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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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Text of Metal Eco System Workshop - Saudi Aramco · 2020. 3. 11. · Saudi Aramco: Public Pressure Relief...

  • Metal Eco System Workshop

    © Saudi Arabian Oil Company, 2020

  • Disclaimer

    This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position, results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as “believes”, “expects”, “are expected to”, “anticipates”, “intends”, “estimates”, “should”, “will”, “shall”, “may”, “is likely to”, “plans” or similar expressions, including variations and the negatives thereof or comparable terminology.

    You should be aware that forward-looking statements are not guarantees of future performance and that the Company’s actual financial position, results of operations and business, and the development of the industries in which it operates may differ materially from those made in or suggested by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and available at https://cma.org.sa/en/Market/Prospectuses/Pages/default.aspx (the “Prospectus”) and include, among other things, the following:

    • (1) oil and gas supply, demand and price fluctuations; (2) global economic market conditions; (3) competition in the industries in which the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the oil and gas, refining and petrochemicals industries; (6) the cyclical nature of the oil and gas, refining and petrochemicals industries; (7) weather conditions; (8) political and social instability and unrest and actual or potential armed conflicts in the MENA region and other areas; (9) managing the Company’s growth; (10) risks in connection with projects under development and recent and future acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign exchange risk; (13) risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that impact the industries in which the Company operates; and (14) international trade litigation, disputes or agreements.

    The Prospectus contains a more complete discussion of the factors that could affect the Company’s future performance and the industries in which it operates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • Heat Exchangers

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Types of Heat Exchanger

    Shell & Tube Heat Exchanger Air Cooled Heat Exchanger

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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

  • Steam Trap and Strainers

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Types of Steam Traps

    Thermostatic Mechanical

    Thermodynamic

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • Services required to ensure high value add

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Metals Testing

    Metals testing service to conduct radiography

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Heat Treatment

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

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Metals Preparations

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

    © Saudi Arabian Oil Company, 2020

  • 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

  • Saudi Aramco: Public

    Other Required Services

    • Cladding

    • Weld overlay

    • Painting

    • Coating

    • Blasting

    • Design Eng.

    • Specialist Machining

    • Grinding

    • Welding

    © Saudi Arabian Oil Company, 2020

  • Relief Valves

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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 3,4303,570 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

  • Needle Values

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • Saudi Aramco: Public

    Needle Valves Internal Parts

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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 13,40014,000 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

  • 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

  • Impellers

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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

  • Vessels Internals

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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 5052 54

    56 58

    35 3637

    3840

    4183 8689

    9296

    99

    2020 2021 2022 2023 2024 2025

    Mill

    ion

    s KSA demand on Vessels Internals isexpected 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

  • 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

  • Filters

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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 5659 62

    6568

    3234

    3537

    3941

    8590

    9499

    104109

    2020 2021 2022 2023 2024 2025

    Millio

    n (

    $)

    © Saudi Arabian Oil Company, 2020

  • 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

  • Couplings

    © Saudi Arabian Oil Company, 2020

  • 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

  • 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

  • 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

  • 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

  • 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 5859 61

    63

    47 4850 51

    53 54101104 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

  • 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

  • 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]

    http://www.iktva.sa/opportunitiesmailto:[email protected]