Chemicals Value
Proposition Workshop February 2020
© Saudi Arabian Oil Company, 2020
Disclaimer
This presentation may contain certain forward-looking statements with respect to Saudi Aramco’s (the “Company”) financial position,
results of operations and business, and certain of the Company’s plans, intentions, expectations, assumptions, goals and beliefs. These
statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as
“believes”, “expects”, “are expected to”, “anticipates”, “intends”, “estimates”, “should”, “will”, “shall”, “may”, “is likely to”, “plans” or
similar expressions, including variations and the negatives thereof or comparable terminology.
You should be aware that forward-looking statements are not guarantees of future performance and that the Company’s actual financial
position, results of operations and business, and the development of the industries in which it operates may differ materially from those
made in or suggested by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s
expectations are contained in cautionary statements in the Company’s Prospectus filed with the Saudi Arabian Capital Markets Authority and
available at https://cma.org.sa/en/Market/Prospectuses/Pages/default.aspx (the “Prospectus”) and include, among other things, the following:
• (1) oil and gas supply, demand and price fluctuations; (2) global economic market conditions; (3) competition in the industries in
which the Company operates; (4) conditions affecting the transportation of products; (5) operational risk and hazards common in the
oil and gas, refining and petrochemicals industries; (6) the cyclical nature of the oil and gas, refining and petrochemicals industries;
(7) weather conditions; (8) political and social instability and unrest and actual or potential armed conflicts in the MENA region and
other areas; (9) managing the Company’s growth; (10) risks in connection with projects under development and recent and future
acquisitions and joint ventures, including with respect to SABIC; (11) managing the Company’s subsidiaries, joint operations, joint
ventures, associates and entities in which it holds a minority interest; (12) the Company’s exposure to interest rate risk and foreign
exchange risk; (13) risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that
impact the industries in which the Company operates; and (14) international trade litigation, disputes or agreements.
The Prospectus contains a more complete discussion of the factors that could affect the Company’s future performance and the
industries in which it operates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
• Drives domestic value creation byworking with suppliers for mutualbenefits
• Envisions to improve investment, andmaximize long term economic growthand diversification
• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness
IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Anticipated Market Size
The
Opportunity
The Business
Case
Executive Summary
Raw Material Intermediates Finished
Products
Value Chain Mapping
Each will Provide:
In Oil Field Chemicals, Production Chemicals & New Chemicals
Technologies in Oil & Gas Industry
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium Chloride Hassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelani
Organophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Khazi AhmedJeelaniClosing
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium Chloride Hassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelani
Organophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Khazi AhmedJeelaniClosing
© Saudi Arabian Oil Company, 2020
Ester Based Lubricant February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: PublicSaudi Aramco: Public
Potential exist to establish
multiple production facilities in
the kingdom for Ester Based
Lubricant
The opportunity
1. Global demand is expected to
grow at 3% annually for the
next 10 years
2. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Ester Based Lubricant Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Ester Based Lubricant Usage in Oil and Gas
9
Extreme Ester Based Environmental Friendly Lubricant. It is an Additive
Drilling Fluid, Comes in Liquid Form, a Blend of Fatty Amides Acid and
Esters, or Polyol Ester of Fatty Acids. For Usage in Solids-Free Drill in Fluid
Mud and Monovalent Brine to Reduce Torque and Drag in Highly Tortuous
or Extended Reach Wells
Several Usages exist for Ester
Based Lubricant products
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical global demand
on Ester Based Lubricant
grow from 137,468 TON
in year 2015 and reached
155,279 Ton in Year 2019
Historical Global Demand on Ester Based Lubricant
137,468
141,719
146,102
150,621
155,279
125,000
130,000
135,000
140,000
145,000
150,000
155,000
160,000
2015 2016 2017 2018 2019
Qu
an
tity
(T
ON
)
Historical Global Demand of Ester Based Lubricant
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
The global demand on
Ester Based Lubricant is
expected to grow at 3%
from 160,082 TON in
2020 and will reach
215,137 TON year 2030
Global Demand on Ester Based Lubricant
3%
160,082 164,884 169,831 174,926 180,173 185,579 191,146 196,880
202,787 208,870
215,137
-
50,000
100,000
150,000
200,000
250,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
(T
ON
)
Global Demand of Ester Based Lubricant
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical Saudi Arabia and GCC’s Demand on Ester Based Lubricant
Source: Saudi Aramco Internal Analysis
Historical KSA demand on
Ester Based Lubricant
grow from 14,152 Ton in
year 2015 and reached
15,986 Ton in Year 2019.
Total demand from GCC
countries reached 29,716
Ton in year 2019
14,152 14,590 15,041 15,506 15,986
12,155 12,531
12,919 13,318
13,730 26,307 27,121
27,959 28,824
29,716
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2015 2016 2017 2018 2019
Qu
anti
ty (
TON
)
Historical KSA & GCC Demand of Ester Based Lubricant
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: PublicSaudi Aramco: Public
Saudi Arabia and GCC’s Demand on Ester Based Lubricant
The KSA demand on Ester
Based Lubricant is
expected to grow at 3%
from 16,480 TON in 2020
and will reach 22,150 TON
year 2030. Total GCC
demand is expected to
reach 41,170 TON by year
2030
16,480 16,974 17,484 18,008 18,548 19,105 19,678 20,268 20,876 21,503 22,148
14,155 14,579 15,017 15,467 15,931 16,409 16,901 17,408 17,931 18,469
19,023
30,635 31,554 32,500 33,475 34,480 35,514 36,579 37,677 38,807 39,971
41,170
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty (
TON
)
KSA & GCC Demand of Ester Based Lubricant
KSA Rest of GCC
3%
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Advantages of Ester Based Lubricant
14
Non-Damaging to Producing Zones
Non-Toxic
Environmentally Friendly
Helps Prevent Bit Balling and Differential Sticking
Compatible with Seawater and Monovalent Brine-Based Drilling Fluids
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Several Advantages exist
for Ester Based Lubricant
products
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping
15
Key ingredients are available locally and in GCC
region.
Available locally
Localization Opportunity
Ester Based Lubricant
Fatty Amides Acid
Esters / Polyol Ester
of Fatty Acids
oil-based Feedstock
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in the region. Opportunity exists for Raw Material processing, intermediate additives manufacturing and Final Product manufacturing
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping Analysis
16
• Saudi Aramco is the main
local supplier of oil-based
feedstock i.e. naphtha, ethane
and propane.
• Opportunity exists for Raw
Material manufacturing of
Fatty Amides Acid and
Esters, or Polyol Ester of
Fatty Acids to increase final
products to meet growing
global demand.
• Opportunity exists to
establish local
manufacturing plants to
produce Ester Based
Lubricant to meet
growing global demand.
• Opportunity exists to
establish Logistics
Services businesses in
the kingdom to meet
Ester Based Lubricant
increase in productions.
