Offshore Platforms Fabrication Investment Opportunities · 2020. 3. 11. · Pipelines & Cables Deck PRODUCTION Seabed Jacket. Saudi Aramco: Public SSS Wellhead Platform TIE-IN Tie

Offshore Platforms Fabrication

Investment OpportunitiesFebruary 2020

© 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 ofoperations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These statements include allmatters 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 negativesthereof 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 bysuch forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations are contained incautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and available athttps://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 theCompany operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the oil and gas, refiningand 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 theCompany’s growth; (10) risks in connection with projects under development and recent and future acquisitions and joint ventures, includingwith respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint ventures, associates and entities in which it holds aminority interest; (12) the Company’s exposure to interest rate risk and foreign exchange risk; (13) risks related to operating in a regulatedindustry 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 inwhich 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 behalfare expressly qualified in their entirety by the cautionary statements referred to above.


Saudi Aramco: PublicSaudi Aramco: Public

Localization is a focus for the KSA – Saudi Aramco’s iktva program aims to achieve 70% local content

Drives domestic value creation by working with suppliers for mutual benefits

Envisions to improve investment, and maximize long term economic growth and diversification

Focuses on delivering quality jobs, advancing innovation and enhancing global competitiveness

iktva is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers



Agenda – Offshore Investment Opportunities

No. Title of the Investment Opportunity Presenter

1 Opening Mohammad AlKhunaini, ID&SSD

2 Offshore Project Introduction

Abdulaziz Alsultan, Offshore Projects Dept

3 Forecasted workload

4 Flexible pipes

5 CRA cladded pipes

6 Umbilical cables

7 Geotechnical and geophysical services

Ibrahim Alateeq, Offshore Projects Dept

8 Cable ducts

9 Sacrificial anodes

10 Fittings

11 Helidecks lightings

12 Instruments tubes


Saudi Aramco: Public

SSS Wellhead

Platform

TIE-IN

Tie In

Platform

GOSP

Onshore/

Offshore

Gas Plant

Onshore

TYPICAL OFFSHORE FACILITY

Jacket

Pipelines & Cables

Deck

PRODUCTION

Seabed

Jacket


SSS Wellhead

Platform

TIE-IN

Tie In

Platform

GOSP

Onshore/

Offshore

Gas Plant

Onshore


PRODUCTION

Deck


SSS Wellhead

Platform

TIE-IN

Tie In

Platform

GOSP

Onshore/

Offshore

Gas Plant

Onshore


PRODUCTION

P/Ls & Cables


SSS Wellhead

Platform

TIE-IN

Tie In

Platform

GOSP

Onshore/

Offshore

Gas Plant

Onshore


PRODUCTION

Tie-in

Platform

Business Opportunity

a. Flexible Pipes



Flexible Pipes

Introduction

• Interlocked Stainless steel carcass

• Internal pressure sheath, Poly Vinylidene Fluoride (PVDF) and high

density polyethylene (HDPE)

• Pressure Armor, made from rolled carbon steel

• Tensile armor made from wires.

• Outer thermoplastic sheath, made from non-metallic material

1. Flexible pipes are used to transport oil from platform to main header

2. Flexible pipes increases reliability to ensure extended life of equipment

3. A proven record that flexible pipes may be utilized for all water depths

Why it is important to use Flexible pipes?

What are the main components of Flexible pipes?



Flexible Pipes

• Manufacturing flexible pipes IK to serve

growing offshore projects demand

• Additional opportunities for SMEs to

manufacture component such as

Interlocked Stainless steel, Internal

pressure sheath, high density polyethylene

(HDPE), Pressure Armor, Tensile armor

made from wires, Outer thermoplastic

sheath, Fittings (i.e. Couplings )

The Opportunity

• The estimated volume of flexible pipes

required within the next 5 years ~ 80KM

The Business Case



The estimated volume of Flexible pipes required within the next 5 years ~ 80KM

For the last three years Saudi Aramco has spent around $ 35 MM on flexible pipes for offshore fields

Flexible Pipes

Expected Market Size for Flexible Pipes for Offshore Projects (KM)

12 1215

20 21

2020 2021 2022 2023 2024



Design Raw materials ManufacturingOperations &

maintenance

Flexible Pipes

Localization potential exists at most stages of the Flexible pipes value chain

Design Raw materials ManufacturingOperations &

Maintenance

• It is possible to

design Flexible

pipes within KSA

• Multi different

components

required as a raw

material to

manufacture the

flexible pipes

including carbon

steel and non-

metallic material

• Currently, there

are no approved

manufacturing

facilities in KSA

• Potential

opportunity to

offer consultation,

spare parts,

training, and

testing.



b. CRA Cladded Pipes



CRA Cladded Pipes

Introduction

• Metallurgical bond (CRA Clad pipes):

• Metallurgical bond is achieved by hot rolling or weld overlay

• Mechanical bond (CRA lined pipes):

• Mechanical bonding between the backing steel pipe and the CRA pipe

by use of spring back variation.

