Shoaibi @ MEOS 2011 www.shoaibigroup.com

ContentsCorporate News | 2 Partner News | 3New Partners | 5SG People | 7Spotlight | 7

VOLUME 2 - Issue 7 - October 2011360 The Quarterly Newsletter of Shoaibi Group

McDermott Arabia Engineering is formed with Khalid Al Shoaibi

MIS Arabia Co. Ltd. successfully roll-out of one of the largest equipment ever to be manufactured in the GCC region

Edgen Murray partners with Shoaibi Group to boost Saudi presence

Shoaibi Group enter into joint venture with Galperti

ITS Arabia Co. Ltd. receives API & APIQR Accreditations and is now operational

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Shoaibi Group Exhibits at MEOS 2011

Shoaibi Group successfully exhibited at the Middle East Oil and Gas Show, on

Monday 26th-28th at the Bahrain International Exhibition Center.

Shoaibi Group selected partners, Cegelec, Xtreme Coil Drilling, Continuous

Nitrogen Services Arabia, Edgen Murray, and Boustead International Heaters,

showcased their services and technologies at the Shoaibi Group Pavillion.

The exhibition enjoyed strong support from all 6 GCC national oil companies

- Abu Dhabi National Oil Company, Bapco, Kuwait Petroleum Corporation,

Petroleum Development Oman, Qatar Petroleum and Saudi Aramco.

Shoaibi Group would like to thanks the partners that participated and visited

the stand.

Manama, Bahrain - Sept 26th-28th, 2011

Corporate News

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Partner News

ITS Arabia Co. Ltd machine shop now fully operational.

Saudi Aramco gave Caledus / Tercel the opportunity to utilize the

5 inches SwivelMaster® in one of the longest wells in Manifah field

deploying 13,000 ft long of 7 inches Liner into 8” open hole with

a total depth of 23,825 ft.

Usually it is possible to run a long liner however it was not

possible to rotate the liner while running in the hole due to the

high torque that could exceed the maximum torque of the 7inch

liner. One of the main functions of the SwivelMASTER® is the

ability to rotate the running string above the top of the liner which

will reduce the drag force and consequently increase available

hookload, while keeing zero torque value to the liner below.

Shoaibi Group received positive feedback on the trial job and

requested an additional trial job in order to initialise the pre-

qualification process followed by a long term contract. The next

job is expected to take place in the coming months.

SwivelMASTER® conducts successful trial runs in Saudi Aramco-Manifah field.

About SwivelMaster®The SwivelMASTER® is a drill-pipe or work string deployed tool

that allows the upper string to be rotated with either tension or

compression force being applied at the tool without rotation or

torque being applied to the string or BHA below it. This ability

to rotate the upper workstring provides a dramatic reduction in

workstring friction above the SwivelMASTER®.

This significant increase in available force at the tool dramatically

enhances deployment in or retrieval of complex equipment in ERD

wells.

The tool can be locked with the application of predetermined

differential pressure at anytime to allow full torque to be

transmitted to the BHA below the tool. The SwivelMASTER® can be

provided in either single shot or multi-function form that can be

locked and unlocked multiple times as required.

The ITS ARABIA Ltd machine shop located at Industrial City 2 has taken

delivery of its second hollow spindle lathe and is now fully operational

and equipped to repair the full range of API connections on rotary tools

up to 21’’ in diameter . The hollow spindle lathes can also handle casing

up to and including 20’’.

State of the art 21’’ Hollow spindle Megabore lathe and a 14’’ Hollow

spindle Sunfirm lathe both with full CNC with FANUK controls ensure

the highest quality of finish and fasted possible turnaround times. The

machine shop also has a small manual lathe, a milling machine and

vertical borer. The facility is operating on a 24 hour / 2 shift system

with very experienced management and trained machinists.

As a licensed ARNCO hard banding applicator drill pipe and heavyweight

drill pipe can be maintained to the highest industry standards.

