1 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 1

Our business portfolio is being reshaped to meet evolving

requirements in our upstream and downstream activities as
well as across the Kingdom as a whole.

ENERGY IS OPPORTUNITY—IN THE KINGDOM AND AROUND THE GLOBE.

Contents
04 WHO WE ARE 18 EXPLORING NEW OPPORTUNITIES

08 BOARD OF DIRECTORS
32 EXPANDING OUR PORTFOLIO

10 CHAIRMAN’S MESSAGE
46 RAISING OUR POTENTIAL

11 PRESIDENT’S FOREWORD
58 CITIZENSHIP

12 OUR STRATEGY
60 2013 IN NUMBERS

66 AWARDS

67 OUR OUTLOOK

ABOUT THIS REVIEW

This 2013 Annual Review is one half of a two-volume corporate report; the other volume is the
2013 Citizenship Report. Together, they represent our continued annual practice of reporting on
COVER PHOTO our operational, organizational, social and environmental achievements and goals. Our reporting
OVER THE LAST 80 YEARS, SAUDI ARAMCO HAS has been informed by internationally recognized guidelines developed by the Global Reporting
GROWN TO BECOME A FULLY INTEGRATED, GLOBAL
Initiative (GRI), ISO 26000 and the International Petroleum Industry Environmental Conservation
PETROLEUM AND CHEMICALS ENTERPRISE.
Association (IPIECA). These guidelines help us identify, structure, prioritize, evaluate, and present
PHOTO ABOVE
THE JU’AYMAH NGL PLANT IS A KEY key issues that are relevant and meaningful to our stakeholders. For past reports, please visit
COMPONENT OF OUR MASTER GAS SYSTEM. www.saudiaramco.com.
2 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 3

The Custodian of the Two Holy Mosques His Royal Highness Salman ibn ‘Abd Al-’Aziz Al Sa’ud
King ‘Abd Allah ibn ‘Abd Al-’Aziz Al Sa’ud The Crown Prince, Deputy Prime Minister and Minister of Defense
4 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 5

Who We Are
INTERNATIONAL OPERATIONS/
EXPORT SHIPPING ROUTES
 1 H
 OUSTON
Aramco Services Company (ASC)
Aramco Associated Company
Saudi Refining, Inc.
Motiva Enterprises, LLC
  2 WASHINGTON, D.C.
Aramco Services Company (ASC)
  3 NEW YORK CITY
The Saudi Arabian Oil Tokyo Saudi Petroleum
Seoul 19
19 International Inc. (SPII)
Company (Saudi Aramco), Beijing 18
18
  4 BERMUDA
15
15
a fully integrated, global Stellar Insurance Ltd.
Shanghai 17
17   5 CURAÇAO
petroleum and chemicals Bolanter Corp. NV
enterprise, is the state- Xiamen Pandlewood Corp. NV
16 14
16 14   6 L ONDON
owned oil company of the London Aramco Overseas Company
66 88 The Hague Fujian B.V. UK Ltd.
Kingdom of Saudi Arabia. 77 Rotterdam New Delhi Singapore 13
13 Saudi Petroleum Overseas Ltd.
Milan (SPOL)
Throughout our 80-year 99
12
12
  7R
 OTTERDAM
TEAM Terminal B.V.
history, we have become a
New York City   8 THE HAGUE
world leader in hydrocar- 33
Yanbu’
11
11 Aramco Overseas Company B.V.

Dhahran Dubai   9M
 ILAN
10
10
Washington, D.C.
bons exploration, produc- 22 Alexandria Aramco Overseas Company B.V.
10 ALEXANDRIA
tion, refining, distribution, Bermuda The Arab Petroleum Pipeline Co.
shipping and marketing. 44 (SUMED)
Houston Turaif 11 D
 UBAI
 ela International Marine
V
We rank first among oil 11
Limited
Al Jawf
12 NEW DELHI
companies worldwide in Aramco Overseas Company B.V.
Tabuk Tanajib Safaniya
terms of crude oil produc- Jubail Khursaniyah 13 SINGAPORE
Duba Ju’aymah
Aramco Overseas Company B.V.
tion and exports, and nat- Berri
Qassim Abqaiq Ras Tanura 14 X
 IAMEN
Qatif Aramco Asia–Xiamen
ural gas liquids (NGL) Shedgum 15 BEIJING
Dhahran
exports, and are among Yanbu’ Khurais Al Hasa Aramco Asia
Riyadh Hawiyah 16 FUJIAN
the leading producers of Rabigh ‘Uthmaniyah F ujian Refining and
Haradh Petrochemical
natural gas. We are also Curaçao Company Ltd. (FRPC)
SAUDI ARABIA Sinopec SenMei Petroleum
among the world’s leading 55 Shaybah
Company Ltd.
Jiddah
refiners and are moving 17 SHANGHAI
Al-Sulayyil Aramco Asia–Shanghai
further downstream into 18 SEOUL
Aramco Asia–Korea
chemicals production. Abha S-Oil
Jazan Najran 19 TOKYO
Aramco Asia–Japan
Showa Shell Sekiyu K.K.

Saudi Aramco

Key Figures
Refinery

Joint Venture Marafiq Luberef

Refinery

OUR CORPORATE VALUES

WORKFORCE as of 31 December 2013 OIL RESERVES AND PRODUCTION GAS RESERVES AND PRODUCTION

INTEGRIT Y
 ecoverable crude oil and condensate reserves:
R Gas reserves: 288.4 trillion standard cubic feet
SAFET Y 260.2 billion barrels Gas production (raw gas to gas plants—
ACCO U N TA B I L I T Y 57,283 48,385 8,898 Average daily crude oil production:
9.4 million barrels
average per day): 11.0 billion standard
E XC E L L E N C E Total Workforce Saudi Workforce Expatriate Workforce
cubic feet
A
 nnual crude oil production: 3.4 billion barrels Gas production (annual): 4.0 trillion standard
CITIZENSHIP
cubic feet
6 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 7

W H AT W E D O W H E R E W E ’R E G O I N G

What We Do Where We’re Going

Over the last 80 years, we have grown to become 121 million barrels, nearly matching our record
Producing an average of 9.4 million barrels of Our downstream businesses will become a
the world’s largest integrated energy enterprise. numbers from 2012. We exported 2.5 billion barrels
crude oil a day, we play a critical role in supplying vehicle for growth in the Kingdom, fueling com-
Saudi Aramco manages conventional crude oil of crude oil in 2013, with 53.8 percent exported
world oil markets. Today our upstream business is merce and economic diversity. We are building a
reserves of 260.2 billion barrels and gas reserves to Asia.
a global leader, known to our customers as the thriving domestic energy services sector that by
of 288.4 trillion standard cubic feet. As a vertically integrated company, we work world’s most reliable supplier. 2020 will serve the majority of Saudi Aramco’s
In 2013, we produced 3.4 billion barrels of to unlock energy opportunities from exploration
But we want to do more. We want to achieve needs and compete on an international scale.
oil, about one in every eight barrels of the world’s to distribution. Our upstream activities are focused
more. This is why we are engaging in an unprece- Directly or indirectly, we expect our investments
crude oil production. Our gas production, in terms on exploration and production. This stage involves
dented corporate transformation. By maximizing will create approximately 500,000 new jobs, open-
of raw gas to gas plants, was 4.02 trillion standard the search for crude oil and natural gas reservoirs
the value of our resources—both our hydrocarbon ing up opportunities for generations of Saudis
cubic feet, the most in a single year in our history. onshore and offshore, the management of field
resources and human resources—we are creating embarking on careers in the energy sector.
We also produced 455.9 million barrels of natural development for optimal long-term production,
groundbreaking opportunities for the Kingdom The company continues to bring together
gas liquids (NGLs), including 86.8 million barrels and the efficient extraction of crude oil, conden-
and the world. initiatives designed to make the business more effi-
of condensate. sates and natural gas.
This journey starts with maintaining and cient, agile and sustainable while raising our poten-
Saudi Aramco and its subsidiaries own or Our downstream activity includes refining,
enhancing our preeminence as the world’s leading tial through our people’s ingenuity and relentless
have equity interest in domestic and international selling and distributing crude oil and condensates,
supplier of energy. By moving into unconventional energy—all with the view of remaining a leading
refineries with a total worldwide refining capacity fractionating natural gas and selling and distribut-
gas, we will help meet growing energy demand global energy company for years to come.
of 4.9 million barrels per day (bpd), of which our ing natural gas, NGLs, petrochemicals and petro-
at home and across the globe, establishing the
equity share is 2.6 million bpd, making us the leum fuels.
Kingdom as a hub of excellence in global energy
world’s sixth largest refiner. In 2013, we produced
technology and services.
494 million barrels of refined products and exported

OUR STRATEGIC INTENT

In 2020, Saudi Aramco is the world’s leading

integrated energy and chemicals company,
focused on maximizing income, facilitating the sus-
tainable and diversified expansion of the Kingdom’s
economy and enabling a globally competitive and
vibrant Saudi energy sector.

KHURAIS CAN PRODUCE 1.2 MILLION BARRELS

OF CRUDE OIL PER DAY.
8 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 9

BOA RD O F D I R EC TO R S

Board of Directors
Saudi Aramco reports to the Supreme Council for Petroleum and Minerals Affairs, chaired by The Custodian of the Two
Holy Mosques, King ‘Abd Allah ibn ‘Abd Al-’Aziz Al Sa’ud. The Supreme Council sets the company’s overall direction.
Saudi Aramco’s Board of Directors is chaired by His Excellency Ali I. Al-Naimi, Minister of Petroleum and Mineral
Resources. The Board of Directors steers Saudi Aramco’s business and organizational objectives through leadership,
review and guidance. The Board oversees the company’s business affairs, works with management to determine the
company’s mission and long-term strategy, oversees senior management succession planning, establishes internal con-
trols, and assesses company opportunities, risks and strategies for risk mitigation. The Board consists of both outside
directors and representatives from senior management.

FRONT ROW (FROM LEFT): BACK ROW (FROM LEFT):

H.E. Dr. Majid Al-Moneef is the Abdulaziz F. Al-Khayyal is senior
Secretary General of the Supreme vice president of Industrial Relations
Economic Council of Saudi Arabia. at Saudi Aramco.

H.E. Dr. Mohammed I. Al-Suwaiyel Peter Woicke is a former managing

is president of King Abdulaziz City for director of the World Bank and chief
Science & Technology (KACST). executive officer of the International
Finance Corporation.
H.E. Dr. Ibrahim A. Al-Assaf is min-
ister of Finance for Saudi Arabia. Sir Mark Moody-Stuart is a former
chairman of Royal Dutch Shell.
H.E. Ali I. Al-Naimi is minister of
Petroleum and Mineral Resources for Andrew F.J. Gould is non-executive
Saudi Arabia, and chairman of Saudi chairman of BG Group and the former
Aramco’s Board of Directors. chairman and chief executive officer of
Schlumberger Limited.
Khalid A. Al-Falih is president and
chief executive officer of Saudi Aramco. Amin H. Nasser is senior vice presi-
dent of Upstream at Saudi Aramco.
H.E. Dr. Khaled S. Al-Sultan is rector
of King Fahd University of Petroleum Salim S. Al-Aydh is senior vice presi-
and Minerals (KFUPM) in Dhahran. dent at Saudi Aramco with special
portfolio.

SAUDI ARAMCO HEADQUARTERS, DHAHRAN.

10 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 11

C H A I R M A N ’S M E SSAG E PR E S I D E NT’S FO R E WO R D

SAUDI ARAMCO CONTINUES TO INNOVATE AND MAKE PROGRESS ON ITS STRATEGIC SAUDI ARAMCO COMBINES ITS RESOURCES, LEADING KNOW-HOW AND PIONEERING
TRANSFORMATION INTO A FULLY INTEGRATED ENERGY ENTERPRISE. MINDSET SO THAT WE CONTINUE TO BE A CATALYST FOR INNOVATION.

The global economy showed positive signs of growth in 2013 as Europe and the United States In 2013, Saudi Aramco celebrated our 80th anniversary with one of the most successful years in
gradually eased out of recession. In spite of continuing challenges, 2013 was a year of energy our remarkable history. I am grateful for the hard work of the company’s employees and for the
opportunities. Global energy demand continued to grow, particularly in Asia where Saudi Aramco collaboration and support of our stakeholders. Together, we can be proud to have strengthened
is the leading supplier to the four largest oil-consuming nations. Saudi Aramco’s position as a visionary global energy leader and the world’s

Saudi Aramco maintained its undisputed position as a leading global largest integrated energy enterprise.

energy supplier and enjoyed another highly productive and successful year. Whether drilling in the deep waters of the Red Sea for the first time or
This was thanks to the company’s sound strategic vision and the tireless efforts selling new products to China, we embraced our transformation and enabled
of its employees worldwide. Saudi Aramco made exciting new oil and gas new opportunities along our full value chain from upstream to downstream
discoveries through its continued implementation of the largest exploration and new businesses. We maintained our position as an upstream power­house
program in the company’s history. More importantly, it is also well positioned and expanded our capabilities with respect to conventional and unconventional
for long-term growth and success. resources. In 2013, we finalized the groundbreaking and award-winning

After 80 years of proud history, Saudi Aramco continues to innovate and Manifa oil field project ahead of schedule and increased our proven reserves

make progress on its strategic transformation into a fully integrated energy to their highest level ever. We also increased our sales gas supply to the

enterprise. The company provided energy to the world and also served the domestic Master Gas System. In the downstream, we commissioned the Saudi

communities where it operates and strengthened the Kingdom’s development Aramco Total Refining and Petrochemical refinery (SATORP) and progressed

through job creation and capacity building. In support of the company’s in various other strategic refining and petrochemical projects.

Strategic Intent, Saudi Aramco instated and filled the position of Chief Saudi Aramco combines its resources, leading know-how and pioneering
Technology Officer and made significant progress toward strengthening mindset so that we continue to be a catalyst for innovation. In this spirit, we
Saudi Aramco’s role as a world-leading technology creator. established new global research centers to develop our technical innovation

The Board of Directors and I are grateful for the continued support of pipeline for the future. In 2013, we also continued helping a new generation of

The Custodian of the Two Holy Mosques, King ‘Abd Allah ibn ‘Abd Al-’Aziz Al entrepreneurs through our Wa’ed initiative and placed a renewed emphasis on

Sa’ud, and Crown Prince Salman ibn ‘Abd Al-’Aziz Al Sa’ud. I remain convinced engaging and developing our young employees. Our focus on the technologies

that, under their judicious leadership, Saudi Arabia will move forward with our broad and and talent of tomorrow underpin Saudi Aramco’s position as a driver for positive change and a

determined development goals, supported by Saudi Aramco and energized by the opportunities creator of opportunity in the Kingdom and beyond.

the company continues to create. At Saudi Aramco we remain strongly committed to our high standards of safety, reliability
and integrity in all our operations. We are also dedicated to building the capacity of our diverse

Ali I. Al-Naimi workforce of men and women while engaging in a major transformation of our business and our
Minister of Petroleum and Mineral Resources corporate culture. This transformation builds upon the same Corporate Values that have brought
Chairman of the Board of Directors the company so much success to date. It will also enable us to achieve our Strategic Intent to become
the world’s leading integrated energy and chemicals company within this decade.

As you read this 2013 Annual Review, I encourage you to explore not only the past year’s
many exciting accomplishments but also the foundation blocks Saudi Aramco has laid to ensure our
future delivers on the theme of “energy is opportunity”—in the Kingdom and around the globe.

Khalid A. Al-Falih
President and Chief Executive Officer 
12 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 13

Our Strategy
OUR STRATEGIC INTENT
Delivering on this vision will take
commitment, resolve and focus to
achieve. Throughout this trans­
formation, the success of our strat-
egy will be measured through
four objectives: SHAPING OUR
Saudi Aramco is constantly seeking and creating opportunities for
BUSINESSES, ENABLING THE
a more prosperous, cleaner and more energized world. We have
KINGDOM, OPTIMIZING OUR
embarked on an ambitious corporate transformation guided by our
PROCESSES and BUILDING OUR
Strategic Intent, our overall vision for Saudi Aramco through 2020.
CAPABILITIES..Each of these will be
These advancements will not only ensure that Saudi Aramco remains
fulfilled through a series of initia-
a global leader in crude oil and NGL production and exports, but will
tives designed to unlock the inno-
also propel us into the top-tier of chemicals companies worldwide
vation and value that our company
and reaffirm our commitment to the Kingdom’s future in a rapidly
is uniquely placed to deliver.
changing world.

