EnvironmentalInvestment Opportunities
February 24, 2020
Disclaimer
This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position, results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as “believes”, “expects”, “are expected to”, “anticipates”, “intends”, “estimates”, “should”, “will”, “shall”, “may”, “is likely to”, “plans” or similar expressions, including variations and the negatives thereof or comparable terminology.
You should be aware that forward-looking statements are not guarantees of future performance and that the Company’s actual financial position, results of operations and business, and the development of the industries in which it operates may differ materially from those made in or suggested by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and available at https://cma.org.sa/en/Market/Prospectuses/Pages/default.aspx (the “Prospectus”) and include, among other things, the following:
• (1) oil and gas supply, demand and price fluctuations; (2) global economic market conditions; (3) competition in the industries in which the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the oil and gas, refining and petrochemicals industries; (6) the cyclical nature of the oil and gas, refining and petrochemicals industries; (7) weather conditions; (8) political and social instability and unrest and actual or potential armed conflicts in the MENA region and other areas; (9) managing the Company’s growth; (10) risks in connection with projects under development and recent and future acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign exchange risk; (13) risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that impact the industries in which the Company operates; and (14) international trade litigation, disputes or agreements.
The Prospectus contains a more complete discussion of the factors that could affect the Company’s future performance and the industries in which it operates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.
iktva Program Overview
• Drives domestic value creation byworking with suppliers for mutualbenefits
• Envisions to improve investment, andmaximize long term economic growthand diversification
• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness
IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers
The IN-KINGDOM TOTAL VALUE
ADD (iktva) Program
EnvironmentalInvestment Opportunities Outline
7 Investments Opportunities
1. Waste Management Technologies
2. Mobile Waste Management Technologies
3. Management of Special Types of Waste
4. Radiation Protection Services
5. Naturally Occurring Radioactive Material (NORM) Disposal
6. Environmental Health Services
7. Monitoring & Compliance Assessment Program
Session Title Presenter
Opening Abdulrahman Alkhalaf, (ID&SSD)
Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)
Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)
Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)
Value Proposition 6: Environmental Health Services Jason Hall (EPD)
Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)
Closing Abdulrahman Alkhalaf, (ID&SSD)
Agenda – Environmental Investment Opportunities
Saudi Aramco: Public
To seek local environmentally
acceptable and cost effective
solutions that would:
Meet Saudi Aramco and
government Environmental
regulations,
Minimize environmental and
health risks,
Recover value from Saudi
Aramco generated waste.
Objective Opportunities
Environmental Management Services Represent an Attractive
Opportunity Given the current gaps, expected demand and
localization potential
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
116,000
153,000
121,000
232,000 234,500
266,100
297,700
329,300
2016 2017 2018 2019 2020 2021 2022 2023
Historical and Forecasted demand for Industrial Waste in (Tons)
7
Saudi Aramco’s Historical and Forecasted demand for Industrial Waste in (Tons) excluding Drilling and
Workover waste.Source: Saudi Aramco analysis
Historical
Forecasted
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
16%
9%
10%
24%
22%
19%
Spent Chemicals Other Hazardous Waste Contaminated Sand
Oily Wastewater Oily Sludge Oil Based Mud Cuttings
2019 Saudi Aramco Generated Industrial Waste Breakdown
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Industrial Waste Management
Opportunity 2: Mobile Waste Management
Technologies
Opportunity 1: Waste Management
Technologies
Opportunity 3: Special Waste Management
Studies
Environmental Investment Opportunities
© Saudi Arabian Oil Company, 2020
Waste Management Technologies
Saudi Aramco: Public
Waste Management Technologies
11Source: Saudi Aramco Internal Analysis
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Waste Management Technologies
12
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Source: Saudi Aramco Internal Analysis
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Waste Management Technologies
13
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Source: Saudi Aramco Internal Analysis
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Waste Management Technologies
14
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Recycle
Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Waste Management Technologies
15
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Recover
Alumina Molybdenum Nickel
Cobalt Vanadium Platinum
Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Waste Management Technologies
16
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Regenerate
Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Waste Management Technologies
17
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
21 MM Used Tires are generated annually
Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Waste Management Technologies
18
Fully Integrated Waste Management Facilities
Waste to Energy
Recycle/Recover/Regenerate of Spent Catalyst.
