iktva program framework & business opportunities aramco: public agenda 1 iktva baseline 2 5 year...
TRANSCRIPT
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
iktva Program Framework
Business Opportunities
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
iktva Program Framework
Saudi Aramco: Public
Supplier Training and Support for iktva Baselines
www.iktva.sa1
iktva summary presentation2
iktva survey template3
Detailed guidelines for iktva survey
4
Saudi Aramco: Public
iktva Survey Guidelines - Highlights
Included Excluded
Goods & Services • IK Manufactured Goods &
Services
• IK Operating & Admin
Expenses
• OOK Goods & Services
• Materials/Services from
Agents
• Capital Expenditures
Compensation Saudi Compensation:
• Salary & Bonus
• Housing
• Transportation
• Education Assistance
All Expat Base Salary &
Bonuses.
Training All Costs Associated With Saudi
Training
• Internships
• Scholarships
• Travel and Accommodations
• Course Fees
Training Costs Associated
With Expats
Supplier
Development
All Cost Including Workforce,
Materials, Travel,….
Saudi Aramco: Public
Supplier Survey Preparation and Submission
Sup
plie
rs3
rdP
arty
Ce
rtif
ier
Prepare Survey and Select Certification
Firm
Submit Survey to Saudi Aramco
Prepare Certification Report
Review Online Tools and Download
Templates
Review and Certify Survey
Provide Management Representation
Letter
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
iktva Program Framework
Saudi Aramco: Public
iktva Action Plan Components
1. Company Background:• Executive summary
• Corporate structure
2. Goods and Services:• Company supply chain overview
• Plan to increase procurement in-kingdom
3. Human Resources:• Current and planned number of Saudis employed
• Training plans
4. Suppliers Development:• Development plans for in-kingdom suppliers
Saudi Aramco: Public
iktva Action Plan Components cont.
5. Research and Development Initiatives:• In-kingdom technology roadmap
• Technology acquisition plans
6. Exports: • Current and planned exports volume
7. Business and Market Challenges: • Major challenges with increasing iktva
• Global competitive challenge
8. 5 Year Forecasted iktva
2017 2018 2019 2020 2021
Company iktva
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
iktva Program Framework
Saudi Aramco: Public
iktva in Procurement Process
3. No change in commercial evaluation process
1. No Change in technical evaluation process
2. An iktva evaluation step has been established
Saudi Aramco: Public
iktva Target Setting Process
Generate Breakdown of
materials, services & labor required
• Create material lists, services & labor requirements using scope of work and modeling/forecasting software
Determine what can be sourced locally
• Determine what can be procured locally (capacity & capability) and if there are limitations
Calculate Percentages for categories A-R
• Use material and labor cost to develop iktva percentages for IK materials, services, and labor
Set iktva target
• Using Aramco & industry information, set iktva targets
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
Business Opportunities
Saudi Aramco: Public
Historical Material Spend 10 Year Demand Forecast (Materials & Services)
$6.7 Billion Annually
$37.3 Billion Annually
Business Opportunities
Saudi Aramco: Public
$6.7 Billion Historical Annual Material Spend
