Saudi Aramco

Annual Review 2015

1
2

inside
the review

Disclaimer: Each company affiliated with the Saudi Arabian Oil Company (“Saudi Aramco”), and in particular, each subsidiary company
including their associated research centers, is a separate entity that manages and controls its own affairs. The use of terms such as
“company,” “Saudi Aramco,” “organization,” “it(s),” “our(s),” “their(s),” “we,” and “us,” and of abbreviated titles, is only for convenience
in reference and is not intended as an accurate description of the individual status of any legal entity or corporate relationship, or
to indicate that Saudi Aramco is conducting commercial activities outside the Kingdom of Saudi Arabia.

© Copyright 2016, Saudi Aramco. All rights reserved.

 Saudi Aramco
Annual Review 2015
3

page
9 board of directors page
62 enabling opportunities:
our commitment to
the Kingdom

page
10 chairman’s message page
76 human resources:
driving performance

page
11 president’s foreword page
86 citizenship:
inspiring tomorrow

page
12 energy is opportunity page
94 2015 in numbers

page
14 upstream:
sustaining excellence
page
100 awards

page
26 downstream:
maximizing value

page
38 technology:
pioneering advances

page
50 health, safety, and
environment: protecting
resources
4
 Saudi Aramco
Annual Review 2015
5

The Custodian of the Two Holy Mosques

King Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud

His Royal Highness Prince Mohammed ibn Naif

ibn ‘Abd Al-‘Aziz Al Sa‘ud
The Crown Prince, Deputy Premier, and Minister of the Interior

His Royal Highness Prince Mohammed

ibn Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud
Deputy Crown Prince, Second Deputy Premier, Minister of Defense, and
President of the Supreme Council of the Saudi Arabian Oil Company (Saudi Aramco)
6

global and domestic operations

Detroit Boston
New York City
Washington, D.C.
Houston

export shipping routes joint and equity ventures

R&D center/technology office Houston

Motiva Enterprises LLC
global office Alexandria
The Arab Petroleum Pipeline Co. (SUMED)
Fujian
Fujian Refining and Petrochemical Company Ltd.
Sinopec SenMei Petroleum Company Ltd.
Seoul
S-OIL
Tokyo
Showa Shell
 Saudi Aramco
Annual Review 2015
7

Turaif

Al Jawf

Tabuk
Safaniyah
Duba
Jubail Ju’aymah
Qatif Ras Tanura
Qassim Dhahran
Al Hasa

Riyadh
Yanbu’

Rabigh

Thuwal
Saudi Arabia
Jiddah

Al-Sulayyil

Abha
Najran
Jazan
Aberdeen The Hague
London Delft

Paris Milan

Beijing Seoul
Tokyo
Daejeon
Shanghai
Alexandria New Delhi Fujian
Xiamen

Singapore

Saudi Aramco headquarters

Saudi Aramco refinery

terminal

bulk plant

joint venture refinery

Luberef

Marafiq
8

Key figures

crude oil and total raw gas

261.1b barrels 11.6b scfd

condensate reserves processed

297.6t scf
gas reserves NGL

1.3m bpd
production

crude oil

10.2m bpd 5.4m bpd

production worldwide refining capacity

7.1m bpd
crude oil exports Saudi Aramco share of

3.1m bpd
refining capacity

7,016kt per annum

total equity chemicals production

t = trillion
b = billion
m = million
kt = kilotons
bpd = barrels per day
scf = standard cubic feet
scfd = standard cubic feet per day
NGL = natural gas liquids
 Saudi Aramco
Annual Review 2015
9

