Spring 2009
Spring 2009
2 12 18 24 30
32 About the cover: In a photo by Arabian Sun reporter Sara Bassam, former Aramco employee Bert Seal displays his
visitor’s badge, left, for the recent Annuitant Reunion in the Kingdom, and his original company employee badge.
Seal was an employee of Aramco during 1955–1960, assigned as a photographer for the Sun & Flare, Aramco’s weekly
newspaper for employees and dependents that was the forerunner to the Arabian Sun. The background photo of
construction of the then-new Aramco main administration building in Dhahran was shot by Seal in June 1956.
About the back cover: Saudi Aramco’s Manal Al-Dowayan, a gifted photographer now a resident artist with the
Delfina Foundation in London, shot this captivating photograph while studying the meaning and style of veils in
Saudi Arabia. The project resulted in a series of photos of Saudi women covered by veils from different parts of
their country.
The Saudi Arabian Oil Company, also known as Saudi Aramco Dimensions is published periodically Design:
Saudi Aramco, was established by Royal Decree for the affiliates, customers and employees of the Amy Reed Neal, Herring Design, Houston, Texas, U.S.A.
in November 1988 to succeed the original U.S. Saudi Arabian Oil Company (Saudi Aramco). Printing:
concessionary company, Aramco. The Aramco Sarawat Designers and Printers, Jiddah, Saudi Arabia
concession dates back to 1933. Khalid A. Al-Falih
President and Chief Executive Officer All editorial correspondence should be addressed to:
Beginning in 1973, under terms of an agreement The Editor, Saudi Aramco Dimensions
Khaled A. Al-Buraik
with the four Aramco shareholders, the Saudi Public Relations Department,
Executive Director, Saudi Aramco Affairs
Government began acquiring an ownership Saudi Aramco Box 5000
Emad M. Al-Dughaither Dhahran 31311
interest. By 1980, with retroactive financial effect
Manager (A), Public Relations Department Saudi Arabia
to 1976, the Government’s beneficial interest
in Aramco increased to 100 percent when it paid Editor: ISSN 1319-0520
for substantially all of Aramco’s assets. Rick Snedeker Copyright © 2009 Aramco Services Company
SPRING 2009
Contributing to this issue:
Saudi Arabia’s Supreme Council for Petroleum and
Seba Al-Maghlouth, Khalid F. Altowelli, Sara Bassam, Printed on recycled paper
Mineral Affairs determines policies and oversees
Stephen Brundage, Mike Hulver, Mark Kennedy, www.saudiaramco.com
operations of the Kingdom’s oil and gas industries.
Delshad Kumana, Bert Seal and Rick Snedeker
Saudi Aramco’s Board of Directors is chaired by
HE Ali I. Al-Naimi, Minister of Petroleum and
Mineral Resources.
— Four years ago, members of Saudi Aramco’s New Business Development (NBD)
organization wanted to answer Minister of Petroleum and Mineral Resources HE Ali Al-Naimi’s call to diversify the Kingdom’s
economy by expanding and diversifying its economic activities, and creating jobs. Helping to diversify the national
economy was also one of the company’s strategic imperatives, and NBD felt they had something positive to contribute.
Spring 2009 3
its traditional scope of responsibility. I see people today who can’t find jobs and
But Saudi Aramco has had a long tradi- that hurts. When I walk around and I see
tion of not only doing what’s best for the these young people, I say to myself, ‘What are
company but also for the country. So NBD we doing for them?’ It’s always in my mind.”
launched a study to investigate what it It’s a tall order. One of the ways that Saudi
would take to create the necessary jobs Aramco is doing its part to address this prob-
and diversify the Kingdom’s economy. And lem is by making a significant investment to
though the results of this study would have create a thriving petrochemical industry. For
negligible benefits for the company, it was instance, the Petro Rabigh oil/petrochemical
the right thing to do for the country. complex, now in the final construction phase
on the Red Sea, and its
A TALL ORDER
N
associated conversion park
ew Business are projected to bring in
Development was other downstream busi-
intent on creating nesses that will need not
living-wage jobs for the only the Kingdom’s readily
wave of young educated available gas fuel and feed-
Saudis who would need stocks, but employees —
careers capable of support- Saudi employees.
ing families and middle Petro Rabigh will be the
class lifestyles. Kingdom’s first integrated
It turns out that this is petroleum refinery and
the demographic most in petrochemical complex,
need of help. According to taking advantage of the
a recent survey, the highest synergy of fuels produc-
unemployment rates in the tion occurring in the same
Kingdom of Saudi Arabia complex as petrochemicals
occur among the youngest manufacturing. More to
of the country’s workforce the point, Petro Rabigh
and among those who have will need support indus-
a high school diploma or tries, and it is envisioned
bachelor’s degree. What this to spawn myriad down-
suggests is that the neces- stream enterprises.
sary professional opportuni- Al-Aydh said, “We will
ties simply aren’t yet available. Above: Industry spawns communi- provide petrochemicals that we will pro-
ties and their amenities, such as
“Just like anybody else in the Kingdom, duce, and we will encourage investors to
mosques. Opposite: Pipelines and
I care about the young generation,” said tank farms sprout from the desert come and establish conversion facilities
Salim S. Al-Aydh, Saudi Aramco’s senior at Yanbu‘ Refinery. Industrial com- where they will take our products and
plexes generally stimulate a host
vice president of Engineering and Project of support and downstream facili- convert them into consumer products.