SHAPING OUR BUSINESSES

Pursuing the commercial activities that will help us
achieve our strategic objectives

Since its founding, Saudi Aramco’s Toward this end, every initiative’s
business portfolio has become signifi- scope is based on a thorough analysis
cantly more complex, creating the of current resources and capacity,
need for a refinement of our corpo- future demands and efficiency needs
rate strategy that will result in mas- and the competitive landscape for
sive growth in some areas, and a global markets. Our long-term crude
scaling back or divestiture in others. oil mix strategy is designed to help
Our busi­n ess portfolio is being us maximize the value we create
reshaped to meet evolving require- upstream while making the most
ments in our upstream and down- of the opportunities we have
stream activities as well as across downstream.
the Kingdom as a whole. It is also Unconventional gas has become a
1st Polymer sale (China)
expanding in scope and technological
prowess to become more integrated,
game changer in our upstream pro-
duction strategy and a potential fuel 3 New agreements for
global and diversified. for the Kingdom’s energy demand cogeneration facilities
growth. While maintaining a contin-
ued focus on renewables and alterna-
tive energy, we have also begun our
journey toward becoming a global
THE MANIFA FIELD CAME ON-STREAM THREE leader in chemicals.
MONTHS AHEAD OF SCHEDULE.
14 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 15

O U R STR ATEG Y

The company made significant progress toward shaping our businesses in 2013. ENABLING THE KINGDOM
For example, only two years after launching our own unconventional gas pro-
gram in the frontier Northern Region, we are ready to commit shale gas for the Building on our heritage of providing opportunities
development of a 1,000 megawatt power plant that will feed a massive phos- for the citizens of the Kingdom
phate mining and manufacturing sector in the Kingdom and drive that region’s
development and prosperity. Saudi Arabia will be among the first countries out-
side North America to use shale gas for domestic power generation. The company
brought the Manifa crude oil increment online in April 2013, three months
ahead of schedule, and achieved 500,000 bpd production capacity by July 2013. At its core, our 2020 Strategic Intent energy sources to conserve our hydro- the launch of sustainable new energy
We began selling chemicals in Asia through our joint ventures. We also appointed is about the future of the Kingdom carbon wealth. and chemical-related businesses in the
a Chief Technology Officer to help turn Saudi Aramco into a research power- as much as it is about the direction Kingdom. For example, during 2013, we
At the same time, our Energy to the
house able to respond to—and anticipate—the future technology needs of the of the company. The strategic pillar helped five new manufacturing facili-
Kingdom initiative focused on growing
industry. This new position is a key step toward Saudi Aramco’s vision to become Enabling the Kingdom builds on our ties to start production of different
and diversifying our energy supply,
one of the world’s leading creators of hydro­carbon, chemicals, renewable and heritage of providing opportunities strategic commodities such as chemicals,
saving energy across all sectors and
related energy technologies by the year 2020. for the citizens of the Kingdom for valves, heat exchangers and power
creating opportunities for sustainable
mutual and long-lasting impact. One systems. Additionally, we helped five
economic growth. We deployed the
of our core competencies is recogniz- existing manufacturers expand their
Lead by Example initiative, identified
ing and creating opportunities in the production capabilities. Their total
as an opportunity for Saudi Aramco to
domestic energy sector. A key area of investment of $266 million to the local
demonstrate leadership in non-indus-
focus in this sector is the promotion economy helped to create more than
trial energy efficiency by implementing
of a more balanced and sustainable 1,300 job opportunities and has pro-
energy saving technologies. The goal is
national energy strategy. Saudi Aramco vided local contractors with opportuni-
to achieve a minimum of 35 percent sav-
has launched numerous corporate ties for further downstream investments.
ings in energy use in the nonindustrial
initiatives to address issues such as
sectors by the year 2020.
energy efficiency and the diversifica-
tion of the energy supply. We began implementing our strategy
for a Competitive Saudi Energy Sector,

35% BY 2020
Activities are under way to promote
which in 2013 focused on driving four
energy efficiency across the Kingdom
areas: The Industrialization & Energy
—from transportation, residential
Services Company (TAQA), offshore,
and industrial uses to reduce domestic
marine services and unconventional gas. Reduce Saudi Aramco’s nonindustrial
demand by the equivalent of 2.4 million
Saudi Arabia is a young nation, and its energy use by a minimum of 35%
barrels of oil a day by 2030. Through
dialogue and partnerships with govern- population is growing rapidly. More

2.4M BY 2030
ment and other business groups, Saudi than 5 million new jobs will be needed
Aramco is encouraging adoption of over the next two decades to employ
energy-efficient technologies and prac- the emerging workforce. Saudi Aramco
tices as well as accelerating develop- is committed to creating new high-
Reduce domestic energy demand
ment of alternative and unconventional value job opportunities by facilitating
by 2.4 million barrels of oil per day

M = million
16 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 17

O U R STR ATEG Y

BUILDING OUR CAPABILITIES

Developing our talent and deepening our technology
knowledge base

Critical to Saudi Aramco’s continued transformation into

the world’s leading integrated energy and chemicals com-
pany is the need to further develop our talent and deepen
our technology knowledge base.
The vanguard initiative that enable us to achieve this
objective is the Leadership Engine program, which aspires
to create a higher-performance organization and a global
employer of choice in the energy industry. Saudi Aramco’s
commitment to developing our employees’ skills not only
OPTIMIZING OUR PROCESSES
helps improve their short-term performance but also pre-
Creating agility as we move into new businesses pares them for leadership in our expanding global energy
and chemicals enterprises. To ensure that we prepare
and new markets for the future, our Young Leaders Advisory Board (YLAB)
communicates messages about the corporate transforma-
tion to the under-35 employee population. Simultaneously,
To achieve the aspirations of our 2020 benefits such as increasing reliability and the President and CEO and plays a key YLAB gathers feedback from the company’s larger youth
Strategic Intent, it is necessary to safety of the plants and reducing envi­ role in assessing where the company is population and shares this input with corporate management.
optimize and streamline many of our ron­mental impacts. Saudi Aramco has positioned from a governance, risk Saudi Aramco is making substantial investments in research
corporate processes by evaluating the also made progress in many areas related and compliance standpoint. Rigorous and development (R&D), launching a network of strate-
core functions they play across the to environmental excellence: in 2013, and well-coordinated auditing pro- gic global research centers and increasing our R&D per-
entire organization and identifying for example, flaring at all Saudi Aramco cesses allow Saudi Aramco to make sonnel, all with the aim to build capacity within the
the best ways to harmonize and inte- facilities was reduced by over 17 percent. appropriate changes to our controls company to create and refine the innovative technologies
grate them better. infrastructure to address risks ade-
Saudi Aramco’s risk management pro- needed to grow our energy business and expand into
quately. As part of its application of
A vital initiative that supports this cesses are also intricately intertwined new areas such as chemicals. Strategic alliances were built
international best practices in corpo-
goal that was fully implemented in with its corporate strategy. In 2013, the with premier research organizations—both industrial
rate governance, Saudi Aramco is also
2013 is Saudi Aramco’s Single Business company prepared and delivered the and academic—and our venture capital subsidiary,
audited externally at the direction of
Plan planning cycle, which brings 2040 Global and Kingdom Economic Saudi Aramco Energy Ventures (SAEV), continued to
Saudi Arabia’s Supreme Council for
together all aspects of planning, such and Energy Outlooks, providing in- invest in start-up technology companies around the globe.
Petroleum and Minerals Affairs.
as materials, invoices, headcount and depth analysis, as well as short-, These efforts assist us in introducing the latest technologies
support services, narrative develop- medium- and long-term projections of These initiatives aimed at process to maintain our company’s competitive advantage in the
ment and performance planning. We major macroeconomic fundamentals optimization enable Saudi Aramco marketplace. Technological innovations help us to find more
have also created a structured opera- and energy sector trends. In addition, to respond with greater speed and oil and gas, significantly increase the recovery of petroleum
tional excellence system that tracks four Saudi Aramco developed a set of sce- flexibility to changing business and resources, develop unconventional gas and renewable
focus areas—reliability, efficiency, cost narios for testing the robustness of the operational conditions, and to be energy sources, and engineer systems that are cleaner and
effectiveness and HSE (health, safety company’s strategies, and continued more efficient in its use of material use fuel more efficiently. Leadership in upstream and down-
and environment)—and taps into every upgrading integrated modeling tools to and human resources as it enters into stream R&D also more broadly supports the nurturing of a
aspect of Saudi Aramco’s business. An enhance future economic and energy new businesses and expands its global flourishing knowledge economy in the Kingdom. Through
example of Saudi Aramco Operational outlook capabilities. The newly estab- reach. Ultimately, a more profitable, this strategic focus on innovation, Saudi Aramco has posi-
Excellence in action is the company- lished Saudi Aramco Enterprise Risk agile, reliable and effective Saudi tioned itself to become a foremost creator of technology
wide implementation of six new Manage­ment function ensures that Aramco directly and indirectly strength- while strengthening the Kingdom’s economy through
emerging inspection technologies that risk management is embedded in the ens the economy of Saudi Arabia and education, training and entrepreneurship opportunities.
are estimated to achieve a significant company’s planning and decision- ensures continued prosperity for
annual cost avoidance per operating making processes. The company’s its people.
facility, not including non-tangible Internal Audit­ing function reports to
18 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 19

Exploring New
Opportunities
UPSTREAM OPERATIONS OVERVIEW
All of us at Saudi Aramco are working toward the same
goal—to remain the world’s most reliable supplier of energy
while transforming into a world leading integrated energy
and chemicals company. As we continue to shape our
businesses and expand our portfolio, Saudi Aramco remains
the key swing producer in the global energy economy by
maintaining sub­stantial spare crude oil production capacity
to help stabilize the worldwide oil market whenever
disruptions happen. Roughly one in every eight barrels of oil
produced around the world today comes from Saudi Aramco.

Our upstream operations continue to oilfield discovery at Al-Haryd, in addi-

N E W D I SCOV E RI E S W E LL S COM PLE TE D WO RKOV E R S lead the industry in scale of produc-
tion, operational reliability and tech-
tion to our previous gas find at Shaur
within this frontier region. In our core
nology development. In the past two operational areas, we found oil in

3 OIL FIELDS
(Al-Haryd, Duhul & Salsal)
29 OIL EXPLORATION
202 OIL WELLS years, we have increased our crude oil
production when needed to address
market supply imbalances, providing
Duhul and Salsal and discovered new
conventional gas fields at Turayqa in
the Rub’ al-Khali and at Mihwaz in
crucial stability to the global market, central Saudi Arabia. These discoveries

2 21 24
and we continue to make massive are integral to supporting our critical
GAS FIELDS GAS EXPLORATION GAS WELLS investments to maintain the world’s gas business, which is geared toward
(Turayqa and Mihwaz) CONVENTIONAL largest spare oil production capacity. meeting the Kingdom’s domestic
We continue to maximize the potential energy needs and powering industrial
of our hydrocarbon resources by focus- development.
Total number of
oil and gas fields 121 29 GAS EXPLORATION
UNCONVENTIONAL
50 WATER WELLS ing on sustainability and using technol-
ogy to maintain our positive trajectory
of improvement in reservoir recovery,
Saudi Aramco’s unconventional gas
program also became fully opera-
tional in 2013, offering a promising
reliable operations and production. new resource for the Kingdom’s

216
The year 2013 also saw us make signif- energy needs.
OIL DEVELOPMENT icant progress on two offshore devel- Our world-class research and develop-
opments: Manifa, the world’s fifth ment facilities have furthered our
largest oil field, and Karan, the King­ ability to explore for and maximize
dom’s first nonassociated offshore

66
extraction of the Kingdom’s resources,
GAS DEVELOPMENT gas field. We added new oil and gas especially in challenging, complex
reserves as we continued to implement environments. This work lays the
the largest exploration program in foundation for exciting opportunities
the company’s history. both in the present and the future.
We added three oil and two gas dis-
coveries to our portfolio, bringing our
total number of discovered fields to
121. This included exploration and
THE WASIT GAS PLANT WILL BE ABLE TO drilling operations in the deep waters
PROCESS 2.66 BILLION STANDARD CUBIC FEET
of the Red Sea, where we made a new
OF GAS PER DAY.
20 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 21

E X PLO R I N G N E W O PP O RTU N ITI E S

MANIFA BY THE NUMBERS:

MANY VIEW US AS A ‘SUNSET INDUSTRY.’
I STRONGLY DISAGREE. IN FACT, I WOULD
STRESS THAT…WE ARE NOT EVEN AT MID-
DAY…I WOULD EVEN ADVOCATE THAT WE
HAVE THE POWER OF TIME TRAVEL BY
RENEWING, REINVENTING AND REDISCOV-
ERING OURSELVES IN MEETING TOMOR-
ROW’S ENERGY CHALLENGES.
—AMIN H. NASSER, SENIOR VICE PRESIDENT,
UPSTREAM

41 kilometers of causeways 3 kilometers of bridges Full Capacity:

27 drilling islands 13 offshore platforms 15 onshore •9
 00,000 bpd of Arabian
Heavy crude oil
drill sites 1 420 MW heat and electricity plant 3 months
technology and manpower. For the
ahead of schedule 1 UNESCO Award nomination • 90 million scfd of gas
first time in the company’s history, a
program has combined onshore, off- 2 world records • 65,000 bpd of condensate
shore and a causeway in a single
project. In addition, the project has
broken world records in reservoir
engineering, drilling and well servic-
ing. Two world records were set in the hires represent the company’s varied developing the field. As a direct result
Manifa field by drilling the deepest operations and include engineers, of these studies, Saudi Aramco con-
61/8-inch hole section to over 37,000 operators and maintenance personnel structed three kilometers of bridges
feet and deploying the longest 7-inch who have had extensive classroom and to span the migration paths of various
liner with a length of over 18,000 feet practical training, as well as hands-on marine species, maintaining natural
to a depth of 26,000 feet. experience in similar operations. water flow and preserving natural
marine nurseries. At the same time,
The Manifa field was successfully put The project’s innovative engineering
the man-made islands and the main
into production in April 2013, three design was created to optimize the
and lateral causeways for the project
months ahead of schedule, and field’s production capacity, while caring
were constructed to house shallow-
achieved 500,000 bpd capacity by for the environment. Prior to construc-
water wells, a more cost-effective
July 2013. By the time it reaches its tion, our experts conducted extensive
option than offshore rigs. The proj-
full potential at the end of 2014, the engineering and ecological assessments
ect’s success earned it a UNESCO
Manifa field will have the capacity to to ensure that the marine ecosystem
Environmental Responsibility award THE MANIFA STORY WILL BE A VERY
produce 900,000 bpd of Arabian would not be adversely affected by
nomination. BRIGHT AND SHINING EXAMPLE IN OUR
Heavy crude oil, 90 million scfd of gas
CORPORATE HISTORY…IT REALLY OPENS
and 65,000 bpd of condensate. It will A NEW PAGE IN TERMS OF OVERCOMING
also deliver feedstock to Jubail and VARIOUS HURDLES AND COMPLEXITIES
Red Sea Exploration the first deep water Drill Stem Test Yanbu’. The project consists of 41 kilo- MOST NOTABLY THROUGH HUMAN AND
In 2012, Saudi Aramco’s frontier explo- operation for Saudi Aramco was suc- meters of causeways, three kilometers TECHNOLOGICAL INNOVATION. IT IS A TES-
ration program in the Red Sea resulted cessfully executed at Duba-1, located of bridges, 27 drilling islands, 13 off- TIMONY TO THE COMPANY’S VALUES, PAR-
in a significant gas discovery at Shaur, in the Northern Red Sea. Tests con- shore platforms, 15 onshore drill sites, I SEE MANIFA AS A GIANT PROJECT AND A VIVID EXAMPLE OF SAUDI ARAMCO’S CAPABILI- TICULARLY CITIZENSHIP, BY CARING FOR
which we viewed to be a potential ducted in sea water at a depth of water supply wells, injection facilities, TIES WHEN IT COMES TO HUGE PROJECTS. TO ME, BEING PART OF THIS GIANT PROJECT IS THE ENVIRONMENT, SAUDIZATION AND
game changer in the future of the 2,127 ft. indicated tight reservoirs for multiple pipelines and a 420 MW heat A SOURCE OF PRIDE, LIKE WEARING A MEDAL. THIS ACCOMPLISHMENT COULD NOT HAVE RELYING ON NATIONAL VENDORS TO THE
Kingdom’s energy mix. In 2013, we potential future development. BEEN ACHIEVED IF IT WAS NOT FOR THE DEDICATION AND ROUND-THE-CLOCK EFFORTS OF MAXIMUM EXTENT.
and electricity plant.
THE WORKING TEAM.—KHALID A. AL-ABDULGADER, MANAGER, MANIFA DRILLING DEPARTMENT —KHALID A. AL-FALIH, PRESIDENT AND CEO
continued exploration and drilling
operations in the Red Sea’s deep
Manifa Saudi Aramco hired 360 young Saudis
The Manifa crude oil increment has to operate and maintain Manifa under
waters, where we made a new oilfield
been a monumental achievement in the supervision of more experienced
discovery at Al-Haryd. Also in 2013,
company history in terms of production, Saudi Aramco employees. The new
22 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 23