1. Because of the corrosive nature of oil and gas production.

2. The need to transport the products over long distances with higher

pressure.

3. Rising demand for utilization of non-corrosive material or material that

can increase the asset lifetime

Why it is important to use CRA Cladded pipes?

What are the different methods of CRA bonding?



CRA Cladded Pipes

• Manufacturing facility for CRA Cladding

services IK.

• Potential for additional manufacturing

facilities for bonding:

• Carbon Steel pipe

• Cladding Material

The Opportunity

• The estimated volume of CRA pipes

required within the next 5 years ~90 KM

The Business Case



The estimated volume of CRA pipes required within the next 5 years ~90 KM

For the last three years, Saudi Aramco has spent over $ 65 MM on CRA Cladded pipes for offshore projects

CRA Cladded Pipes

Expected Market Size for CRA Cladded Pipes for Offshore Projects (KM)

15 1520 20 20

2020 2021 2022 2023 2024



Design Raw materials

CRA Cladded Pipeline

Design Raw materials Manufacturing

• It is possible to design CRA

pipes within KSA.

• Carbon steel pipes

• CRA Clad Material

• Major opportunity for in-

Kingdom manufacturing

through partnerships with

large tier.

Localization potential exists at most stages of the CRA pipeline value chain



C. Umbilical Cables



Umbilical Cables

Introduction

• Low voltage power cable

• Hydraulic tubes

• Sheathing

1. Umbilical cables serve as a link between topside and subsea valve skids for

control purpose.

2. Normal medium used is hydraulic oil

Why it is important to use Umbilical?

What are the main umbilical components?



Umbilical Cables

• Potential to develop 1-2 assembly facilities

to manufacture this commodity

• After services is also required

The opportunity

• The estimated volume of Umbilical cables

required within the next 5 years is around

40 KM

The Business Case



The estimated volume of umbilical required within the next 5 years is around 46 KM

For the last three years Saudi Aramco has spent over $ 29 MM on Umbilical for offshore platforms projects

Umbilical Cables

Expected Market Size for Umbilical Cables for Offshore Projects (kM)

89 9 10 10

2020 2021 2022 2023 2024




Umbilcal


• It is possible to design

umbilical within KSA.

• Many raw material are

considered for the

manufacturing of the main

components of the

umbilical cables.

• Currently, No

manufacturing facilities

available in KSA

Localization potential exists at most stages of the Umbilcal value chain



d. Offshore Geotechnical & Geophysical surveys



Geotechnical and Geophysical Services

Introduction

• Sonar (multi-beams)

• Core/soil sampling drilling equipment

• Vessels will be required to accompany the equipment for shallow and

deep water areas

• Soil testing laboratory

The bathymetric surveys of seabed and soil investigation are important to be

obtained in order to perform the detailed design of offshore facilities including

jackets, subsea cables and pipelines

Why it is important to use Geotechnical and Geophysical Services?

What are the main Geotechnical & Geophysical Services

components?




• Provide offshore geotechnical and

geophysical services for offshore facilities

projects

The opportunity

• The expected utilization rate is around 8-10

months per year where vessels can be

parked IK.

The Business Case



The estimated volume of Geotechnical and Geophysical Services required within the next 5 years

For the last three years Saudi Aramco has spent over $ 120MM on offshore Geotechnical and Geophysical services


Expected Market Size for Geotechnical & Geophysical Services ($MM)

20

40 4050 50

2020 2021 2022 2023 2024



e. Cable Duct



Cable Duct

Introduction

• Nonmetallic

Cable Duct is a non-metallic product used to protect subsea power cables and

umbilical against dropped objects and provide additional ballast

Why it is important to use Cable Duct?

What are the main cable duct components?



Cable Duct

• Manufacturing cable ducts IK to support

subsea cables and umbilical installation

projects. Currently, no vendors IK.

The opportunity

• The estimated volume of cable duct within

the next 5 years ~ 50,000 modules.

The Business Case



This is a new product

Forecasted Five Years Volume: The estimated volume of cable ducts required within the next 5 years ~ 50,000 modules

Cable Duct

Expected market size for Cable Duct for Offshore Projects (X1000 Modules)

8 810 10

14

2020 2021 2022 2023 2024




Cable Duct


• Standard Design • Nonmetallic

(Polyethylene)

• Currently, no

manufacturing facilities in

KSA. However, with the

forecasted volume of

subsea cables, it is

recommended to have

available manufacturers

to produce Cable ducts IK.

Localization potential exists at most stages of the cable duct value chain



f. Sacrificial Anodes



Sacrificial Anodes

Introduction

• Aluminum, Zinc, magnesium

Sacrificial anodes are used to protect the subsea facilities mainly offshore

jackets from corrosion.

Why it is important to use Sacrificial Anodes?

