Business •Strategic directive for 2020 is 70% • Targets defined per category
- 20. Original Equipment Manufacturer Local SupplyChain Development Sales Stockist Assembly Production Repair Shop
- 21. Equipment Manufacturing Opportunities Pipes andsteel structure > Nonmetallic piping Machinery equipment > Compressors > Industrial belts and pulleys > Pumps > Turbines Chemicals > Catalysts > Drilling mud additives and well stimulants > Lubricating greases > Specialty chemicals (drilling and others) Static equipment > Air and oil filters > Bearings > Boilers, heat exchangers and chillers > Hoses > Pipe fittings and wrap > Sealing products (mechanical) Instrumentation, electrical and IT > Batteries, rectifiers and power supplies > Bushings and insulators > Calibration > Circuit breakers and Programmable Logic Controllers (PLCs) > Electrical fittings (connectors, terminal blocks) > Enclosures and frames > Indication lights, switches and electric meters > Instrument and fiber optic cables > Instrumentation (EDS, DCS, flow meters, pressure transmitters, etc.) > Junction boxes > Level indicators > Packers and wire line accessories > Sealing compounds (electrical) > Thermo couples and RTDs Drilling > Drill bits > Oil Country Tubular Goods (OCTG) casing, tubing and accessories
- 22. Services Opportunities Carbonate ReservoirProduct Development > Automation and controls > Enhanced recovery innovation > Reservoir modeling and simulation > Reservoir stimulation > Seismic and surveying > Well logging innovation Well Intervention Design > Complex well logging > EHS services > Enhanced recovery > Mud logging > Pressure pumping > Well stimulation
- 23. Incentives Supporting Local Manufacturing Localmanufacturing premium up to 10% Exclusive bidding for local manufacturers Long term agreements (5-10 years) within the context of Category Based Strategies 10% Local 5-10 years
- 24. Saudization • Employment ofSaudi nationals • National policy of the Kingdom • Targets defined by company size
- 25. New Business Development Investors’Gateway to Saudi Aramco
- 26. New Business PartnerProcess • Historical consumption figures for feasibility study • Technical and quality requirements (international and Saudi Aramco standards) • Guidance in investment process Once approved, Saudi Aramco will be ready to begin the procurement process, if prices are competitive and delivery terms are acceptable
- 27. Why Partner withSaudi Aramco • Business opportunities • Wide network • Knowledge and expertise • Alignment with material/service requirements
- 28. Aramco Overseas Co. Introduction •Subsidiary of Saudi Aramco • Provider of supply chain, technology and human resources services • Aramco Overseas Co. (AOC) headquarters located in the Netherlands
- 29. AOC’s Supply ChainOfferings Sourcing & Supplier Relations Engineering Purchasing Quality Management Expediting Logistics
- 30. AOC Contact Details •Aramco Overseas Company www.aramcooverseas.com • Joep Straathof Joep.straathof@aramcooverrseas.com
- 31.
