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Metal Eco System Workshop © Saudi Arabian Oil Company, 2020

Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

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Page 1: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Metal Eco System Workshop

© Saudi Arabian Oil Company, 2020

Page 2: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

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.

© Saudi Arabian Oil Company, 2020

Page 3: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

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

© Saudi Arabian Oil Company, 2020

Page 4: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Metal Eco System

Anticipated Market Size

The

Opportunity

The Business

Case

Executive Summary

Raw Material Intermediates Finished

Products

Value Chain Mapping

Each will Provide:

Investments opportunities will cover heat exchangers, Steam Traps,

Relief and needle valves, filters, couplings and other opportunities

© Saudi Arabian Oil Company, 2020

Page 5: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Metal Eco System

Session Title Presenter

Heat Exchangers

Nasser AlrushoudSteam Trap and Strainers

Services

Relief Valves

Mohammad AlolaiwiNeedle Values

Impellers

Vessels Internals

Farhan AlghamdiFilters

Couplings

© Saudi Arabian Oil Company, 2020

Page 6: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Heat Exchangers

© Saudi Arabian Oil Company, 2020

Page 7: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Heat Exchangers manufacturing represents an attractive opportunity for localization

Establish multiple state of the

art manufacturing facilities

for Heat Exchangers

components

The opportunity The business case

The current market sizes for

heat exchangers exceeds $ 45

MM and the components

manufacturing gaps are:

• Tube Sheets (forged)

• Thermal Design

• Testing (NDT, PWHT) and

other services

© Saudi Arabian Oil Company, 2020

Page 8: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Types of Heat Exchanger

Shell & Tube Heat Exchanger Air Cooled Heat Exchanger

© Saudi Arabian Oil Company, 2020

Page 9: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Heat Exchangers cost structure

Raw materials represent almost 50% of the

cost structure for Heat Exchangers (tubes

manufacturing, plate, forging, flanges and

sheets)

Labor makes up 30% of the cost structure,

including engineers, management, welders,

and machinists

Machinery costs comprise another 18% of the

overall cost, primarily for cutting, beveling,

grinding, and welding machinery

© Saudi Arabian Oil Company, 2020

Page 10: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Shell & Tube Heat Exchanger

4749

5052

5355

5758

6062

64

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

The demand for Shell and tube Exchangers is expected to reach ~$ 64 MM by 2030

5%

© Saudi Arabian Oil Company, 2020

Page 11: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Tube Sheets (forged)

One of the main commodities that represents a gap in the local supply chain, the tube sheet

represent 15% to 20% from the total cost of the exchanger

© Saudi Arabian Oil Company, 2020

Page 12: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Thermal Design

Thermal design is the main servicers required to complete the design of the exchangers, its considered as one of

the services that we recommend considering for localization 10% to 15 % (part of manpower/engineering cost)

© Saudi Arabian Oil Company, 2020

Page 13: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Testing (NDT, PWHT) and other services

Testing is one of the main required services and it represent 5% to 8% of the total cost of the exchanger

© Saudi Arabian Oil Company, 2020

Page 14: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Steam Trap and Strainers

© Saudi Arabian Oil Company, 2020

Page 15: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Steam trap and strainers manufacturing represents an attractive opportunity for localization

Establish multiple state of the

art manufacturing facilities

for stream traps and

strainers

The opportunity The business case

1. The current market sizes

averages ~$ 2 MM for the

two commodities for the

past years

2. Forecasted ~5% annual

growth

3. Attractive cost base

including low logistics, land,

utilities, and labor costs

© Saudi Arabian Oil Company, 2020

Page 16: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Types of Steam Traps

Thermostatic Mechanical

Thermodynamic

© Saudi Arabian Oil Company, 2020

Page 17: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Steam Traps and Strainers Historical Demand

