![Page 1: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/1.jpg)
US / Saudi Business Opportunities Forum
Opportunities in Oil, Gas &
Petrochemicals
Munir M. Rafie
![Page 2: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/2.jpg)
Objective
Share Business Opportunities Information
$125 billion capital budget
New crude oil increments
Refining and petrochemicals
![Page 3: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/3.jpg)
260 Billion barrels of oil reserves (25% of global total)
263 trillion cubic feet of gas reserves
Best country for doing business: 11th of 181
Energy to the World
Saudi Arabia
![Page 4: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/4.jpg)
Business Environment: Infrastructure
Technologies & Communications
Transportation & Logistics
Education & Health Utilities
Airports Electricity New Technologies Roads
![Page 5: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/5.jpg)
Business Environment: Demographics
1980 2000 2005 2010 2015 20200
5
10
15
20
25
30
35
40
Population (Millions)
Young, educated current & future workforce
![Page 6: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/6.jpg)
Saudi Aramco
World’s Largest Integrated Oil & Gas
Company
Daily Capacity:
Oil: 12 million barrels (MSC)
Raw Gas: 11 billion cubic feet
Domestic Refining Capacity:
1.9 million bbd refined product
![Page 7: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/7.jpg)
Looking Forward…
“Over the next ten to twenty years, we intend to transform Saudi Aramco from just an oil and gas company into a fully integrated, truly global energy and chemicals enterprise with extensive operations in the Kingdom and throughout the globe.”
- Mr. Khalid A. Al-Falih, President & CEOMay 25th, 2011
![Page 8: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/8.jpg)
Expansion into Petrochemicals
PetroRabigh, with Sumitomo
Sadara, with Dow
Petrochemicals Saudi Arabia
![Page 9: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/9.jpg)
Saudi Aramco is a powerhouse energy provider to the world
Successful in our core business and expanding our reach into value added petrochemicals
Creating new opportunities for investors
Looking Forward…
![Page 10: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/10.jpg)
Business opportunities
Plastics conversion industries
Infrastructure projects
Advanced technology
![Page 11: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/11.jpg)
2012-2016 Capital Spending Saudi Aramco - $125 Billion Increase Local Content from 25% to 75%
Localization makes business sense Reduces risk Lowers costs Shortens response times
Enhances supply chain reliability
Supporting Localization
![Page 12: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/12.jpg)
Anchor Projects
Services
Equipment Manufacturing
Base Metals
AdvancedTechnology
CommodityProducts
Well ServicesOffshore
Construction
Steel ProductsCasting and
Forgings
Economic Clusters
![Page 13: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/13.jpg)
Anchor Industry
QA / QC Services
Electrical
Equip.
Svcs
Valve Manuf
Motor Repair
R&D
Retail Sales
Coating
Casting
Records Mgmt
Training
NDT
Matl
Heavy Equip.
HRClusters Concept
Provide a framework for
growth
Encourage SMEs
Attract local & foreign
investment
Create employment
Economic Clusters
![Page 14: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/14.jpg)
Pipes and Structural Steel
$12.0 billion – 25% Local content
Columns, Vessels, Exchangers & Valves
$8.0 billion – 20% Local content
Compressors, Pumps and Turbines
$5.0 billion – 5% Local content
Instruments, Electrical and Transmitters
$5.0 billion – 20% Local content
Equipment Manufacturing
![Page 15: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/15.jpg)
Chemicals, Drilling Fluids and Inhibitors
$4.0 billion – 45% Local content
Drilling and Producing Equipment
$4.0 billion – 20% Local content
Health, Safety, Security and Fire Equipment
$3.0 billion – 5% Local content
Construction and General Supplies
$2.0 billion – 20% Local content
Equipment Manufacturing
![Page 16: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/16.jpg)
Business Success Factors already in place
11th easiest place to do business worldwide
Young, well-educated population
Plentiful energy supplies
Geographic access to Asia & Europe
Dynamic spending to nurture growth
Targeted business incentives
National support for localization
Supporting Localization
![Page 17: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/17.jpg)
The message
What Invest in Saudi Arabia
When Now
Why $125 Billion Opportunity Strong GDP Growth Young Educated Population Modern infrastructure Targeted incentives
How
![Page 18: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/18.jpg)
Investment Support
Doing Business With Saudi Aramco
![Page 19: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/19.jpg)
Thank you
![Page 20: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/20.jpg)
US / Saudi Business Opportunities Forum
Saudi Arabia
Investment Enablers
Khalid H. Juraifani
![Page 21: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/21.jpg)
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Investment Enablers
Saudi Aramco’s
New Business Development Organization
Supports investors and companies access Saudi Arabia’s Investment Enablers and ensuring long-term economic sustainability of their
businesses.
Human Resources Development Fund (HRDF)
![Page 22: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/22.jpg)
“One Stop Shop” Government Services:
• Investment license
• Commercial registration
• Government services (visa’s, work permits, tax)
• Economic Cities Authority (King Abdullah and Jazan)
Investment Enablers
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Human Resources Development Fund (HRDF)
![Page 23: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/23.jpg)
Investment Enablers
Operator of Saudi Arabia's Industrial Cities:
• 18 strategic locations (East, West, and Central)
• Developed sites ($3.0 per m2)
• Power and utilities ($0.032 Kwh or $0.75 mmbtu)
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Human Resources Development Fund (HRDF)
![Page 24: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/24.jpg)
Investment Enablers
Offer low interest loans in addition to technical and marketing support:
• $160 million or 50% of project, whichever is lower
• Effective interest rate as low as 2.0% per year
• Show of confidence for obtaining more loans
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Human Resources Development Fund (HRDF)
![Page 25: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/25.jpg)
Investment Enablers
Support training and development of the National Workforce:
• Shares up to 50% of training cost
• Pays up to 75% of salary during training
• Provides customized programs as requested
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Human Resources Development Fund (HRDF)
![Page 26: Business Forum: Oil, Gas, and Petrochemicals - Rafie](https://reader034.vdocuments.us/reader034/viewer/2022042815/55632db8d8b42ad7398b51f8/html5/thumbnails/26.jpg)
Investment Enablers
Champion of local content in oil and gas industry:
• Support from feasibility to operations
• Offer 10% price premium for local manufacturers
• Show of confidence for obtaining more business
• Potential investor/partner
Saudi Arabia General Investment Agency (SAGIA)
Saudi Industrial Property Authority (MODON)
Saudi Industrial Development Fund (SIDF)
Saudi Arabian Oil Company (ARAMCO)
Human Resources Development Fund (HRDF)