investing for the futuresaudi aramco has come a long way… dammam #7 manifa 27 man-made islands 41...
TRANSCRIPT
Investing for the FutureMr Abdulaziz M. Al-Judaimi, SVP Downstream, Saudi Aramco
©2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.
The inspirational beauty of Florence
“The greater danger for most of us lies not in
setting our aim too high and falling short…
…but in setting our aim too low,
and achieving our mark”
Michelangelo
Saudi Aramco has come a long way…
Dammam #7Manifa
27 man-made islands
41 km of causeway
3,000 Barrels per day1938
+10,000,000 Barrels per day2018
Oil & Gas is no stranger to volatility and uncertainty
Brent Price Evolution
0
20
40
60
80
100
120
140
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Real Prices (2017)
$USD / bbl
Saudi Aramco’s
First Well
Oil Crises
Source: Platts, 2017
Since the 2014 downturn, the industry has continued
to underinvest
Liquid Demand Global Investments
MMBD $Bn
Industry investments lagging by 1 Trillion USD
2010 2012 2014 2016 2018 2020 2022
800
600
400
1,000
678
511
-43%
Source: Rystad Energy
Includes all Upstream CAPEX (exploration and development for
O&G project
85
90
95
100
105
110
2010 2015 2020 2025
Source: IEA, 2017 New Policies Scenario
96.3
102.8
2016
We will continue to reinforce our preeminent position in oil and gas
Major Gas Projects
Marjan/Tanajib GP
2.6
BSCFD
Haradh GP
1.1
BSCFD
Fadhili GP
2.5
BSCFD
Marjan
300
MBD
Zuluf
600
MBD
Khurais
300
MBD
Major Oil Projects
Saudi Aramco has continued to make major investments
Source: Saudi Aramco Upstream
Image: DigitalGlobe
Saudi Aramco is investing across the value chain
to deliver yet more value from Downstream
Petro Rabigh Jazan RAPID
Investments in Refining and Chemicals
Sadara
Our ground-breaking Crude Oil to Chemicals program
Phase I: Integrated Crude to Chemicals Phase II: Direct Crude to Chemicals
HigherChemicals
yield
Maximizevalue of each
barrel of crude
400 MBDCrude
Processed
9 Million TonsAnnual
Chemical
Products
2025Target
Completion
Crude Oil ChemicalsRefineryChemical
PlantCrude Oil Chemicals
Petrochemical
Complex
Proprietary
TechnologyThermal Crude to
Chemicals (TC2C™)
Innovative and
Unprecedented
Configuration
Technology First -
Direct Conversion
Process
Leader in low GHG emissions
Source: World Bank – M3 per Barrel Oil Produced
2015 Flaring Intensity
Source: World Bank – M3 per Barrel Oil Produced
Member of
We are deploying a wide range of cutting edge
technologies to maintain our competitiveness
Environment
Productivity Reliability
powering innovation through
Digitalization
Reservoir
Management
Big dataCyber security
IoT Intelligent assets
Cloud computing Robotics
Our intent is to be the world’s leading integrated energy
and chemicals Company
Oil
Largest
producer10+
MMBD
Gas
Major Gas
Producer14+
BSCFD
Refining
Major
Refiner5+
MMBD
Chemical
Top Tier
Producer14+
MMT
Building our ecosystem through collaboration with service providers
A wide range of investments to improve our ecosystem
Infrastructure
Development
▪ Value Parks
▪ Maritime Complex
▪ Energy Park
Partnerships with
Service Industry
▪ Onshore drilling JV
▪ Offshore JV
▪ PMC
iktva
(Localization)
▪ Human Capital
▪ Local Capabilities
▪ Supply Chain
Development
We are building world-scale infrastructure to facilitate
local services and supply chains
27/10/2014
Copyright note text (8pt)
Ras Al Khair
Plaschem Park
SPARK
Jazan City
PlusTech
Value Parks King Salman International Complex
King Salman Energy Park
Specialized
Training
Logistics
Zone
Saudi
Aramco Hub
▪Warehouses facilities
▪ Redistribution centers
▪ 4 Training centers for
Upstream
▪Drilling & workover
HQ
In summary …
▪ As the industry recovers, it will need to maintain focus on productivity, cost
effectiveness, and environmental responsibility
▪ The best companies will deploy technology as a vital differentiator
▪ Saudi Aramco continues to invest to maintain our preeminence in oil and gas
Aiming high… and achieving the mark
Investing for
the Future
© Saudi Arabian Oil Company 2018
Florence, Italy
January 29, 2018