Oilfield Equipment Investment Session - IKTVA · 2020. 3. 11. · Oilfield Equipment Session...

Oilfield EquipmentInvestment Session

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.

Saudi Aramco: Public

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


Oilfield Equipment Session

Current & Future Market Trends

Design Manufacturing Tier 2

Suppliers

Multiple Value Chain Opportunities

The

Opportunity

The Business

Case

Executive Summary

Investments opportunities will cover oilfield equipment products & services in the oil & gas industry

Session Title Presenter

Opening Bandar Otaibi, Saudi Aramco (ID&SSD)

Value Proposition 1: Packers Feras Salamah, Saudi Aramco (DTD)

Value Proposition 2: Liner Hangers Atallah Harbi, Saudi Aramco (DTD)

Value Proposition 3: Multilateral Completions Atallah Harbi, Saudi Aramco (DTD)

Value Proposition 4: Cementing Stage Tools Abdulaziz Somali, Saudi Aramco (DTD)

Value Proposition 5: Float Equipment Tariq Talhi, Saudi Aramco (DTD)

Value Proposition 6: Centralizers Tariq Talhi, Saudi Aramco (DTD)

Value Proposition 7: Wellhead Equipment Mansour Al-Amer, Saudi Aramco (DTD)

Value Proposition 8: OCTG Tubing Jassim Moyaibed, Saudi Aramco (DTD)

Value Proposition 9: OCTG Accessories Jassim Moyaibed, Saudi Aramco (DTD)

Value Proposition 10: Directional Drilling Abdullah Dossary, Saudi Aramco (DTD)

Value Proposition 11: Artificial Lift Systems Malik Attar, Saudi Aramco (P&FDD)

Closing Brian Stolz, Saudi Aramco (ID&SSD)

Agenda – Oilfield Equipment

Packers


Establish a state-of-the-art

manufacturing unit for

Packers to serve the KSA

and GCC Oil and Gas

Industry.

1. Current KSA demand is

estimated at ~5,400 per year

2. Forecasted ~4% annual

growth in the regional Packer

market until 2025

3. Attractive cost base including

low logistics, land, utilities, and

labor costs

The business case

Packers represent an attractive localization opportunity given the current supply gap and expected demand growth

Source: Saudi Aramco analysis

The opportunity

© Saudi Arabian Oil Company, 2020


Key types of Packers:

Inflatable:

This category operates via fluid pressure driving the cone in place behind the slips.

Also known as swellableelements, these components rely on fluid pressure to inflate cylindrical tubes for setting.

Setting is accomplished via tubing movement. This either includes a rotation or upward/downward motion.

Mechanical sets:

Hydraulic-set:

Permanent: Packer can be removed from the wellbore only by milling. They offers higher performance in both temperature and pressure ratings.

Retrievable: Reusable packer are more expensive than permanent packers. Used in both low and high pressure/temperature.

Packers classification: Setting method:

Packers are key well-completion completion component that protect casing and deliver effective zonal isolation




Packer demand in KSA has been growing and is estimated to be ~5,400 in 2019

Packer demand is driven by the upstream activities in the region

20172016

4,8374,794

2018 2019

+18%

5,414

4,5954,894

2015

Currently, total KSA demand

of Packers is imported

The current market for Packers

in KSA is estimated at

$250MM and the rest of the

GCC is estimated at

$225MM.

KSA market size evolution Packers (Quantity)




KSA expected market size evolution Packers (quantity)

Strong oil and gas production activities is expected to fuel Packer growth

The demand for Packers in KSA is expected to reach ~7,000 by 2025

5%

5,5766,031

6,6496,982

6,3325,744



2020 2023 2025202420222021


GCC expected market size evolution Packers (quantity)

In addition to KSA demand, oil and gas industry activities in the rest of the GCC will support demand growth

The demand for Packers in the GCC is expected to reach ~13,000 by 2025

5,576 5,744 6,031 6,332 6,649 6,982

5,301 5,407 5,570 5,737 5,909 6,086

11,151 11,601 12,06910,877

12,55813,068

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Packer design

and R&D center to develop

designs for KSA

requirements

2. Establish a precision

machine shop to

manufacture Packer

components

3. Assemble Packers prior to use in operations

4. Establish technical support service center to serve requirements for Packers

Potential investment opportunities

Design Manufacturing Assembly Lifecycle

Management

Local value chain gaps translate into opportunities to do business in KSA



Liner Hangers



manufacturing unit for Liner

Hangers to serve the KSA

and GCC Oil and Gas

Industry.