*Sample of historical spend: Average of 6 years
55% of spend represents areas of
Immediate Opportunities:
Materials sourced OOK only
Materials with 1-2 IK MFRs
45% of spend represents areas for
further development:
Materials with 3+ IK MFRs but
limited in capacity and capability
OOK Spend (Zero
IK MFRs)
23%
OOK & IK Spend
(1-2 IK MFRs)
32%
OOK & IK Spend
(3+ IK MFRs)
45%
Average Annual
Spend
$6.7 Billion*
Saudi Aramco: Public
Materials Currently Sourced OOK Only
*Sample of historical spend: Average of 6 years
55% of spend represents areas of
Immediate Opportunities:
Materials sourced OOK only
Materials with 1-2 IK MFRs
OOK Spend (Zero
IK MFRs)
23%
OOK & IK Spend
(1-2 IK MFRs)
32%
OOK & IK Spend
(3+ IK MFRs)
45%
Average Annual
Spend
$6.7 Billion*
Saudi Aramco: Public
$13
$14
$22
$27
$45
$49
$71
$72
$84
$97
$469
$620 MM
Vessels
Pumps
Turbines
Pipe Fittings
Instrumentation
Heat Transfer Equip
Electrical
Pipe
Compressors
Valves
Chemicals
Drilling
Materials Currently Sourced OOK Only
Average Annual
Spend
$620 Million
Downhole Equipment
HANGER: LINER; FOR GAS WELLS $ 125 MM
PACKER, MECHANICAL, SWELLABLE, ISOLATION
$ 83 MM
PACKER: PRODUCTION; NON-KHF $ 38 MM
HANGER; LINER; FOR OIL WELLS $ 32 MM
VALVE: SUB-SURFACE SAFETY $ 21 MM
Adv Well Comp Eqpt
EQUALIZER/ SCREENS ACCESS $ 117 MM
GAUGES $ 27 MM
EXPANDABLE, CASING & ACCESSORIES
$ 11 MM
PDHMS, ACCESSORIES $ 7 MM
Downhole Equipment
54%
Csg Acc & Cement Eqpt
16
Adv Well Comp Eqpt27%
Saudi Aramco: Public
$13
$14
$22
$27
$45
$49
$71
$72
$84
$97
$469 MM
$620
Vessels
Pumps
Turbines
Pipe Fittings
Instrumentation
Heat Transfer Equip
Electrical
Pipe
Compressors
Valves
Chemicals
Drilling
Materials Currently Sourced OOK Only
Well StiumlnAgents
9%
Average Annual
Spend
$469 Million
Drllg Chem – General69%
Drllg Fluids – MUD20%
General Drilling Chemicals
Salts $ 228 MM
Lubricants $ 60 MM
Shale/borehole stabilizer $ 27 MM
Thinner $ 4 MM
Defoamer $ 3 MM
Detergents, emulsifiers & surfactants $ 2 MM
Drilling Fluids - MUD
Mud system $ 95 MM
Saudi Aramco: Public
$13
$14
$22
$27
$45
$49
$71
$72
$84
$97 MM
$469
$620
Vessels
Pumps
Turbines
Pipe Fittings
Instrumentation
Heat Transfer Equip
Electrical
Pipe
Compressors
Valves
Chemicals
Drilling
Materials Currently Sourced OOK Only
Average Annual
Spend
$97 Million
Check Valve17%
Butterfly Valve17%
Plug Valve18%
Ball Valve31%
Ball Valve
Valve; ball; split body; trunnion; steel $ 15 MM
Valve; ball; split body;steel;26 in & up $ 6 MM
Valve: ball;nps 26&up asme class 150&up $ 5 MM
Valve; ball; scraper launching; steel $ 3 MM
Plug Valve
Valve; plug; lubricated $ 15 MM
Valve; plug; steam jacketed; $ 2 MM
Saudi Aramco: Public
$6.7 Billion Historical Annual Material Spend
*Sample of historical spend: Average of 6 years
55% of spend represents areas of
Immediate Opportunities:
Materials sourced OOK only
Materials with 1-2 IK MFRs
OOK Spend (Zero
IK MFRs)
23%
OOK & IK Spend
(1-2 IK MFRs)
32%
OOK & IK Spend
(3+ IK MFRs)
45%
Average Annual
Spend
$6.7 Billion*
Saudi Aramco: Public
$2
$7
$15
$41
$41
$51
$67
$168
$170
$243
$508
$831 MM
Vessels
Structural Steel
Pumps
Heat Transfer Equip
Electrical
Instrumentation
Pipe Fittings
Valves
Turbines
Pipe
Chemicals
Drilling
Material Spend with OOK & IK Sources (1-2 IK MFRS)
Average Annual
Spend
$831 Million
Csg Acc & Cement Eqpt
11%
OCTG-API & Semi Prem.