Management. “I think we have a respon- ties, and residential communities. And these consumer products will be
sibility to do what we can do to provide used to build cars and household appli-
jobs for them. My children are grown and have jobs, but ances like refrigerators and so on. So that’s the idea —
I have grandchildren I worry about. I worry all the time, to create the chain.”
and I wonder what I can do for them. And my grandchildren But other efforts are needed to complement what the
are just like the rest of the new generation in the Kingdom. company is already doing. Enter NBD.
W
NBD determined that the best employment
opportunities for Saudis resided in a specific hy is Houston known as the oil-
range of industries they called the “Sweet and-gas capital of the U.S? Why
Spot” — that is, industries that require high is Seattle considered the hub of the
skill sets, offer attractive compensation and software industry in the U.S? Why is Silicon
create the most jobs per dollar invested. At Valley … well, Silicon Valley?
the top of the curve for combining skills and These leading industrial centers are the
wages were occupations in the oil-and-gas result of a phenomenon that has been occur-
industry. At the other end of the spectrum ring naturally for a long, long time. They are
was textiles — an industry that doesn’t require what Harvard competitiveness guru Mike
much capital but creates a lot of low-wage Porter has recently studied and termed “clus-
jobs. NBD came up with a list of 18 industries ters.” The term “cluster” can be thought of as
that met their “Sweet Spot” a framework for understanding
criteria. The problem was, of economic and industrial devel-
the original list of 18, none opment, competitiveness, and
were industries that had been where, how and why industries
established to any high degree evolve the way they do.
within the Kingdom. Basically, a cluster can be
Given the international com- defined as a geographic concen-
petition for manufacturing jobs, tration of interconnected and
from places such as Turkey, interrelated companies and insti-
India and China, NBD had tutions in a particular area that
to look for areas where the are linked by common technolo-
Kingdom’s resources could offer gies, skill sets, customers and
some form of advantage. So, to suppliers. Its components can
narrow the field even further, include elements of government,
NBD turned its focus on the industry, academia, research
industries that could benefit companies, the business itself
from and further leverage the and its supporting businesses
raw materials that are readily all working together within a
available at a competitive price more or less defined physical
in the Kingdom — “advantage infrastructure (an industrial
materials” — like energy or park, a town, a geographical
steel or petrochemical feed- location like a valley…).
stocks that will come from Take Houston for example.
facilities like Petro Rabigh. They At one end of the oil-and-gas
also looked at industries that could take Top: Saudi Aramco president and CEO value chain you have the oil and gas
Khalid Al-Falih listens to a presentation companies. But then, as you move
advantage of the Kingdom’s geographi-
at the recent steering committee meet-
cally strategic location to serve the ing of the National Industrial Cluster along the value chain, you next find
export market. This analysis led to Development Program (NICDP) in Shay- the service companies like Schlumberger
bah. Above: Commerce and Industry
a profile of the five industries most Minister HE Abdullah Bin Ahmad Zainal,
and Kellogg, Brown and Root. Then
suited to setting up shop in the left, chats with Salim Al-Aydh, senior there are the equipment suppliers and
vice president of Engineering and Project the technology providers. Next are the
Kingdom: automotive assembly, con-
Management, middle, and Dr. Abdulaziz
struction materials, metals processing, Abdulateef Jazzar, president of Compu- subcontractors and the business services.
packaging and consumer goods. me Group and Al Malaz Group. Lastly, you find academia, technical
I
one another.
Clusters like Houston and Silicon Valley grew organically, n late 2006, NBD approached the Ministry of Petro-
as a natural result of the economic environment. NBD’s leum and Mineral Resources with the cluster concept,
plan was to create clusters within the Kingdom based thinking the government might want to use the model
around the five “Sweet as one way to help
Spot” industries, which diversify the economy
could leverage the and create the jobs
Kingdom’s advantage they so urgently needed
materials and strategic for the country’s young
location. Only they people.
wanted to accelerate The current head of
the process. New Business Develop-
This was not an ment, Abdulaziz M.
entirely new concept. Al-Judaimi, said, “It’s a
Countries like Singapore little bit of a paradigm
and South Korea had shift in the sense that
done it and with suc- these jobs will not come
cessful results. Those from capital-intensive
two countries at one oil projects but rather
time contained poor from small to medium
agricultural societies industries that will come
struggling to feed their and contribute to the
people. And over a peri- support of the King-
od of several decades dom’s economy. It’s
they became industrial a noble program that
giants. The key would will create high-skill
be to customize the jobs with high pay.”
process to account for The Ministry
Saudi Arabia’s unique reviewed the data and
advantages. carefully considered the
“Anything that we strategy that NBD had
can do to develop the Kingdom’s economy Aref Ali of the Office of laid out. The response was unanimous: they
the President and CEO
is important to the company,” said Al-Aydh. loved it. Then something unexpected hap-
works the bellows at
“It’s important to me personally. And as a Shaybah’s visitor’s center pened. The Ministry, seeing the amount of
company we have a social responsibility to during the recent gather- work that had gone into preparing the cluster
ing of the NICDP steering
create jobs for our young people who are committee. plan for the Kingdom and, not wanting to
looking for work. And we think we can create lose the momentum, decided that NBD was
these clusters and be competitive, not only in the local mar- the perfect organization to carry the concept forward to
ket but also in the region and the international market.” the next phase of development.
