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Shamah Autism Center One Step Closer

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Shamah Autism Center One Step Closer

Significant steps forward have brought the opening of the first multidisciplinary autism center for Saudi children in the Eastern Province even closer.

In September, Saudi Aramco’s partner, Shumua Alamal, selected the British-based Eagle House Group to help set up and operate the Shamah Autism Center. Based in Dammam, the center is set to open in early 2016 and will provide services for young autistic Saudis, ages 3 to 8 years, up to a maximum capacity of about 100 children.

“We are proud of Saudi Aramco’s sponsorship of the efforts to care for and educate Saudi children with autism,” said Huda M. Al Ghoson, executive director of Human Resources at Saudi Aramco. Saudi Aramco continues to build upon our long history of developing excellent services that serve the wider community, something that is not new to the company because it has always exerted considerable efforts in the development of society.”

During the visit, Al Ghoson praised the center, its equipment, and the therapeutic and educational program that will develop the children’s skills.

An Innovative Center

The center will use best international practices in delivering effective interventions. In particular, international research recommends early, evidence-based intervention as crucial in maximizing child development. The center will be staffed by a team of experts in the fields of teaching special education curriculums, speech and language, occupational and physical therapy, behavioral support, psychology, and social services. Once evaluated, children will be placed in the daily program for up to six months and then re-evaluated to assess their response and the impact of the program.

Building upon international best practices, the curriculum will be tailored to each child’s personality to help them grow and develop, as well as to meet the challenges and needs identified. The center also focuses on empowering families and helping them learn more about autism so that they can play a full role in improving and developing their children’s abilities in collaboration with the team of specialists.

The center’s approach recognizes that every child has potential. A key focus of the staff will be preparing children for education in mainstream local schools, where this is appropriate. The center will work to build relationships with local schools and governance to achieve this goal.

A Unique Partnership

The partnership between Shumua Alamal and Eagle House Group is to bring international experience and evidence-based, best practices in the development of children with autism, as well as transfer expertise to the cadre of Saudi professionals training in the Kingdom.

Paul Conrathe, founder and director of the Eagle Group House, said he was honored to be selected to partner with Shumua Alamal. “Our goal is to provide the highest quality services and be an example of best practices that will lead the way in Saudi Arabia,” Conrathe stated.

Having worked in the field of autism for more than 20 years with thousands of families in the United Kingdom, Conrathe said his group focuses on three core values that will be applied at the Dammam facility, including:

  • Aspiration. Whatever disability the child has, he or she has capabilities and potential. “They should be rehabilitated to live in society and be able to use their abilities and talents,” he said.
  • Compassion. “We know perfectly well the feeling of parents of children with autism,” Conrathe explained. His schools in the U.K. are led by parents of children with autism.
  • Partnerships. Working together with Shumua Alamal, Ebddah (the UAE-based special needs consultancy), Saudi Aramco, parents, and children to make a lasting difference in the lives of the children and their families.

“This cooperation between us and the Eagle House Group marks a new era for the autistic children in the Kingdom, as this institution has a long experience of caring for autistic children and the development of their abilities according to the latest scientific methods,” said Ahmad Al-Dobaikhi, director of Shumua Alamal.

The Shamah Autism Center, established through a partnership between Saudi Aramco and Shumua Alamal, will have a maximum capacity of about 100 children. The British-based Eagle House Group will help set up and operate the center.


Joining Forces for New Women’s Business Park

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Joining Forces for New Women’s Business Park

Saudi Aramco participates in new project aiming to train and employ about 20,000 women over next 10 years.

60% of fresh college graduates Kingdomwide are female and Saudi Aramco has been actively working to address how to integrate more Saudi women into the workforce.

One of the recent initiatives in this regards is a Women’s Business Park in Riaydh. Next month, Saudi Aramco and Princess Nourah Bint Abdulrahman University (PNU) and Wipro Arabia will celebrate the signing a memorandum of understanding to form joint ventures between PNU and Wipro.

The business park, which plans to train and employ about 20,000 Saudi females over the next 10 years, will be developed on the PNU campus and will include 320,000 square meters of office space, entrepreneur incubators, daycare centers, a family mall, fragmented retail shops, and be a one-stop shop coordination center for government transactions.

Designed to bridge the gap between academia and the industry, the park will be a boon for the university as it will allow close cooperation with the companies on location. It will provide services in information technology, business process outsourcing and engineering services outsourcing, with customers from many industries such as automotive, aerospace, medical, and construction.

About 3,000 new graduates from PNU along with other recent graduates from around the Kingdom are expected to be eligible evert year. After completing the Women’s Business Park Learning Academy, these women will be ready to secure employment in a knowledge-based environment. The park will also have various programs for training and development, focusing on developing high-level technical skills and knowledge.

Empowering Young Chemicals Talents

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Kick-off for first youth section of American Institute of Chemical Engineers (AIChE) outside of the U.S, targeting professionals up to 35 years age.

Inauguration took place during the third Middle East Process Engineering Conference 2015 in Bahrain with the presence of more than 150 companies and attracting a crowd of hundreds, including industry CEOs and executive management.

The Young Professional Committee (YPC) avails unique opportunities to more than young professionals (35 years or younger), including:

  • Technical and personal growth at a younger age
  • Career building
  • Bridging the gap between academia and industry
  • Social responsibility and community outreach
  • Leadership development
  • Social networking and knowledge sharing.

Saudi Aramco’s Menahi M. Al-Utaibi, acting manager of the Process & Control Systems Department: “The Young Professional Committee is a fulfillment of our pledge to empower our youth with full trust and support”.

“YPC provides an opportunity for networking and advancing your technical skills,” June Wispelwey, AIChE executive director, said during her speech. She called upon the delegates to view the exciting initiatives, highlighting the significant presence of AIChE in such a strategic region as the Middle East.

The audience watched a short video highlighting the YPC vision as a future-focused, growing body that serves as a platform for young chemical engineers. Also, the YPC mission was demonstrated to attract and engage young professionals by providing lifelong development and networking opportunities. It extends to build a vibrant community cultivating professionalism, innovation, and social responsibility, thereby encouraging the transformation of the industry for the benefit of everyone.

The new YPC currently includes eight founding officers from various major oil and gas companies such as Saudi Aramco, Sadara, AspenTech, and Gurdian.

For more information, check in on their Linkedin profile, follow them on Twitter or send an email.

Collaboration on Technology

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Collaboration on Technology

A year of collaboration between Saudi Aramco, Huawei, and King Fahd University of Petroleum and Minerals (KFUPM) has resulted in the establishment of the Huawei Oil and Gas Joint Innovation Center at Dhahran Techno Valley (DTV).