The opportunity


estimated at ~1,400 per year.


growth in the regional Liner

Hanger market until 2025.



labor costs.

The business case

Liner Hangers represent an attractive localization opportunity given the current supply gap and expected demand growth




Key types of Liner Hangers:

Mechanical Liner Hangers:A mechanical liner hanger attaches itself to the walls of the casing through using its mechanical parts, allowing for oil to pass through to the surface.

Mechanical liner hangers are designed to be used on vertical, onshore wells.

The hydraulic liner hanger attaches the liner to the walls of the casing by using powerful hydraulics.

Hydraulic liner hangers are used in offshore oil wells, onshore wells that are extremely deep, or high-pressure, high-temperature (HPHT) wells.

Hydraulic Liner Hangers:

The expandable liner hanger provides bi-directional anchoring capabilities and a bi-directional annular seal while offering both tensile and compressive load capabilities.

It offers increased bypass area due to smaller OD.

Expandable Liner Hangers:

ExpandableMechanical Hydraulic

Liner Hangers are a key well construction component, which provides a cost effective ability to suspend liner inside the casing string




Liner Hanger demand in KSA has been growing and is estimated to be ~1,400 in 2019

Liner Hanger demand is driven by the upstream activities in the region

20172016

1,2921,230

2018 2019

+22%

1,407

1,150 1,197

2015


of Liner Hangers is imported

The current market for Liner

Hangers in KSA is estimated at


GCC is estimated at

$130MM.

KSA market size evolution Liner Hanger (quantity)




KSA expected market size evolution Liner Hangers (quantity)

Strong oil and gas production activities is expected to fuel Liner Hanger growth

The demand for Liner Hangers in KSA is expected to reach ~1,800 by 2025

5%

1,4491,567

1,7281,814

1,6461,493



2020 2023 2025202420222021


GCC expected market size evolution Liner Hangers (quantity)


The demand for Liner Hangers in the GCC is expected to reach ~3,400 by 2025

1,449 1,493 1,567 1,646 1,728 1,814

1,378 1,405 1,447 1,491 1,536 1,582

2,8983,014 3,137

2,827

3,264 3,3964%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Liner Hanger

design and R&D center to

develop designs for KSA

requirements


machine shop to

manufacture Liner Hanger

components

3. Assemble Liner Hangers prior to use in operations

4. Establish technical support service center to serve requirements for Liner Hangers


Local value chain gaps translate into opportunities to do business in KSA.




Management

Multilateral Completions




Multilateral Completions to

serve the KSA and GCC Oil

and Gas Industry.

The opportunity


estimated at ~100

completions per year


growth in the regional

Multilateral Completions market

until 2025



labor costs

The business case

Multilateral Completions represent an attractive localization opportunity given the current supply gap and expected demand growth




Key components of Multilateral Completions:

Multilateral Completions are required to support complex wells designs with multiple sidetracks connected to a single main well bore


Sidetracking tool used to deviate drill bit from vertical orientation inside the wellbore

Whip-stocks and mills

Machined tools to allow access to lateral or motherbore based on ODs

Selective Diverter

Special packers to allow separate flow and isolate junction

ML Packers



Multilateral Completions demand in KSA has been growing and is estimated to be ~100 in 2019

Multilateral Completions demand is driven by the upstream activities in the region

20172016

98

89

2018 2019

101

7380

2015


of Multilateral Completions is

imported

The current market for

Multilateral Completions in KSA

is estimated at $40MM and

the rest of the GCC is estimated

at $30MM.

KSA market size evolution Multilateral Completions (quantity)

+38%




KSA expected market size evolution Multilateral Completions (quantity)

Strong oil and gas production activities is expected to fuel growth in Multilateral Completions

The demand for Multilateral Completions in KSA is expected to reach ~130 by 2025

5%

2020

104113

2023

124

2025

130

2024

118

20222021

107




GCC expected market size evolution Multilateral Completions (quantity)


The demand for Multilateral Completions in the GCC is expected to reach ~240 by 2025

104 107 113 118 124 130

99 101 104 107 110 114

208 217 225203

234244

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Multilateral

Completions design and

R&D center to develop

designs for KSA

requirements


machine shop to

manufacture Multilateral

Completion components

3. Assemble Multilateral Completions prior to use in operations

4. Establish technical support service center to serve requirements for Multilateral Completions






Management

Cementing Stage Tools




Cementing Stage Tools to


and Gas Industry.

