Environmental Investment Opportunities - IKTVA · Saudi Aramco: Public 116,000 153,000 121,000...

EnvironmentalInvestment Opportunities

February 24, 2020

Disclaimer

This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position, results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These statements include all matters 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 negatives thereof 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 by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and available at https://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 the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the oil and gas, refining and 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 the Company’s growth; (10) risks in connection with projects under development and recent and future acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign exchange risk; (13) risks related to operating in a regulated industry 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 in which 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 behalf are expressly qualified in their entirety by the cautionary statements referred to above.

iktva Program Overview

• Drives domestic value creation byworking with suppliers for mutualbenefits

• Envisions to improve investment, andmaximize long term economic growthand diversification

• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness

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

The IN-KINGDOM TOTAL VALUE

ADD (iktva) Program

EnvironmentalInvestment Opportunities Outline

7 Investments Opportunities

1. Waste Management Technologies

2. Mobile Waste Management Technologies

3. Management of Special Types of Waste

4. Radiation Protection Services

5. Naturally Occurring Radioactive Material (NORM) Disposal

6. Environmental Health Services

7. Monitoring & Compliance Assessment Program

Session Title Presenter

Opening Abdulrahman Alkhalaf, (ID&SSD)

Value Proposition 1: Waste Management Technologies Tamim A Buraikan (EPD)

Value Proposition 2: Mobile Waste Management Technologies Tamim A Buraikan (EPD)

Value Proposition 3: Management of Special Types of Waste Tamim A Buraikan (EPD)

Value Proposition 4: Radiation Protection Services Michael Cowie (EPD)

Value Proposition 5: Naturally Occurring Radioactive Material (NORM) Disposal Michael Cowie (EPD)

Value Proposition 6: Environmental Health Services Jason Hall (EPD)

Value Proposition 7: Monitoring & Compliance Assessment Program Abdulaziz Al-Ghowainem (EPD)

Closing Abdulrahman Alkhalaf, (ID&SSD)

Agenda – Environmental Investment Opportunities

Saudi Aramco: Public

To seek local environmentally

acceptable and cost effective

solutions that would:

Meet Saudi Aramco and

government Environmental

regulations,

Minimize environmental and

health risks,

Recover value from Saudi

Aramco generated waste.

Objective Opportunities

Environmental Management Services Represent an Attractive

Opportunity Given the current gaps, expected demand and

localization potential

© Saudi Arabian Oil Company, 2020


116,000

153,000

121,000

232,000 234,500

266,100

297,700

329,300

2016 2017 2018 2019 2020 2021 2022 2023

Historical and Forecasted demand for Industrial Waste in (Tons)

7

Saudi Aramco’s Historical and Forecasted demand for Industrial Waste in (Tons) excluding Drilling and

Workover waste.Source: Saudi Aramco analysis

Historical

Forecasted



16%

9%

10%

24%

22%

19%

Spent Chemicals Other Hazardous Waste Contaminated Sand

Oily Wastewater Oily Sludge Oil Based Mud Cuttings

2019 Saudi Aramco Generated Industrial Waste Breakdown



Industrial Waste Management

Opportunity 2: Mobile Waste Management

Technologies

Opportunity 1: Waste Management

Technologies

Opportunity 3: Special Waste Management

Studies

Environmental Investment Opportunities


Waste Management Technologies



11Source: Saudi Aramco Internal Analysis

Fully Integrated Waste Management Facilities

Waste to Energy

Recycle/Recover/Regenerate of Spent Catalyst.

Manufacture of rubber substitute




12


Waste to Energy



Source: Saudi Aramco Internal Analysis




13


Waste to Energy







14


Waste to Energy



Recycle




15


Waste to Energy



Recover

Alumina Molybdenum Nickel

Cobalt Vanadium Platinum




16


Waste to Energy



Regenerate




17


Waste to Energy



21 MM Used Tires are generated annually




18


Waste to Energy




Mobile Waste Management Technologies



20

Automatic Tank Cleaning

Recover Hydrocarbons from Oil Contaminated Sand

Portable Waste Analyzers



21






22





Special Waste Management Studies

23

Circular Economy

Life Cycle Analysis

Site Characterization Assessment



24

Circular Economy

Life Cycle Analysis




25

Circular Economy

Life Cycle Analysis




26

Circular Economy

Life Cycle Analysis


Radiation Protection Services


The provision of a range of

radiation protection support

services, including but not limited

to:

• Radiometric Analysis

• Radiation Dosimetry Services

• Radiation Detector Calibration

& Repair

• Radiation Survey

• Radiation Training

The opportunity

1. Currently limited availability

2. Growing requirement due to:

• Increased use of Radiation

based technologies

• Impact of NORM

• Implementation of nuclear

power

• Increased regulatory

requirement

The business case

Radiation Protection Services represent an attractive opportunity given current gaps, expected demand and localized potential.