NBD conducted all of the necessary research, identi- The Ministry agreed to sponsor the program and Saudi
fied the opportunities and uncovered the recommended Aramco’s role was to further define specific strategies and
approach for creating good jobs and diversifying the roadmaps for taking clusters from concept to reality.
Spring 2009 7
Part of the process involved creating an entirely new tier-one companies with the know-how, the technology
government organization from scratch. On April 3, 2007, and the market channels to make these export-driven
Council of Ministers Decree No. 62 legally established products.”
the National Industrial Cluster Development Program Within the automotive industry, for instance, automo-
(NICDP). Funding was provided for the new government tive assembly was identified as an anchor project. The
organization and a rationale was simple,
steering committee, the Kingdom has the
headed by Prince plastics, it has the
Faisal bin Turki, steel, it has the inex-
adviser to the Min- pensive and abun-
istry of Petroleum dant energy. Once
and Mineral Re- the assembly plant
sources, was created was up and running,
to manage the proj- it would then attract
ect. The first presi- all the supporting
dent of NICDP business that go
would be Azzam along with it. All
Shalabi. The choice of these supporting
of these two men to tier businesses would
spearhead the effort want to be co-located
would prove a wise for logistical purpos-
decision over and es and to reap the
over again as they advantages of just-in-
wielded their experi- time manufacturing
ence and interper- philosophy.
sonal skills to keep “It is very interest-
the ball moving ing to see how things
toward the goal line are evolving in the
and to bring inter- Kingdom,” Al-
ested parties into Judaimi said. “When
the process. I was young, I want-
To jump-start each ed to be a petroleum
of the five “Sweet engineer because the
Spot” cluster pro- only major industry
gram industries, NBD available in Saudi
developed what are called anchor Top: A presenter shows an industrial devel- Arabia at the time was oil opera-
projects. These anchor projects would opment chart to Mohamed H. Al-Mady, tions. This was very clear in my
right, vice chairman and CEO of Saudi Basic
be the primary businesses around Industries Corp. (SABIC), and other execu- mind. Now, for my kids, they have
which the Kingdom’s clusters would tives. Above: HRH Amir Faisal bin Turki, different opportunities. If they want
chairman of the National Industrial Cluster
grow. They would act as the catalyst Development Program (NICDP) Steering
careers in anything — law, finance,
for the whole process. Committee, standing in middle, and other and in time, automotive manufactur-
“When looking at these clusters, committee members visit the operations ing — they can pursue it here.”
control room at Shaybah.
the initial key elements are the anchor But convincing even one auto
projects,” said Shalabi. “Without these, it will take too major to build an auto assembly plant in Saudi Arabia
long to make the clusters a reality, because you need these would be another matter altogether.
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for the level of skill they possess?”
he cluster program for the Kingdom was NBD went to the U.S. to study model
kind of a “build it and they will come” programs that create bridges between em-
strategy — get the anchor projects estab- ployers, workers and training programs,
lished and the tier supply businesses would including an emerging concept called Work-
follow. But a lot of countries are currently force Intermediaries, which promotes the use
pursuing the cluster concept, and with similar of a long-term job coach who works with all
anchor projects in mind. So, when contacting parties to help the employee/employer rela-
potential investors for that critical auto assem- tionship succeed.
bly anchor project, NBD wanted to be able to Back in the Kingdom they discovered that
make the strongest pitch (or value proposition) many of the organizations required to address
possible. To do that they would have to know the labor issues already existed. The problem
exactly what they were selling and match Communities near was that these organizations were fragmented.
it exactly to what their investors wanted. industrial complexes
For NBD, it was a matter of working with the
draw employees and
A study was conducted to develop the their families. At right: community, the government and the service
exact right value proposition. NBD needed to Saudi Aramco Marine providers to connect the dots.
Department employees
know what would make an auto manufactur- engage in on-the-job What NBD envisioned was a total solution
er want to establish a plant in the Kingdom, training in Yanbu‘. that would make it easy for investors to hire
and any reasons why it wouldn’t. and train Saudi workers, thereby mitigating
One thing that came out of this study was an aware- the risk they perceived in establishing a business in the
ness of several difficulties around the issue of skilled labor. Kingdom. They wanted to create an entity that would
The manufacturing sector in Saudi Arabia isn’t yet recruit, assess and then train Saudi workers to meet the
highly developed, which means there isn’t a large talent investors’ criteria in terms of skills and certifications. That
pool upon which to draw. So if an automobile manufac- entity would then have a pool of trained individuals that
turer was initially interested in Saudi Arabia as a site for a the investors could come and select from. In addition,
manufacturing plant because of the Kingdom’s advantage the worker would start out being on the entity’s payroll,
materials, the next thing they would want to know is, and if they worked out, they would be transferred to the
“Where are the skilled workers? How do I recruit them? employer’s payroll.