Editor's Notes
- #4 Oil reserves Gas reserves World production Global refining capacity
- #5 The company’s founding idea was based on being a provider of opportunity. That idea originated with King ‘Abd al-‘Aziz Al Sa‘ud, the founder of the Kingdom. The original concession agreement, signed in 1933, contained a provision calling on the company to provide opportunities for Saudi citizens. { CLICK } In 1938, resources were found in the Kingdom. From the very beginning we were an oil company. And that remains our core business. But you can see from this graph that over our 80 year history we have grown significantly in scale and scope and have moved from a single oil business to a multi-business portfolio. And today, we are pursuing even greater levels of growth that will set the stage for us to provide even more opportunity. Let’s look at how. { CLICK }
- #6 Everything we do is based on a set of core beliefs: We believe energy is a fundamental driver of opportunity. We believe that our products, very much like yours, contribute to abundant choices and an improved quality of life for millions of individuals around the world. We believe reliable access to energy allows companies to invest and economies to grow. We believe that through our unique position and core competencies, Saudi Aramco can and should, make contributions to solving the world’s energy challenges. These beliefs are guiding us on a journey that is making Saudi Aramco a more streamlined, efficient and competitive company, a globally sought after employer … and a greater contributor to the quality of life of people both here in the Kingdom and in the communities we serve around the world. { CLICK }
- #7 Our presentation centers on five strategic focus areas: { CLICK } Maintaining our upstream leadership position { CLICK } Pursuing growth downstream in refining and chemicals { CLICK } Maintaining an innovation pipeline to drive innovation { CLICK } Our role in further developing the broader energy sector here in the Kingdom { CLICK } And our commitment to positively impacting the communities in which we operate { CLICK } Let’s look at each one of these in more detail. { CLICK }
- #8 A critical aspect of our upstream strategy is designed to help us maximize the value we create upstream while making the most of the opportunities we have downstream. We understand that our commitment to maintaining a maximum sustainable capacity of 12 million barrels per day creates predictability for our partners, our customers and global markets. And because we take a long-term approach to managing our reservoirs we have a recovery rate nearly 2 times the world average.
- #9 To meet global energy demand well into the future, we use industry-leading technology to continue exploring for - and developing - fields across Saudi Arabia, both onshore and offshore. In fact, through our technology applications we have been able to replace every barrel of oil we produce through improving recovery rates and new discoveries. Our 2012 discoveries included one oil field — Aslaf – and two gas fields – Sha’ur and Umm Ramil. We discovered an additional five fields in 2013 — bringing our total oil and gas field discoveries throughout our history to 121. Footnote: Our 2013 discoveries included — three oil fields Al Haryd, Duhul, and Salsal and two gas fields Turayqa and Mihwaz
- #10 We are actively pursuing unconventional gas. In fact we are the 1st in the region to discover and commit unconventional gas resources to customers. That gas will go to a 1,000 megawatt power plant, which will feed a massive phosphate mining and manufacturing center in the Northern Region, and will drive that area’s development and prosperity. { CLICK } Unconventional gas will bring many benefits: It will allow us to supplement the Kingdom’s gas supply and allow us to reallocate crude oil for higher value applications. It will reinforce Saudi Aramco’s position as a reliable global supplier of energy and it will play a key role in optimizing the Kingdom’s energy mix. { CLICK }
- #11 We see downstream activities as the growth engine of our business. As mentioned earlier our combined global refining capacity stands at 4.9 million barrels per day. Our downstream strategy will shift our refining business from a series of independent refinery investments to a more holistic global refining business model. And we have plans to nearly double our refining capacity to 8 million barrels per day which would make us one of the world’s top refiners. { CLICK } Footnote: Petro Rabigh (37.5%) Samref (50%) Sasref (50%) SATORP (62.5%) Motiva (50%) S-Oil (35%) Showa Shell Sekiyu K.K. (15%) Fujian Refining and Petrochemical Company LTD (25%)
- #12 Beyond just the scale of our refining business, our network has a global footprint that includes: { CLICK } Wholly-owned refineries in the kingdom of Saudi Arabia { CLICK } Joint venture refineries in Saudi that have attracted international investors to the kingdom. { CLICK } and International joint venture refineries, partnering Saudi Aramco with other majors to deliver refined products in the U.S., Korea, Japan and China. This is a strong foundation on which we will expand and integrate our refining network.
