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The next slides contain forward-looking statements regarding future events based on current
expectations, estimates, forecasts, and projections. The data is subject to updating, revision, further
verification and amendment without notice. No reliance may be placed for any purpose on the
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5
4 Government
2 3 World-class
support
1 Affordable
Skilled labor logistics
Funding
land & utilities
incentives
KSA is the largest Middle East market and one of the top 20 world economies
■ Corrosion Inhibitors
■ Production chemicals
■ Drilling muds
■ Well Stimulation Fluids
■ Demulsifiers
Manufacturing/investment Opportunities
Employment1
Raw Materials Finished Products
1. Employment and GDP figures are estimations based on NAICS code 212322; calculations based on 2025 demand
Source: Saudi Aramco Analysis
9% At a global
11%
5% 24% level, In the Middle
1%
demulsifiers East
6% 2%
9% and demulsifiers
40%
corrosion 7% and corrosion
inhibitors inhibitors
7%
command command
20% ~45% market 13% ~60% of an
8%
share of an ~130 ktpa
7% ~2million market
10% ton market 21%
Source: Saudi Aramco analysis, IHS Report: Specialty Chemicals Update program
8%
6% In KSA,
9% largest
28% 11% 21%
consumers
10% of corrosion
12%
inhibitors are
oil & gas,
13%
metal
processing
30% and water
32% 20%
treatment
Source: Saudi Aramco analysis, Technavio Market Research, RCJY report, Purolite Internacional and SRI reports
Fatty diamines
Copolymers
Polyoxyalkylated amines / alcohols (EO/PO based)
Quaternaries
Amidoamines
Corrosion Betaines
inhibitors Phosphate esters
Phosphonates
Acetylenic alcohols
Imidazolines
Quaternary ammonium salts
Alkyl pyridine
8
+7%
7 7
7
7 7
6 7
6
6
13
Volume 10 11 11
(‘000 MT) 8 8 9 9
6 7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2025
Water value $30 $31 $32 $33 $34 $35 $36 $37 $38 $45
($ MM)
O&G Value $31 $31 $36 $39 $41 $45 $47 $54 $57 $75
($ MM)
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program, GWI
markets are 28
expected to
grow at roughly 20 20
Volume 20 19
(KTPA)
the same pace,
with KSA
13
commanding 8 9 9 10
(32%)
(32%) (32%) (34%)
~30% of the ME (30%)
market 2016 2017 2018 2019 2025
Rest of ME
Value 143 146 155 162 245
($ MM)
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
Tiering Tier-1/2/3
Localization
potential
• Raw materials of • Potential for local • 8 players in KSA already • Limited presence of • Technical
EO already facilities to approved for advanced assistance is part
localized at Sadara produce key formulation- limited maintenance and of contract with
value park synthesis products potential for new pure testing/inspection tier1’s
• Petroleum such as play blenders facilities • Potential exists
products e.g. ethoxylates , • Potential for new • Potential exists to for Tier 1’s
heavy naphtha copolymers, blending facilities to further develop further develop
already available phosphonates and cater to market growth logistics and supply additional local
Gaps amidoamines
locally and potential for chain capabilities such capabilities to
• Limited potential manufacturers of key as handle after
for additional raw chemicals to integrate - Long haul trucking sales requests
vertically (e.g. set up a
materials as - Iso containers
several other • Limited presence of toll vocational
- Loading and institute)
products are blenders warehousing
proprietary
• Corrosion inhibitors can be stored in drums, with a • Offer customized on-site logistics
capacity of ~13,000L, or in iso-tanks, with a • Supplying iso-containers, conveyer belts, and drums
Loading capacity of ~24,000L • Drive loading operations
• Corrosion inhibitors can be transported in one of two • Enhance value offering via reduced turnaround times
ways: • Transport corrosion inhibitors via tank, drums, or iso-
Transportin – Tank, drum, or iso-tank storage and transported on tanks
g cargo trailers, van trailers or flatbed trailers • Provide trucking for the transportation of corrosion
– Pumping stations along a pipeline inhibitors
• Pumping, monitoring, and measuring equipment • Offer state of the art monitoring and measuring
required to ensure smooth operations systems
Terminal
operations & • To control liquid flow and output to the storage tanks or • Supplying advanced storage facilities such as tanks
storage the well site, different pressure pumps are used and drums
• To manage high volume of corrosion inhibitor transfer,
manifold trailers are used
Saudi Aramco currently manages its own corrosion inhibitor logistics and
transport and is willing to consider credible 3PL to provide additional services
Source: Saudi Aramco
1. Potential for 2. Potential for 3. Potential for 1-2 5. Offer customized 8. Partner with
SMEs to liaise players to set additional on-site logistics leading
with leading up 1-2 formulation 6. Provide enhanced players to
producers facilities to facilities for value offering via establish
and make produce key corrosion inhibitors reduced vocational
niche raw synthesis to cater to existing turnaround times and training
materials products from demand as well as 7. Offer state of the facilities to
Opportunities required for EO/PO raw future growth in art monitoring train local
synthesis material such demand and managing staff in
(beyond as ethoxylates 4. Potential for systems technical
EO/PO) additional local toll assistance
blending facilities
Khazisyed Ahmedjeelani
Industrial development department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
■ Corrosion Inhibitors
■ Production chemicals
■ Drilling muds
■ Well Stimulation Fluids
■ Demulsifiers
Formaldehyde 18%
free biocides 27% Biocides is the
dominant segment
Scale inhibitors in the Middle East,
with a volume of 17
Production H2S Scavenger 4% Ktpa over the total
chemicals 2%