The opportunity


estimated at ~1,100 per year



Cementing Stage Tool market

until 2025



labor costs

The business case


Cementing Stage Tools represent an attractive localization opportunity given the current supply gap and expected demand growth



Key functions of Cementing Stage Tools:

Multiple-stage cementing operations allow for selected intervals around the casing string to be cemented at separate times or in stages.

Multi-stage cementing main common applications:

Wells where losses are encountered or hydrostatic head of the cement is greater than the formation pressure in some intervals

When certain portions of the wellbore require zonal isolation

2nd stage cementing

DV tool

1st stage cementing

Cementing Stage Tools are used to cement multiple stages behind the same casing string




Cementing Stage Tool demand in KSA has been growing and is estimated to be ~1,100 in 2019

Cementing Stage Tool demand is driven by the upstream activities in the region

20172016

1,010987

2018 2019

1,115

874

1,006

2015


of Cementing Stage Tools is

imported.


Cementing Stage Tools in KSA

is estimated at $60MM and


at $55MM.

KSA market size evolution Cementing Stage Tools (quantity)


+28%



KSA expected market size evolution Cementing Stage Tool (quantity)

Strong oil and gas production activities is expected to fuel Cementing Stage Tool growth

The demand for Cementing Stage Tools in KSA is expected to reach ~1,438 by 2025

5%

1,1481,242

1,3691,438

1,3041,183



2020 2023 2025202420222021


GCC expected market size evolution Cementing Stage Tools (quantity)


The demand for Cementing Stage Tools in the GCC is expected to reach ~2,700 by 2025

1,148 1,183 1,242 1,304 1,369 1,438

1,092 1,114 1,147 1,181 1,217 1,253

2,297 2,389 2,4852,240

2,586 2,691

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Cementing

Stage Tool design and


designs for KSA

requirements


machine shop to

manufacture Cementing

Stage Tool components

3. Assemble Cementing Stage Tools prior to use in operations

4. Establish technical support service center to serve requirements for Cementing Stage Tools






Management

Float Equipment



manufacturing unit for Float

Equipment to serve the KSA

and GCC Oil and Gas

Industry.

The opportunity


estimated at ~150,000 per

year.


growth in the regional Float

Equipment market until 2025.



labor costs.

The business case

Float Equipment represent an attractive localization opportunity given the current supply gap and expected demand growth.




Key types of float equipment:

Acts as a guide for running casing. Enables circulation down through the casing and prevents fluids from entering the casing.

Float Shoe:

Provides a barrier for plug to land and acts as a secondary valve for float shoe

Float Collar:

Required to enhance running casing to total depth through tight holes and problematic formations.

Reamer Shoe:

Float Equipment is an important cementing component, which provides a barrier to prevent fluids from entering the casing

Source: Saudi Aramco downhole products



Float Equipment demand in KSA has been growing and is estimated to be ~150,000 in 2019

Float Equipment demand is driven by the upstream activities in the region

20172016

138

110

2018 2019

150

119 120

2015

Currently, the majority of KSA

demand for Float Equipment

is imported.

The current market for Float

Equipment in KSA is estimated

at $30MM and the rest of the

GCC is estimated at $25MM.

KSA market size evolution Float Equipment (quantity-thousands)


+26%



KSA expected market size evolution Float Equipment (quantity-thousands)

Strong oil and gas production activities is expected to fuel the growth in Float Equipment

The demand for Float Equipment in KSA is expected to reach ~193,000 by 2025.

5%

155167

184193

175159



2020 2023 2025202420222021


GCC expected market size evolution Float Equipment (quantity-thousands)


The demand for Float Equipment in the GCC is expected to reach ~362,000 by 2025

155 159 167 175 184 193

147 150 154 159 164 169

309 321 334302

348 362

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish an Float

Equipment design and


designs for KSA

requirements


machine shop to

manufacture Float Equipment

3. Assemble Float Equipment prior to use in operations

4. Establish technical support service center to serve requirements for Float Equipment






Management

Centralizers




Centralizers to serve the

KSA and GCC Oil and Gas

Industry.