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2015 2016 2018 2018 2019

Mill

ion

s

steam traps strainers

The Historical demand for Steam Trap and strainers is averaging ~$ 2 MM

© Saudi Arabian Oil Company, 2020

Page 18: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Steam Traps Forecast

33

33

34

44

44

4

0

1

1

2

2

3

3

4

4

5

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Millio

ns

$

5%

The demand for Steam Trap is expected to reach ~$ 4.4 MM by 2030

© Saudi Arabian Oil Company, 2020

Page 19: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Strainers Forecast

The demand for strainers is expected to reach ~$ 1.2 MM by 2030

824849

874900

927955

9841013

10441075

1107

0

200

400

600

800

1000

1200

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Th

ou

sa

nd

$

5%

© Saudi Arabian Oil Company, 2020

Page 20: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

1. Design by a centralized Team in

KSA.

2. Establish a local facility

to manufacture different

components used for all

four types of stem traps

and strainers

3. Assembly of stem traps at local facility and plan to localize supply chain in phases.

4. Establish technical support service center to serve requirements for stem traps

Potential investment opportunities

Design Manufacturing Final

Assembly Lifecycle

Management

© Saudi Arabian Oil Company, 2020

Page 21: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Services required to ensure high value add

© Saudi Arabian Oil Company, 2020

Page 22: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Manufacturing services represents an attractive opportunity for localization

Establish multiple state of the

art manufacturing facilities

to provided the needed

services to all local

manufactures

The opportunity The business case

The current market sizes

exceeds $ 160 MM and the list

of services are:

• Metals testing • Heat treatment• Condition monitoring• Metals preparations

© Saudi Arabian Oil Company, 2020

Page 23: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Metals Testing

Metals testing service to conduct radiography

© Saudi Arabian Oil Company, 2020

Page 24: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Historical Demand Metals Testing

56

7072

7577

0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 2019

Millio

n $

The Historical demand for Metals Testing is averaging ~$ 72 MM

© Saudi Arabian Oil Company, 2020

Page 25: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Heat Treatment

Advanced heat treatment service to conduct carburizing, gas nitriding, normalizing

© Saudi Arabian Oil Company, 2020

Page 26: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Heat treatment

46

50

53

59

63

0

10

20

30

40

50

60

70

2015 2016 2017 2018 2019

Millio

n $

The Historical demand for Heat treatment is averaging ~$ 55 MM

© Saudi Arabian Oil Company, 2020

Page 27: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Metals Preparations

Metals preparation service to conduct shot peening, bead blasting, etc.

© Saudi Arabian Oil Company, 2020

Page 28: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Metals Preparations

4.9 55

6

7

0

1

2

3

4

5

6

7

2015 2016 2017 2018 2019

The Historical Metals Preparations is averaging ~$ 70 MM

© Saudi Arabian Oil Company, 2020

Page 29: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Other Required Services

• Cladding

• Weld overlay

• Painting

• Coating

• Blasting

• Design Eng.

• Specialist Machining

• Grinding

• Welding

© Saudi Arabian Oil Company, 2020

Page 30: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Relief Valves

© Saudi Arabian Oil Company, 2020

Page 31: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Pressure Relief Valves Localization Opportunity

Establish a state-of-the-art

manufacturing facility of

Pressure Relief Valves

components to serve the

KSA and GCC Oil and Gas

industry

The opportunity

1. The Total 5-year spend on relief

valves exceeded $60MM

2. Forecasted ~4% annual

growth in the regional

Pressure Relief Valves market

3. More than +19,000 Units installed in Aramco Facilities

The business case

© Saudi Arabian Oil Company, 2020

Page 32: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

There are multiple opportunities for SMEs to manufacture components for Pressure Relief valves and related services

Pressure Relief Valves

© Saudi Arabian Oil Company, 2020

Page 33: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Pressure Relief Valves Classifications

Pressure Relief Devices (PRDs)