The ITS Arabia Ltd management system and facility has been audited to

API Q1 and is fully equipped with the required certified and calibrated

master gauges and measuring equipment.

ITS Arabia Ltd also provides equipment and personnel for casing

and tubing running as well as flare line make up and break out. A

comprehensive stock of downhole fishing and rental tools is maintained

at the facility.

ITS Arabia has received the following API & APIQR accreditations:

API MONOGRAM LICENSE NO. 5CT-1371

API MONOGRAM LICENSE NO. 7-1-0944

APIQR REGISTRATION NO. 1515 FOR ISO 9001:2008

APIQR REGISTRATION NO. Q1-1335 FOR API SPEC Q1

APIQR REGISTRATION NO. TS-1227 FOR ISO/TS 29001

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The Xylene Rerun Column supplied for Jubail Export Refinery Project (JERP) to

Saudi Aramco-Total Refining & Petrochemical Co. (SATORP) measured almost

100 mtrs along its length and approximately 1500 Tons in weight. Rightfully

termed as the mammoth, it is a part of the Aromatics unit for the JERP being

built by Samsung Engineering.

The column was designed as per ASME code with carbon steel metallurgy.

The refinery once completed is deemed to be the most advanced refinery of

its kind in the world, for processing the Arabian heavy crude with this column

being an integral building block of the same.

This equipment was one amongst the 9 large scale columns for the project

won by MIS Arabia, directly ordered by SATORP and later novated to various

EPC contractors, viz. Samsung Engineering, Tecnicas Reunidas, Technip and

Samsung-Chiyoda JV. The other equipment that MIS Arabia supplied for JERP

to the above contractors are- Atmospheric Columns, Coker Fractionator, MHC

Product Fractionator, Raffinate Column, Pre-Flash columns and PP Splitter

Column.

“This is a landmark achievement for MIS Arabia and an underlining of

the fact that locally based manufactures in Saudi Arabia possess the

required capabilities and expertise to manufacture the biggest and

most complex equipment to the highest quality standards within the

stipulated time and cost, putting them on the world map in terms of

competitiveness, with an added advantage of promoting the local

content”, says a MIS Spokesman.

The high standards of quality and technical expertise -a trademark of MIS

Arabia, were maintained throughout the project which was evident from

the fact that a special & exclusive function was organized by SATORP at the

JERP site after the gruelling 15 hour long column erection to honour the

achievement wherein an award of appreciation was presented to MIS Arabia

by SATORP’s President & CEO, Mr. Fawaz I. Nawwab.

This was a mighty challenge yet performed to perfection by the skilled

workforce of MIS Arabia meeting the required standards, once again signifying

its stronghold in the manufacturing world.

MIS Arabia Co. Ltd. successfully roll-out of one of the largest equipment ever to be manufactured in the GCC region.

About MIS ArabiaMIS Arabia is a joint venture company between the Shoaibi Group, AYTB, and MIS- UAE (part of the Lamprell Group) and set up in the year 2001 reopening the facility of Austrian Energy Services (AES). Based strategically in the industrial hub of Jubail, KSA the main facility spreads across a staggering land area of 88,000 sq. m with 2 covered shops of 6,000 and 4,000 sq. m. area respectively. Apart from this there is a new facility coming up, close to the existing one, with an area of 21,000 sq. m. The core business lines include Pressure Vessels, Columns, Towers, Reactors, Deaerators, Slug Catchers, Fired Heaters, Scraper Traps, S&T Heat Exchangers, Evaporators, Waste Heat Boilers, Helixchangers, Process Skids & Modules, Flare Stacks, Shop Fabricated Tank and O&M Services. MIS Arabia is an ISO 9001:2008 certified company being regularly audited by Bureau Veritas. Also they posses ASME U, U2, PP & S stamps as well as the National Board’s NB & R Stamps. Major clientele includes Saudi Aramco, SABIC, SATORP, Yanpet, KJO, Saudi Polymers Co., SAMREF, SASREF, JANA, Marafiq, Chemanol, Technip, JGC, Tecnicas Reunidas, Linde, Hyundai, Samsung, Chiyoda, Foster Wheeler, Snamprogetti, Zeeco, Toyo Engg., ENPPI, Bechtel, etc. www.misarabia.com.sa