E X PLO R I N G N E W O PP O RTU N ITI E S

THE NGL FACILITIES AT SHAYBAH ARE EXPECTED TO HELP US MEET INCREASING DEMAND
FOR PETROCHEMICAL FEEDSTOCK BY RECOVERING VALUABLE NGL FROM PRODUCED GAS…
THE ATTENTION AND FOCUS SHAYBAH IS RECEIVING FROM ALL LEVELS OF BUSINESS, GOV-
ERNMENT AND ACADEMIA IS AT AN ALL-TIME HIGH.
—ABDULLAH A. AL-SUGHAIYER, PROGRAM DIRECTOR, SHAYBAH NGL

Khurais water injection capacity. The facility’s Shaybah Second was the construction of a new four cogeneration units, seven single a stand-alone gas plant, Wasit’s inte-
The Khurais crude oil increment has design is engineered according to the Two major projects were in progress NGL recovery plant that will be com- cycle units, a 50-kilometer 230 kilovolt grated facilities will process 2.66 bil-
become a company showpiece to visit- highest industry standards and places at the Shaybah field this year. First pleted by the end of 2014 with a pro- transmission line, and the associated lion scfd of nonassociated offshore
ing dignitaries and an example of the specific emphasis on sound, environ- was a 250,000 bpd oil production duction capacity of 275,000 bpd in electrical and nonelectrical utilities. Khuff gas from Arabiyah and Hasbah.
company’s ability to handle mega- mentally friendly processes. Khurais expansion increment, which will be line with the company’s corporate Along with Karan, it will raise the
In recognition for its environmental
projects with a keen eye on the values wells employ the latest Intelligent completed by the end of 2015. The strategy to maximize revenues by sig- Kingdom’s gas processing capacity by
protection efforts, including a planned
of safety and excellence. Commis­sioned Field technologies, including real-time expansion will provide the Shaybah nificantly boosting the recovery of about 40 percent. Under normal con-
600-square-km wildlife reserve, the
in May 2009, Khurais currently has the rate measurement and remote control field with a capacity of 1 million bpd resources. The project involves the ditions, Wasit is expected to supply
Shaybah Producing Facility won Saudi
capacity to produce 1.2 million bpd of and surveillance capabilities. Its best- of Arabian Extra Light crude oil, dou- construction of inlet facilities, gas 1.7 billion scfd of sales gas to the
Aramco’s 2013 President’s Award for
Arabian Light crude oil, 70,000 bpd of in-class reservoir development plan ble its initial capacity when it came treating units, NGL recovery trains, Master Gas System and have inlet
Environmental Stewardship.
condensate and 320 million scfd of gas. was designed using GigaPOWERS, our online in 1998. In 2013, the Shaybah dehydration, residue gas compression, facilities potential of up to 3.05 billion

In 2013, Saudi Aramco began a project

powerful proprietary reservoir modeling drilling plan continued with two key acid gas compression, NGL storage Wasit
technology, to produce a high-resolution strategies in place to maximize recov- and shipping, an upgrade of the gas Saudi Aramco made major progress
to expand crude oil production capac-
model to simulate optimal reservoir ery: the first to place wells at deeper handling capacity for the four existing on the Wasit Gas Plant in 2013, as site
ity to reach 1.5 million bpd of Arabian

1M BARRELS OF OIL PER DAY

performance. In addition, an acceler- locations away from the gas cap to Shaybah gas-oil separation plants and development, temporary facilities and
Light by 2017. The expansion project
ated evaluation program was success- maximize oil recovery, and the second other associated electrical and non- communications were nearly complete
capitalizes on the successful design of
fully completed to capture fluid and to increase the average reservoir con- electrical utilities. The project also by the end of the year. When it is Future capacity of Shaybah,
the Khurais Central Processing Facility
reservoir properties and performance, tact from 6 to 10 km, enhancing pro- includes a major upgrade to increase completed in 2014, Wasit will be one double its original
to accommodate an additional 300,000
allowing Saudi Aramco to develop duction from the deep, tight faces of the power generation capacity to of the largest nonassociated gas
bpd of production and 500,000 bpd of
new reservoir targets. the reservoir. more than 1 gigawatt by installing plants Saudi Aramco has ever built. As
24 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 25

E X PLO R I N G N E W O PP O RTU N ITI E S

The Wasit, Karan and Midyan facilities

are all important components of Saudi
Aramco’s Nonassociated Gas Develop­
ment Program, which aims to support
and expand all domestic Saudi industry,
including steel and cement factories;
water desalination plants; electricity
production; ammonia and urea plants;
methanol industries to produce anti-
freeze, solvent, fuels and other mate-
rials; and numerous other energy
related projects.

Fadhili
One of Saudi Aramco’s goals through-
out its strategic transformation is to
improve capital efficiency by 20 per-
cent. As part of that initiative, in 2013
the company held a workshop of the
first Integrated Project Team (IPT),
UNCONVENTIONAL GAS
which was formed to plan and execute We are actively exploring for unconventional gas resources
the Fadhili Gas Plant Program. The
project team is planning the delivery in three areas of Saudi Arabia: the Northwest, South Ghawar
scfd of raw gas during emergencies or Midyan
demand peaks. The plant also includes In 2013, Saudi Aramco launched its of a mega-project that brings non­ and the Rub’ al-Khali.
one fractionation module designed to first project in the Tabuk region in the associated gas from the onshore
produce ethane, propane, butane and Kingdom’s northwest, where procure- Khursaniyah field and the offshore
natural gas. ment and construction work for a gas Hasbah field. The Fadhili IPT was joined
plant in the Midyan gas field is under by members of the newly established UNCONVENTIONAL GAS and is the preferred fuel for power The company’s unconventional gas
The cogeneration facility at the plant generation and water desalination program became fully operational in
will generate 750 MW of power and is way. The Midyan field, discovered in Capital Program Efficiency and Value PROGRAM
Assurance organization in a workshop due to its increased efficiency and 2013. Only two years after launching
the early 1990s during the Red Sea A significant component of our corpo-
expected to produce 4,200 metric tons cleaner burning qualities compared our own unconventional gas program
coastal plain exploration, was studied that focused on capital efficiency. As rate strategy is to retain our preemi-
per day of molten sulfur. As part of to other fossil fuels. in the frontier Northern Region, we
to identify ways to optimize economic Saudi Aramco’s capital expenditures nence as the world’s most reliable
our energy efficiency efforts, Wasit are ready to commit shale gas for the
production. The facility will be fully increase to meet domestic and global supplier of energy while entering new  The resulting increase in the total
will also be the first in the Kingdom to development of a 1,000 MW power
operational by 2016, at which time it demands, the 20 percent efficiency operational areas. These new areas gas share of the Kingdom’s energy
use Sulfinol-M gas treating technology plant that will feed a massive phos-
will be capable of producing and pro- potentially represents billions of dollars include large-scale expansion in explo- mix will increase the volumes of
to improve the efficiency of sulfur phate mining and manufacturing sec-
cessing 75 million scfd of nonassociated of cost avoidance that can be used for ration and development of unconven- higher value diesel and crude oil
recovery units from 95 to 99.1 percent. tor in the Kingdom and drive that
gas and 4,500 bpd of condensate. the benefit of the Kingdom. tional gas resources. available for export.
In 2013, the Wasit Saudization Job Fair region’s development and prosperity.
was conducted to help enable the The Midyan project will include the Haradh Unconventional gas refers to the depos-  A s a resource-intensive operation, Saudi Arabia will be among the first
employment of Saudis in construction establishment of two pipelines Haradh Gas Plant successfully increased its of natural gas trapped in shale and estimates of direct jobs can be up to countries outside North America to
activities. More than 8,000 applicants stretching 98 kilometers to deliver its capacity by 8 percent to 1.95 billion tight sands. This gas was not commer- 10,000 (including contractors) for use shale gas for domestic power
attended the job fair, of which more sales gas and stabilized hydrocarbon scfd following the completion of the cially viable to produce until recently. every 1–2 billion cubic feet of gas generation.
than 3,000 were given job offers. liquids to a sophisticated power plant sales gas compression relief system, Today, tapping this resource is an produced daily, with up to four
We are actively exploring for uncon-
near Duba to generate electricity with using in-house resources. This enables important strategic step for continued times as many indirect jobs. These
ventional gas resources in three areas
high efficiency and to avoid burning the plant to process an additional 150 economic development in the Kingdom jobs also require expert skills and
of Saudi Arabia: the Northwest, South
high-value diesel. This is in line with million scfd when the need arises. for the following reasons: training, and therefore stimulate
Ghawar and the Rub’ al-Khali. Due to
our strategic vision to respond more demand for advanced support sec-
 Unconventional gas will help meet the large scale of these unconventional
efficiently to the needs of our grow- tors and a knowledge economy.
Saudi Arabia’s own energy demand, gas resources and the complexity and
ing customer base.
26 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 27

E X PLO R I N G N E W O PP O RTU N ITI E S

 Plasma technology uses high-electric

discharge to generate supersonic
stress waves to induce fracture in
the reservoir.
 CO2-based fracturing fluid may meet
the water supply challenge in large-
scale fracturing jobs.
 Staged fracturing is evolving into
cost-effective techniques by creating
multiple hydraulic fractures in hori-
zontal wells without using mechani-
cal isolation tools. Research and
development collaboration between
Saudi Aramco and Schlumberger
Limited has discovered methods to
control simultaneous fracture initia-
tion, marking the first multiple
fracture initiation research in the
oil and gas industry. ENABLING THE KINGDOM
 The use of microseismic fracturing
proved to be a valuable tool in the
The King Abdullah Petroleum Studies and Research Center (KAPSARC) unveiled a 3.5 MW
first Northwest shale gas well to solar energy field in Riyadh. The field will deliver about 5,800 megawatt hours (mwh) of
assess the efficiency of the fracture
power annually to the electricity grid and enable KAPSARC to achieve platinum LEED certifi-
network generated through hydrau-
lic fracture treatments. This was cation. The field will offset CO2 emissions by about 4,900 tons per year.
the first time this technology was
intensity of the activity associated with Innovations in Hydraulic deployed in Saudi Aramco to assess
their development, significant invest- Fracturing Technology four different fracturing technolo-
ment opportunities and economic Saudi Aramco is also exploring new Center (UPDC) is to ensure a sustain- the program. The 18-month programs
When it comes to extracting uncon-
gies. The technology provided a methods for using fracturing fluid able, capable upstream workforce consist of 30 percent classroom training
benefits lie in the full value chain of ventional or tight natural gas, the best
better understanding of the geome- technology to get the maximum by providing effective and efficient and 70 percent on the job field training.
this emerging industry. technique found so far is fracturing,
try and complexity of the fractures amount of natural gas out of the professional development for all
also known as fracking. Saudi Aramco’s Flaring Minimization
Furthermore, the full unconventional generated for each type of fracture ground with minimum ecological petroleum engineers and geoscientists.
constant focus on environmental stew- As a company dependent on natural
gas value chain such as site develop- design. impact. The recent development of UPDC’s immersive learning environ-
ardship has led it to push for new resources, Saudi Aramco considers the
ment, rig preparation, drilling, fracking,  An innovative fracture propping environmentally friendly polymer-free ment accelerates learning through
and better ways to conduct fracturing environment to be a significant prior-
completion, well tie-in, production concept is being developed by the fracturing fluids—with superior opera- allowing participants to combine field
operations with the least environmen- ity. Saudi Aramco has made progress
and maintenance are poised to grow Advanced Research Center of our tional performance—represents a experience with high-tech simulation.
tal impact possible. in many areas with respect to environ-
rapidly between now and 2020. The Exploration and Petroleum Engineer­ major technological advance in the UPDC has developed a training program
opportunity presently exists for New hydraulic fracturing technologies petroleum industry. mental excellence. Our ongoing goal
ing Center (EXPEC ARC) to chemically that leverages the North American
unconventional gas sector manufac- are being developed to significantly is to be globally competitive in terms
convert fracturing fluid into solids in shale gas experience of three major
turers and service providers to serve improve cost efficiency, increase recov- Unconventional Gas Resources of our social responsibility and envi-
situ. The fracturing fluid will be a sys- service companies to equip upstream
Saudi Arabia and neighboring coun- ery rates, reduce environmental impact Development Program ronmental stewardship.
tem containing multiple liquid and/or professionals with the knowledge and
tries by targeting localization within and enhance well productivity across Unconventional gas plays a significant
gas components. Upon being cata- skills required to successfully exploit The Saudi Aramco Engineering
Saudi Arabia as their operational hub. shale, deep sandstones, and carbonate role in Saudi Aramco’s upstream pro-
lyzed by the reservoir temperature, this new growth area. Our Exploration, Standard asserts various goals with
formations in the Kingdom: duction strategy and as a potential
the fluid is set into a porous medium Petroleum Engineering, Drilling & respect to air quality, source emission
growth area to meet the Kingdom’s
 Pulsed gas fracturing improves well- to keep the fracture open while at the Workover and Production Engineering controls and the elimination of dis-
energy demand. The mission of our
to-reservoir connectivity by gener- same time providing high conductivity. organizations selected a total of 56 charge of toxic substances. Flare mini-
Upstream Professional Development
ating a fracture network near the young professionals to participate in mization plans are meant to eliminate
wellbore by using a propellant.
28 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 29

E X PLO R I N G N E W O PP O RTU N ITI E S

FLARE GAS
MITIGATION
IN 2013 ALONE,
FLARING AT ALL SAUDI
12.0M BARRELS PER DAY
Maximum daily sustainable LOOKING FORWARD:
ARAMCO FACILITIES crude oil production INNOVATIONS IN UPSTREAM
WAS REDUCED BY OVER OPERATIONS
17 PERCENT. Saudi Aramco’s strategic, long-term

2013
13.2B STANDARD CUBIC FEET PER DAY outlook on research and technology
development is consistent with our

17 +% Gas plant daily processing capacity development plans for our oil and gas
fields—allowing us to maximize reser-
B = billion voir performance, and add further
value to our integrated energy
value chain.
THE VOLUME OF Saudi Aramco’s Exploration and
FLARED GAS IS NOW Petroleum Engineering Advanced
LESS THAN 1 PERCENT
Research Center, also known as EXPEC
OF RAW GAS PRO-
ARC, is the upstream research arm that
DUCTION, MAKING
tackles the challenges of maximizing
SAUDI ARAMCO
AMONG THE GLOBAL oil and gas recovery while reducing
LEADERS IN FLARED the associated developmental cost
GAS REDUCTION. through innovative technologies and
better understanding of our reservoirs.
We are pursuing R&D to bring about
hydrocarbon flaring to lighten the breakthrough achievements—beyond
environmental footprint of facilities simple or merely incremental enhance-
while generating additional revenues ments. In 2013, we made significant
from the captured hydrocarbons. progress in developing a series of
these technologies.
In 2013, Saudi Aramco completed the
development of Flare Minimization SmartWater Flood Field Pilot
Plans at all its facilities to provide a and devices that can traverse the res- base, to make reservoir quality esti-
SmartWater Flood is the first home-
consistent and focused approach to ervoir to support formation evalua- mates at the location of interest.
grown recovery technology that can
measure, monitor and control gas flar- tion, reservoir monitoring, and oil
provide substantial additional oil DETECT Coherency Technology
ing. As a result of this program, flared recovery. In 2013, the realization
recovery through simple tuning of the Recent advances in automatic fault
gases across its gas operations have of a stable magnetic nanoparticle
ionic composition of the seawater detection along with practical innova-
been reduced 31 percent compared to successfully completed the proof of
treated at our Qurayyah facility for tions in coherency technology have
2010. In 2013 alone, flaring at all Saudi concept in the lab, making way for
injecting into producing fields to been incorporated into Saudi Aramco’s
Aramco facilities was reduced by over a demonstration in a shallow multi-
maintain reservoir pressure. The exe- industry-leading DETECT soft­ware
17 percent, translating to annualized well field trial.
cution of a multi-well field pilot is platform. These developments enhance
cost avoidance in flaring of $29 million being planned at North ‘Uthmaniyah, Prosperity considerably the value of 3D seismic
per year. and Saudi Aramco is conducting fun- EXPEC ARC has developed an easy-to- data, reduce interpretation cycle time
damental in-house research to better use application titled Prosperity that for prospect generation and improve
understand the fine details of recov- enables the explorationist (as opposed success rates for drilling both for explo-
ery from the atomic/molecular scale to a reservoir quality specialist) to ration and field development. The
to the reservoir scale. routinely predict reservoir quality in a application of DETECT technology not
variety of sandstones. This tool provides only has resulted in better definition
Reservoir Nanoagents
an interface that allows the user to of subsurface images but has also con-
The idea behind reservoir nanoagents
make rigorous predictions of reservoir tributed significantly to the identifica-
is an industry-first concept that focuses
quality but with a minimum of required tion of fractures and channels—key
THE HASBAH FIELD WILL PROVIDE GAS TO
on in situ reservoir illumination and
inputs. The application also utilizes a components for our unconventional
THE WASIT AND FADHILI GAS PLANTS. intervention based on advances in
sophisticated diagenesis model, lever- gas exploration efforts.
nanotechnology. The technology tar-
aged with our Geology Technology
gets smart nanoengineered particles
Team’s extensive reservoir quality data-
30 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 31