The opportunity

1. Current KSA Centralizer

demand is estimated at

~206,000 per year.



Centralizer market until 2025.



labor costs.

The business case

Centralizers represent an attractive localization opportunity given the current supply gap and expected demand growth




Key types of centralizers:

Has flexible blades to position the casing in the wellbore.

Bow Spring Centralizers:

Has metallic spiral blades to minimize drag and enhance fluid movement around the casing.

Rigid Centralizers:

Utilizes nonmetallic materials to minimize drag to ensure long lateral total depth is achieved.

Nonmetallic Centralizers:

Centralizers main function is ensure efficient placement of casings prior to cementing while reducing torque and drag during casing running




Centralizer demand is driven by the upstream activities in the region

20172016

200

175

2018 2019

206

151165

2015

Currently, majority of KSA

demand of Centralizers is

imported.


Centralizers in KSA is estimated

at $40MM and the rest of the


KSA market size evolution Centralizers (quantity-thousands)


Centralizer demand in KSA has been growing and is estimated to be ~206,000 in 2019

+36%



KSA expected market size evolution Centralizers (quantity-thousands)

Strong oil and gas production activities is expected to fuel the growth in Centralizers

The demand for Centralizers in KSA is expected to reach ~266,000 by 2025

5%

212229

253266

241219



2020 2023 2025202420222021


GCC expected market size evolution Centralizers (quantity-thousands)


The demand for Centralizers in the GCC is expected to reach ~498,000 by 2025

212 219 229 241 253 266

202 206 212 218 225 232

425 441 459414

478498

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Centralizer

design and R&D center to

develop designs for KSA

requirements

2. Establish a workshop to

manufacture Centralizers

3. Assemble Centralizers prior to use in operations

4. Establish technical support service center to serve requirements for Centralizers






Management

Wellhead Equipment




Wellhead Equipment to


and Gas Industry.

The opportunity





Wellhead Equipment market

until 2025.



labor costs.

The business case

Wellhead Equipment represents an attractive localization opportunity given the current supply gap and expected demand growth




Functions of Wellhead Equipment:

Casing Hanger

Tubing HangerTubing Bonnet

Casing Spool

Tubing SpoolTrees

Gate Valves Casing Head

Key components of Wellhead Equipment:

A wellhead system has the following main functions:

• Facilitate installation of well control equipment during drilling operations.

• Provide a sealed connection and support for each tubular string.

• Provides a connection and support for the production equipment.

• Facilitate well production, injection and future interventions.

Permanent equipment between the upper most portion of the surface

casing and top of the tree cap

Wellhead Equipment is a critical component, which provides a sealed connection to the tubing string




Wellhead Equipment demand in KSA has been growing and is estimated to be ~1,300 systems in 2019

Wellhead Equipment demand is driven by the upstream activities in the region

20172016

1,0921,032

2018 2019

1,278

1,043970

2015


demand for Wellhead

Equipment is imported


Wellhead Equipment in KSA is

estimated at $350MM and


at $325MM.

KSA market size evolution Wellhead Systems (quantity)


+23%



KSA expected market size evolution Wellhead Systems (quantity)

Strong oil and gas production activities is expected to fuel growth in Wellhead Equipment

The demand for Wellhead Systems in KSA is expected to reach ~1,650 by 2025

5%

1,3161,424

1,5701,648

1,4951,356



2020 2023 2025202420222021


GCC expected market size evolution Wellhead Systems (quantity)


The demand for Wellhead Equipment in the GCC is expected to reach ~3,000 by 2025

1,316 1,356 1,424 1,495 1,570 1,648

1,251 1,276 1,315 1,354 1,395 1,437

2,632 2,7392,849

2,567

2,9653,085

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Wellhead

Equipment design and


designs for KSA

requirements

2. Establish a production

facility to manufacture

Wellhead Equipment

3. Installing Wellhead Equipment in the field

4. Establish technical support service center for field maintenance, equipment modification and repair


Local value chain gaps translate into opportunities to do business in KSA.