Re-Closing

Conventional

Spring Loaded Bellows Type

Pilot Operated

Flowing Pilot

Pop-ActionModulating

Action

Non-Flowing Pilot

Pop-ActionModulating

Action

Non-Reclosing

Rupture Disks

Buckling Pin Devices

© Saudi Arabian Oil Company, 2020

Page 34: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Pressure Relief Valves Standards and Specifications

Saudi Aramco Standard: SAES-J-600 Saudi Aramco SAMSS: 34-SAMSS-611

International standards:• ASME SEC-I• ASME SEC-VIII-D1• ASME SEC-VIII-D2• ASME B16.5• NACE MR0175/ISO 15156• NACE MR0103/ISO 17945 • API-520 (Part-I, II)• API-521• API-526• API-527• API-2000

© Saudi Arabian Oil Company, 2020

Page 35: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Historical Aramco Spend of Relief Valves

Historical Aramco Spend on Relief Valves

grew from 761 Units in year 2015 and

reached 1,270 Units in Year 2019

The Total 5-year spend on Relief valves

exceeded $60 MM761

2,177

1,053

573

1,268

2015 2016 2017 2018 2019

Un

its

© Saudi Arabian Oil Company, 2020

Page 36: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Forecasted Saudi Aramco Average Demand of Relief Valves

The Aramco demand on Relief Valves is

expected to grow at 4% from 1,320 Units

in 2020 and will reach 1,610 Units year

2025

4%

1,3211,370

1,4301,486

1,5451,610

2020 2021 2022 2023 2024 2025

Un

its

© Saudi Arabian Oil Company, 2020

Page 37: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Forecasted KSA & GCC Demand of Relief Valves

The KSA demand on Relief Valves is

expected to grow at 4% from 3,300 Units

in 2020 to reach 4,020 Units in year 2025.

Total GCC demand is expected to reach

5,620 units by year 2025

4%

3,300 3,430 3,570 3,710 3,860 4,020

4,6004,810

5,0005,200

5,4105,620

7,9008,240

8,5708,910

9,2709,640

2020 2021 2022 2023 2024 2025

Un

its

KSA

© Saudi Arabian Oil Company, 2020

Page 38: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Needle Values

© Saudi Arabian Oil Company, 2020

Page 39: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Needle Valves Localization Opportunity

Establish a state-of-the-art

manufacturing facility of

needle Valves components

to serve the KSA and GCC Oil

and Gas industry

The opportunity

1. The total 5-year spend on

needle valves exceeded

$49 MM

2. Forecasted ~4% annual

growth in the regional OCTG

Accessory market until 2025

The business case

© Saudi Arabian Oil Company, 2020

Page 40: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Opportunities for SME to manufacture components for needle valves and related services

Needle Valves: Used for isolation or flow rate control

© Saudi Arabian Oil Company, 2020

Page 41: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Needle Valves Internal Parts

© Saudi Arabian Oil Company, 2020

Page 42: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Historical Aramco Spend of Needle Valves

Historical Aramco demand on Needle

Valves started from 8250 Units in year

2015 and peaked 9090 Units in Year 2016.

The 2015-2019 spend exceeded $49 MM

8,250

9,090

8,260

7,459

8,265

2015 2016 2017 2018 2019

Un

its

© Saudi Arabian Oil Company, 2020

Page 43: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Forecasted Aramco Demand of Needle Valves

The Aramco demand on Needle Valves is

expected to grow at 4% from 8,600 Units

in 2020 to reach 10,500 Units year 2025

8,6008,900

9,3009,700

10,10010,500

2020 2021 2022 2023 2024 2025

Un

its

4%

© Saudi Arabian Oil Company, 2020

Page 44: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Forecasted KSA & GCC Demand of Relief Valves

The KSA demand on Needle Valves is

expected to grow at 4% from 12,900

Units in 2020 to reach 15,700 Units in

2025.