Feedstock Raw Material Finished Products Logistics
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Kinetic Hydrate InhibitorFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: PublicSaudi Aramco: Public
Potential exist to establish
multiple production facilities in
the kingdom for Kinetic
Hydrate Inhibitor
The opportunity
1. Global demand is expected to
grow at 3% annually for the
next 10 years
2. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Kinetic Hydrate Inhibitor Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Kinetic Hydrate Inhibitor Usage in Oil and Gas
Kinetic Hydrate inhibitors Prevent formation of Clathrate Hydrates
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical global demand
on Kinetic Hydrate
Inhibitor grow from 8,166
TON in year 2015 and
reached 9,224 TON in
Year 2019
Historical Global Demand on Kinetic Hydrate Inhibitor
8,166
8,419
8,679
8,948
9,224
7,600
7,800
8,000
8,200
8,400
8,600
8,800
9,000
9,200
9,400
2015 2016 2017 2018 2019
Qu
an
tity
in
(T
ON
)
Historical Global Demand of Kinetic Hydrate Inhibitor
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
The global demand on
Kinetic Hydrate Inhibitor
is expected to grow at 3%
from 9,510 TON in 2020
and will reach 12,780
TON by year 2030
Global Demand on Kinetic Hydrate Inhibitor
3%
9,510 9,795 10,089
10,392 10,703
11,024 11,355
11,696 12,047
12,408 12,780
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Global Demand of Kinetic Hydrate Inhibitor
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical Saudi Arabia and GCC’s Demand on Kinetic Hydrate Inhibitor
Historical KSA demand on
Kinetic Hydrate Inhibitor
grow from 841 TON in year
2015 and reached 950 TON
in Year 2019. Total demand
from GCC countries
reached 1,765 TON in year
2019
841 867 894 921 950
722 744
767 791
816 1,563 1,611
1,661 1,712
1,765
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2015 2016 2017 2018 2019
Qu
anti
ty (
TON
)
Historical KSA & GCC Demand of Kinetic Hydrate Inhibitor
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Saudi Arabia and GCC’s Demand on Kinetic Hydrate Inhibitor
The KSA demand on
Kinetic Hydrate Inhibitor is
expected to grow at 3%
from 979 TON in 2020 and
will reach 1,316 TON by
year 2030. Total GCC
demand is expected to
reach 2,446 TON by year
2030
3%
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
979 1,008 1,039 1,070 1,102 1,135 1,169 1,204 1,240 1,277 1,316
841 866 892 919 946 975 1,004 1,034 1,065 1,097
1,130
1,820 1,874 1,931 1,989 2,048 2,110 2,173 2,238 2,305
2,375 2,446
-
500
1,000
1,500
2,000
2,500
3,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty (
TON
)
KSA & GCC Demand of Kinetic Hydrate Inhibitor
KSA Rest of GCC
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain of Kinetic Hydrate Inhibitor
24
Key ingredients are available locally and in GCC region.
Examples of polymeric kinetic hydrate inhibitors are shown below:
• Poly(N-methylacrylamide)
• Poly(N,N-dimethylacrylamide)
• Poly(N-ethylacrylamide)
• Poly(N,N-diethylacrylamide)
• Poly(N-methyl-N-vinylacetamide)
• Poly(2-ethyloxazoline)
• Poly(N-vinylpyrrolidone)
• Poly(N-vinylcaprolactam)
Components of Kinetic
Hydrate Inhibitor are polymers
and copolymers (or a mix
thereof). The most common of
which is polyvinylcaprolactam
(PVCap)
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping
25
Key ingredients are available locally and in GCC
region.
Available locally
Localization Opportunity
Kinetic Hydrate Inhibitor
Polymeric Kinetic
Hydrate
PVCap
oil-based Feedstock
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Key ingredients are
available locally and in the
region. Opportunity exists
for Raw Material
processing, intermediate
additives man
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping Analysis
26
• Saudi Aramco is the main
local supplier of oil-based
feedstock i.e. naphtha,
ethane and propane.
• Opportunity exists for Raw
Material manufacturing of
Polymeric Kinetic Hydrate
and PVCap to increase final
products to meet growing
global demand.
• Opportunity exists to
establish local
manufacturing plants to
produce Kinetic Hydrate
Inhibitor to meet growing
global demand.
• Opportunity exists to
establish Logistics
Services businesses in
the kingdom to meet
Kinetic Hydrate Inhibitor
increase in productions.
Feedstock Raw Material Finished Products Logistics
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Mineral Fiber LCM February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: PublicSaudi Aramco: Public
Potential exist to establish
multiple production facilities in
the kingdom for Mineral Fiber
LCM
The opportunity
1. Global demand is expected to
grow at 3% annually for the
next 10 years
2. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Mineral Fiber LCM Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Mineral Fiber LCM Usage in Oil and Gas
29
Acid Soluble Spun Mineral Fiber Loss Circulation Material is Used as Additive
for Drilling Fluid, comes in Fiber and Powder Form. Spun Mineral Fiber is
Used for Combating Lost Circulation by Plugging Vugular and Fractured
Formations During Drilling and Workover Operations
Several Usages exist for
Mineral Fiber LCM products
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical global demand
on Mineral Fiber LCM
grow from 2,578 Ton in
year 2015 and reached
2,911 Ton in Year 2019
Historical Global Demand on Mineral Fiber LCM
2,578
2,657
2,739
2,824
2,911
2,400
2,500
2,600
2,700
2,800
2,900
3,000
2015 2016 2017 2018 2019
Qu
an
tity
in
(T
ON
)
Historical Global Demand of Mineral Fiber LCM
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
The global demand on
Mineral Fiber LCM is
expected to grow at 3%
from 3,002 TON in 2020
and will reach 4,034 TON
by year 2030
Global Demand on Mineral Fiber LCM
3%
3,002 3,092 3,184
3,280 3,378
3,480 3,584
3,692 3,802
3,916 4,034
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Global Demand of Mineral Fiber LCM
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical Saudi Arabia and GCC’s Demand on Mineral Fiber LCM
Historical KSA demand on
Mineral Fiber LCM grow
from 265 MM Ton in year
2015 and reached 300 Ton
in Year 2019. Total demand
from GCC countries
reached 557 Ton in year
2019
265 274 282 291 300
228 235
242 250
257 493 509
524 540
557
-
100
200
300
400
500
600
2015 2016 2017 2018 2019
Qu
anti
ty (
TON
)
Historical KSA & GCC Demand of Mineral Fiber LCM
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Saudi Arabia and GCC’s Demand on Mineral Fiber LCM
The KSA demand on
Mineral Fiber LCM is
expected to grow at 3%
from 309 TON in 2020 and
will reach 415 TON year
2030. Total GCC demand is
expected to reach 772 TON
by year 2030
3%
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
309 318 328 338 348 358 369 380 391 403 415
265 273 282 290 299 308 317 326 336 346
357
574 592 609 628 646 666 686 706 728 749
772
-
100
200
300
400
500
600
700
800
900
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty (
TON
)
KSA & GCC Demand of Mineral Fiber LCM
KSA Rest of GCC
Saudi Aramco: PublicSaudi Aramco: Public
Advantages of Mineral Fiber LCM
34
Acid soluble
Easily wetted
Non combustible
Non fermenting
Inorganic
Non polluting
Non corrosive
Non toxic
Temperature stable
Contains no asbestos
Several Advantages exist for
Mineral Fiber LCM products
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping
35
Key ingredients are available locally and in GCC
region. Key ingredients are available
locally and in the region.
