USSaudiForum - Panel 10 - Munir Rafie - Business Opportunities in the Oil and Gas Sectors

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The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how U.S. companies can participate in Saudi Arabia's expansion. Saudi Arabia is undergoing an extraordinary economic boom. Massive public investment, rapid private-sector growth and new sector initiatives are driving an expansion projected to offer more than $1 trillion in trade and investment opportunities over the next decade. This panel of distinguished experts highlighted the opportunities in the oil and gas sectors.

Transcript of USSaudiForum - Panel 10 - Munir Rafie - Business Opportunities in the Oil and Gas Sectors

Business Opportunities in

Oil & Gas

September 18, 2013

Munir M. Rafie© Copyright 2013, Saudi Aramco. All rights reserved.

Saudi Arabia Overview

260 billionOil Reserves

263 trillion Gas Reserves

Saudi Arabia Overview

450Billion

To be spent during the period 2014-2018

100Billion

2012 Budget surplus promotes accelerated development

1,600Total projects

RobustRobust budget planning

Technologies & Communications

Transportation & Logistics Education & Health Utilities

Airports Electricity New Technologies Roads

Saudi Arabia Overview

Top 20 WEF / Global Competitiveness WB / Best Places to do Business

Saudi Arabia Overview

Saudi Arabia Overview

4th

For “Fiscal Freedom”

7th Most rewarding tax system

LocationStrategic geographic location

EnergyPlentiful energy supplies

Saudi Arabia Overview

Young, educated current & future workforce

61% within working age 35% under 15

World’s Largest Integrated Oil & Gas Company

55,000+Multinational Workforce

Saudi Aramco Overview

Saudi Aramco Overview

12Million

Barrels Daily production capacity

11Billion

Cubic Feet Daily Gas production capacity

Saudi Aramco OverviewThe largest integrated oil and gas company

63Plants

Crude processing plants

10Refineries

Refineries (including 4 Joint Ventures)

Saudi Aramco Overview

7

Gas plants

3NGL plants

In-Kingdom Operations:

22,050Kilometers

Transport pipelines (by 2014)

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.

Khalid A. Al FalihPresident & CEO

May 25th, 2011

Saudi Aramco Overview

Saudi Aramco Overview

Opportunity

$130 billion 5-year capital budget

New crude oil increments

Natural gas production

Refining and petrochemicals

Residential communities

Opportunity

Associated materials and equipment

Maintenance and support services

Direct, upstream opportunities

Indirect, downstream opportunities

Rewarding investment opportunities

70%

Local content by 2020

130Billion

Oil, Gas, Petrochemicals

Business Opportunities

Saudi Aramco’s Strategic Direction:

Opportunity

Incentives

Up to 10% premium for local manufacturers

Exclusivity to local manufacturers in bidding

Long term (5-10 year) agreements

Manufacturing Opportunities

$12Billion

Pipe and Structural Steel35% locally manufactured

$6Billion

Columns, Vessels,

Exchangers, Valves 25% locally manufactured

$4Billion

Compressors, Pumps, Turbines15% locally manufactured

$5Billion

Chemicals, Drilling Fluids, Inhibitors 45% locally manufactured

Manufacturing Opportunities

$4Billion

Instrumentation and Electrical30% locally manufactured

$5Billion

Drilling and Producing Equipment20% locally manufactured

$3Billion

Health, Safety, Security & Fire Equipment 20% locally manufactured

$2Billion

Construction, General Supply25% locally manufactured

$29 BillionOpportunity$29 BillionOpportunity

Services Opportunities

EquipmentInstallation, Commissioning & Servicing

Life CycleManagement

Assembly

Finishing Testing

Services Opportunities

DrillingDrilling ServicesOil Field Services

IndustrialEquipment ServicesCoating Services

ConstructionConstruction ServicesMaintenance ServicesInstallation Services

TechnicalInformation TechnologyEngineering

LogisticsTransportationWarehousingMarine

HSEEnvironmentalMedicalSafety and Security

GeneralCommunity ServicesOffices ServicesHuman Resources

Investment Support

Saudi Arabian Government Investment Authority

(SAGIA) www.sagia.gov.sa

Saudi Aramco / New Business Development

http://www.saudiaramco.com

Doing Business With Saudi Aramco

An invitation……

What?When ? Why? How?

Invest in Saudi Arabia Now $ Multi-billion Opportunity Strong GDP Growth Young Educated Population Modern infrastructure Targeted incentives

Thank you