How can I afford to hire them when they cost too much A program called LaborCo was recently endorsed by
Spring 2009 9
the Ministry of Labor and is currently being developed by research and development in order to overcome any barrier
the NICDP. And with this program, an investor company that might keep a manufacturer from coming to Saudi
would only have to go to one place — a sort of one-stop Arabia; or worse, coming for a few years and then leaving.
shop — to meet all of its business/labor/training needs.
THE HAND-OFF
I
That is just one more reason why potential
investors can have confidence that, when n 2008, the NICDP steering committee
they come, they will have employees who evolved into a board of directors. Both
want to work and are willing to work to the NICDP and its new board now report
be successful. to the Ministry of Commerce and Industry.
Another issue to be addressed was avail- At this point, Saudi Aramco officially handed
able land for cluster businesses. “It’s not the off its work on the cluster program, though
land itself,” said Al-Aydh, “but you need it will continue to provide support on an
roads, you need power, you need water, com- as-needed basis.
munications — all the support infrastructure. “I feel very proud of our people for their
So for the investor who wants to build a Vibrant communities great efforts to support the program,” Al-
smaller facility, it would be too expensive for evolve around and near Judaimi said. “And through them I feel that
Saudi industrial cities,
him to develop the land and build the facility providing housing, retail Saudi Aramco has left a positive imprint on
with power and all that. Okay, we will devel- services, jobs, cultural the program.”
sites and recreational
op the land so all they have to do is build the amenities for workers
The Kingdom is determined to diversify
facility and plug in. So let’s say that I am a car and their families. its economy, which it must do in order to
manufacturer; if I can come and see that there become like a tree that has many roots —
is developed land with all the facilities that I need, and I and, thus, is hard to topple.
look around and I see that there are conversion facilities Al-Judaimi noted that, “Not only will we have diversifi-
being built in Ras Tanura or Rabigh and these are produc- cation, but we will have diversity. Because we will see dif-
ing products that I will be using, things will fall into place ferent people from different countries coming to invest.
and it will be easier for them to make the decision to come And you will see major industries like auto manufacturing
and build and invest.” come. When one comes, it will bring all the other small to
It won’t stop there. Work continues to combine agencies medium industries that form the rest of the value chain.”
that deal with financing, trade issues, regulations, and The focus of the cluster program is on downstream
Spring 2009 11
A NEW FRIEND
IN CHINA
SAUDI ARAMCO DELIVERS
FIRST OIL SHIPMENT
TO PETROCHINA REFINERY
Wr i t t e n b y D e l s h a d K u m a n a
Spring 2009 13
Elaborating on the growing and mutually beneficial Sino-foreign projects involving refining, petrochemicals,
trade relationship between the two countries, Mohammed and marketing. The joint ventures have a total invest-
S. Madi, regional vice president in charge of Saudi Petro- ment of approximately $5 billion, and will benefit not
leum Limited-Beijing, says: “On the one hand, you have only Fujian Province but the whole of China.
the largest nation on Earth and are a rapidly developing The Fujian Refining and Ethylene Project, the refining
economic superpower, while on the other you have the and petrochemicals joint venture located in Quanzhou,
steward of the world’s largest resource base of conven- will expand the existing refinery from 80,000 barrels per
tional crude oil and its biggest oil producer and exporter. day to 240,000 barrels per day. The upgraded refinery
The future of that relationship is of central importance will primarily refine and process sour Arabian crude.
not only to our two societies, but to the entire global eco- The joint-venture company, formally registered as Fujian
nomic system. At Saudi Aramco, we are honored to play Refining & Petrochemical Company Ltd., is owned by
a major part in fueling China’s continued journey toward Fujian Petrochemical Co. Ltd. (50 percent), ExxonMobil
ever greater prosperity for its people, and to ensure that China Petroleum and Petrochemical Co. Ltd. (25 per-
its growing petroleum and petrochemical needs are met cent), and Saudi Aramco Sino Co. Ltd. (25 percent). It
reliably and responsibly.” began operations in June 2007.
Abdulrahman A. Yousef, chief representative of A month later, Sinopec SenMei (Fujian) Petroleum Co.
Aramco Overseas Co. in Shanghai, echoes these senti- Ltd., the marketing joint venture, was launched. Sinopec
ments. “We are building strong, long-term relationships SenMei uses the Sinopec, Esso and Saudi Aramco corpo-
with leading Chinese petroleum companies. Historically, rate logos and trademarks on its flagship service stations
our most fruitful partnership has been with Sinopec. The — the first time that service stations outside Saudi Arabia
relationship between our two companies is a model of have carried the company’s icon and trademarks. The
synergy, and shows what is possible when two leading Saudi Aramco energy-burst design logos are now embla-
firms join forces, combining their respective strengths zoned on more than 30 flagship stations across China.
and expertise in a wide variety of endeavors.”