Opportunity exists for Raw
Material processing,
intermediate additives
manufacturing and Final
Product manufacturing.
Available locally
Localization Opportunity
Mineral Fiber LCMAcid Soluble Spun
Mineral Fiberoil-based Feedstock
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping Analysis
36
• Saudi Aramco is the main
local supplier of oil-based
feedstock i.e. naphtha,
ethane and propane.
• Opportunity exists for Raw
Material manufacturing of
Acid Soluble Spun Mineral
Fiber to increase final
products to meet growing
global demand.
• Opportunity exists to
establish local
manufacturing plants to
produce Mineral Fiber
LCM to meet growing
global demand.
• Opportunity exists to
establish Logistics
Services businesses in
the kingdom to meet
Mineral Fiber LCM
increase in productions.
Feedstock Raw Material Finished Products Logistics
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Resilient GraphiteFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: PublicSaudi Aramco: Public
Potential exist to establish
multiple production facilities in
the kingdom for Resilient
Graphite
The opportunity
1. Global demand is expected to
grow at 3% annually for the
next 10 years
2. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
Resilient Graphite Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Resilient Graphite Usage in Oil and Gas
39
Additive to Drilling Fluid. Graphite: Gray To Black, Sized Resilient
Graphite Particles Used for Wellbore Strengthening by Bridging and
Plugging the Rock Pores to Stop Fluid Losses and Prevent Stuck Pipe. It
is Chemically Inert, Thermally Stable and can be Used in Oil-Based or
Water-Base Drilling Fluids as a Mechanical Lubricant for Reducing
Torque and Drag.
Several Usages exist for
Resilient Graphite products
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical global demand
on Resilient Graphite
grow from 67,015 TON in
year 2015 and reached
75,699 TON in Year 2019
Historical Global Demand on Resilient Graphite
67,015
69,088
71,225
73,428
75,699
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
78,000
2015 2016 2017 2018 2019
Qu
an
tity
in
(T
ON
)
Historical Global Demand of Resilient Graphite
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
The global demand on
Resilient Graphite is
expected to grow at 3%
from 78,040 TON in 2020
and will reach 104,879
TON by year 2030
Global Demand on Resilient Graphite
3%
78,040 80,381 82,793 85,276 87,835 90,470
93,184 95,979
98,859 101,824
104,879
-
20,000
40,000
60,000
80,000
100,000
120,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Global Demand of Resilient Graphite
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Historical Saudi Arabia and GCC’s Demand on Resilient Graphite
Historical KSA demand on
Resilient Graphite grow
from 6,899 TON in year
2015 and reached 7,793
TON in Year 2019. Total
demand from GCC
countries reached 14,486
TON in year 2019
6,899 7,112 7,332 7,559 7,793
5,926 6,109
6,298 6,493
6,693 12,825 13,221
13,630 14,052
14,486
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2015 2016 2017 2018 2019
Qu
anti
ty (
TON
)
Historical KSA & GCC Demand of Resilient Graphite
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Saudi Arabia and GCC’s Demand on Resilient Graphite
The KSA demand on
Resilient Graphite is
expected to grow at 3%
from 8,034 TON in 2020
and will reach 10,797 TON
by year 2030. Total GCC
demand is expected to
reach 20,071 TON by year
2030
3%
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
8,034 8,275 8,523 8,779 9,042 9,314 9,593 9,881 10,177 10,483 10,797
6,900 7,107 7,321 7,540 7,766 7,999 8,239 8,487 8,741 9,003 9,274
14,934 15,382 15,844 16,319 16,809 17,313 17,832 18,367 18,918 19,486 20,071
-
5,000
10,000
15,000
20,000
25,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty (
TON
)
KSA & GCC Demand of Resilient Graphite
KSA Rest of GCC
Saudi Aramco: PublicSaudi Aramco: Public
Advantages of Resilient Graphite
44
It is an effective bridging and sealing agent for a wide range of
formations.
It reduces torque and drag in all mud systems by increasing the lubricity.
It is an inert material with no adverse effects on mud rheology.
It reduces filter cake permeability.
Several Advantages exist for
Resilient Graphite products
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping
45
Key ingredients are available locally and in GCC
region. Key ingredients are available
locally and in the region.
Opportunity exists for Raw
Material processing,
intermediate additives
manufacturing and Final
Product manufacturing.
Available locally
Localization Opportunity
Graphite Processing Resilient GraphiteGraphite
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping Analysis
46
• Opportunity exists for Raw
Material manufacturing of
Graphite to increase final
products to meet growing
global demand.
• Opportunity exists for
intermediate Graphite
Processing to increase final
products to meet growing
global demand.
• Opportunity exists to
establish local
manufacturing plants to
produce Resilient
Graphite to meet
growing global demand.
• Opportunity exists to
establish Logistics
Services businesses in
the kingdom to meet
Resilient Graphite
increase in productions.
Raw Material Intermediates Finished Products Logistics
© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium Chloride Hassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelani
Organophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Khazi AhmedJeelaniClosing
© Saudi Arabian Oil Company, 2020
Shale StabilizerFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Shale Stabilizer Manufacturing Represent an Attractive Opportunity Given the
current gaps, expected demand and localization potential
Establish state of the art
manufacturing facilities of
Shale Stabilizer to serve
growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 2% annually for the
next 10 years and will reach
1 MM Ton in 2030.
2. New applications are going to
utilize Shale Stabilizer .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Shale Stabilizers
• Clay and shale react with the water phase of a drilling fluid to promote stickiness, increase
swelling, and induce sloughing.
• Shale and clay stabilizers adhere to the borehole wall the surfaces of drill cuttings.
• This encapsulation can effectively seal their surfaces and inhibits their reaction with the fluid,
minimizing sticking, swelling, and sloughing, and increasing borehole stability.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Historical Demand on Shale Stabilizers
The Historical demand for
Shale Stabilizers was
623K Ton in 2015 and
reached 762K Ton in year
2019
623649
676705
762
0
100
200
300
400
500
600
700
800
900
2015 2016 2017 2018 2019
Qu
an
tity
in
( K
TO
N)
4%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Historical Demand on Shale Stabilizers
The Historical demand for
Shale Stabilizers was
623K Ton in 2015 and
reached 762K Ton in year
2019
816 832 849 866 883 901 919 937 956 975 995
0
100
200
300
400
500
600
700
800
900
1,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( K
TO
N) The Historical demand for
Shale Stabilizers was
623K Ton in 2015 and
reached 762K Ton in year
2019
The global demand on
Shale Stabilizer is
expected to grow at 2 %
from 816K Ton in 2020 and
will reach 995K Ton year
2030
2%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & GCC Demand for Shale Stabilizer
13,472 13,742 14,017 14,297 14,583 14,875 15,172 15,476 15,785 16,101 16,423
13,472 13,877 14,293 14,722 15,163 15,618 16,087 16,56917,066
17,57818,106
26,945 27,618 28,310 29,019 29,746 30,493 31,259 32,04532,851
33,67934,529
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
Ton)
KSA Rest of GCC
The GCC/KSA demand for
Shale Stabilizer is expected
to grow at 3 % from 26K
Ton in 2020 and will reach
35K Ton year 2030
3%
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Shale Stabilizers Value Chain Mapping
54
Key ingredients are available locally and in GCC
region. Opportunity exists to
establish facilities for
Shale Stabilizers
products utilizing one of
the manufacturing
processes:
Available Locally
Localization Opportunity
Reaction
With
Amines Shale Stabilizers
Sillic Acid,
Potassium Salt
Glycerin
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish Shale Stabilizers producing facility to meet the local, regional and global demand.