- #13 Innovation in technology and research & development is a priority here at Saudi Aramco. And you can see that play out here in the growing number of patents our company has received over the past few years. Our goal is to contribute enough game-changing innovations for our industry that it results in more than 100 patents per year. And we recently received international recognition for our innovation efforts: We received the Innovative Thinker Award - for our contributions to real-time reservoir management … And the New Horizons Award - for a “cutting edge” invention that tracks the physical movement of marine oil spills in real time. So we recognize in Saudi Aramco that innovation is the key to driving our business forward. { CLICK } Footnote: 2012 – 58 patents, 2013 – 57 patents. Total: 274. About 7 % of our patents are jointly owned
- #14 One of our strategic pillars centers on our engagement with the Kingdom. One way we have chosen to do that is to spur the creation of a vibrant and globally competitive Saudi energy services sector. By leveraging our core business activities we can help { CLICK } support the expansion of local manufacturing { CLICK } Enable the growth of industrial clusters that serve our operations { CLICK } Create the right conditions for foreign and direct investment { CLICK } Prepare the local workforce to take advantage of new employment opportunities { CLICK } Foster entrepreneurship by providing access to funding, expertise and guidance { CLICK } Facilitate localization of needed goods and services By strengthening our business we can be a better corporate citizen and help to ensure a sustainable future for generations to come. { CLICK }
- #15 Because we care about giving back to the people of the Kingdom, Saudi Aramco is focusing on: Sustaining economic growth and development, helping communities thrive, building the Kingdom’s knowledge base for the future and advancing environmental solutions. Most proud of: SAO spent almost $ 37 bln. in materials and services sourced and produced locally 10,000 young Saudis through an educational program called iSpark <1 % gas being flared from our raw gas production, contributing to Saudi Arabia being a global leader in flared gas reduction
- #16 Shaybah: NGL facility, 2.4 bln. scf/day of low-sulfur sweet gas and extract 240,000 bpd of NGL. (2014) Jazan Refinery: 400,000 bpd refinery and terminal on the Red Sea near Jazan. (2016) Wasit Gas Program is set to become the largest gas plant in the Kingdom when it is completed in 2014 with a production capacity of 2.5 bln. scf/day. (2014) Sadara: Largest petrochemical facility ever built in one single phase, Sadara, located in Jubail Industrial City II, is a joint venture with The Dow Chemical Co. Employing will produce over 3.2 million tons of performance, value-added chemical and plastics products.
- #17 Next four years: capital budget of almost $125 bln. of which over $40 billion will be the following materials: Pipes and structural steel: (30% localization) Columns, vessels, exchangers and valves (20% localization) Compressors, pumps and turbines: (5% localization) Instruments, electrical and transmitters: (20% localization) Chemicals, drilling fluids and inhibitors: (45% localization) Drilling and producing equipment: (20% localization) Health, safety, security and fire equipment: (5% localization) Construction and general supplies: (20% localization)
- #18 In-Kingdom manufactured goods Imported goods warehoused in-Kingdom Goods imported by local vendors Imports through OOK offices
- #19 Next four years: capital budget of almost $125 bln. of which over $40 billion will be the following materials: Pipes and structural steel: (30% localization) Columns, vessels, exchangers and valves (20% localization) Compressors, pumps and turbines: (5% localization) Instruments, electrical and transmitters: (20% localization) Chemicals, drilling fluids and inhibitors: (45% localization) Drilling and producing equipment: (20% localization) Health, safety, security and fire equipment: (5% localization) Construction and general supplies: (20% localization)
- #20 Strategic directive for 2017: 75%
- #21 Sales office Stockist Repair shop Assembly Production OEM
- #22 Pipes and steel structure Machinery equipment Chemicals Static equipment Instrumentation, electrical, IT Drilling
- #23 Carbonate reservoir product development Well intervention design
- #24 Premium Exclusive bidding Long term agreements
- #25 Employment of Saudi’s National policy of the Kingdom Targets defined by company size
- #26 Main mission of NBD is: to enhance the company’s potential to increase revenue and to support the kingdom’s goals of maximizing economic and social benefits from its natural resources….“
- #27 Historical consumption figures for feasibility study Technical and quality requirements (international and Saudi Aramco standards) Guidance in investment process Registration/approval of manufacturing plant
- #28 Business opportunities Wide network Knowledge and expertise Alignment
- #29 Subsidiary Services provider The Netherlands
- #30 Sourcing Engineering Purchasing Quality Expediting Logistics
- #31 Strategic Sourcing Supplier Relations Group