E X PLO R I N G N E W O PP O RTU N ITI E S

Microwave Energy to Mobilize microchip sensor technology. The tool in the market, which could only
Heavy Oil development combines a new mobile, tolerate temperatures up to 260
In response to the recent effort to reliable and miniature sensor system degrees Fahrenheit. This breakthrough
leverage heavy oil and tar reserves in for downhole drilling measurements is a result of our continued work with
the Kingdom, EXPEC ARC designated with an application for acquisition of service providers to modify or manu-
a new laboratory to accommodate temperature and pressure data along facture tools to handle our harsh well
R&D experiments associated with the entire wellbore. The expected environment. This success will open
improving well productivity and overall future business impact includes opti- the door for optimizations in obstruc-
reservoir depletion efficiency. A spe- mizing mud and cement formulations tion removals and fishing jobs.
cial custom-designed apparatus is while drilling, and further reducing
being constructed with the objective well cost by providing an alternative
of placing enabling materials deep in low-cost data acquisition system. This
the reservoir and maximizing heated technology was recently highlighted
reservoir volume from a microwave- in the September 2013 issue of the
source antenna situated in the well- Society of Petroleum Engineers’ Journal
of Petroleum Technology. It is expected SAUDI ARAMCO RECOGNIZES THAT R&D
bore. Enabling microwave technology
IS KEY TO ITS GROWTH AND IS ON A
could mobilize billions of barrels of that the first generation microchip will
COURSE TO BUILD ITS RESEARCH PROGRAM
new hydrocarbon resources and signif- be ready for field deployment by the
AS PART OF A FAR-REACHING PLAN TO
icantly increase the Kingdom’s reserves end of 2014.
BECOME A GLOBAL LEADER IN ENERGY
and recovery rates. A patent application AND CHEMICALS. THIS INVESTMENT BUILDS
is already in place to protect the devel- Downhole Video Camera ON DECADES OF STRONG IN-KINGDOM
opment of a new tool and method to We successfully conducted the first R&D ACHIEVEMENTS.—CHARLES KRESGE,
deploy the new technology. worldwide trial of a high-temperature CHIEF TECHNOLOGY OFFICER, SAUDI ARAMCO
resistant and high-quality downhole
First Drilling Microchip video camera capable of withstanding
This project is an industry first towards temperatures of up to 350 degrees
developing low-cost oilfield drilling Fahrenheit, surpassing the existing

THE OFFSHORE SAFINYAH FIELD IS THE WORLD’S

LARGEST AND HELPED US PRODUCE AN AVERAGE
OF 9.4 MILLION BARRELS OF OIL PER DAY IN 2013.
32 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 33

Expanding Our DOWNSTREAM OPERATIONS OVERVIEW

Portfolio
Saudi Aramco is more than an oil company; we are stewards of the
Kingdom of Saudi Arabia’s vast hydrocarbon resources. While in our
past we focused primarily on crude oil and gas, now we are rapidly
progressing toward becoming the world’s leading integrated energy
and chemicals company. As a visionary company that provides prod-
ucts across the entire value chain, from crude oil to chemicals and
plastics, we look to optimize our position by expanding further through
successful joint ventures and by developing and applying cutting-
edge technologies. We expect our work to further strengthen the
economy by creating, either directly or indirectly, approximately half
a million jobs throughout the Kingdom over the next several years.

As we solidify our leadership in our The localization of the Saudi energy

core business, two imperatives must sector can help raise the Kingdom’s
TOTA L R E FI N I N G C A PACIT Y 2013 E X P O RT S TO A SI A be met. First is an emphasis on profit- gross domestic product (GDP) and
(IN THOUSANDS OF BARRELS PER DAY) (AS A PERCENTAGE OF TOTAL EXPORTS) able growth through the diversifica- standard of living by boosting
tion of our business portfolio. The regional economic development

1,000 53.8 %
WHOLLY OWNED DOMESTIC CRUDE OIL second is a focus on the Kingdom’s through employment and foreign
economic agenda, particularly our sup- direct investment. It can also directly
port for local economic development. impact our operations through
In 2013, our downstream operations improved efficiency and quality,
achieved success on both these fronts. allowing us to navigate an evolving

1,505 DOMESTIC JOINT VENTURES

46.6 % REFINED PRODUCTS In refining, we continued to supply
the domestic market with fuels and
feedstock cost-effectively. Increasing
industry with greater agility. Saudi
Arabia’s demographic profile also
presents opportunities for supporting
global demand for chemicals and fuel the further development of a knowl-
products, however, will require Saudi edge economy. The Kingdom has a

2,374 INTERNATIONAL JOINT VENTURES

27.9% NGL*
*INCLUDES SALES ON BEHALF OF
Aramco to widen its focus to grow its
businesses accordingly. Refineries such
as the Saudi Aramco Mobil Refining
rapidly growing population, with half
of the population under the age of
25, and it also enjoys a highly edu-
SAMREF AND SASREF Company (SAMREF) joint venture will cated and talented female population,

4,879
strengthen our competitive position whose participation in the workforce
WORLDWIDE for years to come by producing world- has substantial room to grow. Taking
class fuels. Our partnerships such as advantage of these human resources
Saudi Aramco Total Refining and can help the company to realize its
Petrochemical Company (SATORP), future vision.
Sadara Chemical Company and Yanbu Saudi Aramco therefore aspires to
Aramco Sinopec Refining Company facilitate the development of an eco-
(YASREF) strengthen our strategic posi- nomic ecosystem that helps attract,
tion globally as well as serve our domes- establish and promote energy-related
tic needs and enhance the broader domestic industries that are globally
competitiveness of the Kingdom’s competitive and create employment
industries.
THE YANBU’ REFINERY ON THE RED SEA MAINLY opportunities for Saudis. We have
SERVES THE DOMESTIC MARKET.
34 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 35

E X PA N D I N G O U R P O R TFO LI O

EXPANDING THE
LOCAL ECONOMY
SATORP
The Saudi Aramco Total Refining and
Petrochemical Company, or SATORP, a
joint venture with France’s Total, is a
newly constructed 400,000-bpd full-
conversion refinery with integrated
petrochemical production. It will be
among the most complex refineries in
the world, converting Arabian Heavy
crude oil into high-quality products
including gasoline, kerosene and die-
sel, as well as petrochemical products
such as benzene and propylene. The
SATORP refinery is also the first pro- Province of the Kingdom complete of direct and indirect employment
ducer of petroleum coke and paraxy- with an industrial port, pipeline corri- opportunities. Output from Sadara’s
lene in the Kingdom. dors, utilities and supporting indus- 26 chemical processing plants will gen-
Construction was completed in 2013, tries. In addition to supporting local erate an estimated $10 billion in reve-
and all units are expected to be in full demand, the complex’s strategic loca- nues within a decade of commencing
operation by the end of the first tion makes it ideally suited to drive operations. Sadara currently has over
quarter of 2014. At year’s end, the economic growth in fast-paced, emerg- 475 apprentices and 235 on-the-job
crude oil throughput was 56,000 bpd ing markets in Asia, the Middle East, trainees undergoing comprehensive
Africa and Eastern Europe. manufacturing and engineering train-

1,200 DIRECT JOBS AT SATORP and the refinery had shipped seven
fuel cargoes, including a naphtha ing programs in state-of-the-art centers
Full commercial operations are expected
shipment. In an auspicious coincidence, both inside and outside Saudi Arabia.
Our SATORP joint venture is creating 1,200 direct jobs in the Kingdom, to begin in 2016. Sadara’s complex will
each of which helps create a further five indirect jobs. the first cargo from SATORP was Already with an estimated 1,500 cur-
consist of a hydrocarbon and chlorine-
loaded on Saudi National Day. rently on staff, Sadara will ultimately
based production facility capable of
employ more than 3,000 people and
Joint ventures such as SATORP are a producing up to 3.2 million tons per
begun developing a series of major  Contribute to the creation of contribute to an additional 15,000
powerful expression of our corporate year of diversified chemicals and plas-
integrated industrial clusters that will 500,000 direct and indirect jobs in nondirect employment opportunities.
strategy. They not only incubate tic products. This level of productivity
help diversify our energy mix while the Kingdom. The value park will create more than
Saudi-owned small and medium-sized will allow Sadara to introduce new
also providing national benefits from 20,000 quality jobs, directly or indi-
The ripple effect of our work can be value chains and high-performance
economic diversification to the expan- manufacturers and service providers
seen throughout our communities. rectly, for Saudi nationals.
but also reinforce Saudi Aramco’s com- products throughout the Kingdom.
sion of value-adding activities and Large-scale initiatives like those out- Sadara and the adjoining value park will
the creation of high-quality jobs. The mitment to foster a knowledge-based YASREF
lined in this Annual Review encourage deliver a full range of value-added,
Competitive Saudi Energy Sector ini- economy in which thousands of Saudi In 2013, our Yanbu Aramco Sinopec
investment in Saudi manufacturing, performance products destined for
tiative, for example, is designed to technicians, engineers and operators Refining Company refinery project
help develop industrial “clusters” adja- the emerging markets of Asia Pacific,
achieve the following key objectives: can find exciting job opportunities. made significant progress toward its
cent to our operations and provide the Middle East, Eastern Europe and
The refinery is creating over 1,200 start-up in 2014. As a joint venture,

3,074
 Increase Saudi Aramco’s proportion training to local manufacturers and Africa. By the second half of 2015,
direct jobs in the Kingdom, each of YASREF also stands as a model of
of in-Kingdom spending in manu- suppliers in areas ranging from safety Sadara will already have begun pro-
which in turn helps create a further foreign direct investment in the
facturing industries from less than to ethics. ducing plastic and chemical products
five indirect employment opportunities. Kingdom and another positive phase
30 percent today to 70 percent over that Saudi-owned companies can use
The immediate impact of our expand- in Saudi Aramco’s relationship with
the next decade. Total ship calls at Saudi Sadara to produce plastic bags, detergents
ing downstream portfolio also helps China’s Sinopec.
 Increase the Saudization of jobs in Aramco terminals The Sadara Chemical Company, a and foam materials for domestic and
stimulate broader opportunities inside
the sector from existing levels of the Kingdom and globally. joint venture with the Dow Chemical international markets. Ultimately,
around 20 percent to 70 percent. Company, represents the synergy Sadara will be an active contributor to
 Promote a sustainable ecosystem between one of the world’s leading Saudi Arabia’s strategy to become a

2.5B
that supports a thriving energy sec- energy suppliers and one of the hub for future downstream industrial-
tor in Saudi Arabia. world’s leading science and technol- ization of chemicals and plastics.
ogy companies. Sadara will operate a
 Develop Saudi energy sector indus- Sadara and related investments are
Barrels of oil world-scale, integrated chemicals
tries that are globally competitive. expected to generate substantial
exported complex in Jubail Industrial City II.
income for the region and thousands
Jubail Industrial City is an established
petrochemicals center in the Eastern
36 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 37

E X PA N D I N G O U R P O R TFO LI O

SAUDI ARAMCO’S INDIRECT

ECO N OM IC I M PAC T
BECAUSE SAUDI ARAMCO IS A MAJOR FORCE IN THE
DEVELOPMENT OF OUR LOCAL TALENT AS WELL AS IN THE
MAINTENANCE OF OUR LOCAL AND NATIONAL ECONOMY,
WE TAKE ENORMOUS PRIDE IN THE POSITIVE EFFECTS OF
COMPANY ACTIVITY IN THE REGIONS IN WHICH WE
OPERATE. OUR NEW BUSINESS DEVELOPMENT ORGANIZATION
ENCOURAGES MANUFACTURERS TO PURSUE POTENTIAL
OPPORTUNITIES, EXPAND PRODUCT LINES, INVEST IN
STATE-OF-THE-ART TECHNOLOGIES AND EXPAND EXISTING
FACILITIES, ALL IN LINE WITH OUR STRATEGY TO HELP ENABLE
THE KINGDOM.

ESSAM AL-ZAMIL’S VISION TO CREATE AN ONLINE GAME THAT ALSO TEACHES

MATH AND SCIENCE WAS REALIZED THROUGH SUPPORT PROVIDED BY WA’ED,
OUR ENTREPRENEURSHIP SUBSIDIARY.

YASREF, when completed, will be the Jazan Refinery and Furthermore, the workforce to build
Kingdom’s most advanced refinery. Terminal Project the Jazan Program is expected to
The project involves the construction The Custodian of the Two Holy exceed 40,000 over the next four
and operation of a 400,000 bpd inte- Mosques, King Abdullah, launched the years. Saudi Aramco adopted a new
grated petroleum refinery in the Jazan Economic City Project as part Human Resources strategy with its
Yanbu’ Industrial City located on the of a strategy to nurture non-oil based business partners that, rather than
west coast of Saudi Arabia along industries, expand the Kingdom’s setting Saudization targets, created a
the Red Sea. The refinery will process existing industries to serve domestic consortium from among the contrac-
100 percent Arabian Heavy crude oil needs and rejuvenate the Jazan region tors and public sector entities to train
and produce gasoline, high-quality by providing an additional source of a local workforce for the program.
diesel and liquefied petroleum gases employment opportunities. The refin- Through the Jazan Contractors Con­
(LPG) as well as byproduct sulfur and ery and terminal will help enable the sor­t­ium for Training and Employment,
petroleum coke for export. YASREF development of industrial clusters. or “Maharat,” 550 young Saudis from
will include process units for the sepa- Jazan commenced their training in
Construction will start in 2014, and
ration and conversion of the feed October 2013. The total intake will
when completed in late 2016, the
crude oil into finished products, for reach 5,000 over a four-year period.
refinery will have the capacity to pro-
utility and offsite systems to support The objective is to qualify these
cess 400,000 bpd of Arabian Heavy
the refinery operation, and for associ- young Saudis for jobs required for
and Arabian Medium crude oil as well
ated feed, intermediate and product the construction phase of the project,
as produce 80,000 bpd of gasoline,
storage facilities. par­ticipate in advancing national
250,000 bpd of ultra-low sulfur diesel
In addition to the enormous direct development and contribute to the
and over 1 million tons per year of
impact YASREF will have, the refinery economic development of Jazan.
benzene and paraxylene products.
will provide significant annual revenues The Houston, Texas office of our sub-
and approximately 6,000 direct and sidiary company, Aramco Services
indirect job opportunities for Saudis. Company, is supporting 65 employees
As part of Saudi Aramco’s efforts to during the front-end engineering and
develop a quality local workforce, design (FEED) phase of the project’s
YASREF is working with Riyadh Refinery Inte­grated Gasification Combined
to train new apprentices to operate Cycle complex, which will use the
the YASREF facility. By the end of refinery’s by-product to economically Employee Training
2013, 24 apprentices had completed and efficiently generate 2,400 MW of
the six-month training program. electricity to cover the refinery’s 2013
needs, enable the development of 5.2 MILLION HOURS
A SKILLED WORKFORCE IS CRITICAL small industries nearby and provide
TO ATTRACTING NEW INVESTMENT TO power for cities in the area.
THE KINGDOM.
38 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 39