Total GCC demand is expected to reach

23,000 Units in year 2025

4%

12,900 13,400 14,000 14,500 15,100 15,700

18,90019,700

20,50021,300

22,10023,000

31,80033,100

34,50035,800

37,20038,700

2020 2021 2022 2023 2024 2025

Un

its

© Saudi Arabian Oil Company, 2020

Page 45: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

1. Design by a centralized Team in

KSA.

2. Establish a local facility to

manufacture different

components used for Needle

Valves, mainly casting and

forging facility for bodies and

internals.

3. Assembly of Needle Valves at local facility and plan to localize supply chain in phases.

4. Establish technical support service center to serve requirements for Testing, Repair and Maintenance of Needle Valves.

Potential investment opportunities

Design Manufacturing Final

Assembly Lifecycle

Management

© Saudi Arabian Oil Company, 2020

Page 46: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Impellers

© Saudi Arabian Oil Company, 2020

Page 47: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

IMPELLERS represent an attractive localization opportunity given the current supply gap and expected demand growth

Establish a manufacturing

facility of Impellers to serve

the KSA and GCC Oil and

Gas industry

The opportunity

1. Historically for the last 5-year,

Aramco procured +3,600 units

2. Forecasted ~5% annual

growth on the impeller

demand until 2025

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

© Saudi Arabian Oil Company, 2020

Page 48: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Impellers are very critical components for rotating equipment in the oil and gas industries

Impellers Types:

• Open

- Single Suction

• Mixed Flow:

• Semi-open

• Closed

- Double Suction

• Axial Flow

• Non-clogging

31-SAMSS-004

© Saudi Arabian Oil Company, 2020

Page 49: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Impellers demand for Saudi Aramco has been growing and the demand exceeded $ 9MM in 2019

+156%

Over the last 5-year, 91% of the

total Saudi Aramco demand (+

3,600 Units) of Impellers is

imported

Saudi Aramco market size evolution for Impellers

2015 2016 2017 2018 2019

$ M

M

9.29.9

8.4

4.9

3.6

© Saudi Arabian Oil Company, 2020

Page 50: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

The forecasted demand for Impellers in KSA is expected to exceed ~$18MM by 2025

KSA expected market size evolution for Impellers

5%

2020 2021 2022 2023 2024 2025

$ M

M

16.817.7

18.5

The market for Impellers in KSA is

forecasted at $18,5MM by 2025

and the rest of the GCC is

estimated at $23MM

14.5 15.316

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

1. Establish an Impellers

design and R&D center to

develop designs for KSA

requirements

2. Develop equipment

locally and supply to

manufacturing facilities

3. Assemble and Test Impellers prior to use in operations

4. Establish technical support service center to serve requirements for manufacturer Impellers

Potential investment opportunities

Design Manufacturing Assembly & Testing

Lifecycle Management

© Saudi Arabian Oil Company, 2020

Page 52: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Vessels Internals

© Saudi Arabian Oil Company, 2020

Page 53: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Vessels Internals represent an attractive localization opportunity given the current supply gap and expected demand growth

Establish a manufacturing

facilities of Vessels

Internals to serve the KSA

and GCC Oil and Gas

industry

The opportunity

1. Historically for the last 4-year,

Aramco procurement exceeded

$ 102 MM

2. Forecasted ~4% annual

growth on the Vessels

Internals demand until 2025,

for Aramco

3. No Local Manufacturers for

Internals materials

4. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Vessels Internals are very critical components for equipment in industries

Internals Applications:

• Process internals are separation devices inside process equipment used for separation of different fluid phases

• Applied in Gas Liquid Separation in gas plants and refineries (such as gas-liquid separator, knock out drums…)

• Applied in Gas Oil Separation plants (High/Low Pressure Separators, Desalter, Column, Dehydrator…)

• Governed by SAES-A-010, SAES-A-017 and 32-SAMSS-038

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Demand for Vessels Internals in Saudi Aramco has been growing and exceeded $ 102 MM over the 2016-2019 period