E X PA N D I N G I T S B A S E
W
TWO JOINT VENTURES idening its customer base, Saudi Aramco is
I
n Fujian Province, Saudi Aramco has entered into now a major player in PetroChina’s Dalian
two joint ventures, one focusing on the expansion refinery project. The Dalian refinery, in
of an existing Sinopec refinery, the other centered on June 2008, commissioned its new 200,000-bpd crude
the distribution of fuel. In February 2007, the Kingdom- oil distillation unit and several secondary units for sour
based Saudi Aramco Sino Co. signed landmark agree- crude oil processing. At the welcoming ceremony for
ments with Sinopec Corporation, ExxonMobil and the the Olympic Legend at the Dalian Xingang Terminal,
Fujian provincial government on the first fully integrated Madi addressed the assembled guests in Chinese. Congrat-
ulating the refinery team on the suc-
A Saudi Aramco cessful start-up of the facility’s new
billboard promotes units, he added: “This shipment
the company on
of crude oil from Saudi Arabia
busy Xianyue Road
in Xiamen, Fujian to Dalian — the first of many to
Province, China. come — not only underscores Saudi
Aramco’s sustained commitment to
the Chinese market, but also ushers in a new phase in the
relationship between Saudi Aramco and PetroChina.”
As the China Daily reported: “Saudi Aramco has been
at the forefront of cooperation with Chinese firms and
energy institutions, and remains deeply committed to
meeting China’s energy needs.”
The true measure of that commitment is Saudi Aramco’s
biggest investment in the People’s Republic — human
T
company is the number one supplier of crude to Japan, he balance of trade is clearly shifting, with Far
India and Korea, as well as China. Apart from offices Eastern markets now making up 50 percent of
in Beijing, the company has affiliate offices in Shanghai, Saudi Aramco’s clientele. Recognizing the spe-
Hong Kong, Tokyo, Kuala Lumpur and Singapore. The cial relationship with Asian markets, the company has
Beijing office handles sales and marketing in China. The embarked on an “Asian Business and Culture Pro-
Shanghai office is mainly a sourcing office for Chinese gram,” where up-and-coming Saudi managers have the
Spring 2009 15
Mohammed S. opportunity to gain — a figure which we view with a sense of pride, of course,
Al-Madi, Regional
first-hand experi- but also with an overwhelming sense of responsibility,
Vice President
and Chief Repre- ence of the region, knowing how much is riding on our ability to provide
sentative of the and to become bet- a reliable supply of crude oil to this market.”
Saudi Petroleum
Ltd. Beijing Office. ter acquainted with The secret of Saudi Aramco’s success is that it does not
its various societies, view these diverse markets as monolithic, but recognizes
economies and cultures. that each has its own unique dynamic. The company is
Addressing a conference in Tokyo for aware, for example, that Japan and Korea have massive
Japan’s next generation of business lead- demand but are already mature markets with relatively
ers, Adel A. Al-Tubayyeb, Saudi Aramco low growth. India and China, on the other hand, started
Vice President for Marketing and Supply off as smaller markets, but are now growing very quickly.
Planning, said: “Some of your companies have been val-
ued Saudi Aramco customers for many years, while others IMPRESSIVE GROWTH IN INDIA
T
have been providing Saudi Aramco with vital engineering he Indian economy has shown impressive
or financial services for decades. We have well-established growth over the past decade, and has become
and solid relationships with Japanese petroleum compa- a significant consumer of energy resources.
nies, petrochemical firms like Sumitomo Chemical, and Although blessed with its own crude oil reserves off the
world-class engineering enterprises like JGC and Chiyoda. western coast near Mumbai, the combination of stag-
“Oil accounts for roughly 48 percent of Japan’s energy nant production levels and rapidly rising oil consump-
consumption, and virtually all of this country’s crude oil tion has left India increasingly dependent on imports.
needs are met through imports — nearly 90 percent of Saudi Aramco supplies crude oil to India’s Big Five
which come from the Arabian Gulf region. Saudi Aramco petroleum companies — the Indian Oil Corporation,
accounts for nearly 30 percent of Japan’s crude oil imports Reliance Petroleum, the Mangalore Refinery, Bharat
‘A T S A U D I A R A M C O , W E A R E H O N O R E D T O P L AY A M A J O R
PA RT I N F U E L I N G C H I N A ’ S C O N T I N U E D J O U R N E Y T O WA R D
E V E R G R E AT E R P R O S P E R I T Y F O R I T S P E O P L E .’
— Mohammed S. Al-Madi, regional vice president
in charge of Saudi Petroleum Limited-Beijing
Spring 2009 17
K i l i m a
Saudi Aramcons conquer
Photos by
Mike Hulver
Above: Mt. Mawenzi, an eroded volcanic peak, is viewed from the crater rim as it looms from the southeast flank of Mt. Kilimanjaro.