Management

Oil Country Tubular Goods (OCTG)

Tubing




OCTG Tubing to serve the

KSA and GCC Oil and Gas

Industry.

The opportunity


estimated at ~4MM feet per

year.


growth in the regional OCTG

Tubing market until 2025.



labor costs.

The business case

OCTG Tubing represents an attractive localization opportunity given the current supply gap and expected demand growth




Key OCTG Tubing Technical Specification:

The most common material are: J-55, K-55, N-80 Q, L-80, C-90, R95, T-95, Q125

Key Materials:

The most popular sizes of tubing are 2-3/8, 2-7/8, 3-1/2, & 4-1/2.

Typical Sizes:

The most common length is Range 2 which is ~30 feet.

Typical Lengths:


OCTG Tubing is pipe used in the wellbore to produce oil and gas. This material is also used in downhole completions such as Sand Screens



OCTG Tubing demand in KSA has been growing and is estimated to be ~4.1MM feet in 2019

OCTG Tubing demand is driven by the upstream activities in the region

20172016

3.943.75

2018 2019

4.12

3.00

3.54

2015


demand for OCTG Tubing is

imported

The current market for OCTG

Tubing in KSA is estimated at



KSA market size evolution OCTG Tubing (million feet)


+37%



KSA expected market size evolution OCTG Tubing (million feet)

Strong oil and gas production activities is expected to fuel the growth in OCTG Tubing

The demand for OCTG Tubing in KSA is expected to reach ~5.4MM feet by 2025

5%

4.294.64

5.125.37

4.874.42



2020 2023 2025202420222021


GCC expected market size evolution OCTG Tubing (million feet)

In addition to KSA demand, oil and gas activities in the rest of the GCC will support demand growth

The demand for OCTG Tubing in the GCC is expected to reach ~10MM feet by 2025

4.29 4.42 4.64 4.88 5.12 5.37

4.08 4.16 4.29 4.41 4.55 4.68

8.588.93 9.29

8.37

9.67 10.05

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish an OCTG

Tubing design and R&D

center to develop designs

for KSA requirements

2. Establish a mill to

manufacture OCTG Tubing

3. Thread OCTG Tubing prior to use in operations

4. Establish technical support service center to serve requirements for OCTG Tubing






Management

Oil Country Tubular Goods (OCTG)

Accessories




OCTG Accessories to serve

the KSA and GCC Oil and

Gas Industry.

The opportunity




growth in the regional OCTG

Accessory market until 2025.



labor costs.

The business case


OCTG Accessories represent an attractive localization opportunity given the current supply gap and expected demand growth



Key OCTG components:

Pipes used to accomplish exact depth readings in a well, for any given purpose –Typically 2 to 12 ft

Pup Joints:

Connectors that contain two box ends and serve the purpose of joining two lengths of threaded pipes

Couplings:

Sub-assemblies used in drilling operations where it is necessary to introduce a change in the size of the tube or connection type

Crossovers:

OCTG Accessories such as pup joints, crossovers, and couplings are critical components in today’s complex well designs




OCTG Accessory demand in KSA has been growing and is estimated to be ~41,000 accessories in 2019

OCTG Accessory demand is driven by the upstream activities in the region

20172016

3736

2018 2019

41

3532

2015


demand for OCTG

Accessories is imported

The current market for OCTG

Accessories in KSA is

estimated at $25MM and the

rest of the GCC is estimated at

$20MM.

KSA market size evolution OCTG Accessories (Quantity-Thousands)

+17%




KSA expected market size evolution OCTG Accessories (quantity-thousands)

Strong oil and gas production activities is expected to fuel the growth in OCTG Accessories

The demand for OCTG Accessories in KSA is expected to reach ~53,000 by 2025.

5%

4246

5053

4843



2020 2023 2025202420222021


GCC expected market size evolution OCTG Accessories (quantity-thousands)

In addition to KSA demand, oil and gas industry activities in the rest of the GCC will support demand growth.

The demand for OCTG Accessories in the GCC is expected to reach ~99,000 by 2025

42 43 46 48 50 53

40 41 42 43 45 46

8488 91

82

9599

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish an OCTG

Accessories design and


designs for KSA

requirements


machine shop to

manufacture OCTG

Accessories

3. Assemble and Test OCTG Accessories prior to use in operations

4. Establish technical support service center to serve requirements for OCTG Accessories






Management

Directional Drilling



service center of Directional

Drilling to serve the KSA and

GCC Oil and Gas Industry.