• The most commonly used chemicals sillic acid, Potassium Salt and Glycerin are available an opportunity exists to increase the production of these Stabilizers to meet the increasing demand.
• Opportunity exists to establish
facilities for Shale
Stabilizers products utilizing
one of the manufacturing
processes:
- Amine based
• Shale Stabilzers products are used by global services companies
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
HPHT Corrosion Inhibitor February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
HPHT corrosion inhibitors Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
The opportunity
Establish multiple state of
the art manufacturing facilities
of HPHT Corrosion Inhibitor
to serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 2% annually for the
next 10 years
2. New applications are going to
utilize HPHT Corrosion
Inhibitor .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
High Temperature High Pressure Corrosion Inhibitor
• A drilling fluid additive in liquid form for corrosion inhibition for high temperature high
pressure applications used in fresh ,brackish or brine packer fluid.
• A blend of amines and imidazoline amide, soluble in oil and dispersible in water
• To alleviate corrosion in fresh, brackish or brine packer fluid at high wellbore temperatures up
to 400°F.
• Imidazoline adsorption forms a chemical film on iron and steel surfaces and develops a
passivation layer that provides corrosion protection in sour H2S, sweet CO2 and oxygen
corrosion environment encountered in oil and gas wells
• Chemical and physical Specifications:
Dark amber liquid oil soluble and water Dispersible specific gravity @ 59°f (15°c): 0.8 - 0.9
flash Point (pmcc): >136.4°f (58°c) diluted solution with DI water (3:1) at 68°f( 20°c): 6 - 7.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The global Historical
demand for HPHT
Corrosion Inhibitors was
from 902 K Ton in 2015 and
reached 1,158 K Ton in
year 2019
902929
956
1,1251,158
0
200
400
600
800
1,000
1,200
1,400
2015 2016 2017 2018 2019
Qu
an
tity
in
( K
TO
N)
Global Historical Demand on HPHT Corrosion Inhibitors
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on HPHT Corrosion Inhibitors
The global demand on
HPHT is expected to grow
at 2 % from 1,181K Ton in
2020 and will reach 1,440K
Ton year 2030
1,181 1,205 1,229 1,253 1,279 1,304 1,330 1,357 1,384 1,412 1,440
0
200
400
600
800
1,000
1,200
1,400
1,600
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( K
TO
N)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Historical Demand for HPHT Corrosion Inhibitor
Historical demand for
HPHT corrosion inhibitor
was 50K Ton in 2015 and
reached 60K Ton year in
201925 26 27
29 30
2526
27
2930
5052
54
5860
0
10
20
30
40
50
60
70
2015 2016 2017 2018 2019
Qu
anti
ty (
K T
on
)
Historical KSA & GCC Demand of Product HPHT Corrosion Inhibitor
KSA Rest of GCC
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
The GCC/KSA demand for
HPHT corrosion inhibitor
is expected to grow at 3 %
from 62K Ton in 2020 and
will reach 80K M Ton year
2030
KSA & GCC Demand for HPHT Corrosion Inhibitor
30.90 31.52 32.15 32.79 33.45 34.12 34.80 35.49 36.20 36.93 37.67
30.90 31.83 32.78 33.77 34.78 35.82 36.90 38.00 39.14 40.32 41.53
61.80 63.35 64.93 66.56 68.23 69.94 71.69 73.50 75.35 77.25 79.19
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty (
To
n)
KSA & GCC Demand of Product HPHT Corrosion inhibitor
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
HPHT Corrosion Inhibitors Value Chain Mapping
Key ingredients are available locally and in GCC
region. • Potential exists to establish HPHT Corrosion Inhibitor producing facility to meet the local, regional and global demand.
• The most commonly used chemicals are available opportunity exists to increase the production of these Amines to meet the increasing demand.
Available Locally
Localization Opportunity
Reaction HTTP Corrosion InhibitorsAmines
Imidazoline
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish HPHT Corrosion Inhibitor producing facility to meet the local, regional and global demand.
• The most commonly used chemicals are available opportunity exists to increase the production of these Amines to meet the increasing demand.
• Opportunity exists to establish
facilities for HPHT Corrosion
Inhibitor products utilizing
one of the manufacturing
processes:
- Amine based
• HPHT Corrosion Inhibitorproducts are used by global services companies
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
Secondary Emulsifier February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Secondary Emulsifier Manufacturing Represent an Attractive Opportunity
Given the current gaps, expected demand and localization potential
Establish multiple factories
with state of the art
manufacturing facilities of
Secondary Emulsifier to
serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 3% annually for the
next 10 years
2. New applications are going to
utilize Secondary Emulsifier .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Secondary Emulsifier Applications
• Improves oil-wetting and prevents water-wet solids filtrate
• Maintains stable water-in-oil emulsion and helps prevent water in HPHT
• Improves thermal stability, rheological stability, filtration control and
contamination-resistance of oil-base muds
• Effective at counteracting the adverse effects of water contamination such as
high viscosity, low-emulsion stability and water-wet solids
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Secondary Emulsifier
The global demand on
Secondary Emulsifier is
expected to grow at 3 %
from 83K Ton in 2020 and
will reach 110K Ton year
2030
82,40084,872
87,41890,041
92,74295,524
98,390101,342
104,382107,513
110,739
0
20,000
40,000
60,000
80,000
100,000
120,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA demand for Secondary Emulsifier
The GCC/KSA demand on
Secondary is expected to
grow at 4 % from 13K Ton
in 2020 and will reach 20K
Ton year 2030
6,381 6,573 6,770 6,973 7,182 7,398 7,620 7,848 8,084 8,326 8,576
7,280 7,5717,874
8,1898,517
8,8579,212
9,5809,963
10,36210,776
13,661 14,14414,644
15,16215,699
16,25516,831
17,42818,047
18,68819,352
0
5,000
10,000
15,000
20,000
25,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
Ton)
KSA Rest of GCC
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Secondary Emulsifiers Value Chain Mapping
70
70Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in GCC
region.
Available Locally
Localization Opportunity
Reactions Secondary EmulsifierGlycerides &
Fatty acids
• The most commonly used chemicals are available opportunity exists to increase the production of these emulsifiers to meet the increasing demand.
• Potential exists to establish
SecondaryEmulsifier
producing facility to meet the
local, regional and global
demand.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish Secondary Emulsifierproducing facility to meet the local, regional and global demand.
• The most commonly used chemicals are available opportunity exists to increase the production of these emulsifiers to meet the increasing demand.