33% market volume of
Paraffin 51 Ktpa
16%
inhibitors
Gas Well
Foamers Water Clarifiers Scale Inhibitors Paraffin Inhibitors
Biocides (organic) H2S Scavenger Other
Other
(excl. demulsiifer and
corrosion inhibitor)
5%
78
Expected market size
in 2030 will be ~2X 70
55 54 57
the current market 53
size
38 37 37
33
20 25
17 18
Source: Saudi Aramco analysis, CDSI, I..S report: specialty chemicals program
Water clarifiers
Polyamines ✓ (Jubail)
Polyacrylamides
Terminal ops
2-4 additional manifold • Offer state of the art monitoring and
trailers (TEU) by 2025 measuring systems
Limited monitoring in place • Supply manifold trailers as a part of a
larger portfolio
Key conclusions
In case you are interested in discussing this
✓ Consumption of other production chemicals opportunity further, please contact
in KSA nd ME is expected to increase by ~8
ktpa and 23 in 2025 respectively driving
opportunities for additional local blending
✓ Limited presence of toll blenders in KSA Khazisyed Ahmedjeelani
presents an opportunity for local players Industrial Development Department
■ Corrosion Inhibitors
■ Production chemicals
■ Drilling muds
■ Well Stimulation Fluids
■ Demulsifiers
• Growth of ~6% CAGR • Additional demand of • Demand for ~10 • More stringent
in drilling muds will drive ~50 ktpa in KSA and additional flatbed environmental
Rationale
growth in raw materials ~130 ktpa in Middle trailers till 2025 regulations (GAMEP)
• Diverse applications east by 2025 • Demand for ~14 • ~50 ktpa additional
beyond oil field • Limited presence of additional mobile consumption in KSA
chemicals (e.g. binders, local toll blenders conveyor units and by 2025 will require
food industry) 30,000 jumbo bags by additional disposal
2025
6%
KSA
Volume 104 110 123 127 156
(KTPA)
1. Excludes minerals such as barite, bentonite, hematite, lignite and calcium carbonate
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
Anionic
HT thinner
polyelectrolytes
Chemical synthesis compounds like guar gum and emulsifiers have diverse
applications beyond drilling muds
1. Actual volumes to be determined based on discussion with OFS players. Demand for PAM ~50 ktpa across water treatment appli cations
Source: Press research, Saudi Aramco analysis
Key conclusions
In case you are interested in discussing this
opportunity further, please contact
✓ Consumption of drilling fluids in KSA is
expected to increase by ~50 ktpa in 2025
driving opportunities for additional local
blending and additional players for disposal
Khazisyed Ahmedjeelani
✓ Limited presence of toll blenders in KSA
presents an opportunity for local players Industrial Development Department
Saudi Aramco
✓ Several chemicals essential to drilling muds
can be localized in KSA e.g. PAC, guar gum, Khazisyed.ahmedjeelani@aramco.com
premium lubricants and cross linking agents
✓ Local players can also supply key equipment
and services to enhance logistics and supply
chain, for instance players can offer flatbed
trucking, mobile conveyor units and jumbo
sacks
■ Corrosion Inhibitors
■ Production chemicals
■ Drilling muds
■ Well Stimulation Fluids
■ Demulsifiers
• Growth of ~8% CAGR • Additional demand of • Demand for ~25 • More stringent
in well stimulation fluids ~160 ktpa in KSA and additional flatbed environmental
Rationale
8%
• KSA expected to
grow in line with 462
363 377
the rest of the 337 340
ME, and is
expected to Value 242 248
($mm) 237 234
account for
~30% of the 190
100 107 121 129 (29%)
market (33%) (34%)
(30%) (31%)
• Strong market
growth expected 2016 2017 2018 2019 2025
after 2019 Rest of ME
volume 670 648 656 660 1093
(KTPA)
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program, Rystad
Polyacrylamide (PAM)
Organoborates
Aluminum
Chromium and Zirconium processing
Chemical synthesis compounds like PAM and hydrofluoric acid acid have
diverse applications beyond well stimulation fluids
1. Actual volumes to be determined based on discussion with OFS players. Demand for PAM ~50 ktpa across water treatment appli cations
Source: Press research, Saudi Aramco analysis
Key conclusions
In case you are interested in discussing this
opportunity further, please contact
✓ Consumption of well stimulation fluids in KSA
is expected to increase by ~160 ktpa in 2025
driving opportunities for additional local
blending and additional players for disposal
Khazisyed Ahmedjeelani
✓ Limited presence of toll blenders in KSA
presents an opportunity for local players Industrial Development Department
Saudi Aramco
✓ Several chemicals essential to well
stimulation fluids can be localized in KSA e.g. Khazisyed.ahmedjeelani@aramco.com
PAM, Organoborates, Hydrogen fluoride
✓ Local players can also supply key equipment
and services to enhance logistics and supply
chain, for instance players can offer flatbed
trucking, mobile conveyor units and jumbo
sacks
■ Corrosion Inhibitors
■ Production chemicals
■ Drilling muds
■ Well Stimulation Fluids
■ Demulsifiers
Opportunity
• No local production of these raw • Additional demand of ~8 ktpa in • Demand for 20-30 additional iso
materials in KSA KSA and ~23 ktpa in Middle east tanks and drums by 2025
Rationale
7%
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
Sulfonates
Oxyalkylated polyamines
Terminal ops
1-2 additional manifold • Offer state of the art monitoring and
trailers (TEU) by 2025 measuring systems
Limited monitoring in place • Supply manifold trailers as a part of a
larger portfolio
Key conclusions
In case you are interested in discussing this
✓ Consumption of demulsifiers in KSA nd ME is opportunity further, please contact
expected to increase by ~8 ktpa and 23 in
2025 respectively driving opportunities for
additional local blending
✓ Limited presence of toll blenders in KSA Khazisyed Ahmedjeelani
presents an opportunity for local players Industrial Development Department