Technical Specification

Total Alpha determination

Total Beta determination

Gamma Spectrometry

Liquid Scintillation counting

Main Function

Provision of qualitative &

quantitative information on

presence of radioactivity. Required

for disposal of wastes, workers

protection & environmental

controls

Radiometric Analysis



Provision of government approved

and permitted service for:

External Dosimetry

Internal Dosimetry*

Main Function

To determine radiation exposure

of workers, this is a legal

requirement.

* No current requirement within Saudi Aramco at moment, but may be

required if Kingdom expands further into Nuclear power.

Radiation Dosimetry Services



Ability to accurately assess the

response of radiation detectors in

compliance with international

standards and government

requirements.

• IAEA Safety Report No16

• The Examination, Testing and

Calibration of Portable

Radiation Protection

Instruments – Measurements

and Good Practice Guide’,

produced by the National

Physical Laboratory

Required for:

• Alpha/Beta contamination

detectors

• Gamma radiation detectors

• Neutron radiation detectors

Main Function

Radiation detectors must be

calibrated every 12 months to

ensure they are functioning

correctly.

Repair and replace components to

ensure satisfactory performance of

radiation detectors.

Radiation Detector Calibration & Repair


Radiation Survey


Alpha contamination levels (fixed

& loose)

Beta Contamination levels (fixed &

loose)

Gamma radiation dose-rates

Neutron dose-rates

Main Function

The measurement and assessment

of ionizing radiation &

contamination levels associated

with man-made sources and NORM

impacted operations.



• Radiation Protection for

Industrial Radiography

• Radiation Protection for NORM

workers

• Radiation Protection Officer

Certification Preparation

• Transport of Radioactive

Material

• Radiation Protection for Rig

Foremen

• Radiation Protection for

Nuclear Gauge Operators

Main Function

Provision of radiation training to

support operations where ionizing

radiation sources are used or

operations are impacted with

NORM.

* No current requirement within Saudi Aramco at moment, but may be

required if Kingdom expands further into Nuclear power.

Radiation Training Services


Saudi Aramco Radioactive Source Inventory

Increase in source inventory increases the workload to ensure safety, security and compliance.

There is a significant increase

in the use of radioactive

material in Saudi Aramco

operations.

This inventory requires

services to ensure the safety

of workers, the security of

sources and compliance with

Government requirements.

900

1300

1600

3000

0

500

1000

1500

2000

2500

3000

3500

2017 2018 2019 2020

Radioactive Source Inventory



Anticipated Support Services Requirements

Licensing, Administration, Certification, Training, Monitoring, Calibration …

The minimum

activities to

ensure

compliance with

Corporate

standards.

14400

20800

25600

48000

0

10000

20000

30000

40000

50000

60000

2017 2018 2019 2020

MA

N H

OU

RS

Minimum Workload to support Radioactive Source Inventory


Naturally Occurring Radioactive Material

(NORM) Disposal


Saudi Aramco’s operations

and that of others in KSA

produces NORM waste. This

waste must be disposed in a

controlled manner in a

government approved

disposal facility.

Saudi Aramco seeks disposal

routes or technologies to

dispose of its NORM waste.

The opportunity

1. Current inventory around

10000m3

2. Anticipated to increase annually

as water-cut increases

3. Other NORM waste producers:

• Water-treatment

• Mining

• Phosphate

The business case

NORM is an unwanted by-product of oil & gas production, the waste must be disposed in a controlled manner.


NORM Disposal


Pre-Treatment to ensure suitable

for disposal option/s:

• Physical

• Chemical

• Biological

• Thermal

Systems in place for:

• Collection/Transportation

• Processing

• Disposal

• Monitoring

• Compliance

• Licensing

Main Function

Risk & Cost analysis already

identified:

• Underground Injection

• Class One Landfill


Specific Activity (Bq/g)

Nuclide Scale Sludge Scrapings

Ra-226 0.1 to 15000 0.05 to 800 0.01 to 75

Pb-210 0.02 to 75 0.1 to 1300 0.06 to 50

Po-210 0.02 to 1.52 0.003 to 160 0.1 to 4

Worldwide reported levels of NORM

Currently, Saudi Aramco NORM waste is at lower end, but is anticipated to rise.

