offshore platforms fabrication investment ... - saudi...

Saudi Aramco: Public

Offshore Platforms Fabrication

Investment OpportunitiesNovember 2018


Disclaimer

The next slides contain forward-looking statements regarding future events based

on current expectations, estimates, forecasts, and projections. The data is subject

to updating, revision, further verification and amendment without notice. No reliance

may be placed for any purpose on the information or opinions contained in this

presentation or any other document or statement, or on the completeness,

accuracy or fairness of such information or opinions therein. No representation or

warranty, express or implied, is made or given by or on behalf of Saudi Aramco or

its employees, or any other person as to the accuracy or completeness or fairness

of the information or opinions contained in this presentation and no responsibility or

liability is accepted by any of them for such information or opinions or for any

errors, omissions, misstatements, negligent or otherwise, or for any communication

written or otherwise, contained or referred to in this presentation.


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

Localization is a focus for the KSA – Saudi Aramco’s IKTVA program aims to achieve

70% local content by 2021


Agenda – Offshore Investment Opportunities

No. Title of the Investment Opportunity Presenter

1 Opening Abdulrahman AlAbdulkarim, ID&SSD

2 Tubular SAW & SMLS Pipes for Platforms Structure Mazen Attar, Offshore Projects Dept.

3 Carbon Steel Pipes Mazen Attar, Offshore Projects Dept.

4 Flexible Pipes Mazen Attar, Offshore Projects Dept.

5 CRA Cladded Pipes Mazen Attar, Offshore Projects Dept.

6 Ball Valves Mazen Attar, Offshore Projects Dept.

7 Umbilical Cables Mazen Attar, Offshore Projects Dept.

8 Other Materials Mazen Attar, Offshore Projects Dept.


Tubular SAW & SMLS

Pipes for platforms structure


Establish state of the art

manufacturing facilities for

Tubular SAW and SMLS

pipes to serve growing KSA

demand.

The opportunity

The estimated volume of

Tubular SAW and SMLS pipes

used for platforms structure

within the next 5 years ~ 700

Thousands MT for Offshore

Projects only

The business case

Tubular SAW & SMLS Manufacturing represent an attractive opportunity given the current

gaps, expected demand and localization potential

Source: Saudi Aramco analysis

Saudi Aramco: Public7

• Last three years spend:

Saudi Aramco has spent over

$ 250 MM on purchases of

Tubulars for offshore platforms

projects

• Forecasted Five Years

Volume: The estimated

volume of Structural tubulars

required within the next 5

years ~ 700 K MT

Expected Market Size Demand for Tubular SAW and SMLS for Offshore

Platforms ONLY at Saudi Aramco

55000

75000

90000

120000 120000125000 125000

135000

2016 2017 2018 2019 2020 2021 2022 2023

Expected Market Size for Tubular SAW & SMLS



Introduction

• Tubulars are the main component needed for the fabrication of offshore facility.

• Used for the fabrication of topside deck, jacket main structure, boat landings, piles and

conductors.

What are the main type and sizes of tubulars used for fabrication ?

Tubular SAW & SMLS applications in offshore platforms fabrications

■ 48” * 1.5” API 5L X52 / API 5L Gr.B■ 42” * 1” API 5L X52 / API 5L Gr.B■ 36” * 1” API 5L X52 / API 5L Gr.B■ 32” * 1” API 5L X52 / API 5L Gr.B■ 30” * 1” API 5L X52 / API 5L Gr.B■ 20” * 1” API 5L X52 / API 5L Gr.B■ 16” * 0.75” API 5L X52 / API 5L Gr.B



• Design of structural steel is available at KSA.

• Iron Ore

• Steel Plates

• Steel Coils

• Round Billets

• Currently, few manufacturing facilities in KSA. However, with the forecasted volume of structural steel, it is recommended to have more available manufacturers.

Design Raw materials Manufacturing


Localization potential exists at most stages of the Tubular SAW & SMLS Pipes value

chain


Carbon Steel Pipes




Carbon Steel Pipes to serve

growing KSA demand.