E X PA N D I N G O U R P O R TFO LI O

Petro Rabigh products. Overall project construction

An integral part of Saudi Aramco’s progress was 93 percent at year-end,
strategy to integrate petrochemical with the third remaining phase to be
production with refining, this joint completed by mid-2014.
stock company was initially founded as The refined products produced by
a joint venture with Japan’s Sumitomo SAMREF support the Kingdom in
Chemical Company. The development general and the Western Province
of Phase II of Petro Rabigh includes specifically by contributing to the
a new aromatics complex and an development of Yanbu’ Industrial City.
expanded facility to process 30 million In addition to its excellent safety
standard cubic feet per day (scfd) of record and mechanical reliability,
ethane, and approximately 3 million SAMREF provides training and career
tons per year of naphtha as feedstock, to development for its workforce, 94
produce a variety of high value-added percent of which are Saudi nationals.
petrochemical products. Progress is
rapidly being made to expand the Luberef
product slate of Petro Rabigh, and The Saudi Aramco Lubricating Oil
the company will begin marketing Refining Company, or Luberef, created
products in 2014. in cooperation with Jadwa Industrial
Investment, is another successful joint

94%
By the end of 2013, agreements had
venture project that helps drive the SAUDI WORKFORCE AT SAMREF
been reached with tenants for 25 of
economic growth of the Kingdom.
the 30 sites in the adjacent value park Our SAMREF joint venture has a 94% Saudi workforce.
Luberef is currently the sole producer
and potential tenants have been iden-
of virgin base oils in the Gulf Cooper­
tified for the remaining sites.
ation Council (GCC). It has two solvent
SAMREF extraction base oil refineries: one in
Jiddah and the other in Yanbu’, with THIS IS MY CHANCE TO BE PART OF THE life cycle analysis, communication and take responsibility for maintaining a
The Saudi Aramco Mobil Refining
TRANSFORMATION OF ONE OF THE GREAT- awareness and auditing. This certifica- reliable fleet. Following the receipt of
Company is a joint venture with a total capacity of 4 million barrels per
EST COMPANIES IN THE WORLD.—AHMAD tion provides assurance for the current necessary approvals. Vela will transfer
ExxonMobil in Yanbu’ that supplies year. About 70 percent of Luberef’s
ABULFARAJ, ENGINEER, RAS TANURA operations while also providing prac- to Bahri ownership of its entire fleet,
high-value products at a competitive production is sold to the Kingdom’s
COMMUNITY SERVICES tical tools to help Saudi Aramco con- consisting of 14 VLCCs, a floating stor-
cost while maintaining world-class domestic market; the balance is
exported internationally, mainly to stantly improve our environmental age VLCC and five product tankers.
safety, reliability and environmental
the United Arab Emirates. Luberef is performance by identifying and con-
protection. Maritime Sector Expansion
in the midst of a $1.45 billion expan- trolling the environmental impact of
In 2013, SAMREF completed the first our businesses. Saudi Arabia’s maritime sector has
sion project to increase its operations
two phases of the $2.2 billion Clean been identified as an industry with
in Yanbu’ Industrial City to cover new
Fuels Project, a major environmental Bahri high development potential. The
base oil products. generates 178 megawatts of power
project to serve the needs of the In November 2012, as part of Saudi development of an integrated Mari­
using four steam turbines and two
Kingdom. The project will reduce the Ras Tanura Refinery Aramco’s strategy to continue expand­ time Yard at Ras El Khair, a joint ven-
third-party cogeneration units. The
sulfur levels in gasoline and diesel by Ras Tanura Refinery is the largest com- ing internationally, Vela International ture between Saudi Aramco, SembCorp
excess power generated by these units
more than 98 percent, to 10 parts per plex of its type in the Middle East and Marine Limited (the wholly owned ship­ Marine of Singapore and Bahri, is a
is delivered into the Saudi Electricity
million (ppm). Ultra-low sulfur fuels one of the largest in the world. The ping subsidiary of Saudi Aramco) agreed key anchor initiative to fast track the
Company’s Eastern Province power
allow the use of improved pollution greater Ras Tanura area is home to a to merge its fleet and operations with development and localization of the
grid. Ras Tanura meets 31 percent of
control devices that reduce diesel vast array of operations from refining the National Shipping Company of maritime industry and the related
domestic demand for refined and nat-
emissions more effectively but can be to aviation and roughly one in every Saudi Arabia (Bahri) to create a value chain. Saudi Aramco expects the
ural gas liquid (NGL) products, making
damaged by sulfur. When powering eight Saudi Aramco employees works world-scale diversified global shipping project to create additional export
it an integral refinery in the Kingdom’s
the latest technology engines on in Ras Tanura. The Port of Ras Tanura, company. Under a long-term shipping capability, raise domestic GDP and
economy.
tractor-trailers, buses, marine vessels which includes Sea Island, North Pier agreement signed in connection with provide significant numbers of jobs
and off-road equipment, these fuels and Ju’aymah offshore terminals, is In 2013, Ras Tanura received ISO the transaction, Bahri will become the for Saudis.
will meet upcoming fuels specification the largest crude oil export terminal 14001:2004 certification, which focuses exclusive provider of very large crude
regulations in the Kingdom and in the world. The refinery can stabilize on environmental management sys- carrier (VLCC) shipping services for
reflect our ongoing efforts toward 1.2 million bpd of crude oil for ship- tems and other standards related to crude oil sold by Saudi Aramco on a
producing environmentally friendly ping to international customers, and it specific environmental aspects such as delivered basis and will
40 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 41

E X PA N D I N G O U R P O RTFO LI O

8.8M WORK HOURS

Our Fujian, China, joint venture achieved 8.8 million workhours
without a Lost-Time Injury by 2013.

Maritime Yard revenues are expected sustained growth in ship chartering Japan China Refining and Petrochemical Company polyethylene production from 800 to
to grow to $2.5 billion annually by and logistics, risk identification and Saudi Aramco, through one of its affil- One element of Saudi Aramco’s chemi- Ltd. (FRPC), Saudi Aramco’s equity 960 kta and polypropylene production
2023, with $250 million being gener- management, and data capture iates, has a 14.96 percent interest in cals strategy is to encourage and cre- venture. China is the primary focus for from 400 to 550 kta. It will also add a
ated from vessel maintenance, repair and reporting. Showa Shell, one of the largest refin- ate new businesses that use our Aramco Asia’s polyolefin marketing new ethylene oxide/ethylene glycols
and overhaul activities and $2.25 bil- ers in Japan. Showa Shell’s shares products. Aramco Asia continued to business. From this initial transaction, production capacity of 180/400 kta.
lion from marine construction activi- increased in value by 115 percent in actively pursue potential refining and the annual sales of FRPC are expected The project will capitalize on demand
ties, including oil and gas offshore rigs EXPANDING OUR 2013. This compares against a 52 per- petrochemicals opportunities in Asia, to grow to 200,000 metric tons (mt) of growth and efficiency enhance-
and platforms as well as selective seg- GLOBAL REACH cent gain in the benchmark NIKKEI including a refinery/marketing ven- polyethylene and 130,000 mt of poly- ments to increase sales revenue in
ments of shipbuilding. At full capacity, Our global affiliates provide a wide for the same period and confirms the ture with PetroChina to develop a propylene, with Aramco Asia’s Xiamen the Fujian market.
the Maritime Yard will employ a work- range of services, including marketing market’s upbeat assessment of Showa 260,000 bpd grass roots full-conver- office targeting both direct customers
force of approximately 13,600, of which crude oil, NGL and chemicals products, Shell’s stellar business outlook. Showa sion refinery in Yunnan province. and distributors. Aramco Asia will Korea
approximately 7,000 will be Saudi joint venture coordination, procure- market aromatics from other Saudi The Republic of Korea is Saudi Arabia’s
Shell also outperformed its peers, such Definitive agreements are expected to
nationals. ment, inspection, research and devel- Aramco facilities in addition to poly- fourth largest trading partner. Saudi
as Tonen General and Cosmo, primar- be initialized in the first quarter of
opment, project management, human olefin, with both representing major Aramco owns a significant stake in
ily due to its solar energy business. 2014. PetroChina commenced con-
Aramco Trading resources development, government struction of the refinery in 2013, growth businesses for the company’s S-OIL, a petroleum and refinery com-
In 2013, the Saudi Aramco Products In 2012, Solar Frontier, a subsidiary of pany based in Seoul. In November,
and public relations, and communica- which was 18 percent complete by downstream operations.
Trading Company, known as Aramco Showa Shell, successfully installed a S-OIL won the highest award in the
tions. Through the regional offices of year’s end.
10.5 MW solar power system at Saudi FRPC’s ongoing Steam Cracker Debottle­
Trading, grew its refined products busi- Saudi Aramco Asia Company (“Aramco Korea Brand Awards: the Presidential
Aramco’s Al-Midra office tower. More In a historic development, 2013 also necking Project achieved 8.8 million
ness with estimated year-end export Asia”), we continue to deepen our Award. Hosted by the Ministry of Trade,
volumes at 403,000 bpd. In March than 120,000 photovoltaic panels were saw Saudi Aramco’s first polymer sale work-hours without a lost-time injury Industry and Energy and organized
presence in one of the world’s fastest
2013, it obtained new storage and installed on the parking shade struc- go directly to a customer in Xiamen, by the end of 2013. When fully opera- by the Institute for Industrial Policy
growing regions. These international
blending capabilities with a 10-month tures to produce clean power for China, who immediately converted it tional in 2015, the project will increase Studies, the Korea Brand Awards is the
ventures will continue to play an
lease on 800,000 barrel tank facilities the building. into stretch film that will be used by refining capacity from 240,000 to only national award program related
important role in Saudi Aramco’s cor-
in Fujairah, UAE, enabling improved other companies for packaging. The 280,000 bpd, ethylene capacity from to brands, and S-OIL is the first refiner
porate transformation to become a
product handling, sourcing and upgrad­ products sold were produced by Fujian 800 to 1,100 kilo tons per annum (kta), to receive the Presidential Award.
global leader in energy and chemicals
ing. In addition, the company showed by 2020.
42 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 43

E X PA N D I N G O U R P O R TFO LI O

Republic of Indonesia EXPANDING STRATEGICALLY ENABLING THE

In 2012, Aramco Asia and PT Pertamina
signed a Memorandum of Under­stand­ RetailCo KINGDOM: HAJJ
ing (MOU) to evaluate the economic Saudi Aramco’s Retail Team developed
feasibility of building an integrated a number of strategic options for the
refining and petrochemical project company’s participation in the domes- THE 2013 HAJJ SEASON LASTED FROM SEPTEMBER 7–
in Tuban, East Java, in the Republic tic retail market and secured company NOVEMBER 18. DURING THIS PERIOD, SAUDI ARAMCO
of Indonesia. The proposed project approval to launch RetailCo as a MET THE FOLLOWING DEMAND:
would process 200,000–300,000 bpd wholly owned subsidiary of Saudi
Aramco. RetailCo’s objective is to
of crude oil and produce high-quality
refined petroleum and petrochemical build and operate service stations in 51,000 Approximate average daily jet fuel
products to meet rising demand in select areas of the Kingdom using a demand (in barrels) through North Jiddah, Yanbu’
Indonesia and elsewhere in Southeast Company-Owned, Company-Operated and Madinah Bulk Plants, up 51% from normal
Asia. In 2013, the MOU was extended business model for the fuel compo- SAUDI ARAMCO, AS A MAJOR CONTRIBUTOR launched energy conservation policies initiative, we identified opportunities
average daily sales
for one more year until Febru­ary 2014. nent of the business, while potentially TO THE ECONOMY AND A MAJOR ENERGY to improve levels of energy efficiency to achieve a minimum of 35 percent
outsourcing the majority of the non- USER IN ITS OWN RIGHT, IS A LEADER IN
United States fuel component to partners who would 3.7M Barrels of total jet fuel throughput EFFORTS TO IMPROVE ENERGY EFFICIENCY.
in all operating facilities, whether
industrial or nonindustrial, to support
reduction in energy consumption
through energy efficiency measures
Motiva Enterprises, a Houston-based add value to the business and its brand. reached THIS IS DEMONSTRATED THROUGH THE
energy efficiency efforts in the in transportation as well as in new
refining and marketing joint venture By the end of 2013, the project was in SIGNIFICANT ACTIONS UNDERTAKEN IN ALL
Kingdom. and existing houses and buildings. At
between Saudi Refining, Inc. (SRI), a OUR OPERATIONS.
Saudi Aramco subsidiary, and a Shell
the early implementation phase.
160 22,000 Approximate number of aircraft refu- ENERGY
—KHALID A. AL-FALIH, PRESIDENT CONSERVATION
AND CEO SAVINGS
The company ACHIEVED
achieved energy savings the same time, Saudi Aramco’s Energy
17.85 initiative focuses on
to the Kingdom
Oil affiliate, completed its expansion New Pipelines eled from Jiddah and Madinah airports, at an aver- OVER THE YEARS (2000 –2013)
of roughly (MBDOE)
9,000 bpdoe in support of
growing and diversifying our energy
project in 2012, but startup activities In 2013, Saudi Aramco commissioned
140
11 additional pipelines to its network
age rate of 303 aircraft per day the Kingdom’s Energy Initiatives under
the Saudi Aramco Energy Manage­ supply,9.21
saving energy across all sec-
were interrupted by an operational 10.08
tors, and creating opportunities
incident that required repairs to the 120
with a total length of 935 kilometers
and an additional capacity of 1.45 mil- 10.9M Barrels of gasoline sold, up 2.3%
ment Program. The Zero Discharge 11.40
Technology was implemented in more for sustainable economic growth.
crude oil distillation unit. In 2013, the 3.65 Efficiency, renewable energies (solar
6.36in 2013,
joint venture was able to meet its tar- 100
lion bpd for Arabian Heavy crude oil,
83,000 bpd for Arabian Light, 65 mil-
from 2012 than 400 well-site operations
50.61 0.61
which reduced hydrocarbon waste energy in particular) and hydrocarbon
get of a January restart, and was able

150 MBDoe
allocation strategies are major contrib-
ENERGY EFFICIENCY
to ramp up production and achieve
design capacity on the crude oil unit.
80
lion scfd of sales gas, 90 million scfd
of sour gas and 65,000 bpd of conden-
14M Barrels of diesel sold, up 4% from 2012 Saudi Aramco is a leader in efforts to
generated from each well site to a few
kilograms and enabled the recovery of utors that are expected to manage
growing domestic energy demand in
more than 260,000 barrels of oil and
Additionally, all of the other new units 60
sate. The additional length represents improve energy efficiency and has

101.41

132.10
112.81

122.89
the mid- and long term.