Partners News

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New Partners

Edgen Murray, a leading global distributor of speciality steel products and

logistics solutions for the energy sector, has further expanded its global

footprint with the establishment of a new office in Al Khobar, KSA to support

its existing joint venture with leading Saudi Arabia-based oil, gas and

petrochemicals company, Shoaibi Group.

The joint venture – operating as ‘Edgen Murray Saudi Company’ was

established in 2008 and opened direct access to the world’s 8th largest

energy infrastructure market, valued at an estimated US$176,674 million1. The

new office will stock and sell Edgen Murray products including Pressure Vessel

Plates, Seamless and Welded API 5LX 65 steel pipe, Chrome-moly, Stainless

Steel and Nickel Alloy Flanges and Fittings.

As well as increasing Edgen Murray’s regional presence and local market

knowledge, the joint venture tracks project opportunities with specific

emphasis on the energy, refinery, water and power markets. This enables

Edgen Murray to consolidate and further develop the market experience that

it has built up over several years and improve the service provided to Saudi

customers.

Craig Kiefer, Chief Operating Officer, Edgen Murray says, “The key to success in this region is developing a strong team of people who understand the local market. Our partnership with the Shoaibi Group is shaped by long-term goals that include developing and strengthening key customer relationships.”

The initial product focus will be on high-end and high-grade pressure vessel

grades used in extreme environments. To support this strategy, Edgen Murray

Saudi Company has a preferential agreement to distribute premium Hydrogen

Induced Cracking (HIC) and non-HIC tested Carbon Steel Plates and Heads and

Roll bonded Clad Plates and Heads in the Saudi Arabian market.

Khalid Al Shoaibi, Group Director of Shoaibi Group, said the joint venture strengthened the Group’s ability to service the growing energy infrastructure market. “We have recently concluded a couple of transactions which are important milestones for the joint venture. Edgen Murray is a clear leader in their sector and we are excited to be working closely with them through this joint venture. It is already gaining traction.”

Edgen Murray boosts Saudi market presence with a new office through joint venture with Shoaibi Group

About Edgen MurrayEdgen Murray, is a global distributor of high performance steel products manufactured for use in specialised applications throughout the energy infrastructure markets and individual industrial segments. Supplying both new construction projects and maintenance, repair and operational requirements, Edgen Murray offers a broad range of materials, technical expertise, and customized solutions through more than 30 worldwide locations spanning the Americas, Europe, Middle East, and Asia Pacific.

Al Khobar, Sept 13th, 2011

Shoaibi Group partner up with GALPERTI GROUP - The originalOctober, 2011

Shoaibi Group has entered into a 50 % joint venture agreement with Galperti

to form “Galperti Saudi Arabia Limited” for the manufacturing of flanges in the

Saudi Kingdom.

Galperti Group manufactures and supplies various piping material such as

flanges, Forgings, Flow control Valves, G-LOK Connectors (hub connectors),

forged heavy-wall pipes, Forged Y-Pieces, Mono Flange, Compact & Cladded

Flanges, Double Block and Bleed valves, Heavy pressure Ball Valves, insulation

joints and Bearings for the field of Oil and Gas, Onshore and Offshore,

Chemical and Petro-chemical, Power, wind-power generation industries.

The Galperti Group have nine manufacturing mills and numerous branches all

over the world.