• Opportunity exists to establish
facilities for Secondary
Emulsifier products utilizing
one of the manufacturing
processes:
- Amine based
• Secondary Emulsifiers products are manufactured by companies in KSA
-
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
OBM Primary Emulsifier February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
OBM Primary Emulsifier Manufacturing Represent an Attractive Opportunity Given
the current gaps, expected demand and localization potential
The opportunity
Establish multiple state of
the art manufacturing facilities
of OBM Primary Emulsifier
to serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 2% annually for the
next 10 years
2. New applications are going to
utilize OBM Primary
Emulsifier .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Oil Based Mud (OBM) Primary Emulsifier
• It is essentially a polyaminated fatty acid and is used to emulsify Water into Oil in Oil /Diesel
based drilling fluids .
• It provides excellent emulsion stability, acts as a wetting agent, gelling agent and fluid
stabilizer in a oil base mud.
• It is also used for filtration control and for temperature stability.
• Works effectively over a wide range of temperatures
• It is multipurpose product which may be used in a wide variety of oil mud system.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Oil Based Mud (OBM) Primary Emulsifier
Source: Saudi Aramco Internal Analysis
The global demand for
OBM Primary emulsifier is
expected to grow at 2 %
from 97K Ton in 2020 and
will reach 118K Ton year
2030
96,900 98,838 100,815 102,831 104,888 106,985 109,125 111,308 113,534 115,804 118,121
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( K
TO
N)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & GCC Demand for Oil Based Mud (OBM) Primary Emulsifier
Source: Saudi Aramco Internal Analysis
The GCC/KSA demand for
OBM Primary Emulsifier is
expected to grow at 3 %
from 8K Ton in 2020 and
will reach 11K Ton year
20304,435 4,524 4,614 4,707 4,801 4,897 4,995 5,095 5,197 5,300 5,406
4,120 4,2444,371
4,5024,637
4,7764,919
5,0675,219
5,3765,537
8,5558,767
8,9859,209
9,4389,673
9,91410,162
10,41610,676
10,943
0
2,000
4,000
6,000
8,000
10,000
12,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
TO
N)
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Primary Emulsifier (OBM) acid Value Chain Mapping
77
77Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in GCC
region.
The GCC/KSA demand for
OBM Primary Emulsifier is
expected to grow at 3 % from 8K
Ton in 2020 and will reach 10K
M Ton year 2030
Available Locally
Localization Opportunity
Amines Primary Emulsifier (OBM)Polyaminated fatty acid
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish OBM Primary Emulsifiers producing facility to meet the local, regional and global demand.
• The most commonly used chemicals are available opportunity exists to increase the production of these Amines to meet the increasing demand.
• Opportunity exists to establish
facilities for OBM Primary
Emulsifiers products utilizing
one of the manufacturing
processes:
- Amine based
• OBM Primary Emulsifiersproducts are used by global services companies:
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium Chloride Hassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelani
Organophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Khazi AhmedJeelaniClosing
© Saudi Arabian Oil Company, 2020
Calcium BromideFebruary 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium bromide Represent an Attractive Opportunity Given the current gaps,
expected demand and localization potential
Establish a factory with
state of the art manufacturing
facilities for Calcium bromide
to serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 4% annually for the
next 10 years
2. New applications are going to
utilize Calcium Bromide .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium Bromide
Calcium Bromide CaBr2(H2O)x
Color and form: white powders that dissolve in water,
Use: The hydrated form is mainly used in drilling fluids
Main Application of Calcium bromide
• Calcium bromide is used in two main applications – clear brine fluids in oil & gas and as an
oxidizer for mercury emissions control.
• In upstream oil and gas, calcium bromide is used to control wellbore pressures during
completion and workover operations.
• It is also used in neuroses medication, freezing mixtures, food preservatives, photography
and fire retardants
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Bromine derivatives
Bromine derivatives are mainly categorized into two segments
1. Inorganic bromine derivative
A. CalciumBromide,
B. Potassium Bromide and
C. Sodium Bromide
2. Organic bromine derivatives.
A. Ethylenedibromide ,
B. MethylBromide ,
C. HydrobromicAcid (HydrogenBromide),
D. Tetra bromo bisphenolA,
E. Deca bromodiphenyl Oxide and
F. Octa bromo diphenyloxid
World Reserves of Bromine - 2016
Country Thousands of metric tons
Jordan
United States
1,000,000
11,000
China 3,500
France 1,600
Spain 1,400
Rest of the World 2,400
Source: IHS © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium Bromide Process
An improved method for producing calcium bromide
by reacting hydrogen bromide with calcium hydroxide
in the presence of water and carbonate ions.
The improvement comprises maintaining a sufficient
pH in the reaction mixture to convert at least a
portion of the carbonate ions to a gaseous carbon-
oxygen compound thereby removing the carbonate
ions from the reaction mixture.
Brine Preheater
Tower
Chlorine
Steam
Decanter Blo
win
g
ou
t T
ow
er
Treatin
g
tow
er
Debrominated brine to Salt recovery units
Bromine Crude
Waste
Air
Ab
sorp
tio
n
tow
er
Settler
Colu
m
Bromine Refined
Chlorine
Ferrous Chloride
EffluentVapors Water
vent
Crude bromine
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Historical Demand on Calcium Bromide
Source: Saudi Aramco Internal Analysis
The global demand on
Calcium Bromide grew at
4 % from 519K Ton in 2015
and reached 638K Ton year
2019
519,654547,000
575,000606,000
638,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2015 2016 2017 2018 2019
Qu
an
tity
in
( K
TO
N)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Calcium Bromide
The global demand on
Calcium Bromide is
expected to grow at 4 %
from 663K Ton in 2020
and will reach 982K Ton
year 2030
663,520690,061
717,663746,370
776,225807,274
839,564873,147
908,073944,396
982,172
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(K
TO
N)
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA Historical demand for Calcium Bromide
The GCC/KSA demand for
calcium Bromide grew at
4 % from 21K Ton in 2015
and reached 26K Ton year
201913,230
12,65612,000
16,787 16,900
8,145 8,573 9,025
9,50010,000
21,375 21,229 21,025
26,28726,900
0
5,000
10,000
15,000
20,000
25,000
30,000
2015 2016 2017 2018 2019
Quanti
ty (
TO
N)
KSA Rest of GCC
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA demand for Calcium Bromide
The GCC/KSA demand for
Calcium Bromide is
expected to grow at 4 %
from 27K Ton in 2020 and
will reach 41K Ton year
203017,576 18,279 19,010 19,771 20,561 21,384
22,23923,129
24,05425,016
26,01710,400
10,81611,249
11,69912,167
12,65313,159
13,68614,233
14,80215,395
27,97629,095
30,25931,469
32,72834,037
35,39936,815
38,28739,819
41,411
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
TO
N)
KSA Rest of GCC
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Calcium Chloride February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium Chloride Manufacturing Represent an Attractive Opportunity Given
the current gaps, expected demand and localization potential
Establish a factory with
state of the art manufacturing
facilities for Calcium
Chloride to serve growing
local and international
demand
The opportunity
1. Global demand is expected to
grow at 4% annually for the
next 10 years
2. New applications are going to
utilize Calcium Chloride .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Introduction and Applications
• Calcium Chloride is used as part of drilling fluids, or drilling muds.