90.79

91.40

97.76
were operating at or near design an increase of about 3 percent in the developed cost-effective, innovative 70 million scf of natural gas. In addi-
24.79
tion, through our Lead By Example
capacity at the end of 2013. In 2014, network from 2012, reaching 20,419
kilometers of pipelines operated,
40 solutions and efficient resource man-
agement practices. On average, since
SRI will continue to work with Motiva

40.18
to maximize throughputs and raise
volumes where possible.
maintained and mothballed.
20 the year 2000, the company has been
able to achieve a 2 percent annual
12.92
Enhancing Operational Excellence 1.67 0.79 15.40
Over the past 10 years, Saudi Aramco 0 160
reduction in energy intensity in indus-
trial facilities, which has‘00
resulted
’01 in‘02
a
ENERGY CONSERVATION SAVINGS ACHIEVED
ENERGY CONSERVATION SAVINGS ACHIEVED 17.85
has embarked on a corporate initiative 160 savings of around 150,000 barrels per
’03OVER ‘04THE’05
YEARS ‘06 (2000
’07 –2013)
‘08
OVER THE YEARS (2000 –2013) (MBDOE)
(MBDOE)
’09 ‘10 ’11 ‘12 ’13
17.85
to deploy advanced process control 140 day of oil equivalent (bpdoe). This was Carryover from Previous Years Year’s Increment
9.21
solutions company-wide to maximize 140 realized through various initiatives
10.08 9.21
high-value products, improve process 120 such as cogeneration, retrofitting
11.40 10.08
controls and minimize energy usage 120 6.36
3.65 11.40
in process plants. Saudi Aramco will 100 industrial equipment and process
enhancements.
50.61 0.61
6.36
3.65
100 80

150 MBDoe
continue to identify opportunities for 50.61 0.61
In recent years, the national demand

150 MBDoe
improving refinery availability and uti-
lization, and increasing white prod- 80 60 for energy has increased dramatically

101.41

132.10
112.81

122.89
to the point where the volumes meant

90.79

91.40

97.76
ucts’ yields to help position company
60 40 for export may decline to unaccept- 24.79

101.41

132.10
112.81

122.89
refineries within the first quartile of

90.79

91.40

97.76
the Solomon Fuel Refinery Performance ably low levels in the coming two
24.79

40.18
Ranking. Efforts to optimize the refin- 40 20 decades. For example, the national
demand for electricity has increased
12.92

40.18
ing process performance are expected 1.67 0.79 15.40
18000
to result in a total improve­ment of 20 0 by about 7 to 8 percent annually for
EMISSION STATISTICS/TARGETS
the past five years. Therefore, improved ‘00 ’01 ‘02
12.92 1940
2 percent on benchmarking factors 1.67 ’03
0.79 ‘04 ’0515.40‘06 ’07 ‘08 ’09 ‘10 ’11 ‘12 ’13
16000
and an increase in white products by 0 energy efficiency is a national goal 1000
and concern. In 2013, the company ‘00 ’01 ‘02 ’03Carryover
‘04 from
’05 Previous
‘06 ’07Years
1100 ‘08 Year’s
’09Increment
‘10 ’11 ‘12 ’13
13,000 bpd of gasoline.
14000 1290
MBDOE = thousands of barrels per day oil equivalent
Carryover from
704 Previous Years Year’s Increment
12000 5736 69
724
44 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 45

E X PA N D I N G O U R P O R TFO LI O

Cogeneration on stream in 2016. Saudi Aramco’s projected freshwater consumption by through global partnerships and col- been working on a number of key
Saudi Aramco signed three new energy partners will operate the cogeneration 70 percent by 2022. laboration, the successful test drive has initiatives relating to technology
conversion agreements in 2013 to build plants for 20 years, providing electric shown, for the first time, that a naphtha- development. For example, a demon-
All of the sanitary wastewater in
and operate efficient cogeneration power and steam to all three Saudi fueled vehicle is capable of meeting stration unit for crude oil-to-chemicals
Dhahran is treated and reused, with
plants at three major oil and gas com- Aramco facilities. Saudi Aramco will today’s European efficiency and emis- technology has proven successful in SAUDI ARAMCO AND OTHER INSTITUTIONS
70 percent of water reused company-
plexes in the Kingdom. Cogeneration hold a 50 percent stake in the new sions requirements while maintaining Teijin, China and the scaling up to an IN THE KINGDOM ARE COMMITTED FOR
wide. We are also expanding our use
technology, which captures and uti- cogeneration plants. In addition, elec- high comfort and drivability levels. 80,000 bpd process plant is under THE VERY LONG TERM TO INVEST IN THE
of xeriscaping at Saudi Aramco facili-
lizes the heat produced in power gen- tricity generated by these plants is consideration. DISCOVERY OF THINGS THAT ENTERPRISING
ties. Xeriscaping is characterized by More than a fifth of energy demand is
normally used locally, making losses CHEMISTS DREAM OF—FOR EXAMPLE,
eration, has a thermal efficiency of the use of evergreen flora that is consumed in transportation, mostly
more than 80 percent compared to due to long-distance transmission and CO2 into Polyols BREAKTHROUGHS IN CONVERTING CO2 TO
highly tolerant to poor soil conditions from oil. As the world’s largest oil pro-
distribution of power negligible. Novomer, Inc. (Novomer) is a U.S.- OTHER CHEMICALS.
conventional generation efficiency of and hot arid climates and includes a ducer, Saudi Aramco has a key role in based chemical technology company —ABDULRAHMAN F. AL-WUHAIB, SENIOR
40 to 50 percent. It also uses less fuel wide variety of trees and shrubs. This shaping future mobility and address- VICE PRESIDENT, DOWNSTREAM
and lowers emissions for better envi-
Water Conservation engaged in the development of cata-
reduces water consumption by about ing upcoming fuel challenges. Con­sid­
Protection of groundwater resources lytic platforms to convert carbon
ronmental performance. The agree- 40 to 50 percent as compared to con- ered a complement to gasoline, diesel
in Saudi Arabia is of vital importance dioxide (CO2) into useful products
ments demonstrate Saudi Aramco’s ventional gardening. and jet fuel, naphtha requires less
as the Kingdom’s aquifers supply over such as polyols, which are used to
commitment to pursue energy effi- processing and upgrading in the refin-
90 percent of the water used in the produce a range of polymers fre-
ciency throughout its operations. Upon ery than modern diesel fuels and is
completion, the new cogen­eration
country. As they are essentially non- LOOKING FORWARD: therefore cheaper to produce. Saudi
quently found in foams, insulations
renewable due to the arid climate, they and coatings. Saudi Aramco has exe-
power plants will efficiently provide INNOVATIONS IN Aramco’s research has shown that
can pose risks to human health and the cuted an option agreement with
electricity and steam needs at the DOWNSTREAM OPERATIONS lighter, less processed fuels such as
environment if negatively impacted. Novomer for the right to purchase
company’s Abqaiq, Hawiyah and Ras naphtha, when used in diesel engines,
In this context, Saudi Aramco assigns Naphtha-fueled Vehicles Novomer’s polyols business, concur-
Tanura facilities. can also reduce environmental impact
a high priority to the responsible use In 2013, after only two years of research rent with the execution of an agree-
The cogeneration facilities will also through lower emissions.
of the Kingdom’s precious water and collaboration with leading German ment between Saudi Aramco Energy
serve as a benchmark for energy effi- resources. The majority of water uti- Ventures (SAEV) and Novomer.
car engine design firm FEV, Saudi Crude Oil to Chemicals
cient power production and will fur- lized in our operations is seawater, and Aramco scientists successfully demon- Our Chemicals organization has a
ther enhance the Kingdom’s power while freshwater only represents a strated the potential of naphtha, a strategic objective to develop and
sector. The plants will generate a total small part of our water use, our Water gasoline-like fuel, in a modern diesel deploy its own technologies and has
of about 900 MW of power and 1,500 Conservation Strategy has an overall engine. As Saudi Aramco expands its
tons of steam per hour when they come target of reducing the company’s research and innovation portfolio
46 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 47

Raising Our Potential While we are building assets and broadening our portfolio, we
have not ignored the capacity building that is so essential to
the company’s successful transformation. As we expand our
business and geographical reach, the need to strengthen the
talent pipeline and develop and retain a world-class workforce
has never been more important. This is especially true in light
of the shift in the company’s age demographic and the chal-
lenges it poses to bridge the knowledge gap across employee
generations.

NEW SAUDI DIRECT HIRES

1,428 2013 867 2012 671 2011 474 2010 312 2009

Programs are in place to enhance workforce planning, recruit-

ment and retention. At the same time, we are continuing to
build our training and development efforts to provide our
people with the right learning opportunities. In addition, we
are implementing performance management systems to enable
us to evaluate and reward our employees appropriately and
select leaders and professionals based on performance-based
criteria. Offering our employees challenging career opportuni-
ties to enrich their learning will allow them to grow with
the company.

TRAINING PROGRAMS ARE EVOLVING TO

MEET THE NEEDS OF A MORE COMPLEX
BUSINESS PORTFOLIO.
48 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 49

R A I S I N G O U R P OTE NTI A L

OPERATIONAL HEALTH
AND SAFETY
 Recognizing safety achievements:
The company’s Exceptional Safety
445
Achievement Recognition Program
The hydrocarbon industry has inher- CONTRACTOR
recognized employees in 2013 for SAFETY PREQUALIFI-
ent risks. Yet from its inception 80
their contributions toward the CATIONS SINCE 2010
years ago, the company has worked to
development of proactive safety ini-
embed safety as a core value in every-
tiatives that made a positive impact
thing it does. A culture of safety is
on safety within their organizations Promoting Safe Behavior to
supported inside the company and
and the company. Our Contractors
promoted in our communities through
a variety of initiatives that tackle our As a result of these and numerous Despite these positive achievements,
society’s most critical safety challenges. other safety initiatives, our lost-time there were also some serious safety
This safety culture will become even more injury (LTI) rate in 2013 dropped by failures in 2013, and Saudi Aramco has
important over time as Saudi Aramco 18.2 percent from 2012—and 25 percent taken steps to address these deficien-
increases the scale of its operations and from 2011—to 0.09 per 200,000 work cies. Regrettably, we lost two com-
ventures into new businesses such as hours. The second phase of Petro Rabigh pany employees and 14 contractors
petrochemicals and unconventional gas. has achieved 6 million accident-free this year in on-the-job incidents. We
work hours, and six other refineries will continue to learn lessons from
Saudi Aramco was involved in several
reached between 1 million and 5 mil- each of these tragic events, and the
major safety initiatives during 2013 to
both strengthen its safety culture and
lion accident-free work hours. This safety of our employee and contractor PROFESSIONAL DEVELOPMENT and graduation event attended by
improvement was largely the result workforce will continue to be our Saudi Aramco coordinated with KFUPM company management. In 2013, a
enhance safety across its operations, total of 395 participants graduated
of rigorous in-the-field training and foremost priority. The expansion of and Dammam Community College to
including: from the program. Major accomplish-
adherence to policies. For example, company facilities and operations over introduce a new degree program
 A ssessing and controlling risks: ments in 2013 included the introduc-
roughly every 50 workers at the the past decade has resulted in more titled “Associate of Applied Science
Risk-based safety management tion of a foundational workshop on
Manifa project had a “safety man” contractors working on company proj- Degree in Safety Technology,” making
approaches identify hazards, analyze Emotional Intelligence and the rollout
during construction, and detailed ects, and with these increased num- it available to company employees
the risks associated with the hazards of a new Project Management work-
evacuation plans have been put in bers, there is increased responsibility through a new sponsorship program.
in terms of both consequences and shop developed in-house. The overall
place and well-rehearsed. Manage­ment to ensure their safety. At the opera- The degree is a three-year program,
likelihood, and assess measures to participant satisfaction level for the
at YASREF conducted 16 emergency tional level, the key areas of focus including a foundation year. The pro-
control the risks. The application of SAPDA program in 2013 was 82 percent.
drills and approximately 1,500 safety include eliminating risky behavior, gram was launched successfully in
risk management principles, espe-
workshops for 32,000 individuals. In while at the same time stressing rigor- November 2013 with nine qualified
cially during the current period of
fact, such intensive safety procedures ous adherence to our safety standards company enrollees across company
expansion, can more effectively
are standard across Saudi Aramco’s and processes. business lines. This type of program
determine how to allocate resources
numerous facilities. is the first to be introduced within
to eliminate, mitigate or control risks. In 2013, contractor safety remained an
the Kingdom and will be highly bene- GRADUATES
 Improving safety standards, inspections LOST-TIME INJURY RATE important element of Saudi Aramco’s
FROM SAUDI
ficial for those candidates who will
(Lost-time injuries per 200,000 work hours) Safety Management System. The com-
and audits: The company introduced eventually graduate and be prepared ARAMCO
pany issued a review guide for con-
several new guides, standards and to become safety technicians support- PROFESSIONAL
tractor site safety that outlined the
requirements related to safety man- ing operations. DEVELOPMENT
agement. A number of comprehensive 2013 0.09 necessary safety reviews for long-form
capital construction contracts. To The Saudi Aramco Professional Develop­
ACADEMY
risk-based inspections in line with
ensure that contractors meet company ment Academy (SAPDA) is a six-week

0.11
industry recommended practices were 2013
expectations regarding safety, the corporate onboarding program for
conducted to ensure company opera-

395
2012 company implements strict require- newly hired young professionals. The
tions meet those evolving standards.
ments during the contractor selection program is based on four corner-

0.12
 Conducting safety training and edu- stones: Business Communication,
and monitoring processes, including
cation: Our Safety Leadership and Professional Leadership, Community
contractor safety prequalification and
World-Class Safety Workshops equip 2011
on-site safety performance monitor- Service, and Health and Safety. Par­
management with the skills to be visi- ticipants attend workshops, interac- 2012: 379

0.14
ing. We also held contractor safety semi-
ble safety leaders and provide super- tive sessions, Leader as Teacher events,
nars and a Contractor Safety Symposium
visors with practical tools to elevate site visits and field trips. In addition,
safety in their operating areas to 2010
to address contractor-related safety ini- 2011: 322
tiatives and standards to improve com- they apply learning through team
world-class levels. projects. Accomplishments are show-
munication on safety-related matters
2010: 46

0.19
between contractor management and cased at the end of the program
the company. through a participant-led showcase

2009
50 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 51

R A I S I N G O U R P OTE NTI A L

Leadership Engine
Developing our human resources
remains the key strategy for building
our corporate capacity, expanding
our business portfolio and creating
growth opportunities for our employ-
ees. Saudi Aramco’s Leadership Engine
is part of a set of a development pipe-
lines for leaders at all levels, designed
to help the organization create a cul-
ture where innovation and creativity

 HE PROGRAM IS PART OF A SET OF A

T
DEVELOPMENT PIPELINES FOR LEADERS AT
ALL LEVELS, WHICH WILL HELP THE ORGA-
NIZATION TO CREATE A CULTURE WHERE
INNOVATION AND CREATIVITY ARE VALUED
AND ALL EMPLOYEES ARE RECOGNIZED
FOR THEIR CONTRIBUTIONS. BY CREATING
AN OPEN AND TRUSTING CLIMATE, LEADERS
WILL BETTER UNDERSTAND THE ASPIRA-
TIONS OF TEAM MEMBERS AND HELP THEM
TO DEVELOP TO THEIR FULL POTENTIAL.”
DANIELA KING, LEADERSHIP ENGINE

“THIS IS NOT LIKE ANY COURSE WE’VE

THIS TRAINING PROGRAM (YASREF TRAINEES WORKING IN A MOTIVA FACILITY) IS A GREAT EXAMPLE OF INFORMATION SHARING THROUGH- ATTENDED. OUR WHOLE STYLE OF THINK-
OUT THE GREATER SAUDI ARAMCO ENTERPRISE. WE ARE UTILIZING THE KNOWLEDGE AND EXPERIENCE IN ONE JOINT VENTURE TO DEVELOP ING HAS CHANGED. FAHAD AL-SHAMMARY,
THE SAME IN A NEW JOINT VENTURE.—NABEEL AMUDI, PRESIDENT, SAUDI REFINING INC. FOREMAN, KHURSANIYAH GAS PLANT

A new Accelerated Development Netherlands, Germany and Portugal. At primarily used for fuel. The newly built are valued and all employees are rec-
Program for Young Engineers, 14 year-end, 14 trainees had successfully delayed coker unit at Motiva is similar ognized for their contributions. The
weeks in duration, aims to address completed their training assignments to the new unit being constructed at completion of a five-month pilot proj-
the on-boarding development needs and returned to Saudi Arabia. YASREF. The trainees received mainte- ect may well signify the beginning of
of new engineers, increase technical nance training, in-the-field operations a new era in shaping the development
competency and bridge the talent YASREF Training Program training, and learned the skills that of our leaders of tomorrow. Initiated
gap for new hires in an accelerated In 2013, the Motiva joint venture in will enable them to work productively by a proposal generated by the
manner. The Maintenance, Gas & NGL the United States implemented a pro- and safely at the plant. Leader­ship Engine team, the program
Processing and Oil Processing program gram to train Saudi refining profes- plans to provide industrial unit heads
By working with the world’s top tech-
elements have been developed and sionals to operate state-of-the-art with a set of leadership tools to lead
nologies, the trainees are the “pio-
were launched in September 2013 in equipment similar to that being and inspire high-performing teams.
neers” of YASREF. Many will eventually
collaboration with the French Institute installed at the YASREF refinery in The program took 18 unit heads on an
impart their knowledge to others and
of Petroleum. Saudi Arabia. Three separate groups extended developmental leadership
have the opportunity to become super-
of trainees, mostly in their early 20s, journey, providing focused learning
visors and foremen. When fully staffed,
Sadara Training Program were assigned to Motiva’s Port Arthur sessions, monthly business applications
the YASREF refinery will have about
Our European affiliate, Aramco refinery in Texas to learn how to and supportive coaching sessions.
500 operators and maintenance techni-
Overseas Company (AOC), in 2013 sup- operate and maintain a delayed coker
cians, of which 250 to 300 will be work-
ported approximately 150 on-the-job unit, which heats residual oil from
ing with delayed coker units.
trainees from Sadara who are on assign- the refining process to maximize the
ment with venture partner The Dow recovery of valuable liquid hydrocar-
Chemical Company at locations in the bons to produce petroleum coke,
52 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 53