NORM Activity Concentrations


Waste at or below these levels can be disposed without radiological control.

Saudi Aramco NORM Waste Exemption Levels


Saudi Aramco NORM waste inventory

5000m3 waste per ten

years. Increase also

anticipated with

increased water cut.5,000

10,000

15,000

2008 2018 2028

Was

te V

olu

me

(m

3)

Historic & Postulated Data on NORM waste for Disposal


Environmental Health Services


The provision of a range of

environmental health support

services, including but not limited

to:

• Contractor Camp

Environmental Health

Inspections

• Food sampling analysis

• Water sampling analysis

The opportunity

1. Currently limited availability of

competent qualified personnel

2. Growing requirement due to:

• Increased project scopes

across the company

• Public health impact relating to

communal contractor camp

living

• Public health impacts relating

to food safety

• Public health impacts relating

to water safety

The business case

Environmental Health Services represent an attractive opportunity given current gaps, expected demand and localized potential.



• Contractor camp public health inspection

• Communicable disease control at camp

facilities

• Food microbiology analysis

• Water microbiology analysis

Main Function

Provision of qualitative & quantitative

information relating to public health impacts

at communal contractor camp sites, spread of

communicable disease & food and water

sampling/analysis.

Contractor camp inspection, food & water analysis


Food & water analysis demand

0

20

40

60

80

100

120

140

160

2016 2017 2018 2019

Food Samples

0

100

200

300

400

500

600

700

800

2016 2017 2018 2019

Water Samples


Contractor Camp Inspection demand


Food & Water Laboratory Services

EPD conducts and submits approximately 120

food and 800 water samples respectively per

year for microbiological analysis.

Each sample takes approximately 2 hours

including sample and administration plus

additional time for the sample to be analyzed

and interpreted.

CCEHI Man Hours

EPD conduct in excess of 1400 CCEHI

inspections per year. Each inspection take 4

hours on average including inspection and

administration.

These figures are expected to increase with

the start up of numerous Mega Projects across

the Kingdom, which will lead to significant

increase in camp numbers.

Contractor camp inspection, food & water analysis man hours

Monitoring & Compliance Assessment Program


Establish a modern

wastewater monitoring and

compliance program to serve

the Saudi Aramco.

The opportunity

To have a non Saudi Aramco

affiliated entity conduct 90

assessments for company run

sanitary sewage treatment plants

and 25 assessments for oily

wastewater evaporation ponds

annually.

The business case

Monitoring & Compliance Program represents an attractive localization opportunity given the current gaps


Product information


The specifications and detailed technical

requirements will be developed in the

study period.

The assessment tools will be

scoped , including chemical

analysis and Quality Control

requirements.

Development of assessment tools

to include the entire corporate

wastewater compliance programs

Development of criteria for

identifying sites visits to be

outsourced to a contractor.

Main Function

Picture


The demand for Product in KSA is expected to reach 1.55 Million USD by 2025

The annual Service Demand is expected to be at 1.55 Million USD by 2024

20222021

1.45

1.33

2023 2024

1.55

0.275

1.25

2020

Service

Currently, most of Company

demand is internally sourced.

The demand for service in the

execution phase is estimated at

1.55 Million USD in 2024

KSA expected market demand for Product (Million USD)


+563%


1. Design the Assessment

Tools. To develop the tools

such as documentation,

database, dashboards and

site inspection and

monitoring protocols.

2. Testing to test and

benchmark the tools for

selected facilities across

company’s diverse business

lines.

3. Assessment Program Role out to introduce the program to Saudi Aramco by holding sessions and road show promotions.

5. Annual Assessment Program To recruit the contracting company, analytical lab facilities and infrastructure needed to execute the assessment program.

Potential opportunities

DesignTesting and Bench

Marking Roll out Execution

Source: Saudi Aramco analysis

Local gaps translate into opportunities to do business in KSA


For further information on these opportunities, please contact:

Abdulrahman Alkhalaf

Saudi Aramco – Local Business Development

Environmental Group

[email protected]@aramco.com

Ali M. Hussain

Saudi Aramco –Business Development Specialist

Environmental Group

[email protected]

Key messages

KSA Environmental & waste management market is growing and requires a local manufacturing presence

Additional opportunities are available on the IKTVA website: iktva.sa

Complete expressions of interest forms for later follow-up and support

Please plan to attend additional presentations to learn more about KSA opportunities

Please Complete Expressions of Interest and direct all inquiries to:

Thank you

Thank You

Environmental Investment Opportunities - IKTVA · Saudi Aramco: Public 116,000 153,000 121,000...

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