40%
Wellhead Prod Trees
17%
Gas Wellhead Eqpt20%
OCTG - API
Casing; octg; api gr; seam or erw $ 95 MM
Casing: octg; high nickel; seamless
$ 80 MM
Casing: octg; api gr; erw $ 70 MM
Casing: octg; api gr; saw $ 45 MM
Tubing: octg; api gr; seamless $ 34 MM
Gas Wellhead Eqpt
Spool assy: tubing; psl 3-4 $ 77 MM
Spool assy: casing $ 18 MM
Spool assy: casing head $ 18 MM
Bonnet: tubing; khf; 10-15m $ 12 MM
Hanger; assy: tubing; 10m-15m $ 10 MM
Mudline suspension: comp & assy
$ 10 MM
Saudi Aramco: Public
$2
$7
$15
$41
$41
$51
$67
$168
$170
$243
$508 MM
$831
Vessels
Structural Steel
Pumps
Heat Transfer Equip
Electrical
Instrumentation
Pipe Fittings
Valves
Turbines
Pipe
Chemicals
Drilling
Material Spend with OOK & IK Sources (1-2 IK MFRS)
Average Annual
Spend
$508 Million
Drllg Fluids – Mud48%
Drllg Cement Additive
17%
Drllg Chem –General
31%
Drllg Cement Additive
Cement and Additives $ 87 MM
Drllg Fluid - MUD
Oil Base Mud Products $ 242 MM
Drllg Chem- General
Fluid Loss Control $ 105 MM
Lost Circulation, Bridging Material $ 44 MM
Alkalinity control $ 5 MM
Corrosion Inhibitors $ 4 MM
Saudi Aramco: Public
$2
$7
$15
$41
$41
$51
$67
$168
$170
$243 MM
$508
$831
Vessels
Structural Steel
Pumps
Heat Transfer Equip
Electrical
Instrumentation
Pipe Fittings
Valves
Turbines
Pipe
Chemicals
Drilling
Material Spend with OOK & IK Sources (1-2 IK MFRS)
Average Annual
Spend
$243 Million
Pipe, Seamless CS52%
Pipe, ERW, CS23%
Pipe, Metal – other19%
Pipe, Seamless CS
Pipe; metallic; seamless $ 116 MM
Pipe; metallic; seamless; low temp $ 7 MM
Pipe: metallic, astm a106, seamless $ 3 MM
Pipe, ERW, CS
Pipe; metallic; hfw class b sour service
$ 47 MM
Pipe; metallic; hfw class c for sour gas
$ 9 MM
Pipe, Metal - other
Pipe; metallic; astm; any process, ss
$ 33 MM
Pipe: metallic, weld overlayed pipe $ 14 MM
Saudi Aramco: Public
10 Year Demand Forecast (Materials & Services)
$37.3 Billion Annually
Business Opportunities
Saudi Aramco: Public
Capital Program 10-Year Forecast ($37.3 Billion / Year)
10-Year Capital Program Forecast
Unconventional Resources
8%
Other4%
Pipeline3%
Infrastructure7%
Process Facilities12%
Maintain Potential14%
Drilling 52%
Disclaimer:This slide contains forward-looking statements regarding future events basedon current expectations, estimates, forecasts, and projections. The slide issubject to updating, revision, further verification and amendment withoutnotice. No reliance may be placed for any purpose on the information oropinions contained in this presentation or any other document or statement,or on the completeness, accuracy or fairness of such information or opinionstherein. No representation or warranty, express or implied, is made or givenby or on behalf of Saudi Aramco or its employees, or any other person as tothe accuracy or completeness or fairness of the information or opinionscontained in this presentation and no responsibility or liability is accepted byany of them for such information or opinions or for any errors, omissions,misstatements, negligent or otherwise, or for any communication written orotherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Drilling Materials 10-Year Forecast
Trees 13,900 units
Hanger assemblies,33,000 units
Cement6.8 million tons
Mud Products (liquid)
636 million gallons
Casing heads 14,000 units
ICDS & ICD-screens
1.2 million units
Quantity Examples Percentage of Total Material Spend
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
$66 Billion
ICDS & ICD-SCREENS, 14%
OCTG - API & Semi Premium,
6%
OCTG -Premium, 17%
Circulation Products , 6%
Workover/ Completion
Products, 5%TREE ASSY, 5%ISOLATION
PACKERS, 4%
SPOOL ASSY, 4%
Mud Products , 3%
Stabilizers, 3%
Weighting Materials, 3%
Additives , 2%
other, 27%
Saudi Aramco: Public
Drilling Services 10-Year Forecast
Rig Drilling Ops Services = $52.5 Billion
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
112
81
61
5
31
Oil -Onshore
Gas -Onshore
Oil -Offshore
Gas -Offshore
UR Well Services Total Spend $64.5 Billion
Directional Drilling
27%
Technical Services
22%Operations & Completion Services11%
Roads & Locations
5%
Logging9%
Monitoring & Testing
9%
Drilling Equipment Rental 9%
Casing / Tubing &
Handling, 4%
Cementing / Pumping
Services, 4%
Perforating
Saudi Aramco: Public
Renewables
Power
Oil Facilities
Pipeline
Other
Infrastructure
Refinery & Petrochem
Gas Facilities
Maintain Potential
Surface Facilities 10-Year Forecast
