US / Saudi Business Opportunities Forum

Opportunities in Oil, Gas &

Petrochemicals

Munir M. Rafie

Objective

Share Business Opportunities Information

$125 billion capital budget

New crude oil increments

Refining and petrochemicals

260 Billion barrels of oil reserves (25% of global total)

263 trillion cubic feet of gas reserves

Best country for doing business: 11th of 181

Energy to the World

Saudi Arabia

Business Environment: Infrastructure

Technologies & Communications

Transportation & Logistics

Education & Health Utilities

Airports Electricity New Technologies Roads

Business Environment: Demographics

1980 2000 2005 2010 2015 20200

5

10

15

20

25

30

35

40

Population (Millions)

Young, educated current & future workforce

Saudi Aramco

World’s Largest Integrated Oil & Gas

Company

Daily Capacity:

Oil: 12 million barrels (MSC)

Raw Gas: 11 billion cubic feet

Domestic Refining Capacity:

1.9 million bbd refined product

Looking Forward…

“Over the next ten to twenty years, we intend to transform Saudi Aramco from just an oil and gas company into a fully integrated, truly global energy and chemicals enterprise with extensive operations in the Kingdom and throughout the globe.”

- Mr. Khalid A. Al-Falih, President & CEOMay 25th, 2011

Expansion into Petrochemicals

PetroRabigh, with Sumitomo

Sadara, with Dow

Petrochemicals Saudi Arabia

Saudi Aramco is a powerhouse energy provider to the world

Successful in our core business and expanding our reach into value added petrochemicals

Creating new opportunities for investors

Looking Forward…

Business opportunities

Plastics conversion industries

Infrastructure projects

Advanced technology

2012-2016 Capital Spending Saudi Aramco - $125 Billion Increase Local Content from 25% to 75%

Localization makes business sense Reduces risk Lowers costs Shortens response times

Enhances supply chain reliability

Supporting Localization

Anchor Projects

Services

Equipment Manufacturing

Base Metals

AdvancedTechnology

CommodityProducts

Well ServicesOffshore

Construction

Steel ProductsCasting and

Forgings

Economic Clusters

Anchor Industry

QA / QC Services

Electrical

Equip.

Svcs

Valve Manuf

Motor Repair

R&D

Retail Sales

Coating

Casting

Records Mgmt

Training

NDT

Matl

Heavy Equip.

HRClusters Concept

Provide a framework for

growth

Encourage SMEs

Attract local & foreign

investment

Create employment

Economic Clusters

Pipes and Structural Steel

$12.0 billion – 25% Local content

Columns, Vessels, Exchangers & Valves

$8.0 billion – 20% Local content

Compressors, Pumps and Turbines

$5.0 billion – 5% Local content

Instruments, Electrical and Transmitters

$5.0 billion – 20% Local content

Equipment Manufacturing

Chemicals, Drilling Fluids and Inhibitors

$4.0 billion – 45% Local content

Drilling and Producing Equipment

$4.0 billion – 20% Local content

Health, Safety, Security and Fire Equipment

$3.0 billion – 5% Local content

Construction and General Supplies

$2.0 billion – 20% Local content

Equipment Manufacturing

Business Success Factors already in place

11th easiest place to do business worldwide

Young, well-educated population

Plentiful energy supplies

Geographic access to Asia & Europe

Dynamic spending to nurture growth

Targeted business incentives

National support for localization

Supporting Localization

The message

What Invest in Saudi Arabia

When Now

Why $125 Billion Opportunity Strong GDP Growth Young Educated Population Modern infrastructure Targeted incentives

How

Investment Support

Doing Business With Saudi Aramco

Thank you

US / Saudi Business Opportunities Forum

Saudi Arabia

Investment Enablers

Khalid H. Juraifani

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Investment Enablers

Saudi Aramco’s

New Business Development Organization

Supports investors and companies access Saudi Arabia’s Investment Enablers and ensuring long-term economic sustainability of their

businesses.

Human Resources Development Fund (HRDF)

“One Stop Shop” Government Services:

• Investment license

• Commercial registration

• Government services (visa’s, work permits, tax)

• Economic Cities Authority (King Abdullah and Jazan)

Investment Enablers

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Human Resources Development Fund (HRDF)

Investment Enablers

Operator of Saudi Arabia's Industrial Cities:

• 18 strategic locations (East, West, and Central)

• Developed sites ($3.0 per m2)

• Power and utilities ($0.032 Kwh or $0.75 mmbtu)

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Human Resources Development Fund (HRDF)

Investment Enablers

Offer low interest loans in addition to technical and marketing support:

• $160 million or 50% of project, whichever is lower

• Effective interest rate as low as 2.0% per year

• Show of confidence for obtaining more loans

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Human Resources Development Fund (HRDF)

Investment Enablers

Support training and development of the National Workforce:

• Shares up to 50% of training cost

• Pays up to 75% of salary during training

• Provides customized programs as requested

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Human Resources Development Fund (HRDF)

Investment Enablers

Champion of local content in oil and gas industry:

• Support from feasibility to operations

• Offer 10% price premium for local manufacturers

• Show of confidence for obtaining more business

• Potential investor/partner

Saudi Arabia General Investment Agency (SAGIA)

Saudi Industrial Property Authority (MODON)

Saudi Industrial Development Fund (SIDF)

Saudi Arabian Oil Company (ARAMCO)

Human Resources Development Fund (HRDF)