Manufacture of rubber substitute
Source: Saudi Aramco Internal Analysis
Mobile Waste Management Technologies
Saudi Aramco: Public
Mobile Waste Management Technologies
20
Automatic Tank Cleaning
Recover Hydrocarbons from Oil Contaminated Sand
Portable Waste Analyzers
Saudi Aramco: Public
Mobile Waste Management Technologies
21
Automatic Tank Cleaning
Recover Hydrocarbons from Oil Contaminated Sand
Portable Waste Analyzers
Saudi Aramco: Public
Mobile Waste Management Technologies
22
Automatic Tank Cleaning
Recover Hydrocarbons from Oil Contaminated Sand
Portable Waste Analyzers
Saudi Aramco: Public
Special Waste Management Studies
23
Circular Economy
Life Cycle Analysis
Site Characterization Assessment
Saudi Aramco: Public
Special Waste Management Studies
24
Circular Economy
Life Cycle Analysis
Site Characterization Assessment
Saudi Aramco: Public
Special Waste Management Studies
25
Circular Economy
Life Cycle Analysis
Site Characterization Assessment
Saudi Aramco: Public
Special Waste Management Studies
26
Circular Economy
Life Cycle Analysis
Site Characterization Assessment
Session Title Presenter
Opening Abdulrahman Alkhalaf, (ID&SSD)
Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)
Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)
Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)
Value Proposition 6: Environmental Health Services Jason Hall (EPD)
Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)
Closing Abdulrahman Alkhalaf, (ID&SSD)
Agenda – Environmental Investment Opportunities
Radiation Protection Services
Saudi Aramco: Public
The provision of a range of
radiation protection support
services, including but not limited
to:
• Radiometric Analysis
• Radiation Dosimetry Services
• Radiation Detector Calibration
& Repair
• Radiation Survey
• Radiation Training
The opportunity
1. Currently limited availability
2. Growing requirement due to:
• Increased use of Radiation
based technologies
• Impact of NORM
• Implementation of nuclear
power
• Increased regulatory
requirement
The business case
Radiation Protection Services represent an attractive opportunity given current gaps, expected demand and localized potential.
Saudi Aramco: Public
Technical Specification
Total Alpha determination
Total Beta determination
Gamma Spectrometry
Liquid Scintillation counting
Main Function
Provision of qualitative &
quantitative information on
presence of radioactivity. Required
for disposal of wastes, workers
protection & environmental
controls
Radiometric Analysis
Saudi Aramco: Public
Technical Specification
Provision of government approved
and permitted service for:
External Dosimetry
Internal Dosimetry*
Main Function
To determine radiation exposure
of workers, this is a legal
requirement.
* No current requirement within Saudi Aramco at moment, but may be
required if Kingdom expands further into Nuclear power.
Radiation Dosimetry Services
Saudi Aramco: Public
Technical Specification
Ability to accurately assess the
response of radiation detectors in
compliance with international
standards and government
requirements.
• IAEA Safety Report No16
• The Examination, Testing and
Calibration of Portable
Radiation Protection
Instruments – Measurements
and Good Practice Guide’,
produced by the National
Physical Laboratory
Required for:
• Alpha/Beta contamination
detectors
• Gamma radiation detectors
• Neutron radiation detectors
Main Function
Radiation detectors must be
calibrated every 12 months to
ensure they are functioning
correctly.
Repair and replace components to
ensure satisfactory performance of
radiation detectors.
Radiation Detector Calibration & Repair
Saudi Aramco: Public
Radiation Survey
Technical Specification
Alpha contamination levels (fixed
& loose)
Beta Contamination levels (fixed &
loose)
Gamma radiation dose-rates
Neutron dose-rates
Main Function
The measurement and assessment
of ionizing radiation &
contamination levels associated
with man-made sources and NORM
impacted operations.
Saudi Aramco: Public
Technical Specification
• Radiation Protection for
Industrial Radiography
• Radiation Protection for NORM
workers
• Radiation Protection Officer
Certification Preparation
• Transport of Radioactive
Material
• Radiation Protection for Rig
Foremen
• Radiation Protection for
Nuclear Gauge Operators
Main Function
Provision of radiation training to
support operations where ionizing
radiation sources are used or
operations are impacted with
NORM.