The center was inaugurated recently in the presence of Amin H. Nasser, president and CEO of Saudi Aramco; Abdulaziz A. Al Abdulkarim, then-vice president of Saudi Aramco’s Information Technology; HE Dr. Khaled S. Al-Sultan, Rector of KFUPM; Yan Lida, president of Huawei’s Enterprise Business Group; and Dr. Martin Jischke, chairman of the International Advisory Board and president emeritus at Purdue University. Attendees also included other senior executives and professionals from Saudi Aramco, KFUPM, and partner companies such as SAP, Honeywell, and Yokogawa.

Al-Sultan noted that the inauguration of the center comes at a critical time: “As everyone knows, over the coming decades, the world will continue to rely heavily on large-scale supplies of oil and gas. As the industry moves on to more and more difficult oil and gas deposits, the pace of technological progress will need to accelerate significantly if past production trends are to be maintained”, he said.

Facing such challenges require advanced information, data processing, and computational systems that preserve the geological, technical, and economic parameters that can facilitate the purposes of performance analysis and minimize risks in the execution of petroleum exploration and production projects.

The mission of the center was highlighted by Huawei’s Lida, who said that “by jointly working with the world’s leading company, Saudi Aramco, and top university, KFUPM, and other partners, the Joint Innovation Center is committed to providing information and communication technologies for the oil and gas industry based on Huawei technologies and our global partners’ expertise to meet customer requirements.”

Al Abdulkarim said he appreciated the achievement and expressed the high expectations of the center. “This innovation center we are opening today will join 31 other centers that Huawei has across the world, but this differs in its focus toward delivering information and communications technology solutions for the oil and gas industry. I believe that this center is strategically positioned to achieve that goal, here in Dhahran Techno Valley,” he said.

The centre will be a fertile environment for the exchange of technology and business ideas, crossing diverse industrial divides, to deliver solutions that address current and future challenges. With the addition of Huawei, a new dimension is being added to further diversify the expertise available in DTV.

Saudi Aramco Demonstrates Track-record of Energy Efficiency and Carbon Management

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Saudi Aramco Demonstrates Track-record of Energy Efficiency and Carbon Management

Saudi Aramco today welcomed global energy ministers, officials and experts from the Carbon Sequestration Leadership Forum (CSLF) to its Dhahran headquarters to demonstrate its industry leadership in greenhouse gases (GHG) management, including energy efficiency and carbon capture and storage (CCS).

H.E. Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources, Saudi Arabia and CSLF Ministerial Co-Chair hosted a delegation that included Dr. Ernest Moniz, Secretary of Energy, United States and CSLF Ministerial Chair, and Ministers and ministerial representatives from Australia, Canada, China, the Czech Republic, France, Korea, and the United Kingdom.

H.E. Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources, Saudi Arabia said: “We are here today because we are united in a common cause. We want to tackle climate change and we know that technology holds the key. We also appreciate that it is only by working together that these challenges will be overcome. From what I have witnessed these past few days at CSLF, I am confident that we are on the right track. That said, there is a lot more hard work ahead. As today’s visit to Saudi Aramco helps demonstrate, Saudi Arabia is playing its part. Globally, it is gratifying to me to hear that so many nations are taking positive steps forward in terms of CSLF.”

Amin H. Nasser, President and CEO, Saudi Aramco, who welcomed the delegation, said: “The key to unlocking the full potential of CCS is advancing technology that will turn it into a more viable option. To complement our existing energy efficiency programs, Saudi Aramco has piloted a CCS project to contribute to the scientific knowledge associated with this technology.”

Saudi Aramco launched Saudi Arabia’s first carbon capture and storage pilot project in July 2015 at the ‘Uthmaniyah field and Hawiyah facilities. The largest such project in the Middle East, it will inject 800,000 tons of CO2 every year. In addition, the company has invested in technology start-ups, including Novomer which develops catalysts capable of efficiently converting CO2 into products, such as polyurethane.

“Our work is part of a holistic approach that complements the Kingdom’s broader energy framework. Our track-record, long-term approach and scale increases our impact, delivering economic growth using considerably less energy, enabling wider access to energy, improving efficiency, conserving natural resources, and improving environmental performance.”

Amin H. Nasser, President and CEO, Saudi Aramco

“The key to unlocking the full potential of CCS is advancing technology that will turn it into a more viable option.”

The CSLF is a Ministerial-level international climate change initiative focused on the development of improved cost-effective technologies for the separation and capture of carbon dioxide (CO2) for its transport, utilization and long-term safe storage. The CSLF is currently comprised of 24 members, including 23 countries and the European Commission. Its member countries represent over 3.5 billion people or approximately 60% of the world’s population. The CSLF held its sixth Ministerial Conference in Riyadh, Saudi Arabia from November 1- 4.

During the CSLF Forum in Riyadh, Saudi Aramco was recognized for a project that advances Oxy-Combustion technology which improves the combustion of difficult to burn liquid fuels while capturing CO2 at high rate and purity. This technology will capture CO2 emissions from power plants, refineries and industry at large.

Ahmad Al-Khowaiter, Chief Technology Officer, Saudi Aramco said: “This prestigious international recognition by CSLF reflects Saudi Aramco’s technical leadership in addressing global challenges and our efforts in addressing climate change issues. Our Oxy-Combustion technology demonstration project shows promising results for further scale-up as a means to utilizing difficult to burn heavy residues for efficient power generation with the potential for 90% CO2 capture.”

During their visit to Dhahran the Ministerial delegation toured Saudi Aramco’s Oil Supply, Planning and Scheduling Center, Upstream Professional Development Center, and Exploration & Petroleum Engineering Center to observe first-hand some of the game-changing technologies underpinning the company’s energy efficiency and GHG management activities to maintain its position as the world’s most reliable supplier of energy. In addition, the delegation received a presentation from SABIC demonstrating its role in delivering sustainable and efficient programs for the economy, society, and the environment.

As part of its long-term focus on addressing climate change with technology-enabled solutions, Saudi Aramco has reduced its CO2 footprint six-fold over the last four decades. The company has gone from flaring 4 billion standard cubic feet per day of gas in the 1970s to almost zero flaring in the 1980s. Today, at less than 1% of total raw gas production, Saudi Aramco’s total flared gas is one of the lowest in the world.

Carbon sequestration is the process of capture, utilization or long-term storage of atmospheric carbon dioxide (CO2). This process will mitigate the atmospheric and marine accumulation of greenhouse gases, which are released by burning fossil fuels. Learn more at www.cslforum.org

Driving Safety, Health and Environmental Improvements

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Driving Safety, Health and Environmental Improvements

With the great emphasis that the company places on safety in all of its operations, Saudi Aramco was keen on participating in the Gulf Petrochemicals and Chemicals Association’s (GPCA) Responsible Care Conference that recently took place in Dubai, UAE.