The opportunity


estimated at ~8,600 tool runs

per year.



Directional Drilling market until

2025.



labor costs.

The business case

Directional Drilling represents an attractive localization opportunity given the current service intensity and expected growth




Technologies employed by Directional Drilling:

Source: Saudi Aramco, Rigzone

A rotor and stator system used to optimize torque and bit speed

Mud Motors:

Used to accurately direct the well bore to the targeted reservoir

Rotary Steerable System (RSS):

Sensors utilized to identify and analyze geologic formations

Measurement While Drilling (MWD):

Directional Drilling is required to support today’s complex wells designs, which include extended lateral sections to access multiple reservoirs

Logging While Drilling (LWD):

Sensors provide underground formation characteristics



Directional Drilling demand in KSA has been growing and is estimated to be ~8,650 runs in 2019

Directional Drilling demand is driven by the upstream activities in the region

20172016

7,1006,755

2018 2019

8,599

5,912

6,794

2015


of Directional Drilling service

equipment is imported


Directional Drilling in KSA is

estimated at $900MM and


at $800MM.

KSA market size evolution Directional Drilling (tool runs)


+45%



KSA expected market size evolution Directional Drilling (tool runs)

Strong oil and gas production activities is expected to fuel growth in Directional Drilling

The demand for Directional Drilling in KSA is expected to reach ~11,100 runs by 2025

5%

8,8579,579

10,56111,089

10,0589,123



2020 2023 2025202420222021


GCC expected market size evolution Directional Drilling (tool runs)

In addition to KSA demand, oil and gas industry activities in the rest of the GCC will support demand growth.

The demand for Directional Drilling in the GCC is expected to reach ~20,700 runs by 2025

8,857 9,123 9,579 10,058 10,561 11,089

8,420 8,589 8,846 9,112 9,385 9,666

17,712 18,425 19,17017,277

19,94620,755

4%

Saudi Arabia

Rest of GCC



2020 2023 2025202420222021


1. Establish a Directional

Drilling service center to

develop support for KSA

requirements


machine shop to

manufacture Directional

Drilling components

3. Assemble Directional Drilling equipment prior to use in operations

4. Establish a training center to serve the GCC region





Management


Artificial List Systems



manufacturing facility for

Artificial Lift Systems to


and Gas Industry.

The opportunity


estimated at ~1,700 installed

base.


growth in the regional Artificial

Lift market until 2025.

The business case

Artificial Lift Systems represent an attractive localization opportunity given the current supply gap and expected demand growth




Downhole Pump

Key components of Electric Submersible Pump:

Motor

Power Cables

Surface Equipment

Gas Separator

Seal Protector

Sensor

Artificial List is a mean to supplement the reservoir natural drive and Electric Submersible Pump Systems (ESPs) are the most common used Artificial List Systems




1. Establish a local cable

manufacturing facility to

increase local content in

kingdom.


machine shop to

manufacture Artificial Lift

core components/spare

parts such as transformer,

shafts, pump stages, heads

& base, and motor winding.

3. Manufacture Artificial Lift components such as packer and penetrator systems equipment

4. Invest in technical support service centers to provide maintenance and field support requirements for Artificial Lift Systems.


Local Cable Manufacturing

Manufacturing &

Assembly Accessories Services




For further information, please contact:

Brian Stolz

Saudi Aramco – Local Business Development

Oilfield Equipment Group

[email protected]

Bandar Otaibi

Saudi Aramco – Local Business Development

Oilfield Equipment Group

[email protected]

Key messages

KSA Oilfield Equipment market is growing and requires a local manufacturing presence

Engage with us to begin the localization journey. Provide expressions of interest on:

iktva.sa/opportunities

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

Please Complete Expressions of Interest and direct all inquiries to:

Oilfield Equipment Investment Session - IKTVA · 2020. 3. 11. · Oilfield Equipment Session...

Documents

Transcript of Oilfield Equipment Investment Session - IKTVA · 2020. 3. 11. · Oilfield Equipment Session...