Doing Business in Saudi Arabia - International Franchise Association

Doing Business in Saudi Arabia - International Franchise Association Doing Business in Saudi Arabia - International Franchise Association

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equipment; marine equipment and services, offshore platforms, filtration systems, pressure vessels; storage systems, treatment systems; injection equipment and services; production equipment and services; well control systems, packing, seals, gaskets, bearings, rope, wire rope and chain; safety and environmental protection services; pollution and spill control services; tools, flexible pipe, valves & actuators; wellhead valves; and thousands of other items related to the oil and gas industry. In a published news report, Saudi Aramco is planning to spend tens of billions of U.S. dollars between 2010-2014 on these projects: Project Number of Projects Value ($ Billion) New Process Facilities Offshore Facilities Maintenance Programs Plant Improvements Pipelines Civil Engineering / Infrastructure Electrical / Communications Total 7 6 10 45 17 37 22 154 15.0 5.5 5.5 3.0 2.2 2.2 1.2 35.1 Saudi Aramco and its various Saudi contractors are extremely receptive to U.S. products. Opportunities Return to top Saudi Aramco’s awarded/planned projects include: • Marine works bid in January 2010 for $100 million package in Ras Tanura Oil Refinery. This is a $20 billion joint venture between Saudi Aramco and Dow Chemical Co. (US) • Expand Saudi Aramco Lubricating Oil Refining Co. (LUBREF) at the city of Yanbu on the Red Sea. Saudi Aramco and its joint venture partner the local Jadwa Industrial Investment Co. will invite pre-qualified contractors in January 2010. • Saudi Aramco and its joint venture partner ConocoPhillips (US) are planning to build a $10 billion 400,000 barrels/day export oil refinery at Yanbu on the Red Sea by 2014. • The Ministry of Petroleum & Mineral Resources is planning to build a 250,000-400,000 b/d oil refinery at the city of Jizan on the Red Sea. Estimated cost of the oil facility is $7 billion. • Saudi Aramco Shell Refinery Co. (SASREF), which operates a 300,000 b/d oil facility, will invite pre-qualified contractors in the first quarter of 2010 to bid for a contract to build a sulfur treatment unit at SASREF in Jubail Industrial City. • Saudi Aramco has awarded in Oct. 2009 the local M.S. Al-Suwaidi Industrial Services Co. a $200 million contract to upgrade 14 bulk storage plants. In the first week of Oct. 2010, Saudi Aramco invited pre-qualified companies to submit bids to build a $250 million bulk storage facility at Wasea, southwest of the city of Riyadh. It is expected that the wining contractor will be awarded the project by the end of Dec. 2009. • Saudi Aramco and its joint venture partner Total Refining & Petrochemical Co. (SATORP) are planning to build a $9.6 billion export oil refinery in Jubail with a 400,000 b/d capacity. • In April 2009, Saudi Aramco Mobil Refinery Co. (SAMREF) in Yanbu awarded a $400 million contract to WorleyParsons (Australia) to lower the sulfur content of gasoline produced at its 400,000 b/d refinery. Saudi Aramco has plans to introduce new ultralow-sulfur diesel facilities in its oil refineries in Riyadh and Jeddah by the year 2012. It

seems that Saudi Aramco has started a multi-billion dollar scheme to reduce sulfur content in processed fuels to meet US environmental regulations on gasoline imports that come into force in 2013. • Saudi Aramco has planned to increase the production capacity of its Arabiyah gas processing plant in the Eastern Province from 1 billion cubic feet a day (cf/d) to 1.2 billion cf/d. Work will finish at the plant in December 2013, and operations will begin in February 2014. Production capacity at the Shaybah gas project – in the Empty Quarter will also increase from 1.4 billion cf/d to 1.5 billion cf/d. The plant will be completed in March 2014, and operations will start in May the same year. • Developing Manifa offshore oil field at a cost estimated at $11 billion to produce 900,000 b/d of heavy crude oil by 2011. • Upgrade the acid gas piping system at Saudi Aramco’s Shedgum gas processing plant in the Eastern Province. Work will be completed by the end of 2010. Resources Return to top U.S. companies interested in exporting oil and gas field related equipment, supplies, parts and services to Saudi Aramco (www.saudiaramco.com) are requested to communicate directly with: Aramco Services Company Procurement & Logistics Department P.O. Box 4534 Houston, TX 77210 Tel: 713-432-5553 Vendor Registration Supplier Relations Phone: 713-432-5555 E-mail: stratsourcing@aramcoservices.com Web: www.aramcoservices.com/doing-business/strategic-sourcing/default.aspx

equipment; mar<strong>in</strong>e equipment and services, offshore platforms, filtration systems, pressure<br />

vessels; storage systems, treatment systems; <strong>in</strong>jection equipment and services; production<br />