Responsible Care is a unique voluntary global initiative that drives continuous improvement in the environmental, health, safety, and security performance of the chemicals industry. The initiative was adopted by GPCA in 2009, enhancing regional performance and credibility of the chemical industry in the Gulf.

There has been a steady increase in the numbers of regional companies joining the initiative and making public commitments to supporting safe chemicals management and promoting sustainability since 2010. By the end of 2014, 98.5% of the GPCA’s full producing members had made public commitments to applying industry standard Responsible Care protocols to their chemicals business.

Saudi Aramco’s two domestic chemicals joint ventures, Petro Rabigh and Sadara, are signatories of Responsible Care and have made CEO-level commitments to implement the Responsible Care program at their manufacturing facilities and in their corporate functions.

“All of us have not only an ethical but also a commercial obligation to play an active role in Responsible Care,” said Warren W. Wilder, Saudi Aramco vice president of Chemicals and newly appointed chairman of the GPCA’s Responsible Care Committee.

Wilder said the challenges that the industry faces in implementing the principles of Responsible Care require shared solutions to battle uneven degrees of commitment to the ethos of safety and sustainability, inadequate public awareness and volatile global forces.

“Improved safety in the workplace and for communities and workers, reduced operating costs, and reduced environmental impacts are the obvious benefits for Responsible Care member companies,” said Wilder. “But the emphasis on safety, product performance, resource efficiency, pollution, waste minimization and recycling help not only the companies but also our customers, our suppliers, and our communities.”

The three-day conference provided a unique opportunity for industry leaders to explore new business opportunities and communicate with their stakeholders about their products and processes — with a focus on sustainability, process safety, and product stewardship.

The Responsible Care Program designed by GPCA is aligned with the initiatives of international entities such as the United Nations Environment Program (UNEP), the United Nations Development Program (UNDP), and the International Council of Chemical Association (ICCA).

Environmental Protection Emphasized

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Representatives from the Ministry of Foreign Affairs visited Saudi Aramco for a one-week intensive program to gain insight into the company’s operations and environmental efforts, especially in the areas of climate change and sustainability. The Kingdom recognizes the need to continue on its path to more sustainable economic growth and development through public-private partnerships and economic diversification efforts.

Environmental Protection Department manager Nabil Al-Nuaim stressed the purpose of the event was to engage in constructive dialog so all parties emerge with fresh insight to benefit both the company and the Kingdom. Al-Nuaim stressed the need to view environmental protection as part of a broader Kingdom policy on sustainability that also includes energy, economic and social aspects.

Workshop presentations and tours sought to shed light on Saudi Aramco’s leadership role in combating climate change through its carbon management, efficiency, and other environmental programs, including the Master Gas System and flare-minimization projects.

Further discussions involved ongoing areas of cooperation and preparation in support for the Kingdom’s position at the December negotiations in Paris at the United Nations Framework Convention on Climate Change, where countries will gather to shape the future of climate-change policy.

Meeting the Global Demand for Gas

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Meeting the Global Demand for Gas

Saudi Aramco is well positioned to help the gas industry develop and utilize effective technology solutions to meet the challenges that lie ahead, Abdullah M. Al-Ghamdi, executive director of Gas Operations, said at the Gas Processors Association’s 23rd Annual Technical Conference last week in Bahrain.

In his keynote address to conference participants at the Gulf International Convention Center, Al-Ghamdi said the increasing demand for gas worldwide reinforces the need for innovation and technology advancement and he expressed confidence that the industry — with Saudi Aramco continuing to play a key role — is prepared to face that test. His optimism is based on history.

“The industry has always been confronted by challenges, irrespective of whether gas production and supply is in abundance or is in shortage due to difficulties in exploration, extraction, processing, or transportation, and we have overcome those challenges through technology advancements and innovation,” said Al-Ghamdi.

The Fastest Growing Fuel

He cited a recent report from the International Energy Agency that declared natural gas “the fastest growing fuel” — led by the power sector of Asian countries, which will account for almost 30% of that growth over the next 25 years. He added with 22% of proved global natural gas reserves existing in the Gulf Cooperation Council countries, the region is poised to help meet that demand.

Additionally, said Al-Ghamdi, sales gas production has increased steadily over the past two decades, with average yearly growth of 5.4% annually. Significant progress, he noted, has also been made in expanding the use of gas to the chemical sector, and more synergies are being looked at to expand even beyond the traditional petrochemical value chain with other natural resources. New applications for fertilizer, aluminum, and iron have already been discovered, said Al-Ghamdi, and one of the challenges for the industry is to seek even more innovative, non-traditional applications for natural gas.

Saudi Aramco’s longstanding commitment to supporting innovation and the development of technology in all areas of energy production, said Al-Ghamdi, has paid significant dividends for Gas Operations. With research and development facilities located around the world, along with established collaborations with top tier national and international universities and institutions, the company continues to be a leader in the development of scientific advances. Since 2009, nearly 700 patent applications have been filed in the U.S. Patent Office by Saudi Aramco employees.

Taking Steps for the Environment

Another major challenge facing the gas industry during this time of growth and expansion, said Al-Ghamdi, was brought to light last month with the release of the Oil & Gas Climate Initiative report titled “More Energy, Lower Emissions.” The landmark declaration made by the collaboration of Saudi Aramco and nine other oil and gas companies expressed collective support for an effective global climate change agreement ahead of the United Nations Conference on Climate Change in Paris.

Energy efficiency practices and technologies such as zero gas flaring, clean fuels, and carbon capture and sequestration, are just a few examples of the innovations that are driving the industry forward on environmental stewardship, and Al-Ghamdi said the challenge now is to maintain the momentum gained by those advances.

Master Gas System

Saudi Aramco’s gas story, Al-Ghamdi pointed out, actually began in 1975 when the company launched the development of the Master Gas System with four key goals in mind: 1. Develop a foundation for an industrial base; 2. Diversify the national economy; 3. Add value to natural gas resources and its products; 4. Reduce the impact on the environment.

Over the years, the Master Gas System led to significant developments such as seeing gas produced in association with crude oil captured, processed and provided to a wide array of industries and utilities that would otherwise consume petroleum products.

Looking ahead, Al-Ghamdi said the company is looking at unconventional gas as a key energy source. In 2013, Saudi Aramco’s unconventional gas program became fully operational and just two years later, we are now prepared to commit shale gas for the development of a 1,000 megawatt power plant that will feed a massive phosphate mining and manufacturing sector.


