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Saudi Aramco: Public

2017Growth Opportunities for SMEs

December 12, 2017

Nassir Al-Yami, GM Procurement

Saudi Aramco


Growth Opportunities for SMEs

What is the Kingdom’s vision for SMEs?

What is iktva offering SMEs?

What are the immediate opportunities?


Saudi Arabia’s vision for economic development

2017 2030

World economy rank 19th 15th

Non-oil GDP 16% 50%

Foreign Direct Investment 3.8% 5.7%


Developing SMEs is critical to these targets

Opportunities suited to SMEs

Increase SME GDP contribution from 20% to 35%

Incentives driven by Government


Significant demand in the energy sector pipeline

Transport & Logistics

Transport spend increased by 40% in last 12 months

1,600 KM Red Sea to Arabian Gulf rail link

$30 billion committed for ports

Power & Water

$80 billion in desalinated water

10% from renewable power in the next 6

years

Hydrocarbons

$394 billion in oil and gas infrastructure

$20 billion to build new petrochemical complex


Dedicated government network to enable SMEs

Procurement policies to improve market access

A ‘one-stop’ shop to make it easier to do business


10 Year Capital Program worth $414 billion

Drilling & Well Services $134 Billion

Maintain Potential $78 Billion

Crude Oil to Chemicals $20 Billion

Pipeline Projects $7 Billion

Base Oil Plants $1.5 Billion

$41 BillionAnnually

Drilling 48%

Power 1%

Unconventional8%

Process Facilities13%

Pipeline3%

MaintainPotential

19%

Other2%

Infrastructure6%

Selected spend areas


Over $230 billion forecast on drilling operations

31

4

110

60

119

Gas Offshore

Oil Onshore

Oil Offshore

Gas Onshore

Unconven-tional

Trees 18,904 units

Hanger assemblies

39,600 units

Packers45 million

units

Mud Products763 MM gallons

Casing heads 19,040 units

ICDS & ICD-Screens

1.44 Million

Materials Services

Average annual rig count


Over $175 billion forecast on surface facilities

2

8

11

19

26

32

78

Pipeline

Power

Other

Maintain potential

Process

Gas

Infrastructure

Process Vessels CS 11

15

Process Vessels SS1Compressors

Field Instr., Analyzers, Gages

Carbon Steel Fittings & Vales6

Carbon Steel Piping

5Stainless Steel Fittings & Valves

53

Heat Exchangers

2Control Valves

2

Concrete23

1Stainless Steel Piping

Structural Steel

Programs ($ billion) Materials ($ billion)


iktva is a win-win program

Localized goods

and services

Compensation Paid to Saudis

Training & Development

of Saudis

Supplier DevelopmentResearch &

Development

In Relation to Revenue

iktva … a win-win program

Embedded in Procurement Practices

Critical to Saudi Aramco’s Supply Chain

Recognize suppliers adding local value


Driving iktva through procurement…

Projected iktvacontribution to the local

supply chain

25

3

7x

20172016

$10.4 Billion

Contracts ($, billion) with iktva


…and increasing local manufacturing footprint

Fulfilment by local Manufacturing (%)

5043

37

20162015

+16%

2017

Spent with local manufacturers in 2017

$3.4 Billion


The iktva value proposition

2015

SMEsStrategic Suppliers

2016 2017

OpportunitiesVALUE PARKS

HUMAN CAPITAL

FINANCIAL SUPPORT


5 value parks offer a focus for iktva

Industry clusters from base materials to finished goods

Attractive rates and rent free periods

Access to skilled labor and feed stock

Multi-modal hub: road, rail and ports

Export potential to GCC and beyond

Ras Al Khair

Plaschem Park

SPARK

Jazan City for Primary & Downstream Industries

PlusTech


Where are the supply

chain gaps?

Immediate opportunities for SMEs

3,300 components

Commonality analysis

Supplier inputs

140 energy sector

opportunities for SMEs


Energy Sector:

Consumers, such as:

SMEs and Equipment/Raw Material Providers, such as:

Key stakeholder interactions


This event will showcase these opportunities

Current annual market size gap

of $16 Bn

Oilfield Equipment

$887 MM

4th I. R.

$1.5 Bn

Static & Rotating

$1.4 Bn

Electrical Equipment

$2.8 Bn

Water & Wastewater

$1.2 Bn

Metals Ecosystem

$515 MM

Oilfield Chemicals

$1.2 Bn

Elastomers & derivatives

$4.9 Bn

Enabling Equipment

$1.8 Bn


Elastomer & derivatives opportunities worth$4.9 Bn

1. Elastomers (Organic synthesis)2. Elastomers (tires)3. Elastomers (final products ex-

tires)4. Elastomers (conversion

equipment and services)5. Adhesives6. Polyurethanes7. Lubricants8. Coating manufacturing for

industrial applications

9. Non-metallic / reinforced materials

10.Plastic injection molding for industrial applications

11.Catalyst – non-precious metals12.Catalyst – precious metals13.Catalyst support (ceramic balls)14.Desiccants

Elastomers & Derivatives

14


Electrical equipment opportunities worth$2.8 Bn

Electrical Equipment

32

1. CT-VT Transformers 2. Electrical fuses3. Smart meters4. Batteries5. Electrical inverters 6. Circuit breakers7. Reducers/conduit

fittings8. UPS9. Multiphase flowmeters10. Relays11. LV motors12. Sensors13. PLC

14. Compressors control systems

15. Pressure and temperature transmitters

16. Electric control regulators

17. Overhead line insulators18. Electrical capacitors 19. Vibration monitoring

systems 20. Downhole

instrumentation cable21. HV disconnects 22. Gas Monitoring systems

23. Heat tracing systems24. Surge arresters 25. Cablebus26. Metallic tubing

instrumentation27. Venturi flow meters28. Off-shore cable29. Acoustic leak monitoring30. Valves actuators31. Custody flowmeters32. Analyzers


Oilfield equipment opportunities worth $887 MM

1. Coiled tubing2. Drill pipes3. Drilling collars4. DV tools5. Liner hangers6. Nipple manufacturing for downhole7. Packers8. Precision machining downhole tools9. Upstream perforation explosive charges10.Whipstock11. Accumulators12. Cement plugs13. Cement retainers

14. Flow couplings15. Hoisting and rigging components16. Downhole cables17. Multi-stage frac18. Sheaves19. Slips20. Swivels21. Cementing pumps22. Cross coupling protectors23. Upstream perforation systems24. Well services tools maintenance25. Wellhead bonnets

Oilfield Equipment

25


2017 iktva – Growth opportunities for SMEs

Representatives from over 30 countries

1,000 companies across 8 sectors

Over 2,300 delegates


Expected outcomes

Field visits

Meetings

Seminars

Workshops

Expressions of Interest

Post-event engagement


Thank You

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