• Integral to drilling operations as aid or agent chemical
• suspending and releasing cuttings, corrosion control, and maintaining wellbore
stability.
• Calcium Chloride is an important component of drilling fluids, where it inhibits clay and
shale hydration.
• It is also used in completion operations to flush the well hole clean.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium Chloride Process
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Historical Demand on Calcium Chloride
Source: Saudi Aramco Internal Analysis
The global demand on
Calcium Chloride grew at
4% from 2.68MM Ton in
2015 and reached 3.47MM
Ton year 2019
2.682.82
2.97
3.293.47
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2015 2016 2017 2018 2019
Qu
an
tity
in
( M
M T
ON
)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Calcium Chloride
Source: Saudi Aramco Internal Analysis
The global demand on
Calcium Chloride is
expected to grow at 4 %
from 3.6MM Ton in 2020
and will reach 5.3MM Ton
year 2030
3.603.74
3.894.05
4.214.38
4.564.74
4.935.12
5.33
0
1
2
3
4
5
6
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( M
M T
ON
)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA Historical demand for Calcium Chloride
The GCC/KSA demand for
calcium Chloride grew at 4
% from 162K Ton in 2015
and reached 200K Ton year
2019
81,450 85,737 90,25095,000
100,000
81,45085,737
90,25095,000
100,000
162,900171,474
180,500190,000
200,000
0
50,000
100,000
150,000
200,000
250,000
2015 2016 2017 2018 2019
Quanti
ty (
Ton)
KSA Rest of GCC
Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA demand for Calcium Chloride
Source: Saudi Aramco Internal Analysis
The GCC/KSA demand for
calcium chloride is
expected to grow at 4 %
from 208K Ton in 2020 and
will reach 307K Ton year
2030
104,000 108,160 112,486 116,986 121,665 126,532 131,593 136,857 142,331 148,024 153,945
104,000108,160
112,486116,986
121,665126,532
131,593136,857
142,331148,024
153,945
208,000216,320
224,973233,972
243,331253,064
263,186273,714
284,662296,049
307,891
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
Ton)
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Calcium Chloride Value Chain Mapping
97
97Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in GCC
region. • The most commonly used chemicals are available opportunity exists to increase the production of these Chemicals to meet the increasing demand.
• Potential exists to establish
Calcium Chloride
producing facility to meet the
local, regional and global
demand.
Available Locally
Localization Opportunity
Sodium carbonateCalcium Chloride
Limestone
sodium chloride
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Limestone with sodium chloride
• Raw materials are available in
KSA
• Sodium carbonate • Calcium chloride
• Potential for players to set up
manufacturing facilities to
produce Calcium Chloride
• Trucks
• Shipping in containers
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium ChlorideHassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelaniOrganophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Closing Khazi AhmedJeelani
© Saudi Arabian Oil Company, 2020
Oraganophillic Lignite February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Organophilic Lignite Manufacturing Represent an Attractive Opportunity Given the
current gaps, expected demand and localization potential
Establish multiple state of
the art manufacturing facilities
of Organophilic Lignite to
serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 2% annually for the
next 10 years
2. New applications are going to
utilize Organophilic Lignite .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Organophilic Lignite Applications
• Organophilic lignite is amine treated lignite that has been coated with a chemical
that renders it dispersible in oil.
• The treatment is usually accomplished with a type of quaternary amine
compound.
• Organophilic lignite (amine treated lignite) is a filtration‐control additive designed
for use in all oil‐base systems, as well as synthetic‐base systems.
• It is an effective alternative to asphalt or gilsonite where their use is undesirable.
• Amine treated lignite effective and applicable in all oil‐ and synthetic‐base drilling
fluids, and is compatible with other additives
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Organophilic Lignite manufacturing process
ReactionChamber
Humic Acid withH2O
Humate Solution an Amine
Storage
Oil Burner
Heat Exchanger
Air Cooling Evaporator
Fan
Boiler
Blenders
Inventory
Production Control
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Organophilic Lignite1
40,800 41,616 42,448 43,297 44,163 45,046 45,947 46,866 47,804 48,760 49,735
0
10,000
20,000
30,000
40,000
50,000
60,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
( K
TO
N)
The global demand on
Organophilic Lignite is
expected to grow at 2 %
from 40K Ton in 2020 and
will reach 50K Ton year
2030
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Organophilic Lignite
The GCC/KSA demand on
Organophilic Lignite is
expected to grow at 4 %
from 13K Ton in 2020 and
will reach 18K Ton year
2030
6,240 6,365 6,492 6,622 6,754 6,889 7,027 7,168 7,311 7,457 7,607
7,2807,571
7,8748,189
8,5178,857
9,2129,580
9,96310,362
10,776
13,52013,936
14,36614,811
15,27115,747
16,23916,748
17,27417,819
18,383
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
K T
on)
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Organophilic Lignite Value Chain Mapping
Key ingredients are available locally and in GCC
region. • Potential exists to establish Organophilic Lignite producing facility to meet the local, regional and global demand.
• The most commonly used Humic Acid and Sodium hydroxide are available opportunity exists to increase the production of these Amines to meet the increasing demand.
Available Locally
Localization Opportunity
Reaction with Lignite Organophilic LigniteHumic Acid
Sodium Hydroxide
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish Organophilic Lignite producing facility to meet the local, regional and global demand.
• The most commonly used Humic Acid and Sodium hydroxide are available opportunity exists to increase the production of these Amines to meet the increasing demand.
• Opportunity exists to establish
facilities for Organophilic
Lignite products utilizing one
of the manufacturing
processes:
- Amine based
• Oraganophillic Lignite products are used by global services companies
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
Latex Copolymers February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Latex Copolymers Manufacturing Represent an Attractive Opportunity Given the
current gaps, expected demand and localization potential
Establish multiple state of
the art manufacturing facilities
of Latex Copolymers to
serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 2% annually for the
next 10 years
2. New applications are going to
utilize Latex Copolymers .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
High Temperature Latex Copolymers
• To enhance inhibition properties and provide wellbore stability when drilling
micro-fractured and dispersive shales.
• Provide proper inhibition level; monitor and adjust inhibitor concentrations
while drilling based on depletion rate, hole and cuttings condition
• Insure Gas Hydrates suppression during each and every operational situation
(static and dynamic condition)
• Adjust fluid rheology to provide proper hole cleaning without exceeding
formation fracture pressure
• Avoid drilling fluid related problems (hole instability, stuck pipe, circulation
losses)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA & GCC Historical Demand for Latex Copolymers
The GCC/KSA demand for
Latex Copolymers grew at
3 % from 70K Ton in 2015
and reached 80K Ton year
2019
35 36 38 39 40
3536
3839
407072
7678
80
0
10
20
30
40
50
60
70
80
90
2015 2016 2017 2018 2019
Quanti
ty (
Ton)
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
KSA /GCC Demand for Latex Copolymers
The GCC/KSA demand for
Latex Copolymers is
expected to grow at 3 %
from 83K Ton in 2020 and
will reach 112K Ton year
2030
© Saudi Arabian Oil Company, 2020
41.60 42.43 43.28 44.15 45.03 45.93 46.85 47.79 48.74 49.72 50.71
41.6043.26
44.9946.79
48.6750.61
52.6454.74
56.9359.21
61.58
83.2085.70
88.2890.94
93.7096.54
99.49102.53
105.67108.93
112.29
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
anti
ty T
on
)
KSA Rest of GCC
Saudi Aramco: Public
Latex Copolymer Value Chain Mapping
113
113Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in GCC
region. • Potential exists to establish Latex CoPolymersproducing facility to meet the local, regional and global demand.