Saudi Aramco and Hyundai Heavy Industries Sign MoU to Collaborate on New Business Opportunities

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Saudi Aramco and Hyundai

Saudi Aramco, the world’s leading integrated energy and chemicals company, and Hyundai Heavy Industries (HHI) Group signed a general memorandum of understanding (MoU) to jointly collaborate on business development opportunities in the Kingdom of Saudi Arabia.

The signing ceremony was presided by Amin H. Nasser, President and CEO of Saudi Aramco; Ki-sun Chung, Senior Vice President of HHI Corporate Planning, accompanied by Jeong-Hwan Kim, COO of HHI Shipbuilding, and Cheul-ho Park, COO of HHI IP&E (Industrial Plant and Engineering).

The MoU lays out a comprehensive, multi-faceted business cooperation framework in areas such as engineering, procurement and construction (EPC), downstream, and the development of a casting and forging facility. The MoU also covers the development of a world class maritime yard and the advancement of maritime diesel engine manufacturing in the Kingdom of Saudi Arabia.

The strategic collaboration discussion was initiated when Saudi Aramco’s Board of Directors visited HHI ‘s Ulsan complex in April 2015.

Elaborating on the partnership, Nasser said: “Our two companies are global leaders in our respective industries and the MoU cements a strategic relationship between us, with business flourishing on both sides. The partnership will add greater value to the Kingdom’s economy, boost our localization efforts and help create jobs for Saudi nationals.”

Chung said: “The partnership between the two industrial behemoths not only means a great opportunity to enhance Korea’s shipbuilding and EPC businesses, but also extends Hyundai Groups’ contribution to the Kingdom stretching back to the 1970s when it was awarded a contract to develop the Jubail port (King Fahd industrial port) project. This signing is significant as it provides the potential for the creation of another Jubail that creates tremendous growth opportunities for HHI in Saudi Arabia.”

The New ‘Silk Road’

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The New Silk Road

Speaking to more than 100 entrepreneurs, institute professionals, and politicians, Nabil A. Al-Nuaim, president of Aramco Asia, emphasized Aramco’s promise to play a part in a new “Silk Road” collaboration with China. His comments came during The Chinese-Foreign Business Dialog portion of the Asian Special Conference on the Silk Road, which was held Oct. 14-16 in Beijing.

The New Silk Road Economic Belt over Land and the 21st Century Maritime Silk Road over the Ocean initiatives were introduced by Chinese President Xi Jinping in 2013 to enhance international cooperation. Saudi Arabia, which was a critical player in the ancient Maritime Silk Road, agreed to participate in the modern-day version, and on March 14, the Kingdom joined the list of founding states of the Asian Infrastructure Investment Bank (AIIB) to support these Belt and Road strategic initiatives.

Al-Nuaim pointed to the cooperation between the company and Sinopec in developing a world-class refinery and chemical integrated project, both in China’s southern Fujian Province and in the Kingdom at Yanbu’. “The two investments complement each other and allow both energy giants to provide unique energy trade opportunities between the Pacific Region, the Middle East, Africa, and Europe. We see them as true examples of ‘Energy Silk Road-like’ partnerships,” Al-Nuaim said.

Al-Nuaim also highlighted the exchange in technology, noting that Aramco inaugurated its Beijing Research Center in April. A first for the company in the Asia-Pacific region, the center, which is driven by young Chinese scientists, will extend its research agenda into the downstream arena in addition to its current upstream activities.

Meanwhile, he further noted that China’s impact in the Kingdom is significant as well, in particular in Jazan Economic City and Ras al-Khair City. He added that not only can Chinese manufacturers and service providers benefit from such project but that “with the current developments of refineries, industrial cities, and infrastructures, the Kingdom can become a strategic platform for Chinese and Asian investors that are eager to go global and expand their market footprint.”

An International Message of Unity

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An International Message of Unity

Amin H. Nasser and Mohammed Y. Al-Qahtani were among key Saudi Aramco corporate and senior leadership attending the forum in Riyadh. The day after the conclusion of the forum, Nasser welcomed delegates to Dhahran to see some of the many advances Saudi Aramco has made in carbon capture and environmental matters.

Global energy leaders converged in Riyadh for the 6th ministerial meeting of the Carbon Sequestration Leadership Forum (CSLF) last week and sent a clear message that collaboration and international unity will be key in meeting present and future climate challenges.

Carbon sequestration is the process of the capture, utilization and long-term storage of atmospheric carbon dioxide (CO2). The process mitigates the atmospheric and marine accumulation of greenhouse gases, which are released through the burning of fossil fuels.

For Saudi Arabia and Saudi Aramco, the four-day conference provided a timely opportunity to demonstrate the nation’s and the company’s level of engagement managing greenhouse gases (GHGs) ahead of next month’s COP21 climate conference in Paris. COP21, the United Nations’ 21st Conference of the Parties, has a goal of reaching an international climate agreement applicable to all countries and will see the participation of 196 states.

Fossil Fuels Play Key Role

At the conference, HE Ali I. Al-Naimi, Saudi Arabia’s Minister of Petroleum and Mineral Resources, emphasized the importance of unity, collaboration, and innovation and technology in addressing the challenges presented by greenhouse gases.

“The world’s natural resources have powered global economic growth for centuries,” he told delegates. “Incredible progress has been made around the world in everything from transport to education, health care to infrastructure — all thanks to the energy derived from fossil fuels. We hope, in the future, that developing nations can also gain the benefits from these resources. And we hope that technology and innovation can help us reduce any unwanted side effects. I believe that climate change is a challenge that can be overcome by human ingenuity, research, and technological advances. That said, all of us here today appreciate that the global energy mix is changing and evolving, and that’s a good thing. Renewable forms of energy, such as nuclear, solar, and wind are increasingly utilized. We believe all forms of energy will be required to help meet the needs of future generations.” Al-Naimi went on to underscore the “vital” global importance of the CSLF.

“I believe all the nations represented on the CSLF, and many beyond, share a belief that carbon capture and storage is a critical part of the global quest to reduce greenhouse gas emissions. In this we stand united.”

Carbon Capture

A clear demonstration of this quest was provided by Khaled A. Al Buraik, vice president of Petroleum Engineering and Development at Saudi Aramco. Al Buraik showcased the groundbreaking CO2-EOR project at Saudi Aramco’s ‘Uthmaniyah facility. The project is regarded as a milestone for the Kingdom’s efforts in carbon management and is the largest of its kind in the Middle East.

The CO2Capture project at location injects compressed CO2into flooded oil reservoirs as a mechanism for CO2storage, and the injection of CO2under high pressure simultaneously enhances oil recovery. For these reasons, carbon capture and storage is considered a win-win technological solution.