Below, from left: (1) The trekkers, from left, Karl Kleemeier, Tom Loretto (nearly obscured), Merle Stephey, Jackie Taylor, Bruce Burwell,
Kent Norton and assistant guide Amani stroll up the trail through the high-altitude desert on Day 3. (2) A porter carries cargo on his
head on the Marangu Route. (3) Trekkers employed “boot skiing” to descend the upper slopes.
1 2 3
n j a r O
Africa’s highest peak
En route to the summit on Day 2, the group observed blue was experiencing mild symptoms of altitude sickness, the
and colobus monkeys in the trees before leaving the rain-for- food and opportunity to rest were much welcome. The camp
est environment below the 2,800-meter (9,186-foot) elevation was located at the base of the caldera’s central ash pit and
and entering heath and moorland, where trees are mostly near one of four glaciers at the summit.
absent and flora mainly grasses, small shrubs, heather and The next day, the group climbed back up to the crater rim
the very distinctive groundsell tree (Senecio kilimanjaro). and then hiked to Uhruru Peak (5895 meters, 19,341 feet),
At around 4,000 meters (13,123 feet) on Day 3, the hikers the highest point on Kilimanjaro. It was a clear beautiful day
entered “a very desolate alpine desert characterized by an with fantastic views all around. After the leg-pounding, two-
almost complete lack of vegetation.” day descent from Kilimanjaro, head guide Alan William pre-
Because the oxygen thins in such high altitudes, the guides sented everyone with a certificate attesting to their achieve-
started constantly urging the trekkers to proceed “pole pole,” ment, which was received with pride and satisfaction.
Swahili for “slowly slowly,” as the slope sharply steepened. The trekkers reported that the Kilimanjaro climb is not
After reaching the crater rim on Day 4, the group went technically difficult but physically challenging because of its
over the lip of the caldera and began the two-hour descent to steepness in the last 4,000 feet and the thinness of oxygen at
the crater floor, where porters had already set up tents and its altitude. As such, they said, “pole pole” was the most
prepared dinner. Because everyone in the Dhahran/U.S. group excellent piece of advice they received.
Below, from left: (4) This Colobus monkey was spotted in the rain forest on the lower slopes. (5) Trekker Tom Loretto displays the lunch
spread on Day 3 near the base of Mt. Mawenzi. (6) Marty Robinson thanks head guide Allan William for a job well done.
4 5 6
Spring 2009 19
2 3
1
6
4 5
7 9
8
10 11
12
This Day 5 panoramic view of the caldera floor shows the central ash cone,
glaciers and campsite as the trekkers ascend the crater rim en route to Uhuru
Peak. Marty Robinson and guides are visible in the lower left corner. Top, from
left: (1) Karl Kleemeier rests and dines after his ascent of the crater rim on
Day 4. (2) Jackie Taylor signs the Horombo Huts (3,720-meter elevation) reg-
istry at the end of Day 2. (3) Tom Loretto captures Mt. Kilimanjaro’s spectacu-
lar beauty. (4) Day 4 campsite within the caldera, within walking distance of
one of Kilimanjaro’s glaciers. (5) Trekking tips posted at the entrance to the
Marangu Route, Kilimanjaro National Park. (6) Head guide Allan William and
his brother and assistant Amani take a break. (7) Marty Robinson, main logistics
organizer for the trip. (8) Trekkers climb through alpine vegetation approaching
Horombo Huts near the end of Day 2. (9) Head guide and company owner
Allan William. (10) Kent Norton, who organized the trip for his 50th birthday.
(11) Jackie Taylor, Norton’s sister. (12) The victorious trekkers, including the
photographer of this feature, Mike Hulver, far right, celebrate with a Saudi
Aramco banner at Uhuru Peak, Kilimanjaro’s highest point. ■
Spring 2009 23
Arabian Knight
Japanese scholar’s fascination with Mideast
forged enduring Saudi-Japanese relations
Spring 2009 25
Non-Employees (CDPNE). In addition, Arabic is being for the Arab world inside Hayashi that led him in later
introduced as an elective foreign language in Japanese years on a physical and intellectual journey to the Mid-
primary schools. dle East, which transformed his life and world outlook.
Saudi Aramco has been a significant player in the devel- Hayashi’s mother’s fascination with Arab culture
oping relationship between Japan and Saudi Arabia in the enchanted him, as well. Taking advantage of a Japanese
past and present, and it appears the company will continue government scholarship in 1937, the then 21-year-old
to play that key role in the future — a future that holds Hayashi traveled across the world to Cairo to begin the first
enormous potential, according to Faisal Trad, the Saudi step of his journey at the University of Cairo’s College of
ambassador to Japan. Trad this year coordinated a weeklong Arts and Literature. During that educational trip to Cairo,
series of events in Tokyo, from June 17–23, titled “Saudi he changed his first name to Omar and converted to Islam.
Days,” hosted and organized by Waseda University to
complement this new era of mutual exchange. The event
saw the participation of Saudi Aramco; Petro Rabigh, a
Saudi Aramco and Sumitomo oil refinery and petro-
chemical joint venture; and the King Abdullah
University of Science and Technology (KAUST).