* No current requirement within Saudi Aramco at moment, but may be
required if Kingdom expands further into Nuclear power.
Radiation Training Services
Saudi Aramco: Public
Saudi Aramco Radioactive Source Inventory
Increase in source inventory increases the workload to ensure safety, security and compliance.
There is a significant increase
in the use of radioactive
material in Saudi Aramco
operations.
This inventory requires
services to ensure the safety
of workers, the security of
sources and compliance with
Government requirements.
900
1300
1600
3000
0
500
1000
1500
2000
2500
3000
3500
2017 2018 2019 2020
Radioactive Source Inventory
Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Anticipated Support Services Requirements
Licensing, Administration, Certification, Training, Monitoring, Calibration …
The minimum
activities to
ensure
compliance with
Corporate
standards.
14400
20800
25600
48000
0
10000
20000
30000
40000
50000
60000
2017 2018 2019 2020
MA
N H
OU
RS
Minimum Workload to support Radioactive Source Inventory
Source: Saudi Aramco Internal Analysis
Naturally Occurring Radioactive Material
(NORM) Disposal
Saudi Aramco: Public
Saudi Aramco’s operations
and that of others in KSA
produces NORM waste. This
waste must be disposed in a
controlled manner in a
government approved
disposal facility.
Saudi Aramco seeks disposal
routes or technologies to
dispose of its NORM waste.
The opportunity
1. Current inventory around
10000m3
2. Anticipated to increase annually
as water-cut increases
3. Other NORM waste producers:
• Water-treatment
• Mining
• Phosphate
The business case
NORM is an unwanted by-product of oil & gas production, the waste must be disposed in a controlled manner.
Saudi Aramco: Public
NORM Disposal
Technical Specification
Pre-Treatment to ensure suitable
for disposal option/s:
• Physical
• Chemical
• Biological
• Thermal
Systems in place for:
• Collection/Transportation
• Processing
• Disposal
• Monitoring
• Compliance
• Licensing
Main Function
Risk & Cost analysis already
identified:
• Underground Injection
• Class One Landfill
Saudi Aramco: Public
Specific Activity (Bq/g)
Nuclide Scale Sludge Scrapings
Ra-226 0.1 to 15000 0.05 to 800 0.01 to 75
Pb-210 0.02 to 75 0.1 to 1300 0.06 to 50
Po-210 0.02 to 1.52 0.003 to 160 0.1 to 4
Worldwide reported levels of NORM
Currently, Saudi Aramco NORM waste is at lower end, but is anticipated to rise.
NORM Activity Concentrations
Saudi Aramco: Public
Waste at or below these levels can be disposed without radiological control.
Saudi Aramco NORM Waste Exemption Levels
Saudi Aramco: Public
Saudi Aramco NORM waste inventory
5000m3 waste per ten
years. Increase also
anticipated with
increased water cut.5,000
10,000
15,000
2008 2018 2028
Was
te V
olu
me
(m
3)
Historic & Postulated Data on NORM waste for Disposal
Source: Saudi Aramco Internal Analysis
Session Title Presenter
Opening Abdulrahman Alkhalaf, (ID&SSD)
Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)
Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)
Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)
Value Proposition 6: Environmental Health Services Jason Hall (EPD)
Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)
Closing Abdulrahman Alkhalaf, (ID&SSD)
Agenda – Environmental Investment Opportunities
Environmental Health Services
Saudi Aramco: Public
The provision of a range of
environmental health support
services, including but not limited
to:
• Contractor Camp
Environmental Health
Inspections
• Food sampling analysis
• Water sampling analysis
The opportunity
1. Currently limited availability of
competent qualified personnel
2. Growing requirement due to:
• Increased project scopes
across the company
• Public health impact relating to
communal contractor camp
living
• Public health impacts relating
to food safety
• Public health impacts relating
to water safety
The business case
Environmental Health Services represent an attractive opportunity given current gaps, expected demand and localized potential.
Saudi Aramco: Public
Technical Specification
• Contractor camp public health inspection
• Communicable disease control at camp
facilities
• Food microbiology analysis
• Water microbiology analysis
Main Function
Provision of qualitative & quantitative
information relating to public health impacts
at communal contractor camp sites, spread of
communicable disease & food and water
sampling/analysis.