For more information visit www.galperti.com Shoaibi Group Director, Mr. Khalid Al Shoaibi with Galperti Owner Roberto Galperti at the signing ceremony

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McDermott International, Inc. (“McDermott”) announces that one of its subsidiaries has signed a partnership agreement with Eng. Khalid S. Al Shoaibi, of the Shoaibi Group, to form McDermott Arabia Engineering, a company specializing in engineering and consulting services to the offshore oil and gas industry in Saudi Arabia. The new office, based in Al Khobar, has been operational since July and was officially inaugurated on the 12th of October 2011 by Stephen M. Johnson, Chairman, President and Chief Executive Officer, McDermott and Khalid S. Al Shoaibi, Shoaibi Group Director. The new office provides a full suite of engineering services; from Front End Engineering and Design (FEED) through to offshore commissioning, complementing McDermott’s existing turnkey, engineering, procurement, construction, and installation services. Speaking at the opening ceremony, Johnson said, “The Kingdom of Saudi Arabia is a major engineering and industrial hub in the Middle East and we at McDermott are pleased to be able to partner with a local industry expert to launch our new office and develop and grow our engineering capabilities in the Kingdom.”

With access to the best in-house engineers, project managers, fabrication and offshore installation personnel combined with more than 40 years practical experience operating in the Gulf, the company will deliver engineering solutions, focusing on constructability and ease of installation.

“The new office will also play a major role in developing Saudi Arabian engineers and we will focus on growing such talent through McDermott’s well established Graduate Engineer Development Program, which provides excellent on-the-job training in all engineering disciplines associated with the offshore construction industry,” said Johnson.

“As Saudi Arabia’s industrial sector expands rapidly, we have identified an opportunity for McDermott to grow its capabilities by offering engineering and technical services,” said Eng. Khalid S. Al Shoaibi. “The most significant achievement of this partnership is that it will enable employment of Saudi nationals, as well as provide Saudi graduate engineers invaluable experience and the opportunity to work on large scale engineering projects in Saudi Arabia.”

Oct 12th, 2011 - Al, Khobar, KSA

McDermott Establishes Dedicated Engineering Company in Saudi Arabia

New Partners

About McDermottMcDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, we deliver fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. Our customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, our integrated resources include more than 15,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923. To learn more, please visit http://www.mcdermott.com

from left to right, Jack McCormack, Executive VP, and Chief Operating Officer - McDermott International, Eng Khalid S Al Shoaibi, Shoaibi Group Director, Stephen Johnson, Chairman, CEO & President of McDermott International , Sheikh Khalid AlTurki -Chairman of AlTurki Group and McDermott Arabia Boardmember, Stewart Mitchell- Vice President and General Manager, Middle East & India, McDermott International

from left to right, Eng. Khalid Al Shoaibi, Group Director of the Shoaibi group, and Stephen Johnson, Chairman, CEO & President of McDermott International

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Spotlight

Mohammed joins the Group’s Finance team as an Accountant. He previously

held Accounting positions in India and Otis Elevator Saudi Arabia. He has an

MBA (Finance & Marketing) from ICFAI University, Hyderabad India, and B.Com

from The New College, University of Madras, India.

Polysilcon Technology company board members feast in Seoul ,Korea.

Finance bid Farewell to Abid Mohammed and Hassan Samir The Shoaibi Group Finance Department would like to wish Hassan

and Abid the best of luck in their future endeavours.

Saudi Arabia office new team members

SG People

Mohamed Ibrahim

Saleh Al Nobi

Accountant, Finance Department

Admin. Assistant, Finance Department

Your feedback is valuable to us!Thank you to all markets, and partners for your input and valuable news that was contributed to this issue of our newsletter. We look forward to your comments suggestions and articles for the next issue.

Tell us what you think of this issue of the Newsletter.

All ideas, criticism and of course praise are welcomed.

Editorial Team: Mae ChamiSuite 4103, Al Moayyed Tower - Seef District, Manama - Kingdom of BahrainPhone: +973 17566499 - E-mail: mae.chami@shoaibigroup.com

VOLUME 2 - Issue 7 - October 2011 - www.shoaibigroup.com