The opportunity

The estimated volume of CS

pipes required within the next 5

years is around 700 KM

The business case

Carbon Steel Pipes Manufacturing represent an attractive opportunity given the

current gaps, expected demand and localization potential



Introduction

Carbon Steel (CS) pipes are required to transport production (oil & gas) from offshore wellheads to tie-in platforms and subsequently to onshore facilities for further processing.

What are the different sizes of CS pipes?

Carbon Steel pipes applications

Offshore projects required different sizes of carbon steel pipes depending on theproduction rate requirements:

10” 12” 16” 24” 30” 36”



• Saudi Aramco has

significantly spent on CS

pipes for offshore platforms

projects

• The estimated volume of CS

pipes required within thenext 5 years around 700 KM


Market Demand for Carbon Steel Pipes for Offshore Platforms ONLY

20212019 2020 2022 2023

100110

130

160

200

CS Pipes


•It is possible to design Carbon Steel pipes within KSA

•Iron Ore

•Steel Plates

•Steel Coils

•Round Billets

•Currently, limited manufacturing facilities in KSA

•Major opportunity for in-Kingdom manufacturing through partnerships with large tier

Design Raw materials Manufacturing


Localization potential exists at most stages of the Carbon steel value chain


Flexible Pipes




Flexible Pipes to serve growing KSA

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


Flexible pipes required within

the next 5 years ~ 70KM

The business case

Flexible Pipes manufacturing represent an attractive opportunity given the current




Introduction

1. Flexible pipes reduces operational, safety and environmental risks.

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

What are the main components of Flexible pipes?

Why it is important to use Flexible pipes

■ 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



• Past three years Saudi

Aramco spend around $ 35

MM investment on Flexible

pipes for offshore fields

• The estimated volume of

Flexible pipes required

within the next 5 years ~

70KM


10

12 12

15

20

Flexible Pipes

Market Demand for Flexible Pipes for Offshore Platforms ONLY

20212019 2020 2022 2023



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

•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 manufacturing facilities in KSA

•Major opportunity for in-Kingdom manufacturing through partnerships with large tier.

• Potential opportunity to offer consultation, spare parts, training, and testing.

Design Raw materials ManufacturingOperations & maintenance


CRA Cladded Pipes




CRA Cladded pipes to serve

growing KSA demand.

Potential for additional


bonding:

- Carbon Steel pipe

- Cladding Material

The opportunity

The estimated volume of CRA

pipes required within the next 3

years ~50-70 KM

The business case

CRA Cladded Pipes manufacturing represent an attractive opportunity given the

current gaps, expected demand and localization potential



Introduction

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.

What are the different methods of CRA bonding?

Why it is important to use CRA Cladded pipes

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.



• Saudi Aramco has spent over

$ 65 MM on CRA Cladded

pipes for offshore platforms

projects

• The estimated volume of CRA

pipes required within the next

5 years ~50-70 KM


Market Demand for CRA cladding for Offshore Platforms ONLY

10

15 15

20 20

CRA Cladded Pipes

20212019 2020 2022 2023


•It is possible to design CRA cladded pipes within KSA.

•Carbon steel pipes

•CRA Clad Material

• Depending on method of bonding the component may vary.

•Currently, limited manufacturing facilities in KSA

•Major opportunity for in-Kingdom manufacturing through partnerships with large tier

• Potential opportunity to offer consultation, training and capability development, and testing.

Design Raw materials Components ManufacturingOperations & maintenance


Localization potential exists at most stages of the CRA Cladded pipes value chain


Ball Valves




ball vales to serve growing

KSA demand.

After sales services are

required only for warranties

purposes & periodic

maintenance.

The opportunity

The estimated volume of ball

valves required within the next

5 years is around 50 K Valves

for Offshore application

The business case

Ball Valves Manufacturing Represent an Attractive Opportunity Given the current




Introduction

• It is used at both topside platform and subsea flowlines,

• to control production and isolate facilities when necessary.