Contractor camp inspection, food & water analysis
Saudi Aramco: Public
Food & water analysis demand
0
20
40
60
80
100
120
140
160
2016 2017 2018 2019
Food Samples
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019
Water Samples
Saudi Aramco: Public
Contractor Camp Inspection demand
Saudi Aramco: Public
Food & Water Laboratory Services
EPD conducts and submits approximately 120
food and 800 water samples respectively per
year for microbiological analysis.
Each sample takes approximately 2 hours
including sample and administration plus
additional time for the sample to be analyzed
and interpreted.
CCEHI Man Hours
EPD conduct in excess of 1400 CCEHI
inspections per year. Each inspection take 4
hours on average including inspection and
administration.
These figures are expected to increase with
the start up of numerous Mega Projects across
the Kingdom, which will lead to significant
increase in camp numbers.
Contractor camp inspection, food & water analysis man hours
Session Title Presenter
Opening Abdulrahman Alkhalaf, (ID&SSD)
Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)
Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)
Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)
Value Proposition 6: Environmental Health Services Jason Hall (EPD)
Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)
Closing Abdulrahman Alkhalaf, (ID&SSD)
Agenda – Environmental Investment Opportunities
Monitoring & Compliance Assessment Program
Saudi Aramco: Public
Establish a modern
wastewater monitoring and
compliance program to serve
the Saudi Aramco.
The opportunity
To have a non Saudi Aramco
affiliated entity conduct 90
assessments for company run
sanitary sewage treatment plants
and 25 assessments for oily
wastewater evaporation ponds
annually.
The business case
Monitoring & Compliance Program represents an attractive localization opportunity given the current gaps
Saudi Aramco: Public
Product information
Technical Specification
The specifications and detailed technical
requirements will be developed in the
study period.
The assessment tools will be
scoped , including chemical
analysis and Quality Control
requirements.
Development of assessment tools
to include the entire corporate
wastewater compliance programs
Development of criteria for
identifying sites visits to be
outsourced to a contractor.
Main Function
Picture
Saudi Aramco: Public
The demand for Product in KSA is expected to reach 1.55 Million USD by 2025
The annual Service Demand is expected to be at 1.55 Million USD by 2024
20222021
1.45
1.33
2023 2024
1.55
0.275
1.25
2020
Service
Currently, most of Company
demand is internally sourced.
The demand for service in the
execution phase is estimated at
1.55 Million USD in 2024
KSA expected market demand for Product (Million USD)
Source: Saudi Aramco Internal Analysis
+563%
Saudi Aramco: Public
1. Design the Assessment
Tools. To develop the tools
such as documentation,
database, dashboards and
site inspection and
monitoring protocols.
2. Testing to test and
benchmark the tools for
selected facilities across
company’s diverse business
lines.
3. Assessment Program Role out to introduce the program to Saudi Aramco by holding sessions and road show promotions.
5. Annual Assessment Program To recruit the contracting company, analytical lab facilities and infrastructure needed to execute the assessment program.
Potential opportunities
DesignTesting and Bench
Marking Roll out Execution
Source: Saudi Aramco analysis
Local gaps translate into opportunities to do business in KSA
Session Title Presenter
Opening Abdulrahman Alkhalaf, (ID&SSD)
Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)
Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)
Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)
Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)
Value Proposition 6: Environmental Health Services Jason Hall (EPD)
Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)
Closing Abdulrahman Alkhalaf, (ID&SSD)
Agenda – Environmental Investment Opportunities
Saudi Aramco: Public
For further information on these opportunities, please contact:
Abdulrahman Alkhalaf
Saudi Aramco – Local Business Development
Environmental Group
[email protected]@aramco.com
Ali M. Hussain
Saudi Aramco –Business Development Specialist
Environmental Group
Key messages
KSA Environmental & waste management market is growing and requires a local manufacturing presence
Additional opportunities are available on the IKTVA website: iktva.sa
Complete expressions of interest forms for later follow-up and support
Please plan to attend additional presentations to learn more about KSA opportunities
Please Complete Expressions of Interest and direct all inquiries to:
Thank you
Thank You
Top Related