Hayashi’s work and friendships allowed him to move in the upper strata of government and business. Above left: Hayashi, facing at
right, helps translate at a meeting with Saudi Foreign Minister Prince Saudi Al-Faisal, middle. Above right: Hayashi, at the celebration
marking the first Arabian Oil Co. Ltd. (AOC) oil shipment, at Khafji, in April 1961, represents AOC as general manager.
Above left: Hayashi, second from right, met with Japanese Prime Minister Yasuhiro Nakasone during a visit to Saudi Arabia in 1973.
Above right: Hayashi confers with Saudi King Faisal bin Abdulaziz in Japan in 1971.
Spring 2009 27
region began to show strong potential to deliver that criti- Abdallah as crown prince and remembers that he donated
cal commodity. generously to the Japanese Muslim Association. He recalls
In early 1957, negotiations for an oil concession between a later meeting with Abdullah in Japan when he was king.
the Japan Petroleum Trading Co. Ltd. and the Saudi govern- Hayshi also met Crown Prince Sultan in Japan in 1960.
ment began, resulting in 1958 in creation of the Arabian
Oil Co. Ltd. joint venture to manage the concession. Watches from kings
Hayashi says that the chief executive at AOC at the time ne reporter noted that in two interviews with Hayashi
worked very hard to convince Hayashi’s Mitsubishi boss
to transfer him from Mitsubishi to AOC, realizing his cul-
tural expertise would be valuable there. Faced with strong O in Tokyo, he wore a different golden watch each time;
he said they were both royal presents. While drinking
tea with his elegant, traditional Japanese manners, he
explained: “The first watch was from King Faisal, and
the second was from King Khalid, and both had the
royal initials on them.” Now physically frail at 92
but still well-dressed, Hayashi remains mentally sharp
and full of energy and determination to continue
Above left: Saudi King Saud bin Abdulaziz greets Hayashi at an official reception in 1957. Above right: Hayashi, third from left in back
row, joins other members of a joint Saudi-Japanese delegation at his home in Riyadh in 1968. In middle is former Saudi Minister of
Petroleum and Mineral Resources Ahmed Zaki Yamani.
Spring 2009 29
D HAHRAN, Saudi Arabia — More than 500 former
Saudi Aramco employees and family members
converged in early March here at the company’s
world-headquarters community for the second Annuitants
Reunion held in the Kingdom (the first was in 2000).
1
(1) Craig “Dusty” Miller and his wife, Harriet, are all smiles
at a reunion gathering in Dhahran. Miller, an attorney, first
arrived in Dhahran in 1952 with his parents and brother, 2
Randy; his dad was in Benefits, and his mom hosted a cook-
ing show on Aramco TV in 1958–59. (2) Attending an annui-
tant event in Dhahran were, from right, president and
CEO Khalid Al-Falih; Mohammed Saeed Al-Ali,
a sponsoring businessman of the
reunion; and Anne Barger Hebert,
daughter of former president and CEO
Tom Barger. (3) At an annuitant gather-
ing at Sunset Beach, former Dhahran
School principal Bill Riley donned tradi-
tional Saudi attire for a photo with his
wife, Ernestine, and their daughters,
Crystal Brennan, left, and Kelly Healy,
right. (4) Former president and CEO
Abdallah S. Jum’ah enjoys a photo op
with John Tarbell, son of annuitants
Steve and Joanna Tarbell of Wellesley,
Massachusetts, in the United States.
4
30 Saudi Aramco Dimensions
3
Photos by Stephen L. Brundage, Bert Seal and the Saudi Aramco Photo Unit
(5) Two annuitants visit Dhahran’s Well No. 7, the company’s first commercially productive well, which struck oil in 1938. (6) More than 300
motorcycles roared around Dhahran March 12 for the community’s 2nd annual bike rally. (7) Tears streamed down Essa Al-Dossary’s cheeks
as he reunited with long-time friend and former colleague Shaikh Amin, who was a company photographer. (8) Volunteer tour leader Nasrin
Fazrin, left, helps annuitants bargain for deals at the local gold souk. (9) Reunion volunteer tour leader Carolyn Collins asked former Aramco
photographer Bert Seal to take this photo of her by the iconic Hofuf fort. (10) Annuitant Handy Battenbough watches calves at the camel
market in Hofuf. (11) Former Aramco employee Ali Baluchi, chairman of the reunion organizing committee, has attended annual annuitant
reunions in the United States for 30 years.
11
10
9
8
12 13 14
(12) A man and boy take a flying leap off a sand dune at Half Moon Bay during a reunion fun day and barbecue there. (13) Among the many enter-
tainment events for visiting annuitants and their families was this Saudi traditional music troupe from the Eastern Province. (14) For many former
Aramcons and their families, sailing was a part of their lives in the Kingdom. So a chance to set sail in the Arabian Gulf waters at Ras Tanura or Half
Moon Bay was steeped with nostalgia.