Another of Saudi Aramco’s innovative approaches to carbon capture and storage was evidenced in its mobile carbon capture device for vehicles. Mohammed Y. Al-Qahtani, acting business line head of Upstream for Saudi Aramco, said that the company had showcased a suite of initiatives designed to meet climate change challenges. “Everybody is coming together at a critical moment in the climate change dialog before COP21. We can build consensus around what really needs to be done — around greenhouse gases (GHGs) in general and CO2in particular — in terms of capture and making use of it once it is captured, and that would be a great thing. We at Saudi Aramco demonstrated in this forum several initiatives that make the use of hydrocarbons very efficient, including the capture of CO2, which is very beneficial to the environment and which can make economic sense, as well. We are showing a few cases, including an innovative mobile carbon capture approach achieving great results — up to 25% in its capture. In time, this concept will become more cost effective, much more compact, and we hope to see an increase of efficiency by up to 50%.”

Success Realized

“The first thing that I would say is that this is probably the most successful Carbon Sequestration Leadership Forum for quite some cycles. U.S. Secretary of Energy Moniz chaired in Washington and, in my opinion, rejuvenated CSLF. Then to have HE Minister Al-Naimi host and as co-chairman the session this week brought it still to a higher level,” Worthington said.

“If you look globally, Moniz and Al-Naimi are arguably the two most important energy ministers in the world. And for the two of them to be as a team co-chairing the CSLF ministerial meeting — to use a cliché — you cannot get much better than that.

“I probably pay more attention to carbon capture and sequestration (CCS) than the majority of people in the energy business. And I personally was not aware of all of the things that Saudi Arabia was doing. It may sound relatively minor, but it’s actually quite remarkable to recognize that Saudi Aramco is the only entity in the world that has an automobile that can capture carbon dioxide on board (CO2).

“I think we have to commend the Kingdom in that regard, of being forward-looking and recognizing that it takes many of these novel technologies, and by novel, I mean new and different, things that take 20 years from when you begin until you are ready and can be serious about deployment,” Worthington said.

Aramco Opens R&D Center in Detroit Area

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Aramco Opens R&D Center in Detroit Area

Saudi Aramco President and CEO Amin H. Nasser, center, inaugurates the Aramco Research Center in Detroit. He is joined by, from left, Ahmad Al Khowaiter, chief technology officer of Saudi Aramco; Mayor Bob Gatt, City of Novi; Nasser; Nasser Al Nafisee, vice president of Corporate Affairs of Saudi Aramco; Basil Abul-Hamayel, president of Aramco Services Company; second row from left, David Cleary, leader of the Aramco Research Center-Detroit; Ashraf AlTahini, director of Research & Development, Aramco Services Company; Ammar Al-Nahwi, manager of the Saudi Aramco Research & Development Center; Abdulmohsen Al-Mukhaild, president of Saudi Petroleum International, Inc.; Khalid Alnaji, president of Saudi Refining, Inc.; and Amer Amer, chief fuels technologist at the Saudi Aramco Research & Development Center.

The Aramco Research Center-Detroit was inaugurated today as one of three U.S.-based research and development (R&D) centers aimed at expanding the global research capabilities of Saudi Aramco, the leading global integrated energy and chemicals company. The new facility – located in Novi, Mich., and owned and operated by U.S. subsidiary Aramco Services Company – further strengthens the company’s global fuels research program with the goal of promoting the development and adoption of efficient, sustainable and affordable transport solutions for the future.

Aramco’s fuels technology program is focused on reducing the overall environmental impact, cost and complexity of both current and future fuel-engine systems. With a global refining presence, Aramco brings a unique perspective into how fuels can be designed and matched to engines for higher performance and lower emissions. A planned outcome of Aramco’s research is to generate vehicle and fleet demonstrations to showcase the benefits of novel fuel/engine systems.

“Fuels technology is a critical area of research for Saudi Aramco where we are leveraging on our leading position in integrated oil and gas production and refining to invest in innovative solutions that will significantly improve efficiency and lower emissions from the (production) well-head to the (car) wheel,” said Amin H. Nasser, President and CEO, Saudi Aramco, who led today’s inauguration of the center. “Opening a research center in Detroit demonstrates our commitment to enabling meaningful impacts and the Motor City gives us an ideal platform to bring the talent of Aramco’s researchers together with great collaboration partners in the heart of the U.S. automotive industry.”

Specific areas of research being conducted at Aramco’s new Detroit center include fuel combustion and emissions, technology integration and strategic transport studies. The research center is tasked with developing, demonstrating and showcasing low-carbon-footprint transportation technologies, in support of reducing CO2 emissions from transport sources.

“Aramco’s presence here contributes to our community’s tremendous growth and vibrant spirit in support of the automotive industry,” said City of Novi Mayor Bob Gatt. “Novi has become an attractive location for research, technology and service providers.”

The 50,000-square-foot Detroit research center is equipped with four state-of-the-art engine dynamometer labs, and in mid-2016, a vehicle integration lab featuring a chassis dynamometer for evaluating engine performance and identifying solutions to all types of system integration challenges. This includes ensuring that new technologies will meet vehicle performance and emissions specifications in a wide range of certification cycles under cold (20°F) and hot (120°F) conditions.

Supporting facilities include a prototype engine build lab, fabrication shop, vehicle soak room, engine start-cart lab, and associated vehicle integration facilities.

Substantial flexibility has been built into the lab’s capabilities surrounding fuel design, fuel procurement and specialty fuel distribution, including providing 12 independent fuel lines to the labs—which allows back-to-back advanced fuel testing and blending. The facility’s research capacity encompasses very small engines such as a single-cylinder research engine to 1,000 horsepower heavy-duty on-road and stationary engines.

“Aramco’s fuels research program is about contributing our expertise to finding forward-thinking ideas and unlocking the potential to develop new transport solutions,” said Saudi Aramco Chief Technology Officer Ahmad Al Khowaiter. “Fuels research is an excellent fit in our global R&D program looking at energy-industry challenges. Researchers draw on a network of company talent, industry partners and academia from around the world.”

Aramco’s global fuels research network encompasses Aramco’s Research & Development Center in Dhahran, Saudi Arabia; a partnership with the Clean Combustion Research Center at the King Abdullah University of Science and Technology in Thuwal, Saudi Arabia; and the Aramco Fuel Research Center, Paris, with the French petroleum research institute IFPEN.

U.S. subsidiary Aramco Services Company’s other research centers are:the Aramco Research Center-Boston, in Cambridge across the street from MIT; and the Aramco Research Center-Houston, in the city’s northwest area Energy Corridor. Aramco’s other research facilities are located in Aberdeen; Delft, The Netherlands; Daejeon, Korea; Paris; and Beijing; as well as Dhahran and Thuwal, Saudi Arabia.