What are the main Sacrificial Anodes components?



Sacrificial Anodes

• Manufacture Sacrificial Anodes IK.

Currently, no IK vendor supply these

anodes for offshore projects.

The opportunity

• The estimated volume of Sacrificial Anodes

within the next 5 years ~ 26,000 Anodes

The Business Case



Forecasted Five Years Volume: The estimated volume of Sacrificial Anodes required within the next 5 years ~ 26,000

For the last three years, Aramco spent around $ 7.2 MM on sacrificial anodes for offshore only.

Sacrificial Anodes

Expected Market Size for Sacrificial Anodes (x1000 Anodes)

8 810 10

14

2020 2021 2022 2023 2024




Sacrificial Anodes


• Standard Design • Aluminum, Zinc,

magnesium

• Currently, no




jackets and associated

subsea pipelines, it is

recommended to have


to produce the anodes in

KSA

Localization potential exists at most stages of the sacrificial anodes value chain



g. Fittings for topside piping



Fittings for topside piping

Introduction

• Carbon Steel

• Inconel

• Copper nickel

• SS

Fittings are used to mainly connect piping system together.

Why it is important to use fittings

What are the main fittings components?




• Manufacturing all type of fittings for topside

piping of offshore facilities. Currently, there

is no IK vendor.

The opportunity

• The estimated volume of fittings within the

next 5 years ~ 250,000 fittings

The Business Case



Forecasted Five Years Volume: The estimated volume of fittings required within the next 5 years ~ 250,000 fittings different sizes

For the last three years, Aramco spent around $9MM for the fittings at offshore only.


Expected Market Size for Fittings for Offshore Projects (x1000 fittings)

4247 50 55 55

2020 2021 2022 2023 2024






• Standard Design • SS

• CS

• Inconel

• 6Mo

• Copper nickel

• Currently, no




fittings which will be

required at every offshore

platform, it is

recommended to have


IK.

Localization potential exists at most stages of the fittings value chain



h. Helideck Lightings



Helideck Lightings

Introduction

• LED lights.

• Glass

• steel

Lighting of helideck is required to allow chopper for landing at night on offshore

facilities

Why it is important to use helideck lightings

What are the main helideck lightings components?



Helideck Lightings

• Manufacturing Helideck lightings IK.

Currently, no vendors IK.

The opportunity

• The estimated volume of Helideck lightings

within the next 5 years ~ 6000 lights for

offshore Projects.

The Business Case



Forecasted Five Years Volume: The estimated volume of Helideck lightings required within the next 5 years ~ 6000 lights.

For the last three years, Aramco spent around $4.2MM for helideck lights at offshore.

Helideck Lightings

Expected Market Size for Helideck Lightings (x1000 Lights)

11.2 1.2 1.3 1.3

2020 2021 2022 2023 2024




Helideck Lightings


• Standard Design • LED

• Glass

• Steel

• Currently, no




helidecks lighting which

will be required at every

offshore platform, it is

recommended to have


IK.

Localization potential exists at most stages of the helideck lightings value chain



i. Instruments Tubes



Instruments Tubes

Introduction

• SS

• Inconel

• 6Mo

Instruments tubes are used to connect all instrument devises and transferring

some of the liquid like hydraulic oil for ESD system and Chemical Inhibitor (CI).

Why it is important to use instruments tubes?

What are the main components of instruments tubes?



Instruments Tubes

• Manufacturing instruments IK. Currently,

no IK vendor.

The opportunity

• The estimated volume of instrument tubes

within the next 5 years ~ 600,000 m for

offshore projects only.

The Business Case



Forecasted Five Years Volume: The estimated volume of instruments tubes required within the next 5 years ~ 600,000 m

For the last three years, Aramco spent around $ 6MM for instruments tubes at offshore.

Instruments Tubes

Expected Market Size for Instruments Tubes (kM)

110 110

120

130 130

2020 2021 2022 2023 2024




Instruments Tubes


• Design is standardized • SS

• Alloy

• Currently, no




instrument tubes which

will be required at every

offshore platform, it is

recommended to have


IK.

Localization potential exists at most stages of the instruments tube value chain



In case you are interested in discussing these opportunities further, please contact

For More Business Development & Market Information Visit:

Website: www.iktva.sa/opportunities

Email: [email protected]

Mohammad Al-Khunaini

Business Development Analyst

Saudi Aramco

[email protected]

Office number: +966-13-874-0546

Abdulrahman Al-Abdulkarim

Business Development Consultant

Saudi Aramco

Aramco E-mail: [email protected]

Office number: +966-13-8740307

http://www.iktva.sa/opportunities

mailto:[email protected]



Thank You


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Offshore Platforms Fabrication Investment Opportunities · 2020. 3. 11. · Pipelines & Cables Deck PRODUCTION Seabed Jacket. Saudi Aramco: Public SSS Wellhead Platform TIE-IN Tie

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