PowerPoint Presentation

1 Saudi Aramco: Public2017 Growth Opportunities for SMEsDecember 12, 2017 Nassir Al-Yami, GM ProcurementSaudi AramcoSaudi Aramco: PublicGrowth Opportunities for SMEsWhat is the Kingdom s vision for SMEs?What is iktvaoffering SMEs?What are the immediate opportunities?Saudi Aramco: PublicGrowth Opportunities for SMEsWhat is the Kingdom s vision for SMEs?What is iktvaoffering SMEs?What are the immediate opportunities?Saudi Aramco: PublicSaudi Arabia s vision for economic development20172030 World economy rank19th15thNon-oil GDP16% 50%Foreign Direct Investment Aramco: PublicDeveloping SMEs is critical to these targetsOpportunities suited to SMEsIncrease SME GDP contribution from 20% to 35%Incentives driven by GovernmentSaudi Aramco.

2 PublicSignificant demand in the energy sector pipelineTransport & LogisticsTransport spend increased by 40% in last 12 months1,600 KM Red Sea to Arabian Gulf rail link$30 billion committed for portsPower & Water$80 billion in desalinated water10% from renewable power in the next 6 years Hydrocarbons$394 billion in oil and gas infrastructure$20 billion to build new petrochemical complexSaudi Aramco: PublicDedicated government network to enable SMEsProcurement policies to improve market accessA one-stop shop to make it easier to do businessSaudi Aramco: PublicGrowth Opportunities for SMEsWhat is the Kingdom s vision for SMEs?What is iktvaoffering SMEs?What are the immediate opportunities?

3 Saudi Aramco: Public10 Year Capital Program worth $414 billionDrilling & Well Services$134 BillionMaintain Potential$78 BillionCrude Oil to Chemicals$20 BillionPipeline Projects $7 BillionBase Oil Plants $ Billion$41 BillionAnnuallyDrilling 48% power 1%Unconventional8%Process Facilities13%Pipeline3%MaintainPotential 19%Other2%Infrastructure6%Selected spend areasSaudi Aramco: PublicOver $230 billion forecast on drilling operations31411060119 Gas OffshoreOil OnshoreOil OffshoreGas OnshoreUnconven-tionalTrees 18,904 unitsHanger assemblies39,600 unitsPackers45 million unitsMud Products763 MM gallonsCasing heads 19,040 unitsICDS& MillionMaterialsServicesAverage annual rig countSaudi Aramco: PublicOver $175 billion forecast on surface facilities281119263278 PipelinePowerOtherMaintain potentialProcessGasInfrastructureProcess Vessels CS 1115 Process Vessels SS1 CompressorsField Instr.

4 , Analyzers, GagesCarbon Steel Fittings & Vales6 Carbon Steel Piping5 Stainless Steel Fittings & Valves53 Heat Exchangers2 Control Valves2 Concrete231 Stainless Steel PipingStructural SteelPrograms ($ billion)Materials ($ billion)Saudi Aramco: Publiciktvais a win-win programLocalized goods and servicesCompensation Paid to SaudisTraining & Development of SaudisSupplier DevelopmentResearch & DevelopmentIn Relation to a win-win programEmbedded in Procurement PracticesCritical to Saudi Aramco s Supply ChainRecognize suppliers adding local valueSaudi Aramco: PublicDriving iktvathrough iktvacontribution to the local supply chain2537x20172016$ BillionContracts ($, billion) with iktvaSaudi Aramco: increasing local manufacturing footprintFulfilment by local Manufacturing (%)50433720162015+16%2017 Spent with local manufacturers in 2017$ BillionSaudi Aramco: PublicThe iktvavalue proposition2015 SMEsStrategic Suppliers20162017 OpportunitiesVALUE PARKSHUMAN CAPITALFINANCIAL SUPPORTS audi Aramco: Public5 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.

5 Road, rail and ports Export potential to GCC and beyondRas Al KhairPlaschemParkSPARKJ azanCity for Primary & Downstream IndustriesPlusTechSaudi Aramco: PublicGrowth Opportunities for SMEsWhat is the Kingdom s vision for SMEs?What is iktvaoffering SMEs?What are the immediate opportunities?Saudi Aramco: PublicWhere are the supply chain gaps?Immediate opportunities for SMEs3,300 componentsCommonality analysisSupplier inputs140 energy sector opportunities for SMEsSaudi Aramco: PublicEnergy Sector:Consumers, such as:SMEs and Equipment/Raw Material Providers, such as:Key stakeholder interactionsSaudi Aramco: PublicThis event will showcase these opportunitiesCurrent annual market size gap of $16 BnOilfield Equipment$887 MM4th I.

6 R. $ BnStatic & Rotating$ BnElectrical Equipment$ BnWater & Wastewater$ BnMetals Ecosystem$515 MMOilfield Chemicals$ BnElastomers & derivatives$ BnEnabling Equipment$ BnSaudi Aramco: PublicElastomer & derivatives opportunities worth$ (Organic synthesis) (tires) (final products ex-tires) (conversion equipment and services) manufacturing for industrial / reinforced materials injection molding for industrial non-precious precious support (ceramic balls) & Derivatives14 Saudi Aramco: PublicElectrical equipment opportunities worth$ BnElectrical Transformers inverters control and temperature control regulators line capacitors monitoring systems instrumentation disconnects Monitoring tracing arresters tubing leak Aramco: PublicOilfield equipment opportunities worth $887 manufacturing for machining downhole perforation explosive and rigging coupling perforation services tools bonnetsOilfield Equipment25 Saudi Aramco: Public2017 iktva Growth opportunities for SMEsRepresentatives from over 30 countries1,000 companies across 8 sectorsOver 2,300 delegatesSaudi Aramco.

7 PublicExpected outcomesField visitsMeetingsSeminarsWorkshopsExpressio ns of InterestPost-event engagementSaudi Aramco: PublicThank You