R A I S I N G O U R P OTE NTI A L

FOSTERING INNOVATION SPONSORING INNOVATIVE RESEARCH: In 2013, Zeid Al Ghareeb, a Saudi Aramco
As Saudi Aramco continues to expand sponsored student pursuing a Ph.D. in Petroleum Engineering at the Massachusetts
its portfolio, it is imperative that the
Institute of Technology, was awarded a Seed Fund grant of $150,000 for doctoral
company is at the forefront of technol-
ogies that maximize hydrocarbon recov- research from the MIT Energy Initiative (MITEI). The proposed research was endorsed by
ery as well as supporting expansion founding and sustaining members of the MITEI including Saudi Aramco, BP, Shell,
into chemicals and higher-value deriva- Schlumberger and Chevron, among many others. Al Ghareeb was recognized for his
tives. We’re pushing forward from a
research titled “Optimum Decision Making in Reservoir Management Using Reduced-
traditional role as buyers and consum-
ers of technology to our new global Order Models.” Al Ghareeb’s research focuses on broadening the application of oil res-
technology and R&D strategy. Saudi ervoir simulation for decision making in light of geological, operational and financial
Aramco filed 152 patents in 2013 with uncertainties using fast, physics-based reduced-order models
the U.S. Patent and Trademark Office.
The company was also granted 57 pat-
ents, only one short of the all-time
company record set the previous year.
are working with the Korea Advanced We also directly sponsor, at full cost to
We envision becoming an enabler and Institute of Science and Technology to the company, more than 2,000 under-
creator of new technologies, and we pursue a broad-based, long-term carbon graduate and post-graduate university
are leveraging our new network of management program, investigating students through our College Degree
satellite research centers in North carbon capture as well as its conversion Program for Saudi Aramco employees
America, Europe and Asia to achieve into useful products. and non-employees. Supported by
this vision. In the past 18 months, the our Houston-based affiliate Aramco
An equally important driver of the
company and its subsidiaries have Services Company (ASC), the program
R&D program is the role it will play in
made substantial progress in its global is responsible for 1,129 Saudi Arabian
strengthening the Kingdom’s research
R&D program, opening new research students in 163 universities through-
capacity, as well as the commercializa-
centers at the King Abdullah University out North America. Of those, 780 stu-
tion and manufacturing of company
of Science and Technology on the Red dents are earning a bachelor’s degree
technologies. A core outcome of the
Sea in Thuwal, Saudi Arabia, and inter- and 35 are earning an associate degree
global network is the ability to bring
nationally in Aberdeen, Cambridge as part of the non-employee program.
benefit to the Kingdom of Saudi Arabia
(Massachusetts), Delft, the Nether­ The remaining students are employ-
through innovations that foster
lands, Paris and, in the near future, ees, and 307 are earning graduate
growth. Strategically located in geo-
Beijing. The two other U.S.-based degrees while seven are earning
graphic centers of excellence, the
centers will be officially inaugurated associate degrees.
centers are ideally situated to access
in 2014 in Houston and Detroit. We
novel ideas and tap global talent Supporting our efforts to accelerate
wherever particular strengths may the development and deployment of
IDEAS SUBMITTED THROUGH lie. The network aligns with and technology is the Saudi Aramco Energy
IDEA MANAGEMENT SYSTEM advances the groundbreaking work Ventures subsidiary (SAEV). Its mission
2013 being conducted at our Exploration is to invest globally in startup and
and Petrole­um Engineering Center’s high-growth companies with technol-

6,201
Advanced Research Center and our ogies that are of strategic importance
Research and Development Center, to the company, particularly with
both based in Dhahran. respect to its downstream operations.
We are also pursuing a myriad of Within Saudi Aramco, we continue to
research and technology development strengthen and sustain a robust, cre-
PATENTS GRANTED BY programs. We continue to establish ative and innovative organizational
U.S. PATENT AND partnerships with esteemed academic culture. Our state-of-the-art Idea
TRADEMARK OFFICE institutions such as King Fahd Univer­sity Management System is paramount to

®
2013 of Petroleum and Minerals (KFUPM), administering our innovation portfo-
King Abdullah University of Science lio. The system enables higher-quality

57
and Technology (KAUST), the Massa­ ideas, improves idea tracking and
chus­etts Institute of Technology (MIT) reporting, and provides a platform
and the Georgia Institute of Technology for innovation campaigns.
in Atlanta in the U.S.
54 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 55

R A I S I N G O U R P OTE NTI A L

EXPANSION OF EMPLOYEE
ENGAGEMENT
Generation Y—those born after 1980
—currently make up about 25 percent
of our workforce. By 2020 they will
be the largest demographic in Saudi
Aramco and represent the company’s
leaders of tomorrow. Therefore, it is
imperative that we engage these indi-
viduals in our strategic transformation
process and ensure that their voices
are heard as we move forward.

6,546
25 PERCENT OF
SAUDI ARAMCO Employees receiving
WORKFORCE BORN leadership training
AFTER 1980

2013

25 %
Support Services ETHICS AND INTEGRITY information, and employee responsi-
As a global, integrated energy enter- Saudi Aramco prides itself on being bility. It essentially reaffirms the guid-
prise, Saudi Aramco relies on a wide the world’s largest oil company and ing principles by which Saudi Aramco
variety of support services across the for being one of the most respected. has achieved extraordinary success.
company. Hard-working employees It is our reputation for reliability, our
from organizations such as Marine,
Anti-Corruption
ability to deliver on our commitments,
In addition to the policies outlined
Transportation, Law, Finance, Corpor­ our good governance and our culture
in the Business Conduct Handbook,
ate Planning and Human Resources of innovation and teamwork that have
Saudi Aramco’s robust Conflict of
The Young Leaders Advisory Board (among many others) play a critical made us among the most admired
Interest and Business Ethics Policies
(YLAB) was created in 2011 as an role in realizing the company’s full companies in the world. As our future
are mandatory and are agreed to by
agent of change and sounding board potential. business activities and operations sub-
each of its employees. The policy is
for the company throughout the stantially grow in scale and complex-
Saudi Aramco’s Information Technology proactively communicated to line and
company’s transformation. YLAB’s ity, it is crucial that we continue to earn
organization plays a key role in enabl­ing executive management, potential
mission is to engage and inspire Saudi the reputation we have built over the
the success of the company. In 2013, candidates and regular employees
Aramco’s young population and serve past eight decades.
Infor­mation Technology conducted through various activities. Internal
as an active resource, providing solu-
more than 15 workshops and security Saudi Aramco has always maintained communication and reporting chan-
tions that drive the company toward
briefings Kingdom-wide to highlight the highest ethical and legal standards nels have been established to allow
achieving the Strategic Intent.
lessons learned from the 2012 cyberse- in the way it conducts its business, and employees and third parties to report
YLAB is comprised of male and female curity incident at Saudi Aramco and firmly believes that the foundation of business ethics violations. A General
employees aged 35 and under. Cur­ shared recommendations on imple- corporate integrity is personal integrity. Auditor Hotline is available to provide
rently YLAB consists of 16 Saudi menting security controls based on a secure and confidential venue for
Aramco employees, two of whom are international standards and practices. Code of Conduct employees and outsiders to report
full-time coordinators temporarily Organizations and business partners Our Business Conduct Handbook sum- suspected fraud, unethical conduct
assigned to Saudi Aramco’s Strategic participating in the workshops included: marizes the principles and standards and irregularities.
Transformation Office for a term of the Saudi Electricity Company, the that enable each and every employee to
preserve and build on Saudi Aramco’s At Saudi Aramco, we conduct intensive
1.5 years. Members are a diverse Capital Market Authority, the Saudi
proud legacy, such as correct work- internal programs designed to increase
group of individuals representing dif- Arabian Monetary Agency, numerous
place conduct and personal account- ethical awareness and integrity among
ferent business lines, salary levels, Saudi banks, the Yanbu’ Royal Com­
ability. It supplements various corporate our personnel, while ensuring effec-
educational backgrounds and geo- mission, SABIC, and joint ventures
manuals and outlines the company’s tive auditing and enforcement capa-
graphical areas. The YLAB team sup- SAMREF, Luberef and YASREF, the
policies on conflict of interest, finan- bilities are in place to prevent fraud
ports and executes projects that Saudi Arabian Mining Company
cial integrity, workplace harassment, and abuse. In 2013, Saudi Aramco
provide generational perspective and (Ma’aden), KFUPM and the Public
fair practices, safety, health and the focused its internal fraud prevention
allow the company’s youth population Pension Agency.
environment, safeguarding assets and and awareness campaign on defining
to actively participate in the strategic
gray areas, analyzing several ethical
transformation.
scenarios, and introducing means to
56 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 57

R A I S I N G O U R P OTE NTI A L

ABQAIQ IS THE LARGEST CRUDE OIL

STABILIZATION PLANT IN THE WORLD.

VALUE OF MATERIAL PERCENTAGE OF MATERIAL reach the best ethical decisions. The LOCALIZATION Examples include contract negotia- Supplier Code of Conduct
PROCUREMENT SPENDING PROCUREMENT SPENDING campaign visited more than 10 sites, Saudi Aramco values our relationship tions requiring certain suppliers to Saudi Aramco is committed to con-
(in millions) AWARDED TO AWARDED TO LOCAL conducted more than 80 sessions with with local suppliers as key to our ongo- build local manufacturing facilities, ducting business in an ethical manner
LOCAL MARKET MARKET approximately 4,300 people, and ing success, and we have implemented close collaboration with service pro- and has established the Supplier Code
established a partnership with five several initiatives to help develop a viders to meet or exceed their work- of Conduct to ensure our suppliers
2013 2013 administrative areas. force Saudization targets, ensuring and contractors share these commit-
competitive local industry. The approach
$
6,262 75% to developing local manufacturing and compliance through prequalification ments. Saudi Aramco suppliers include
Global Suppliers and technical evaluation of all long- vendors, manufacturers, contractors
higher Saudization levels is threefold:
Through Corporate Purchase Agree­ form contracts. One of the major and sub-contractors who are regis-
ments (CPAs) with global suppliers,  Secure longer-term purchasing
enhancements of the standard contract tered with Saudi Aramco and seeking
2012: $ 4,522 2012: 89% Saudi Aramco aims to better leverage agreements with local manufacturers
template is the creation of a new to provide goods, services, or person-
our combined materials and service by providing them with a business
2011: $ 4,032 2011: 87% schedule that standardizes Saudization nel (including consultants) to Saudi
expenditures, not only to obtain bet- stream that fosters their long-term
terms and conditions to ensure consis- Aramco, or are currently parties to
ter pricing, but also to promote more viability.
2010: $ 2,932 2010: 86% tent and effective implementation of agreements for such purposes with
local manufacturing (up to 50 percent  Provide technical support to improve Saudization requirements. Saudi Aramco or one of its contractors.
2009: $ 2,771 2009: 87% by 2018), higher Saudization levels (up new manufacturers’ technical abili-
Our Annual Suppliers Forum was con- Saudi Aramco suppliers must comply
to 70 percent by 2018) and increased ties ensuring they bring production
ducted in Dammam with more than with all applicable laws, codes and
foreign investment. The company obli- up to international standards and
1,000 participants. The intent of the regulations as set forth in procurement
gates global service contractors and specifications.
VALUE OF SERVICE PERCENTAGE VALUE OF suppliers to hire Saudi nationals from forum was to advance excellence in the documents. In addition, the Supplier
 Encourage local manufacturers and
PROCUREMENT (in millions) SERVICE PROCUREMENT the day contracts become effective. In Saudi Aramco supply chain, increase Code of Conduct outlines mandatory
service providers to increase their
AWARDED TO LOCAL AWARDED TO LOCAL addition, contractors are also obligated suppliers’ awareness of the Saudi policies on environmental, health
Saudization levels.
COMPANIES COMPANIES to increase the Saudi manpower yearly Aramco Supplier Performance Metrics and safety issues, fair trade practices,
and provide an opportunity to inter- ethical sourcing, conflicts of interest,
2013 2013 during the course of the contract. To
act with suppliers. bribery, kickbacks, gifts and fraud,
ensure compliance, Saudization is part
$
30,432 92% of both prequalification and technical
evaluation on all long-term contracts.
In 2013, the company signed CPAs
monitoring and compliance. Saudi
Aramco’s Supplier Code of Conduct
helps promote ethics across the
2012: $ 21,667 2012: 85% Kingdom’s private sector and assures
with four leading global suppliers to
our suppliers that we hold ourselves
cover materials and services for drill-
2011: $19,500 2011: 75% to those same standards.
ing completion equipment. These
2010: $12,012 2010: 77% agreements, valued at over $4 billion,
mark a major milestone in the evolv-
2009: $12,723 2009: 83% ing partnerships between Saudi Aramco
and its strategic partners.
 58 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 59

Citizenship
Saudi Aramco plays an important company seeks to expand its portfo- COMMUNITY
role in creating opportunities for the lio and presence worldwide, we are Saudi Aramco recognizes that healthy
Kingdom of Saudi Arabia. We are committed to external engagement Saudis and a dynamic, effective civil
constantly seeking to enhance our efforts that benefit both Saudi Aramco society are crucial to both the company’s
positive impacts on the Kingdom’s and society as a whole. Along with and the Kingdom’s continued success.
economy, its communities and young the activities noted below, our inter- Lowering the levels of smoking, improv­
people, and its natural environment. national contributions include dona- ing awareness around healthy living
While supplying energy to the world tions to respected academic and strategies, and making the country’s
is our core purpose, our sense of civic cultural institutions, humanitarian highways safer are top priorities for
duty and mission extends far beyond organizations, environmental advo- Saudi Aramco. These are not only
running a successful business. Through­ cates, and many other respected social issues, but also economic ones—
the Kingdom’s future economic success
out our history we have strived to partners that help us meet the chal-
will require that its people are able to
operate with strong and consistent lenges that Saudi Aramco is facing
live healthy, productive and long lives.
principles: treating employees and inside and outside the Kingdom of To this end, we trained 396 employees The King Abdulaziz Center for World Culture is Saudi Aramco’s flagship cultural initiative. The Center will help
local communities with respect, care- Saudi Arabia. to become workplace wellness champi- Saudis connect their own culture to that of others around the world, serving as a catalyst for creativity and
fully managing environmental impacts, ons in 2013, bringing our total number innovation. The Center is designed to become a beacon of knowledge, creativity and cross-cultural engage-
and sharing the benefits of success— ECONOMY to 11,346 across the company. Across ment in the Kingdom. It will offer a world-class museum, public library, historical archives, children’s educa-
Saudi Aramco is committed to develop-
all with the intention of contributing the Kingdom we reached 800,000 tional center, and conference and performance facilities. Its iconic building continued to take shape in 2013
ing an economic ecosystem that helps
to a prosperous future for Saudi Arabia students through our Traffic Safety near Saudi Aramco’s headquarters in Dhahran. In the meantime, we were honored to host a series of land-
attract, establish and promote energy-
and for the world at large. Competitions, as well as assisting in mark events, such as the Knowledge Forum conducted in partnership with UNESCO, which invited interna-
related domestic industries that are
the emergency response training of tional academics experts to discuss key issues at the heart of building a knowledge society and sustainable
This approach to citizenship has served globally competitive and create employ-
79 Red Crescent professionals and 32
ment opportunities for Saudis. human development.
as a driver of not just our own success, Traffic Police professionals.
but also the success of Saudi Arabia. We are working to develop local con-
We also work to enhance the reach
In many ways, Saudi Aramco’s busi- tent by making significant investments
and impact of nonprofit organizations
ness strategy is a citizenship strategy in integrated industrial clusters in order
across the Kingdom through both
to diversify our energy mix while help- continues to promote cultural knowl- our societal “license to operate” is Finally, we are working to protect bio-
with long-term ambitions directly our targeted donations and through
ing to diversify the economy and create edge and understanding through its dependent upon responsible environ- diversity and build awareness of fragile
tied to positive outcomes for the com- developing the talent and skills of
high-caliber jobs. We awarded over multiple program offerings, such as mental stewardship. We are commit- ecosystems throughout the Kingdom.
pany, the Kingdom and the communi- capable nonprofit organizations in
$36 billion in contracts on material the redesigned iThra Knowledge Pro­ ted to minimizing the environmental In 2013, Saudi Aramco and its commu-
ties in which we operate. In 2013, the Kingdom.
and services to domestic companies gram, which inspired and educated impact of our operations and products, nities planted 250,000 mangroves along
we made significant progress on our in 2013, using our influence to ensure more than 360,000 visitors in 2013. and we constantly seek sustainable the Arabian Gulf Coast and began
citizenship strategy by sustaining that our suppliers follow our high KNOWLEDGE Meanwhile, the company’s iThra Youth solutions for the industry that will development of an educational facility
economic growth and development, standards in key areas such as ethics Through the King Abdulaziz Center Program reached 1,000 teachers and ensure reliable and responsible access designed to build awareness of the
supporting productive and resilient and integrity. for World Culture, Saudi Aramco is 25,000 students, providing them with to energy. ecological importance of mangroves.
communities, preparing for the working to help the Kingdom partici- unprecedented learning opportunities. In 2013, Saudi Aramco continued to
In the wider society, we focus on train-
pate effectively in the knowledge
knowledge economy, and enhancing ing, mentoring and educating Saudi In 2013, 4,000 students received expert demonstrate leading practice in envi- LOOKING FORWARD
the environmental sustainability of society of the future through the arts, extracurricular training on subjects ronmental management through
workers so they can fill the specialized Saudi Aramco seeks to be an enabler
creativity, innovation and increased including science and math through achievements such as ISO 14001:2004
our business. jobs created by this economic growth in the community. We believe the best
cross-cultural awareness. To be glob- our iDiscover initiative, part of our certification of our Ras Tanura Refinery,
and diversification. We provide entre- way we can leverage our core capabili-
Saudi Aramco believes that its long- ally competitive, Saudi Aramco is wider iThra Youth program that LEED Platinum certification of our ties is to partner with other entities
preneurs and small- and medium-sized
term success depends on being a good developing the next generation of received the Innovation in Education Al-Midra office building from the U.S.
enterprises (SMEs) with the support to share knowledge, increase capacity
citizen everywhere the company or highly skilled workers and intellectually award at the World Innovation Summit Green Building Council, and a UNESCO
and capital necessary to grow their and multiply impacts. In 2014, we will
its affiliates do business. As the curious citizens by providing training for Education (WISE). environmental responsibility award
businesses. In 2013, 137 young entre- expand our leadership role in forming
and inspirational learning initiatives nomination for our Manifa project.
preneurs successfully completed the influential cross-sector partnerships
focused on the arts, science, technology,
across the Kingdom. As we continue
training provided through our Wa’ed
engineering and math skills, creativity, ENVIRONMENT We are also investing heavily in energy
For a more detailed overview of our program to help establish small efficiency, exploring renewable energy to transform our business, we also
innovation and entrepreneurship. Saudi Aramco recognizes that the
citizenship initiatives, please refer to domestic enterprises. technologies and leveraging our embrace our potential to unlock more
long-term health of our company is
As it nears its physical completion, The extensive energy capabilities and and more opportunities within the com-
our 2013 Citizenship Report. integral to the health of the environ-
King Abdulaziz Center for World Culture resources to generate a thriving clean pany, nationally and around the world.
ment in which we operate, and that
energy sector in the Kingdom.
60 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 61