What are the Main Components of a Ball valve?

Ball Valves applications in offshore platforms

The ball valves consist of many components the

following are the major ones:

• Valve Body/Shell

• Bearing.

• Trim

• Actuator

• Indicator




$ 100 MM to procure ball

valves for offshore platforms

applications

• The estimated volume of ball

valves required within the

next 5 years is around 50 K

Valves


Expected market size for Ball Valves for Offshore Platforms ONLY

9000

10000 10000

11000

12000

2019 2020 2021 2022 2023

Expected Market Size for Ball Valves for Offshore Platforms ONLY


•Design could be done in Saudi Arabia.

•Raw materials varies depending on the platform service and type of product.

• Ball valves contain many components such as actuators, valve body, bearing etc. that are potential to be localized in KSA.

•Currently, limited manufacturing facilities in KSA.


• Potential opportunity to offer consultation, spare parts, training and capability development, and testing.

Design Raw materials Components ManufacturingOperations & maintenance


Localization potential exists at most stages of the ball valves value chain


Umbilical Cables


• Potential for additional

manufacturing facilities for:

• Electrical cables

• Fiber optics cables

• Potential to develop 1-2

assembly facilities in

collaboration with large global

players

• Testing is required at

manufacturing facilities and

post installation. After services

are also required

The opportunity


Umbilical cables required within

the next 5 years is around 30-

40 KM

The business case

Umbilical cables Manufacturing Represent an Attractive Opportunity Given the current




Introduction

• Umbilical cables serve as a link between surface and subsea oil and gas equipment for (control, power

and/or heat).

• They provide electric and fiber-optic signals, electrical power, hydraulic and chemical injection fluids.

What are the main umbilical components?

Why it is important to use Umbilical

• Electrical cable: insulated single or multi-core power cable.

• Fiber optics cable – communication requirements.




$ 29 MM on Umbilical for

offshore platforms projects

• The estimated volume of CRA

pipes required within the next

5 years is around 30-40 KM


Expected market size for Umbilical Cables used in Offshore Platforms ONLY

6

8

9 9

10

EXPEC TED MAR K ET S IZE FOR U MBILIC AL C ALBES IN ( K M)

20212019 2020 2022 2023


•It is possible to design umbilical within KSA.

•Many raw material are considered for the manufacturing of the main components of the umbilical cables.

• Power cables.

•Communication (fiber optic cables).

•Insulators.

•Currently, No manufacturing facilities available in KSA


• Potential opportunity to offer consultation, spare parts, training and capability development, periodic maintenance and testing.

DesignRaw

materialsComponents Manufacturing

Operations &

maintenance


Localization potential exists at most stages of the Umbilical

cables value chain


Other Materials


• The estimated volume of

Other material required within

the next 5 years is reflected in

the chart


Expected market size for Other materials used in Offshore Platforms ONLY

300000

600000

Piping Components (each)

Flanges Gaskets

4455

2700

E & I Components (KM)

Electrical Cables Instrument Cables


Key messages

Please Direct All Inquiries To:

1.Offshore Platform and maintain potential

Workload and projects is expected to increase

2. The investment opportunities related to the

components of Offshore Platforms includes

Structural steel pipes, Carbon Steel Pipes,

Flexible Pipes, CRA Pipe cladding, Ball

Valves, and Umbilical cables

3. We invite you to engage with us and send

us an Expression of Interest to grow your

business in Saudi Arabia

In case you are interested in discussing this opportunity further, please contact

Khaled Al-Ghadhban

Business Development Engineer

Saudi Aramco

[email protected]

Office number: +966-13-8741417

Abdulrahman Al-Abdulkarim

Business Development Consultant

Saudi Aramco

Aramco E-mail: [email protected]

Office number: +966-13-8740307

mailto:[email protected]

mailto:[email protected]


Thank you

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