The research centers are closely aligned with the company’s award-winning research organizations: the Exploration and Petroleum Engineering Center’s Advanced Research Center and the Research & Development Center located in Dhahran, Saudi Arabia.

Key to Unlocking Regional Petrochemicals Diversification Potential

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Key to Unlocking Regional Petrochemicals Diversification Potential

Saudi Aramco showcases its integrated downstream technology strategy and portfolio at the 10th annual Gulf Petrochemicals & Chemicals Association (GPCA) forum, taking place in Dubai, UAE from November 17 – 19.

The Annual Forum, GPCA’s flagship event, is the leading networking event for the petrochemicals and chemicals industry in the Arabian Gulf region. During the three day forum, delegates from some of the world’s biggest petrochemicals and chemical producers, share their perspectives on current industry issues. Since the first meeting in 2006, GPCA annual forum attendance has grown steadily year after year along with the reputation of the event in the global chemical industry.

Warren Wilder, VP Chemicals, Saudi Aramco said: “GPCA is a great focal point for our regional industry. In challenging economic times, our industry must work even harder to unlock its growth potential. Across the region and beyond, we now need to embed the collaboration and partnerships necessary for diversification into high-value manufacturing sectors that will sow the seeds of our long-term success.”

Saudi Aramco’s Integrated Energy Strategy

With a global refining capacity of 5.4million bpd, Saudi Aramco has diversified its portfolio to become an efficient, integrated global energy and chemicals company operating across the entire petroleum and chemicals value-chain.

Saudi Aramco’s global footprint in chemicals is well established, having adopted an international partnership and joint venture approach to help build a portfolio that encompasses crude supply, refining, petrochemicals and lubes, right through to closely-linked marketing and distribution channels, backed by world-class technology and innovation.

In addition, Saudi Aramco’s downstream strategy is about the conversion of petrochemical commodities and consequently spurring growth in new industries to contribute to Saudi Arabia’s economic diversification and competitiveness. Localization of Saudi Arabia’s energy sector will enhance the Kingdom’s overall competitiveness, helping accelerate industrial growth across many industry sectors and creating thousands of new high-skill, high-value manufacturing jobs for the Kingdom’s growing population.

Rapidly Expanding Global Footprint

Saudi Aramco’s world-class, integrated chemicals complex projects are changing the landscape of the global petrochemicals industry.

In 2011 Saudi Aramco and Dow Chemicals established the Sadara Chemical Company. At Jubail Industrial City in Saudi Arabia, Sadara is constructing the world’s largest chemical complex ever built in a single phase, with 26 integrated world-scale manufacturing plants that will produce more than three million tons of products every year. At a total investment of about US$20 billion, Sadara is on schedule for initial start-up by the end of 2015 and will be the first chemical complex in the GCC region to use naphtha as part of its feedstock, leading to new specialty chemicals plants and new businesses in the Kingdom.

In August 2014, the crude oil throughput of the Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture refinery with Total located in Jubail on the east coast of Saudi Arabia, reached the facility’s full design capacity of 400,000 barrels per day. The refinery has a comprehensive array of advanced mild, distillate and fluid catalytic cracker technology to convert heavy crude oil that is especially hard to process into high-value-added low-sulfur gasoline, diesel and jet fuel products, as well as an annual production of 1 million tons of paraxylene, benzene and high-purity propylene.

A joint venture with Asia’s largest refiner, Sinopec, YASREF is a 400,000 barrels per day refinery designed to process Arabian heavy crude oil to produce premium transportation fuels such as gasoline and ultra-low-sulfur diesel, as well as liquefied petroleum gases, benzene, sulfur and petroleum coke. YASREF delivered its first shipment of clean diesel fuel in mid-January 2015.

Work is well under-way on Phase II of the Rabigh Refining and Petrochemical Company (Petro Rabigh) complex expansion, with Sumitomo Chemical Company of Japan. This expansion will add specialty ethylene and propylene-based products by de-bottlenecking the existing steam cracker. The project will also enable conversion of 4,000 kilotons per year of naphtha into higher value aromatic products.

In addition, Saudi Aramco’s Fujian Refinery and Petrochemical Company joint venture in China – with ExxonMobil, Sinopec and the Fujian provincial government – successfully processes Saudi Arabian sour crude oil and produces high quality polymer products which are marketed in China by a Saudi Aramco affiliate. Meanwhile Saudi Aramco’s stake in S-Oil’s integrated refinery and petrochemical complex, South Korea’s third largest, has strengthened the company’s foothold in Asia.

The recently announced joint venture between Saudi Aramco and the German specialty chemicals company, Lanxess, which is expected to close in the first half of 2016, is seen by Saudi Aramco as a milestone in its pioneering journey to further extend its globally-integrated downstream expansion. Lanxess has a world-class synthetic rubber and elastomer products capability and many of the world’s largest tire and automotive-parts manufacturers are already counted as customers.

The JV has a compelling industrial logic for both parties, and Saudi Aramco expects to provide the new JV entity with financial stability, additional scale and resources, continued investment in technology, unrivalled opportunities to integrate with petrochemical facilities, and potential cost-competitive access to reliable feedstock supplies.

Interestingly, the Lanxess green tires technology which reduces fuel consumption will complement Saudi Aramco’s two-pronged fuel / engine R&D strategy that is focused on increasing the mileage efficiency of vehicles, and reducing pollutant emissions of future engines.

AramcoWorld Honored with 10 International Awards

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Saudi Aramco’s flagship publication, AramcoWorld, was honored recently in New York City with 10 magazine-industry awards.

This is the highest number of awards ever received by AramcoWorld from the international competition sponsored by Folio: magazine, which this year attracted more than 3,000 entries in 150 categories of editorial excellence and 90 categories of design excellence.

Each category is based on magazine type, mission and circulation size, and each entry is evaluated by three to five industry peer judges. AramcoWorld was commended for editorial excellence of its digital edition, its six-part series ”Travelers of Al-Andalus” and its videos “The Hazelnuts of Trabzon” and “The Cave Artists of Sulawesi.”

The magazine received laurels in overall design excellence and in two categories for outstanding digital design. The cover of the September/October 2014 issue was commended, as were the illustrations in the series “Travelers of Al-Andalus” and photography in the feature, “The Hazelnuts of Trabzon.”

“The broad spread of awards highlights strength from every member of our editorial team,” said Richard Doughty, editor. “The long tradition of the magazine’s excellence inspires everyone— challenging us to take quality further every day and explore new platforms for delivery.”

Public Affairs in Aramco’s Houston office produces the bimonthly print and online magazine, which seeks to broaden knowledge of the culture, history and geography of the Arab and Islamic worlds.