Spring 2009 31
News Dimensi ns
RAFIE BIDS FAREWELL In 1992, he became vice president of Northern Area
Producing. In 1993, he became vice president of Employee
enior Vice President Mohamed Yusof Rafie, one of Relations and Training, followed in 1997 by an assign-
S Saudi Aramco’s most prominent and respected lead- ment as vice president of Petroleum Engineering and
Development.
ers, retired Dec. 31, 2008, after a sterling 38-year career
with the company. In June 2000, he was named senior vice president of
Originally from western Saudi Arabia, Rafie will admit Gas Operations, and in 2001, he became senior vice presi-
he didn’t know much about the Eastern Province when he dent of Industrial Relations. As the company’s gas explo-
was first hired. He began his career with Saudi Aramco in ration and production business expanded, he again was
chosen, in 2005, to lead the
Gas Operations business line
as its senior vice president.
“I believe in the people,”
Rafie said. And this spirited
generosity and compassion
for his employees is one of
the positive, lasting marks he
leaves behind.
“Yusof Rafie has reached
the pinnacle of great leader. His
devotion to the success of Saudi
Aramco and the country as a
whole is unsurpassed. He will
truly be missed,” said president
‘I believe in the people,’ Yusof Rafie, at left, said on his retirement
from Saudi Aramco. Above: Rafie and former president and CEO and CEO Abdallah S. Jum‘ah
Abdallah Jum‘ah, right, talk with a young girl at a company event. at a retirement gathering for
the departing Rafie.
1970 as an engineer and speaks fervently about his first Rafie has played an integral role in the petroleum
days with the company. “We chased rigs from one place industry. In addition to holding multiple positions within
to another,” he said. the company, Rafie has held membership on the board of
Rafie has had a long and prolific career, working in the General Organization of Social Insurance and the Socie-
various jobs in drilling and production operations. In ty of Petroleum Engineers (SPE), where he has been a direc-
1981, he was promoted to manager of the Ras Tanura tor of the Saudi Arabian section for the past 11 years and
Producing Department. became director of the Middle East Region in June 1997.
‘(Yusof Rafie’s) devotion In 1985, he was named During his entire career, he stressed diligent work and
general manager of useful achievement over position or status. His oft-stated
to the success of
Safaniyah Producing philosophy was “make your mark by working hard, lead-
Saudi Aramco and and, in 1986, general ing by example.”
the country as a manager of Petroleum Rafie studied at Cairo University, where he earned a
PHOTOS: SALAH A. AL-ALWAN
SPE SECTION CELEBRATES 50TH largest reserves of natural gas,” he said. “Because this
section plays such a distinctive role in the upstream seg-
Spring 2009 37
News Dimensi ns
flow and temperature and calculates the optimum tem- HALF MARATHON DRAWS 11,000
perature. The new system then controls the amount of
corrosion inhibitor that is injected.
The invention, once implemented throughout the
company, is expected to reduce the amount of corrosion
H OUSTON — On Jan. 19, a record number of runners
turned out for the Aramco Houston Half Marathon
and began the 13.1-mile odyssey through the streets of
inhibitor by about 50 percent. But that’s not all. It also Houston and cheering crowds.
will ensure that gas transfer pipelines are always protected It was the fifth year that Aramco Services Co. (ASC)
without wasting expensive chemicals, the lower gas tem- has served as the race’s title sponsor, and it was the fifth
peratures will prolong the life of pipelines and facilities year of record-setting participation. Nearly 11,000 run-
and the drop in pressure will require less power. ners registered, and the race sold out in record time, six
months in advance.
“It is a great honor to support the Aramco Houston
‘UDHAILIYAH DIVERSITY Half Marathon as it grows in size and stature, and to
see so many positive values in action — a commitment to
Saudi Aramco community ‘Udhailiyah’s first Festival of Culture excellence, endurance, personal achievement and compe-
produced a dazzling variety of people and colors. Below: Three
women from Nigeria were brightly attired in their national tition,” said Ali A. Abuali, ASC president and CEO.
dress for the event. Bottom: Students displayed their national “Our support is part of our commitment to practicing
flags and vivid outfits with pride.
good corporate citizenship and giving back to the local
community, and it is also a credit to the hundreds of ASC
volunteers who help make the event such a success.”
As in previous years, the half marathon drew runners
from across the United States and around the world. As
the site of the USA Half Marathon Championships, it
also attracted a number of elite athletes, including
Olympian and silver-medalist Meb Keflezighi who won
the men’s half marathon with a time of 1:01, a personal
half-marathon best by three seconds.
“I’ve won 15 or 16 national championships, but this
one is most special,” said Keflezighi, who suffered a seri-
ous injury in 2008. “I wasn’t sure how soon I could get
back out and run after my injury, so this is the sweetest
win I have ever had.”
The half marathon also was
a triumph for Magdalena Boulet,
who won the women’s race with
a time of 1:11. It was her first
U.S. title.
The half marathon is part of
a same-day multi-race event that
includes the Chevron Houston
Marathon and the El Paso 5K.
It is the city’s largest single-day
sporting event, and requires
thousands of volunteers. Nearly
350 ASC volunteers came out to support the race this
year, which set a company record over previous years.
As a result of employees’ friends and family members,
the number of volunteers was more than ASC’s total
employee population.
Spring 2009 39
News Dimensi ns
ARAMCO GETS KEYS TO FINAL
STRATEGIC STORAGE SITE