• The most commonly used chemicals MEG & Polyamines are available an opportunity exists to increase the production of these product to meet the increasing demand.
Available Locally
Localization Opportunity
Reaction Latex CopolymerMEG
Polyamines
© Saudi Arabian Oil Company, 2020
114Saudi Aramco: PublicSaudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish Latex CoPolymers producing facility to meet the local, regional and global demand.
• The most commonly used chemicals MEG & Polyamines are available an opportunity exists to increase the production of these product to meet the increasing demand.
• Opportunity exists to establish
facilities for Latex
Copolymers products
utilizing one of the
manufacturing processes:
- Amine based
• Latex Copolymers products are used by global services companies
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
Molecular Sieves February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Molecular Sieves Represent an Attractive Opportunity Given the current gaps,
expected demand and localization potential
Establish a factory with
state of the art manufacturing
facilities for Molecular Sieves
to serve growing local and
international demand
The opportunity
1. Global demand is expected to
grow at 4% annually for the
next 10 years
2. New applications are going to
utilize Molecular Sieves .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Molecular Sieves Applications
• Zeolite Molecular Sieves are adsorbents with a crystalline aluminosilicate
composition and have a number of different applications across a broad range of
industries
• Zeolite Molecular Sieves come in various forms containing different metal
compositions, including sodium, potassium, and calcium, which impact their
chemical structure and ultimately their application.
• Zeolite Molecular Sieves also have a broad number of applications across multiple
industries including:
1. Petrochemicals
2. Construction
3. Automotive
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Molecular Sieves Applications
Adsorption – Natural gas passes through the Zeolite Molecular Sieves and contaminants are extracted, until the Zeolite Molecular Sieves have been saturated.
Regeneration – Saturated Zeolite Molecular Sieves are regenerated by heating and flowing through a purge gas.
The two towers operate alternating cycles of adsorption and regeneration.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Global Demand on Molecular Sieves
Source: Saudi Aramco Internal Analysis
The global demand on
Molecular Sieves is
expected to grow at 4 %
from 197K Ton in 2020 and
will reach 292K Ton year
2030
197,600205,504
213,724222,273
231,164240,411
250,027260,028
270,429281,246
292,496
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Qu
an
tity
in
(T
ON
)
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
GCC KSA demand for Molecular Sieves
Source: Saudi Aramco Internal Analysis
The GCC/KSA demand for
Molecular Sieves is
expected to grow at 4 %
from 27K Ton in 2020 and
will reach 40K Ton year
2030
8,320 8,653 8,999 9,359 9,733 10,123 10,527 10,949 11,386 11,842 12,316
18,72019,469
20,24821,057
21,90022,776
23,68724,634
25,62026,644
27,710
27,04028,122
29,24630,416
31,63332,898
34,21435,583
37,00638,486
40,026
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Quanti
ty (
TO
N)
KSA Rest of GCC
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Molecular Sieves Value Chain Mapping
121Source: Saudi Aramco Internal Analysis
Key ingredients are available locally and in GCC
region.
Opportunity exists to establish
facilities for Molecular Sieves
products utilizing one of the
manufacturing processes:
Available Locally
Localization Opportunity
Reaction
Sodium Silicate
Sodium Hydroxide Molecular Sieves
Bauxite,
Kaoline
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Value Chain Mapping Analysis
Raw Material Intermediates Final
Products Support Services
• Potential exists to establish Molecular Sieves producing facility to meet the local, regional and global demand.
• The most commonly used chemicals Bauxite, Kaoline, Sodium Silicate & Sodium Hydroxide are available opportunity exists to increase the production of these products to meet the increasing demand.
• Opportunity exists to establish
facilities for Molecular Sieves
products utilizing one of the
manufacturing processes
• Molecular Sieves products are used by global companies .
• Opportunity exists to establish R&D centers to test different products based on their applications.
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium ChlorideHassan Aqeel
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelaniOrganophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Closing Khazi AhmedJeelani
© Saudi Arabian Oil Company, 2020
Nano Silica February 2020
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Nano Silica Manufacturing Represent an Attractive Opportunity Given the
current gaps, expected demand and localization potential
Establish multiple state of
the art manufacturing facilities
of Nano Silica to serve
growing local and
international demand
The opportunity
1. Global demand is expected to
grow very high annually for
the next 10 years
2. New applications are going to
utilize Nano Silica .
3. Attractive cost base including
low logistics, land, utilities, and
labor costs
The business case
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Nanosilica Applications
What is Nanosilica?
• Silicon dioxide (SiO2)
• Environmentally friendly Low toxicity
• Stable
• Particle diameter: 2 – 100 nm
• Surface Area: 30 – 1,100 m2/g
• Ability to be functionalized
© Saudi Arabian Oil Company, 2020
Functions Applications
Abrasion &
Scratch
Resistance
Coatings
Anti-blocking Coatings, plastic films, textiles
Binding Precision Investment Casting (PIC),
refractory materials, coatings, catalyst,
plastic films
Dispersing Pigments, inks, resins
Flocculation Paper, beverage, water treatment,
refractory materials
Fractionizing Paper, plastic films, textiles
Gelling Batteries, ground consolidation, water
shut-off
Strength &
Stability
Concrete, well cementing
Saudi Aramco: Public
Nanosilica Applications
© Saudi Arabian Oil Company, 2020
Water Treatment
Enhance the removal of
organic substances
Industrial Processing
Surface polishing
Foundry
Construction
Cementing operations
Ground consolidation
Oil Field Services
Cementing
Drilling fluids
Water shutoff
Batteries
• Gel Cell (VRLA)
• Absorbed Glass
Mat (AGM)
Human Use
Beverage
Health care & Medicine
Cosmetics
Global nanosilica market volume, by
application, 2015 (%)(1)
Rubber & Plastics
Used as filler to
improve the
mechanical & thermal
properties
House HoldCoating
Cleaning
Textile
Adhesives
Agriculture
Productivity enhancer
Fertilizers
Pesticides
NanoSilica Market Analysis, By Product (P Type, S Type, and
Type III), By Application (Rubber, Healthcare, Food, Coatings,
Plastics, Concrete, Gypsum, Battery, Electronics, Cosmetics),
And Segment Forecasts, 2018 - 2025
(1)
Saudi Aramco: Public
Applications – Oil & Gas
OIL & GAS
DRILLING FLUID
CEMENTING
Nanosilica based gel can be utilized as a solution to leaks in valves, pipes, lines, wellheads,
and Christmas trees for both surface and downhole applications
MECHANICAL SEALANT
CO2 FOAMING FOR EOR
Using Nanosilica as an additive in slurry composition improves rheological properties,
increases compressive strength and reduces permeability by acting as an accelerator and
mechanical properties enhancer
Silica nanoparticles can be used as a drilling fluid additive to lead to improved stability of the