Vessel Internals

Historical Aramco demand for Internals

grow from $ 12 MM in year 2016 and

reached $ 31 MM in 2019

Over the last 5-year, all the vessels

internals were imported

Saudi Aramco market size evolution for Internals

2016 2017 2018 2019

3131.3

28.4

12

Mill

ion

s

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

The Saudi Aramco forecasted demand for Vessels Internals is expected to exceed $ 214 MM over the 2020-2025 period

Aramco demand on Vessels internals is

expected to grow at 4% from $ 32 MM in

2020 to reach $ 39 MM by year 2025

Saudi Aramco market size evolution for Internals

2020 2021 2022 2023 2024 2025

3936

32

3835

34

4%

Mill

ion

s

Vessel Internals

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

The demand for Vessels Internals in KSA and GCC is expected to exceed $ 545 MM over the 2020-2025 period

GCC expected market size evolution for Internals

4%

KSA

Rest of GCC

48 50 52 54 56 58

35 3637

3840

4183 8689

9296

99

2020 2021 2022 2023 2024 2025

Mill

ion

s KSA demand on Vessels Internals is

expected to grow at 4% from $ 48 MM in

2020 and will reach $ 58 MM year 2025

Total GCC demand is expected to reach

$ 41 MM by year 2025

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

Potential investment opportunities

Design Manufacturing Assembly & Testing

Lifecycle Management

1. Establish Separation

Internals design and

R&D center to design for

KSA requirements

2. Develop manufacturing

facilities to fabricate

process internals

3.Assemble and Test Internals prior to use in operations

4. Establish technical support service center to serve requirements for manufacturer Internals

© Saudi Arabian Oil Company, 2020

Page 59: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Filters

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Filters represent an attractive localization opportunity given the current supply gap and expected demand growth

Establish a manufacturing

facilities of Filters to serve

the KSA and GCC Oil and

Gas industry

The opportunity

1. Over the last 5-year, Aramco

procured +2.75MM units at a

cost exceeding $95MM.

2. Forecasted ~5% annual

growth on the Filters demand

until 2025, for Aramco

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Filters are very critical components for equipment in industries

Filters Types:

• CONVENTIONAL filters that use cartridge (elements). High potential for localization

• Governed by SAES-A-017

• One of the most common process unit in oil and gas industries

• Used for hydrocarbon gas/liquid and air filtration

• NON-CONVENTIONAL that use special internals or design such as cyclone and wringing separator

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Demand for Filters in Saudi Aramco has been growing and exceeded $ 95 MM over the 2015-2019 period

+37%

Filters

Saudi Aramco market size evolution for Filters

15 15

2422

20

2015 2016 2017 2018 2019

Millio

n (

$)

• Historical Aramco demand for

Internals grew from $ 15 MM in year

2015 and reached $ 20 MM in 2019

• 85% out of the $ 95 MM was imported

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Filters demand in Saudi Aramco has been growing to 2.75 MM units over the period of 2015-2019

Saudi Aramco market size evolution for Filters (Quantity-Thousands)

811

561

482

620

37%

3%48%

12%

Water Oil Gas Air2015 2016 2017 2018 2019

Filters

277

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

The demand for Filters in Saudi Aramco is expected to exceed $145 MM over the period of 2020-2025

GCC expected market size evolution for Filters

5%

• Aramco demand on Filters is expected

to grow at 5% from $ 21 MM in 2020

and will reach $ 27 MM by 2025Millio

n (

$)

2122

2425

2627

2020 2021 2022 2023 2024 2025

Filters

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

The demand for Filters in KSA & GCC is expected to exceed ~ $109 MM by 2025

GCC expected market size evolution for Filters

5%

KSA

Rest of GCC

• KSA demand on Filters is expected to

grow at 5% from $ 53 MM in 2020

and reach $ 68 MM in 2025

• Total GCC demand is expected to

reach $ 41 MM by 2025

53 56 59 62 6568

3234

3537

3941

8590

9499

104109

2020 2021 2022 2023 2024 2025

Millio

n (

$)