2013 in Numbers
Recoverable Crude Oil & Condensate Recoverable Gas (Associated and Nonassociated) Crude Oil & Refined Products
(Billions of Barrels) (Trillions of SCF) (Billions of Barrels) 2012 2013
2013 260.2 2013 288.4 Crude Oil Production, Excluding NG Blended 3.479 3.433
2012 260.2 2012 284.8 Crude Oil Exports 2.521 2.489
2011 259.7 2011 282.6 Crude Oil Transported Using Company or Chartered Vessels 0.625 0.578
2010 260.1 2010 279.0 Refined Products Production 0.507 0.494
2009 260.1 2009 275.2 Refined Products Exports 0.126 0.121

Crude Oil Production Delivered Sales Gas and Ethane Gas Natural Gas 2012 2013
(Annual/Billions of Barrels) (Trillions of BTUs Per Day) Sales Gas
Feed to Gas Plants (Billions of SCF Daily) 10.72 11.01
2013 3.433 2013 8.087 Sales Gas (Methane) (Trillions of BTUs Daily) 7.980 8.087
2012 3.479 2012 7.980 Ethane (Trillions of BTUs Daily) 1.509 1.408
2011 3.310 2011 7.369
Total Delivered Gas (Trillions of BTUs Daily) 9.489 9.495
2010 2.887 2010 7.236
2009 2.888 2009 6.313
Natural Gas Liquids—Production 2012 2013
(Daily/Millions of Barrels) Ethane Gas
NGL Production from Hydrocarbon Gases
2013 9.406 2013 1.408
(Millions of Barrels)
2012 9.506 2012 1.509
Propane 188.6 176.7
2011 9.067 2011 1.399
Butane 122.6 114.2
2010 7.910 2010 1.334
Condensate 81.9 86.8
2009 7.913 2009 1.114
Natural Gasoline 88.8 78.2
Total NGL Production 482.0 455.9
Raw Gas to Gas Plants NGL from Hydrocarbon Gases
(Billions of SCFD) (Millions of Barrels)
Natural Gas Liquids—Produced for Sale 2012 2013
2013 11.01 2013 455.9
NGL Sales from Hydrocarbon Gases
2012 10.72 2012 482.0
(Millions of Barrels)
2011 9.882 2011 461.4
Propane 170.6 163.2
2010 9.388 2010 445.0
Butane 97.3 94.6
2009 8.556 2009 410.2
Condensate 8.7 5.7
Natural Gasoline 56.7 57.2
Total NGL Exports (Excludes Sales on
SCF = standard cubic feet Behalf of SAMREF and SASREF) 333.3 320.7
SCFD = standard cubic feet per day
BTU = British thermal unit
62 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 63

2013 I N N UM B E R S

PRINCIPAL PRODUCTS MANUFACTURED AT IN-KINGDOM REFINERIES (Millions of Barrels) PRINCIPAL PRODUCTS MANUFACTURED AT IN-KINGDOM REFINERIES (Millions of Barrels)

Jet Fuel/ Asphalt & Jet Fuel/ Asphalt &

2013 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil Misc. Total 2012 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil Misc. Total
Ras Tanura 5.486 14.586 43.187 7.017 76.846 32.857 8.037 188.017 Ras Tanura 4.075 14.53 39.60 6.658 71.33 34.80 7.790 178.8
Yanbu’ 3.019 (1.834) 17.003 (0.543) 33.729 34.393 — 85.767 Yanbu’ 2.814 (1.536) 17.62 (1.030) 34.57 34.29 — 86.72
Riyadh 1.822 — 11.225 2.932 21.694 0.047 6.703 44.423 Riyadh 1.820 — 11.95 2.776 22.49 .0688 6.737 45.84
Jiddah 0.775 2.843 3.446 (0.02) 4.001 3.681 4.864 19.590 Jiddah 1.029 4.797 5.118 (.0776) 7.017 7.070 3.162 28.12
Total Domestic 11.103 15.595 74.861 9.386 136.27 70.977 19.604 337.796 Total Domestic 9.737 17.79 74.29 8.326 135.4 76.23 17.69 339.5
SAUDI ARAMCO SHARE (Millions of Barrels) SAUDI ARAMCO SHARE (Millions of Barrels)

Jet Fuel/ Asphalt & Jet Fuel/ Asphalt &

2013 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil Misc. Total 2012 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil Misc. Total
SAMREF (0.755) — 20.226 9.402 12.922 15.472 — 57.267 SAMREF (0.672) — 24.04 11.06 19.17 16.06 — 69.66
SASREF 1.292 10.972 1.777 9.113 10.768 12.294 — 46.216 SASREF 1.429 12.35 2.178 10.00 12.43 14.20 — 52.60
Petro Rabigh 0.615 7.089 5.593 4.186 11.274 12.278 — 41.035 Petro Rabigh — 8.132 7.186 5.006 13.31 11.86 — 45.50
SATORP 0.029 1.382 0.568 1.173 3.783 4.340 — 11.275 Total JV .7565 20.48 33.41 26.07 44.92 42.13 — 167.8
Total JV 1.181 19.443 28.164 23.874 38.747 44.384 — 155.793 Grand Total 10.49 38.28 107.7 34.39 180.3 118.3 17.69 507.2
Grand Total 12.284 35.038 103.025 33.26 175.017 115.361 19.604 493.589
*Negative figures primarily indicate products that were reprocessed into other refined products. DOMESTIC PRODUCT SALES BY REGION
(Millions of Barrels)
Domestic Refining Capacity Domestic Joint Ventures Refining Capacity 2013 Central Eastern Western Total
(Thousands of Barrels per Day) (Thousands of Barrels per Day)
LPG 1.819 6.223 6.138 14.180
550 R A S TA N U R A
400 PE T RO R A BI G H
S AU D I A R A M CO OW N ER S H I P 37. 5% Gasoline 67.538 36.785 79.814 184.137
Jet Fuel/
120 RI YA DH
400 S A M REF —YA N BU ’
S AU D I A R A M CO OW N ER S H I P 5 0 % Kerosene 8.185 2.832 14.544 25.561
Diesel 82.079 59.561 117.806 259.446
90 J I D DA H
305 S A S REF —J U BA I L
S AU D I A R A M CO OW N ER S H I P 5 0 % Fuel Oil 0.851 2.118 110.412 113.381

240 YA N BU ’
400 S ATO R P —J U BA I L
S AU D I A R A M CO OW N ER S H I P 6 2 . 5%
Asphalt &
Misc. 6.681 9.059 7.994 23.734
Total 167.153 116.578 336.708 620.438
International Joint Ventures Refining Capacity Total Refining Capacity
(Thousands of Barrels per Day) (Thousands of Barrels per Day)
2012 Central Eastern Western Total
1,070 MOTIVA
SAUDI ARAMCO AFFILIATE OWNERSHIP 50% 1,000 W H O L LY OW N ED D O M ES T I C
LPG 1.932 6.285 5.537 13.75
Gasoline 64.37 35.22 76.33 175.9
669 S-OIL
SAUDI ARAMCO AFFILIATE OWNERSHIP 35% 1,505 D O M ES T I C J O I N T V EN T U RES
Jet Fuel/
Kerosene 7.742 2.846 14.17 24.76
395 SHOWA SHELL SEKIYU K.K. (SHOWA SHELL)
SAUDI ARAMCO AFFILIATE OWNERSHIP 15%
2,374 I N T ERN AT I O N A L J O I N T V EN T U RES
Diesel 80.05 58.98 114.4 253.4

240 FUJIAN REFINING AND PETROCHEMICAL COMPANY LTD.

SAUDI ARAMCO AFFILIATE OWNERSHIP 25%
4,879 WO RL DW I DE Fuel Oil .2419 2.293 94.97 97.50
Asphalt &
2,640 S AU D I A R A M CO S H A RE Misc. 7.314 8.702 6.966 22.98
Total 161.6 114.3 312.4 588.4
64 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 65

2013 I N N UM B E R S

2013 EXPORTS BY REGION (Percent)

Ship Calls by Asia Europe

Product Type 2009 2010 2011 2012 2013
Crude Oil 1,755 1,756 1,959 2,068 2,018
53.8 C RU DE O I L
5.4 C RU DE O I L

Products 936 816 967 965 858 46.6 REFI N ED P RO DUC T S

6.8 REFI N ED P RO DUC T S
LPG 234 308 234 232 198
Total Ship Calls 2,925 2,880 3,160 3,265 3,074 27.9 N G L*
0.0 N G L*

Sulfur Recovery Sulfur Exports* Mediterranean U.S.

(Millions of Metric Tons) (Millions of Metric Tons)

2013 3.900 2013 2.482 6.7 C RU DE O I L

17.1 C RU DE O I L

2012 4.092 2012 2.513

2.1 REFI N ED P RO DUC T S
0.0 REFI N ED P RO DUC T S
2011 4.579 2011 2.899
2010 3.200 2010 3.040 4.9 N G L*
0.0 N G L*

2009 3.214 2009 2.809

*E xcludes sales on behalf of SAMREF
and SASREF Other

17.0 C RU DE O I L

44.5 REFI N ED P RO DUC T S

67.2 N G L*

*Includes sales on behalf of SAMREF and SASREF

66 :: Energy Is Opportunity :: Saudi Aramco 2013 Annual Review :: 67

AWARDS WON
BY SAUDI ARAMCO
IN 2013
Our Outlook

The following are some of the awards won by complex near-surface characterization, multiple elimination
Saudi Aramco in 2013. and imaging and coherency technology, publishing key
papers in the area of land multiple suppressing technology,
For the 25th consecutive year, Saudi Aramco again earned presenting the first practical application of inverse scatter-
the No. 1 spot in the Petroleum Intelligence Weekly’s annual ing series technology for land internal multiple suppression,
rankings of the world’s top 50 oil companies. among other achievements.
The Manifa Project earned the Innovative Project of the Saudi Aramco won four awards in October at the Oil and
Year award at the 2012 Oil and Gas Middle East Awards, Gas Middle East Awards. We won with The Dow Chemical
announced early in 2013. Company for International Collaboration of the Year,
and one of our EXPEC ARC engineers was named Young
Our Sadara joint venture with The Dow Chemical Co. will be
Engineer of the Year. We also won Integrated Oil
the largest chemical complex built in a single stage. The proj-
Company of the Year as well as Gas Project of the Year
ect required a dedicated financing team to complete the
for our work on the Karan Gas Project.
largest Islamic bond sukuk and the largest publicly listed
sukuk in history, featuring participation from 26 commercial In an award announced in 2013, our Khursaniyah, Haradh,
banks and 11 Islamic banks. The Sadara project has won and ‘Uthmaniyah Gas Plants and Hawiyah NGL Recovery
six international awards for excellence, including the 2013 were recognized by the Gas Processors Association for
Global Sponsor of the Year award by Project Finance achieving 500,000 to 4.5 million work-hours with no lost-
International, the Global Finance Deal of the Year by time accidents in 2012.
the American Lawyer—Global Legal awards, and Project
Finance Deal of the Year award by the International Saudi Aramco won the Gold Special Recognition Award
Finance Law Review. at the Emirates Energy Awards in October for our efforts and
achievements in regards to energy management, including
Saudi Aramco was honored with the International Distin­ large energy projects, small energy projects, research and
guished Corporate Support Award by the Society of development, innovation and energy efficiency. A total of Saudi Aramco remains conscious of Of course, just as the Kingdom is the Kingdom’s most pressing issues,
Petroleum Engineers (SPE) at the organization’s annual 14 Saudi Aramco energy engineers received “Energy the need to ensure sufficient and opening a new chapter, so is Saudi including energy intensity, economic
technical conference and exhibition in New Orleans. The Manager” international certification in 2013. sustainable supplies of energy for Aramco. Today, we are the top exporter diversification, and the creation of
award is given annually to companies that demonstrate sig- decades to come, even as the world of crude oil and natural gas liquids, and new business opportunities for the
nificant global support of SPE in volunteering, in dissemina- the world’s largest oil company based private sector.
struggles today to overcome signifi-
tion of knowledge and participation in SPE and its activities. on reserves, production and refining
cant pockets of energy poverty. All of these efforts are ultimately just
capacity. Successful organizations must
The EXPEC ARC Geophysics Technology Division was interna- means to an end. Saudi Aramco’s true
Those global issues are mirrored here keep pace with change, however, and
tionally recognized by the Society of Exploration Geophysicists goal is the realization of our corpora-
in the Kingdom: creating new career with the whole world changing, the
(SEG) with the 2013 SEG Distinguished Achievement tion’s fullest potential while enabling
opportunities for youth, curbing energy global community is calling on leading
Award for advancing the field of geophysicists. The award the Kingdom’s development in the
intensity, protecting the natural envi- companies to find solutions to the
recognized the division for making significant advances in broadest terms—energy is opportu-
ronment, and moving away from an grand challenges we all face. nity for all. That means developing
economic model concentrated on the
That imperative has led us to design into a company that will not only
monetization of an abundant but ulti-
and deploy a top-to-bottom, side-to- change with the global energy land-
mately finite natural resource. These
side reexamination of our businesses scape, but will lead that evolution.
issues take on added significance
—and even of the way we conduct Saudi Aramco is determined to be the
when one considers that the Kingdom
business itself. We are expanding our innovation company of the future—
is determined to transition from an
business portfolio and asset base, and we are working tirelessly to
energy-intensive to a knowledge-
reengineering our processes and achieve this vision.
based economy, and in fact seeks to
recalibrating our behavior, and
become a knowledge society.
becoming more engaged in some of

© Copyright 2014. Saudi Aramco. All Rights Reserved.