equipment and services; well control systems, pack<strong>in</strong>g, seals, gaskets, bear<strong>in</strong>gs, rope, wire<br />

rope and cha<strong>in</strong>; safety and environmental protection services; pollution and spill control<br />

services; tools, flexible pipe, valves & actuators; wellhead valves; and thousands of other items<br />

related to the oil and gas <strong>in</strong>dustry.<br />

In a published news report, <strong>Saudi</strong> Aramco is plann<strong>in</strong>g to spend tens of billions of U.S. dollars<br />

between 2010-2014 on these projects:<br />

Project<br />

Number of<br />

Projects<br />

Value<br />

($ Billion)<br />

New Process Facilities<br />

Offshore Facilities<br />

Ma<strong>in</strong>tenance Programs<br />

Plant Improvements<br />

Pipel<strong>in</strong>es<br />

Civil Eng<strong>in</strong>eer<strong>in</strong>g / Infrastructure<br />

Electrical / Communications<br />

Total<br />

7<br />

6<br />

10<br />

45<br />

17<br />

37<br />

22<br />

154<br />

15.0<br />

5.5<br />

5.5<br />

3.0<br />

2.2<br />

2.2<br />

1.2<br />

35.1<br />

<strong>Saudi</strong> Aramco and its various <strong>Saudi</strong> contractors are extremely receptive to U.S. products.<br />

Opportunities Return to top<br />

<strong>Saudi</strong> Aramco’s awarded/planned projects <strong>in</strong>clude:<br />

• Mar<strong>in</strong>e works bid <strong>in</strong> January 2010 for $100 million package <strong>in</strong> Ras Tanura Oil Ref<strong>in</strong>ery.<br />

This is a $20 billion jo<strong>in</strong>t venture between <strong>Saudi</strong> Aramco and Dow Chemical Co. (US)<br />

• Expand <strong>Saudi</strong> Aramco Lubricat<strong>in</strong>g Oil Ref<strong>in</strong><strong>in</strong>g Co. (LUBREF) at the city of Yanbu on the<br />

Red Sea. <strong>Saudi</strong> Aramco and its jo<strong>in</strong>t venture partner the local Jadwa Industrial<br />

Investment Co. will <strong>in</strong>vite pre-qualified contractors <strong>in</strong> January 2010.<br />

• <strong>Saudi</strong> Aramco and its jo<strong>in</strong>t venture partner ConocoPhillips (US) are plann<strong>in</strong>g to build a<br />

$10 billion 400,000 barrels/day export oil ref<strong>in</strong>ery at Yanbu on the Red Sea by 2014.<br />

• The M<strong>in</strong>istry of Petroleum & M<strong>in</strong>eral Resources is plann<strong>in</strong>g to build a 250,000-400,000<br />

b/d oil ref<strong>in</strong>ery at the city of Jizan on the Red Sea. Estimated cost of the oil facility is $7<br />

billion.<br />

• <strong>Saudi</strong> Aramco Shell Ref<strong>in</strong>ery Co. (SASREF), which operates a 300,000 b/d oil facility,<br />

will <strong>in</strong>vite pre-qualified contractors <strong>in</strong> the first quarter of 2010 to bid for a contract to build<br />

a sulfur treatment unit at SASREF <strong>in</strong> Jubail Industrial City.<br />

• <strong>Saudi</strong> Aramco has awarded <strong>in</strong> Oct. 2009 the local M.S. Al-Suwaidi Industrial Services<br />

Co. a $200 million contract to upgrade 14 bulk storage plants. In the first week of Oct.<br />

2010, <strong>Saudi</strong> Aramco <strong>in</strong>vited pre-qualified companies to submit bids to build a $250<br />

million bulk storage facility at Wasea, southwest of the city of Riyadh. It is expected that<br />

the w<strong>in</strong><strong>in</strong>g contractor will be awarded the project by the end of Dec. 2009.<br />

• <strong>Saudi</strong> Aramco and its jo<strong>in</strong>t venture partner Total Ref<strong>in</strong><strong>in</strong>g & Petrochemical Co.<br />

(SATORP) are plann<strong>in</strong>g to build a $9.6 billion export oil ref<strong>in</strong>ery <strong>in</strong> Jubail with a 400,000<br />

b/d capacity.<br />

• In April 2009, <strong>Saudi</strong> Aramco Mobil Ref<strong>in</strong>ery Co. (SAMREF) <strong>in</strong> Yanbu awarded a $400<br />

million contract to WorleyParsons (Australia) to lower the sulfur content of gasol<strong>in</strong>e<br />

produced at its 400,000 b/d ref<strong>in</strong>ery. <strong>Saudi</strong> Aramco has plans to <strong>in</strong>troduce new ultralow-sulfur<br />

diesel facilities <strong>in</strong> its oil ref<strong>in</strong>eries <strong>in</strong> Riyadh and Jeddah by the year 2012. It

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