Earlier this year, AramcoWorld opened its Instagram feed, @aramcoworld. “Of all the social media out there, Instagram is almost ideal for AramcoWorld,” says Doughty. “We have six decades of archival photos to draw from as well as photographers right now producing beautiful, storytelling images. Even though a single picture and a caption might seem small compared to what we do in print, it’s actually a powerfully memorable combination, and it fits today’s digital reading habits.”

Advancing on Fadhili

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Contracts signed with engineering, procurement, and construction firms to build the new plant north of Jubail, Eastern Province.

Saudi Aramco has reached another major milestone in its journey toward supplying the Kingdom with clean-burning natural gas for its energy needs to lessen its dependence on liquid fuels such as crude oil.

When completed, Fadhili Gas Plant will become a key component of the Kingdom’s Master Gas System, which will meet growing domestic demand for energy by expanding from its current 9.3 billion standard cubic feet per day (scfd) of sales gas in 2015 to 12.2 billion SCFD by 2021.

The signing ceremony of last week covered three separate packages:

  • Inlet and Gas Treatment to be built by the Spanish firm Tecnicas Reunidas
  • Process Utilities to be built by Tecnicas Reunidas
  • Sulfur Recovery Units to be built by Petrofac International Ltd. (UAE).

The plant will process 2 billion scfd of Hasbah nonassociated gas and 500 million SCFD of Khursaniyah onshore nonassociated gas. It is expected to produce 1.5 billion SCFD (1,080 BTU/scf) of sales gas, 4,000 metric tons per day of sulfur, and 470 million scfd of gas to fuel an adjacent cogeneration plant, which will provide the plant power and steam requirements and to export about 1,100 megawatts of power.

The Fadhili Gas System will be unique in several aspects:

  • Treatment system optimized to feed the Khursaniyah gas directly to the adjacent third-party cogeneration plant. This is in addition to the fact that the adjacent cogen power plant will be developed simultaneously and executed through a special purpose joint venture with a third-party developer as well as SEC.
  • Environmentally, it is being designed with the maximum sulfur recovery of 99.9% utilizing the Tail Gas Treatment process.
  • Using Power Recovery Hydraulic Turbine technology in place of conventional control valves to capture the significant pressure drop in the gas processing trains to generate energy.

Together, our Wasit, Midyan, and Fadhili gas plants will add more than 5 billion scfd of nonassociated gas processing capacity. This will enable opportunities in Saudi industries such as steel, aluminum, and petrochemicals, water desalination plants, electricity production, and downstream value-added industries to produce anti-freeze, solvents, fuels, and other advanced materials.


Aramco Highlights Geophysical Advances at 2015 SEG Conference

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Saudi Aramco’s expertise in geophysics was recently on full display at the 2015 Society of Exploration Geophysicists (SEG) International Exposition and 85th Annual Meeting, sharing new technological advances, techniques, and approaches in seismic monitoring and other notable topics in geophysics.

Hosting more than 1,000 total presentations, SEG featured its largest technical program ever over the course of five days in New Orleans.

Technologists gave more than 20 technical presentations during the conference, with contributions representing developments from Saudi Aramco’s Exploration and EXPEC ARC organizations, as well as Aramco Services Company’s Upstream and Research and Development Departments.

“Saudi Aramco’s involvement is critical in driving the success of this event, and we know the tremendous value they bring to our technical session — which is usually how great conferences are measured,” newly-appointed SEG executive director Dorsey Morrow said.

Collaboration among Aramco’s global research and development network continues to grow, as evidenced by the work of the Geophysics Technology Team of the Aramco Research Center-Houston, which presented an impressive number of seven technical papers during the conference.

New Breakthrough in Seawater Based Fracturing Fluid

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New Breakthrough in Seawater Based Fracturing Fluid

A breakthrough field application developed by Saudi Aramco scientists, researchers and engineers will help preserve the Kingdom’s precious groundwater reserves during water intensive hydraulic and acid fracturing jobs.

Hydraulic and acid fracturing treatments involve the use of relatively large volumes of groundwater. The fracturing fluid incompatibility and flow assurance issues of seawater has prevented Aramco from using it as an alternative to fresh, low so-called toal dissolved solids (TDS) groundwater currently being used in hydraulic fracturing operations.

A major challenge of using raw seawater instead is maintaining a viscosity comparable to the one generated from fresh water-based fracturing fluids. This viscosity is important to create the fracture and carry the proppant particles that keep the fracture open.

Aramco research teams have now designed the company’s first raw seawater-based acid fracturing treatment, utilizing the in-house developed seawater-based fluid. Results of this research and the first field application concluded that seawater is a reliable and compatible alternative.

The challenges were resolved through extensive research studies and recently the first acid fracturing job was successfully carried out with fully functional in-house developed seawater-based fracturing fluid.

Besides pursuing innovative and cost-effective solutions to operational and environmental challenges the improvements are well aligned with the company’s water conservation policy.

PT Pertamina and Saudi Aramco Ink HoA for Refinery Upgrading Project in Indonesia

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Amin Nasser, President and Chief Executive Officer of Saudi AramcoAmin Nasser, President and Chief Executive Officer of Saudi Aramco

In the presence of Indonesian Vice President Muhammad Jusuf Kalla; Indonesia’s state-owned PT Pertamina and Saudi Aramco, the state-owned oil company of Saudi Arabia, have signed a Heads of Agreement (HoA) to formalize key business principles for joint ownership, operation and upgrade of the Cilacap Refinery located in Central Java, Indonesia as part of Pertamina’s Refinery Development Master Plan (RDMP). The signing was held during the Vice President’s inauguration of the newly commissioned Residual Fluid Catalytic Cracking (RFCC) facility at the Cilacap Refinery, and the kick off of the Blue Sky project, both of which are designed to produce higher quality gasoline.

Also present were ministers from the Indonesian cabinet; the Saudi Arabian Ambassador to Indonesia Mustafa Al Mubarak; President and Chief Executive Officer of Saudi Aramco Amin H. Nasser; and President Director and Chief Executive Officer of PT Pertamina Dwi Soetjipto.

The proposed Cilacap Refinery upgrade will enable the refinery to process more sour crudes, meet high quality product specifications (Euro IV) and produce basic petrochemicals and lubricant base oils. The capacity expansion to 370 MBD will help Indonesia meet its increasing demand of refined products, lubricant base oils and petrochemicals. The agreement includes a long-term supply agreement for Arabian crudes to Cilacap refinery.

This HoA will pave the way for the next phase of development within the scope of collaboration between the two parties. The Basic Engineering Design Study for the Cilacap refinery upgrade is expected to commence soon and be completed by 2016.

RDMP is part of Pertamina’s mission as a national energy company to produce and market fuel products for Indonesia. RDMP will increase the competitiveness of Indonesia’s refineries while increasing domestic supply security.

