Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

May 2005

Regional WorkloadOUTLOOK

2005-2010

2Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Regional Workload Outlook2005-2010

• Gulf Region Workload

• Challenges

3Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Gulf Region Projects Outlook

2005-2010 Projects2005-2010 ProjectsProjects greater than $200 millionProjects greater than $200 million

Total: $ 421 Billion Total: $ 421 Billion

4Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Gulf Region Projects Outlook

Engineering WorkloadEngineering Workload

0

20

40

60

80

100

2004 2005 2006 2007 2008 2009 2010

Mil

lio

n M

anh

ou

rs

533 MM Hours

111 MM Hours

5Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Gulf Region Projects Outlook

Construction WorkloadConstruction Workload

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2004 2005 2006 2007 2008 2009 2010

Bil

lio

n M

anh

ou

rs

2.00 Billion Hours

10 Billion Hours

6Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

2004 Purchasing Level ActivitySaudi Aramco

IK ManufacturedIK VendorsOOK

70%70%

11%11%

19%19%

7Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Materials - Saudi Aramco

IK ManufacturedHigh-TechOOK Manufactured

Potential

49%49%

19%19%

32%32%

8Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Fragmentation

Traditional family-controlled business structures

Large numbers of small and medium sized firms

Duplication of efforts

Lack of economies of scale

Limited range of services due to technological and financial capacities

9Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Knowledge & Technology Transfer

Reduced Overhead

Acquire a Competitive Advantage

Risk Sharing

Regional & International Capabilities

ConsolidationMergers - Joint Ventures - Strategic Alliances

10Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Expand Training & Education

Maximize IT Utilization

Invest in R&D

Optimize Processes

Reduce Cost & Schedule

Improve Productivity

Competitiveness

11Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

CurrentImprovedCurrentImproved

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$0

$10

$20

$30

$40

$50

Improving productivity by just 5%5% per year

realizes a savings of almost

$25 billion$25 billion!

Improving productivity by just 5%5% per year

realizes a savings of almost

$25 billion$25 billion!

Bil

lio

ns

per

Yea

rBenefits of Improved Productivity

12Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

• Huge Investment Opportunities

• Sustainable Economic Growth

Summary

Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

May 2005

Regional WorkloadOUTLOOK

2005-2010

29Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Saudi Aramco Projects Outlook

Engineering WorkloadEngineering Workload

0

2

4

6

8

10

12

14

16

2004 2005 2006 2007 2008 2009 2010

Mil

lio

n M

anh

ou

rs

Saudi Aramco

14 MM Hours

58.5 MM Hours

30Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

Saudi Aramco Projects Outlook

Construction WorkloadConstruction Workload

0.00

0.20

0.40

2004 2005 2006 2007 2008 2009 2010

Bil

lio

n M

anh

ou

rs

Saudi Aram co

340 MM Hours

1.36 Billion Hours