mud at elevated temperature and pressures; additionally silica nanoparticles can physically
plug shale and reduce fluid invasion in the water-base mud
Silica nanoparticles greatly enhance thermodynamic stability of CO2 foam compared to other
foam stabilizers at elevated temperatures and salinities
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Applications – Nano Silica
OTHER APPLICATIONS
Nanosilica based gel can be used to shape reservoirs and control subsurface flow by targeted
permeability modification in order to enhance heat extraction for geothermal heating and
power applications
GEOTHERMAL
Nanosilica based gel can be used to close off water leaks from surrounding rock into mines,
protecting mines from flooding and reducing financial and environmental costs of pumping
water out of mine shafts
MINING
CO2 SEQUESTRATION
WATER MANAGEMENT
In the process of CO2 sequestration – whereby CO2 is injected underground to remain in long-
term storage – the Nanosilica based gel can be used to control the influx of water and the
degree of water saturation in the blended reservoir
Silica nanoparticles may be applicable to three distinct water management use cases: (1) as a
coagulant in the water purification process; (2) in groundwater management, a Nanosilica
based gel can be used to isolate contaminant areas, enabling water treatment chemicals to be
applied to the contaminated water; and (3) water management in water drilling© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Open Water ZoneFlow Behind Pipe &
Casing LeaksChanneling from
InjectorsConing or CuspingAge Geology
Causes of Water Production
When the cost associated with removing excess water outweighs the cost of water shutoff solutions, customers
employ water shutoff considering several solutions:
WATER SHUTOFF
MECHANICAL CHEMICAL
POLYMERS INORGANIC GELS RESINS
Devices that are inserted into the well (e.g., packers, plugs) or adjustments to well casing (e.g., cement squeezes) that
physically block water from enteringOrganic substances that can be in gel form or dissolved into a
liquid
Largely consists of gels based on silicate, aluminum ions, or
hydroxides
Organic, polymer-based, solid plastic material
Nanosilica Based Gel© Saudi Arabian Oil Company, 2020
Water Shutoff Solutions
Saudi Aramco: Public
Water Shutoff Market Size
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Billions
Mechanical Mechanical + Chemical
Other Chemical Nanosilica Gel
Global Water Shutoff Market by Solution ($B)
$-
$5.0
$10.0
$15.0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Other Chemical Nanosilica Gel
Chemical Solution Water Shutoff Market ($B)
• Chemical Solution Growth: The market share of chemical solutions
for water shutoff is expected to grow over the forecast period as
more end users require robust water shutoff solutions, with a global
market size of $8.2B expected by 2030
• Nanosilica Market Size: Following a market entry in 2022 through
pilot programs within KSA, the market size for Nanosilica gel
solutions is expected to reach $1.9B by 2030
• Nanosilica Adoption: forecasts a high adoption rate for Nanosilica
gel solutions in high pressure, high temperature wells, particularly in
GCC countries, as well as in Aramco countries of interest in Asia and
Africa
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Regional Water Shutoff Market Size
State-Owned O&G Companies International E&P Companies Oilfield Services Companies
Aramco should leverage its relationships with GCC
partners to sell its Nanosilica gel to field operators
Similar well environments and reduced business development costs from geographic proximity provides growth
opportunity for Nanosilica gel in the Middle East
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Billions
Mechanical Mechanical + Chemical Other Chemical Nanosilica Gel
Regional Market Outlook ($B)
OVERALL
ASSESSMENT
• Chemical Treatment Precedent: Several fields in Oman (e.g.,
Marmul) have undergone chemical water shutoff treatment and UAE
has developed HPHT chemicals, suggesting lower adoption barriers
• Increasing Local Content: Countries are increasingly inserting local
content requirements into law to bolster domestic capabilities
Potential Customers and Partnerships
Pursuit Rationale
State-Owned Companies• Leverage Aramco: Similar environmental conditions and
close relationships suggests that successful field tests of
the Nanosilica gel at Aramco fields would provide
credibility to other GCC operators
• Enhance Output: Production mandates and increased
emphasis on EOR from national operators (e.g., ADNOC)
may drive int’l firms to seek stimulants such as a water
shutoff gel
• Local Labor and Content: Due to proximity, Aramco
could build a service offering with a regional OFS firm
for less BD investment, appealing to domestic labor
content laws
Int’l O&G Companies
Regional OFS Firms
1
3
2
Customer Archetypes © Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Reduce Water Consumption
By preventing excess water from entering the well, Nanosilica reduces water consumption in drilling and
protects the water table
2
Manage Well Profitability
Excess water production reduces the profitability of wells, requiring mitigating treatments like pumping
out waste water
1
Reduce Environmental Impacts3
As a naturally occurring substance, Nanosilica is non-toxic to the reservoir environment
Investment in Nanosilica for water shutoff mitigates financial impacts of waste water
in drilling operations, as well as supports Aramco environment stewardship goals by
leveraging non-toxic solutions
© Saudi Arabian Oil Company, 2020
Oilfield Industry Considerations
Saudi Aramco: Public
Value Chain Mapping Analysis
CHEMICAL PRODUCTIONTREATMENT &
FORMULATIONASSESSMENT SERVICES INJECTION SERVICES
OPERATIONS &
MONITORING
Manufacturing of the
underlying chemical
feedstock and/or
polymers
Processing chemicals to
create proprietary
products for applications
Inspection and
evaluation of assets to
identify solution type
and volume
Oversee procedures to
implement the
chemical solution (e.g.,
well injection)
Testing and monitoring
of gel properties and
solution integrity
during well production
Firms that play across these segments perform complementary and non-
competitive activities and represent potential service partners or
customers
GELS VALUE CHAIN
Supplier
Partnerships
Production
Partnerships or
Direct Competitors
Defi
nit
ion
Mark
et
Posi
tion
© Saudi Arabian Oil Company, 2020
Thank you
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
Workshop Outline
Topics Presenter
Opening Mohammed Al-Twaijri
Ester Based Lubricant
Mohammed Al-TwaijriKinetic Hydrate Inhibitor
Mineral Fiber LCM
Resilient Graphite
Shale Stabilizers
Abdullah AlOmairHTHP Corrosion Inhibitors
Secondary Emulsifiers
OBM Primary Emulsifiers
Calcium ChlorideAqeel Hassan
Calcium Bromide
Organophilic Clay
Khazi AhmedJeelaniOrganophilic Lignite
Latex Copolymers
Molecular Sieves
Nano Silica Mohammed Bataweel
Closing Khazi AhmedJeelani
© Saudi Arabian Oil Company, 2020
Saudi Aramco: Public
For further information, please contact:
Key messages
Chemicals market is growing and requires a local manufacturing presence
Engage with us to begin the localization journey. Provide expressions of interest on:
iktva.sa/opportunities
Please plan to attend additional sessions to learn more about KSA opportunities
Please Complete Expressions of Interest and direct all inquiries to:
KhaziSyed AhmedJeelani
Industrial Development & Strategic Supply
Saudi Aramco
Mohammed Al-Twaijri
Industrial Development & Strategic Supply
Saudi Aramco
Thank you
© Saudi Arabian Oil Company, 2020