“Indonesia is a rising powerhouse in the global economy, and has long deep rooted trade and cultural ties with Saudi Arabia. It’s refining sector has enormous potential, and with Indonesia’s fast-growing demand for refined products, Saudi Aramco’s role in Cilacap can help fuel this country’s coming era of development and prosperity,” said Amin Nasser, President and Chief Executive Officer of Saudi Aramco at the signing ceremony.

Participation in the RDMP will offer Saudi Aramco a major growth component of its global Downstream expansion portfolio aspiration, designed to make Saudi Aramco the world’s leading integrated energy and chemicals company. The investment would take place within a high growth petroleum demand in South East Asia which has been earmarked in the company’s downstream strategy.

In July 2014 Pertamina offered Saudi Aramco and other strategic partners the opportunity to participate in its RDMP to upgrade and expand five existing domestic refineries (Cilacap; Balongan; Dumai; Plaju; and Balikpapan) from 820 MBD of aggregate processing capacity to 1,680 MBD

Saudi Aramco was selected by Pertamina as a strategic partner for three of the five refineries: Cilacap and Balongan in Java; and Dumai in Sumatra.

Saudi Aramco signed a MOU on December 10, 2014 giving the company exclusivity to conduct a feasibility study jointly with Pertamina for the three refinery expansions and negotiate key business principles.

About PT Pertamina

Pertamina is Indonesia’s state-owned integrated oil and gas company. We are committed to an ongoing process of transformation and continuous improvement that will lead to our achieving global standards of operational, environmental, and corporate performance. As a national oil company, we are committed to balancing profitable performance with our public service mandate. Pertamina has 57 years of experience in the challenging geological environment of Indonesia, were pioneers in the development of Liquefied Natural Gas (LNG) and now have operations in six countries.

Our businesses include the exploration and production of oil and gas; the refining, manufacturing and marketing of oil products and petrochemicals; and the development of biofuels, geothermal power and other sustainable alternative energy sources.

Pertamina has operations and facilities throughout Indonesia. Pertamina’s employees serve the energy needs of over 240 million Indonesians.

Aramco and KAUST Workshop on Red Sea Exploration

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Saudi Aramco – King Abdullah University of Science and Technology (KAUST) workshop on technical challenges to exploring the Red Sea drawing more than 100 participants from Saudi Aramco’s Exploration organization and academics and laboratory directors from KAUST, highlighting the strong scientific collaboration between the two parties.

Tremendous efforts are made by the company for a holistic understanding and evaluation of a large underexplored area. Rough sea-floor topography and complicated geology under thick salt deposits make the Red Sea one of the most intriguing areas for hydrocarbon exploration in the world. A particular challenge is to preserving the fragile balance of the Red Sea’s pristine ecosystem.

In the opening remarks, vice president of Aramco’s Exploration Department, Ibraheem M. Assa’adan, said: “We think the Red Sea is a key, underexplored region that has the potential to meet the Western Region’s demand for oil and gas, but there are special technical challenges. This is where the relationship with KAUST comes in. It is a partnership in which we can achieve common goals of advancing our knowledge of technologies and developing the full potential of the Red Sea’s resources to meet local demand.”

Topics during the workshop included seismic and sub-salt imaging technologies; visualization and supercomputing; rift, crust, and mantle models that shaped up the Red Sea; active faults and volcanism; bioactivity; heat flow and hydrocarbon seeps in the Red Sea; and integrated observations of ecology.

Saudi Aramco Launches ‘Local Content Development’ Supplier Initiative

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Saudi Aramco Launches ‘Local Content Development’ Supplier Initiative

Saudi Aramco today launched its In-Kingdom Total Value Add (IKTVA) program, aimed at increasing investment, economic diversification, job creation and work force development within the Kingdom of Saudi Arabia.

The IKTVA program launch event was presided by HRH Prince Saud bin Nayef bin Abdulaziz, Governor of the Eastern Province; H.E. Dr. Tawfiq Al-Rabiah, Saudi Arabia’s Minister of Commerce and Industry; and H.E. Abdullatif Al-Othman, Governor of the Saudi Arabian General Investment Authority.

Amin H. Nasser, President and CEO of Saudi Aramco said: “IKTVA is a step-change in our commitment to local content development that is now required across our domestic and international supply chain.” He added: “Sourcing a majority of materials, goods and services that we require locally will enable Saudi Aramco to, not only embed greater competitiveness and efficiency in our operations, but will also help us fulfil our potential in support of the Kingdom’s growth, job creation and economic diversification objectives.”

“IKTVA will create win-win, mutually beneficial partnerships between Saudi Aramco and our suppliers. The scale of our diversified energy business and associated capital expenditure programs clearly create significant opportunities for those suppliers ready, willing and able to invest in Saudi Arabia and partner with Saudi Aramco on a long-term, sustainable basis.”

IKTVA is underpinned by mandatory ‘local content development’ of suppliers and contractors that prioritizes the purchase of goods and services from a local supplier base. Three critical objectives guide the program: doubling the percentage of locally-manufactured energy-related goods and services to 70% by 2021; helping raise the export of Saudi-made energy goods and services to 30% over the same time frame; and, creating direct and indirect jobs within the energy related sector for a growing and talented Saudi population.

Vice President of Materials Supply, AbdulKarim Abdulaziz, said: “The IKTVA program will help make our supplier relationships more strategic, mutually beneficial and focused on long term value creation. The initiative will help recognize the full value and potential that all our suppliers can bring to the table. Our goal is to create a win-win, more formal and systematic mechanism that puts everyone on an equal footing and increases competition to drive growth.”

IKTVA will provide a level playing field for domestic and international suppliers though greater consistency and increased transparency in application and process. Uniform evaluations for both service and material suppliers will be consistent across the company, providing investment stability and assurance. The program will first establish a 3-year baseline score for each supplier measured against key metrics for local content and value creation. After this, Saudi Aramco and each supplier will jointly develop an IKTVA action plan to increase the IKTVA score and impact. Performance will be tracked and measured on an ongoing basis. 

A new function – the Industrial Development & Strategic Development Supply Department – has been created within Saudi Aramco Materials Supply to champion and integrate the IKTVA program and optimize the supply chain. Nassir Al-Yami, Manager, Industrial Development & Strategic Supply Department said: “Through IKTVA we can and will do much more to deepen our local manufacturing and supply chain capabilities. We are encouraging a local supply chain that has deep roots here in the Kingdom and is committed to being part of our future success.”

The IKTVA program was developed after consultation with representatives from Saudi Aramco’s major supply sectors. The IKTVA program takes effect immediately and applies to all international and domestic suppliers, including manufacturers and service providers.

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