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose onthe information or opinions contained in this presentation or any other document or statement, or on the completeness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of SaudiAramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for such information or opinions or for any errors, omissions,misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
$40.3 Billion
$25.3 Billion
$25 Billion
$21.6 Billion
$16.3 Billion
$10.7 Billion
$9.9 Billion
$2.1 Billion
$1.1 Billion
Saudi Aramco: Public
BOILER PLANT EQUIP - 160 UNITS
PUMPS CS - 3,500 UNITS
LOW VOLTAGE CABLING - 56,000 KM
STORAGE TANKS - 1,000 UNITS
AIR COOLERS - 500 UNITS
COMPRESSORS - 500 UNITS
STAINLESS STEEL PIPING (SS314/316) - 137,000…
PROCESS VESSELS SS - 620 UNITS
CONCRETE - 24 MILLION M3
STRUCTURAL STEEL - 650,000 TONS
CONTROL VALVES - 90,000 UNITS
FIELD INSTR, ANALYZERS, GAGES - 70,000 UNITS
CS FITTINGS & VALVES - 19 MILLION UNITS
SS FITTINGS & VALVES - 6 MILLION UNITS
HEAT EXCHANGERS - 3,500 UNITS
CARBON STEEL PIPING - 23 MILLION TONS
PROCESS VESSELS CS - 6,000 UNITS
Surface Facilities Materials 10-Year Forecast (example)
Ball valves0.36 MM valves
2%
Check Valve0.17 MM valves, 1%
Gate Valves2.0 MM valves, 10%Pipe Fitting, CS, 16.6
MM fittings, 87%
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
BOILER PLANT EQUIP - 160 UNITS
PUMPS CS - 3,500 UNITS
LOW VOLTAGE CABLING - 56,000 KM
STORAGE TANKS - 1,000 UNITS
AIR COOLERS - 500 UNITS
COMPRESSORS - 500 UNITS
STAINLESS STEEL PIPING (SS314/316) - 137,000…
PROCESS VESSELS SS - 620 UNITS
CONCRETE - 24 MILLION M3
STRUCTURAL STEEL - 650,000 TONS
CONTROL VALVES - 90,000 UNITS
FIELD INSTR, ANALYZERS, GAGES - 70,000 UNITS
CS FITTINGS & VALVES - 19 MILLION UNITS
SS FITTINGS & VALVES - 6 MILLION UNITS
HEAT EXCHANGERS - 3,500 UNITS
CARBON STEEL PIPING - 23 MILLION TONS
PROCESS VESSELS CS - 6,000 UNITS
Surface Facilities Materials 10-Year Forecast (example)
0
20,000
40,000
60,000
80,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Ball Valves – All Types
CS SS Non-Metallic
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2017201820192020202120222023202420252026
150 300 600 900 1500
0
10000
20000
30000
40000
50000
60000
70000
2017201820192020202120222023202420252026
<4" 4" - 24" > 24"
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Agenda
iktva Baseline1
5 Year iktva Action Plan2
iktva integration in Procurement3
Historical and Future Spend1
Winning More Business2
Business Opportunities
Saudi Aramco: Public
Material Limitations Definition
Limitations are specific restrictions that limits
the level of approval for a supplier against a
certain material.
The limitations are decided based upon the final
result of the technical evaluation of each facility.
Limitations could be on many aspects:
o Metallurgy
o Model type
o Size
o Thickness
o Engineering
Saudi Aramco: Public
Supplier Development Workbooks - Static Equipment example
Static Equipment
Common Limitations
• Thermal design
• Mechanical design
• Assembly & Welding
• Wall thickness
• Engineering design
• Fabrication only
• Size
• Metallurgy
• Pressure ratings
Manufacturer Name10 Years Forecast:
SR 87 B Initiative Lead:Local Business Development
Current Situation Future Situation (2021) Enablers
600000XXXX: TANK; SHOP FABRICATED.1) Only carbon steel2) Diameter up to 10 feet.3) Excluding dome roofs.4) Excluding external and internal floating roofs.600000XXXX: VESSEL; PRES.; MAX. WALL THK OF 19 MM. Tangent-to-Tangent length of pressure vessels is limited to 6 m maximum.
1. Different types of metallurgy.2. Flexible and dome roofs3. Various sizes and pressure
1. ES to work with supplier in developing capabilities to add 9COMs.2. Supplier must be willing to expand skillset, add 9COMs and ensure quality standards.3. Form a cooperative team between Saudi Aramco and the supplier to move forward.
Manufacturer Team Aramco Team Manufactrurer Notes
Unit Representative Unit RepresentativeDiscussion points and suggestions
Sample Workbook
Saudi Aramco: Public
Saudi Aramco Contact details
Limitations program, materials or capacity expansion for local facilities
Supplier Solution Center Unit [email protected]
New local businesses, market information
Local Business Development [email protected]
General Inquiries Supplier Help DeskTel.: [email protected]
iktva Inquiries www.iktva.sa/contact-us [email protected]