Doing Business with Saudi Aramco

Opportunity Arabia 11

Edinburgh, United Kingdom

Joep Straathof

October 9, 2014

Presentation Outline• Saudi Aramco

> Introduction

> Focus areas

> Business opportunities

> Partnering

• How to proceed with Aramco Overseas Company

Saudi Aramco IntroductionFully integrated energy enterprise

260.2billion

barrels oil reserves

1 in 8 barrels of the world’s

total crude oil production

4.9million

bpd global refining capacity

288.4trillion

scf gas reserves

A history of transformation

We believe energy has the power to transform

Focus areas

Upstream Leadership

Downstream Growth

Innovation

Energy Sector Development

Citizenship

Value chain integration

Continued focus on upstream leadership

121 Oil & gas field discoveries to date

1 billionCell resolution for reservoir simulation

A new driver of value creation

Benefits of unconventional gas:

4. Optimize Kingdom’s energy mix

3. Reinforce Saudi Aramco’s position as a reliable global supplier ofenergy

2. Re-allocate crude for higher valueapplications

1. Supplement the Kingdom’s gas supply

A global, integrated refining business

1.0Millions of

barrels per day

Domestic wholly-owned refineries:Ras Tanura - 550k bpdRiyadh - 120k bpdJidda - 90k bpdYanbu - 240k bpd

International joint venture refineries:Motiva - 1,070k bpd S-Oil - 669k bpd Fujian - 240k bpd Showa Shell - 395k bpd Sekiyu K.K.

2.4Millions of

barrels per day

Domestic joint venture refineries:Petro Rabigh - 400k bpdSAMREF - 400k bpdSASREF - 305k bpdSATORP - 400k bpd

1.5Millions of

barrels per day

A global, integrated refining business

Ras TanuraRefinery

JubailRefinery

Jiddah Refinery

YanbuRefinery

Petro Rabigh JV with Sumitomo

Chemicals

SAMREFJV with Mobil Yanbu Refining Company

SASREFJV with Shell Saudi Arabia Refining Ltd

SATORPJV with Total

MotivaJV with Shell

S-OilEquity Venture in Korea

FujianJV with FREP

Showa Shell Skiyu K.K.

JV with Shell

Texas, USA South Korea China Japan

Our competitive edge in a rapidly changing world

Innovation in:

SafetyChemicals

CatalysisOil Upgrading

SeismicProcessing

ReservoirSimulation

DesulfurizationCarbon Management

A global, competitive Saudi energy services sector

Enable industrial clusters

Support local manufacturing

Encourage investment

Prepare local workforce

Facilitate entrepreneurship

Foster localization

14

EnvironmentKnowledgeEconomy Community

Citizenship

Projects

CURRENT FUTURE

YASREFJV with Sinopec

JazanJazan refinery and terminal project

SadaraJV with DOW Chemical Co.

ShaybahNGL recovery plant

KhuraisKhurais central processing facility

WasitWasit Gas Plant

MidyanNGL Recovery Plant

Petro RabighJV with Sumitomo Chemical

SAMREFJV with ExxonMobil

Yunnan ProvinceJV with PetroChina

FadhiliFadhili Gas Plant Program

Ras Al KhairJV with SembCorp and Bahri

Material Spend including Localization

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Pipes andstructural steel

Columns,vessels,

exchangersand valves

Compressors,pumps and

turbines

Instruments,electrical andtransmitters

Chemicals,drilling fluidsand inhibitors

Drilling andproducingequipment

Health, safety,security and

fire equipment

Constructionand general

supplies

Ca

pit

al B

ud

ge

t ($

Bln

.)

Supplier Preference

In-Kingdom Manufactured

Goods

Imported Goods

Warehoused by

Local Stockists

Goods Imported by

Local Vendors

Imports through

Out-of-Kingdom

offices

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

Pipes andstructural steel

Columns,vessels,

exchangersand valves

Compressors,pumps and

turbines

Instruments,electrical andtransmitters

Chemicals,drilling fluidsand inhibitors

Drilling andproducingequipment

Health, safety,security and

fire equipment

Constructionand general

supplies

Lo

ca

liza

tio

n

Cap

ital B

ud

get

($ B

ln.)

Localization of Business

• Strategic directive for 2020 is 70%

• Targets defined per category

Original Equipment

Manufacturer

Local Supply Chain Development

SalesStockist

Assembly

Production

Repair Shop

Equipment Manufacturing Opportunities

Pipes and steel 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

Services Opportunities

Carbonate Reservoir Product 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

Incentives Supporting Local Manufacturing

Local manufacturing 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

Saudization

• Employment of Saudi nationals

• National policy of the Kingdom

• Targets defined by company size

New Business Development

Investors’ Gateway to Saudi Aramco

New Business Partner Process

• 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

Why Partner with Saudi Aramco

• Business opportunities

• Wide network

• Knowledge and expertise

• Alignment with material/service requirements

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

AOC’s Supply Chain Offerings

Sourcing & Supplier

Relations

Engineering

Purchasing Quality

Management

Expediting

Logistics

AOC Contact Details

• Aramco Overseas Company

www.aramcooverseas.com

• Joep Straathof

Joep.straathof@aramcooverrseas.com

شكرا

Thank you