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

1. Build local manufacturing

facility of filter elements

for different applications

2. Establish Filtration

system design

locally and supply to

manufacturing

facilities

3. Assemble and Test units prior to use in operations

4.Establish technical support service center to serve requirements for manufacturer filters

Potential investment opportunities

Design Manufacturing Assembly & Testing

Lifecycle Management

© Saudi Arabian Oil Company, 2020

Page 67: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Couplings

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Couplings represent an attractive localization opportunity given the current supply gap and expected demand growth

Establish a manufacturing

facilities of Couplings to

serve the KSA and GCC Oil

and Gas industry

The opportunity

1. For the last 5-year, Aramco

procured + 800M units

2. Aramco forecasted ~3%

annual growth on the

Couplings demand until 2025

3. No specialized Local

Manufacturers for Couplings

4. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Couplings are very critical components for equipment in industries

Couplings Classifications and uses:

• Classified into Rigid and Flexible Couplings

• To connect the driving and the driven parts. It provides for misalignment of the shafts or to introduce mechanical flexibility

• To reduce the transmission for shock loads from one shaft to another and introduce protections against overloads

• To connects pipes together and they are three types full, Half and Reducing Couplings

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Demand for Couplings in Saudi Aramco has been growing over the 2015-2019 and exceeded $ 152 MM

• Historical Aramco demand on

Couplings grow from $ 11 MM year

2015 and reached $ 35 MM in Year

2019

• The majority of these couplings were

imported from OOK suppliers

Saudi Aramco market size evolution for Couplings

11

17

70

19

35

0

10

20

30

40

50

60

70

80

2015 2016 2017 2018 2019

Millio

n (

$)

Couplings

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

The forecasted demand for Couplings in Saudi Aramco is expected to exceed $ 234 MM over the period of 2020-2025

• The Aramco demand on Couplings is

expected to grow at 3% from $ 36 MM

in 2020 and will reach $ 42 MM year

2025

Saudi Aramco market size evolution for CouplingsM

illio

n (

$)

Couplings

36

37

38

40

41

42

2020 2021 2022 2023 2024 2025

3%

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

3%

KSA and GCC market size evolution for Couplings

The demand for couplings in KSA & GCC is expected to exceed $ 654 MM over 2020-2025

54 56 58 59 61 63

47 48 50 51 53 54101 104 107 111 114 117

0

20

40

60

80

100

120

2020 2021 2022 2023 2024 2025

• The KSA demand on Couplings is

expected to grow at 3% from $ 54 MM

in 2020 and will reach $ 63 MM year

2025

• Total GCC demand is expected to

reach $ 54 MM by year 2025

Millio

n (

$)

KSA

Rest of GCC

© Saudi Arabian Oil Company, 2020

Page 73: Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief Valves Standards and Specifications Saudi Aramco Standard: SAES-J-600 Saudi Aramco

Saudi Aramco: Public

Local value chain gaps translate into opportunities to do business in KSA

1. Establish Separation

Internals design and

R&D center to design for

KSA requirements

2. Potential to establish

facilities to locally

machine and

manufacture couplings

3.Potential to develop SMEs to perform services, such as non-destructive inspection and testing to support local manufacturing

4. Establish technical support service center to serve requirements for manufacturer couplings

Potential investment opportunities

Design Manufacturing Assembly & Testing

Lifecycle Management

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Please Direct All Inquiries To:

Farhan AlGhamdi

[email protected]

Mohammad Alolaiwi

[email protected]

Nasser Alrushoud

[email protected]

For More Business Development & Market Information Visit:

Website: www.iktva.sa/opportunities

Email: [email protected]

© Saudi Arabian Oil Company, 2020

Abdullah Alqahtani

[email protected]