Board of Directors

Saudi Aramco’s Board of Directors is chaired by HE Khalid A. Al-Falih, front row (from left)
Minister of Energy, Industry and Mineral Resources and formerly President HE Dr. Mohammed I. Al-Suwaiyel is the Minister
and CEO of the company. The Board of Directors, as the steward of the of Communications and Information Technology of
the Kingdom of Saudi Arabia
company, steers Saudi Aramco’s business affairs, provides management
with guidance in determining the company’s long-term strategy, and HE Dr. Ibrahim A. Al-Assaf is the Minister of
Finance of the Kingdom of Saudi Arabia
assesses company opportunities and risks. The Board currently includes
senior Saudi Government officials, the head of a leading Saudi academic HE Khalid A. Al-Falih is the Minister of Energy,
Industry and Mineral Resources of the Kingdom of
institution, senior figures in the international oil, gas, and finance industries, Saudi Arabia, and Chairman of the Board of Directors
as well as Saudi Aramco’s President and CEO. of the Saudi Arabian Oil Company (Saudi Aramco)
Amin Nasser is the President and
Chief Executive Officer of Saudi Aramco
HE Dr. Khaled S. Al-Sultan is the Rector of King
Fahd University of Petroleum and Minerals

back row (from left)

Andrew F.J. Gould is the former Chairman of
BG Group plc, and the former Chairman and CEO
of Schlumberger Ltd.
HE Dr. Majid Al-Moneef is an Advisor to the Royal
Court, the former Secretary General of the Supreme
Economic Council of the Kingdom of Saudi Arabia,
and the former Governor to OPEC for Saudi Arabia
Sir Mark Moody-Stuart is a former Chairman of
Royal Dutch Shell and Anglo American plc
Peter Woicke is a former Managing Director of the
World Bank and the former Chief Executive Officer
and Executive Vice President of the International
Finance Corporation
10

King Salman, is committed to sustaining Saudi Aramco remained steadfast to its

its investments in hydrocarbon-based vision of becoming a top-tier, globally
energy to meet future demand and integrated energy and chemicals com-
power sustainable economic growth at pany. The company’s expansion further
home and around the world. downstream, designed to add value to
the resource base, continued to reap
Against this backdrop, Saudi Aramco,
benefits by introducing new product
with the support of the Supreme
slates, creating a more diversified indus-
Council and the guidance of its Board
trial foundation, and generating high-
of Directors, emphasized fiscal disci-
quality jobs in the Kingdom.
pline, operational efficiency, and inge-
nuity to surmount current challenges, Sustained investments in technology
positioning itself to capitalize on future and innovation are essential to ensuring
opportunities. The Board appreciates the future energy accessibility, reliability,
achievements made by Saudi Aramco and sustainability. Saudi Aramco’s
in a challenging environment, recog- expanding network of global R&D

Chairman’s Message nizes the steps it has taken in 2015

toward becoming a globally integrated
centers and technology offices is
dedicated to meeting the world’s
energy and chemicals company, and is shared energy challenges. The push
confident the company will continue to to become a technology leader is
By any standard, 2015 was a challeng- complemented by the company’s
build on its legacy of success.
ing year for the global energy industry. promotion of science, technology,
With an oversupplied market and a engineering, and mathematics skills
sluggish world economy, the price
of oil fell by more than 60% from Saudi Aramco among the nation’s youth, spurring the
growth of a knowledge-based society.
the previous year’s high. In addition,
sustainability — and in particular safely and The Kingdom’s commitment to sustain­
climate change — rose to the top of
the global agenda. sustainably delivers able development was underscored
this year by Saudi Aramco’s exhibition

The year also saw momentous develop- the energy that of greenhouse gas management tech­
nologies at the United Nation’s Climate

makes new
ments in the Kingdom of Saudi Arabia Change Conference in Paris. The com­
with the accession of the Custodian of pany, along with other energy compa­
the Two Holy Mosques King Salman
ibn ‘Abd Al-‘Aziz Al Sa‘ud, a major opportunities nies in the Oil and Gas Climate Initiative,
issued an unprecedented declaration
reorganization of the government, and
a new governance structure for Saudi
Aramco. In Sep­tember, the newly
possible. pledging practical action to reduce
greenhouse gas emissions.

formed Supreme Council of the Saudi These, and the many other achieve-
Arabian Oil Company (Saudi Aramco), ments of 2015, were made possible by
Expanding oil and gas supplies to meet
under the chairmanship of the Deputy the support bestowed on the company
the needs of domestic and international
Crown Prince HRH Mohammed ibn by King Salman, Crown Prince HRH
markets is at the core of Saudi Aramco’s
Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud, Mohammed ibn Naif ibn ‘Abd Al-‘Aziz
business, and in 2015 the company
convened for the first time, reviewed Al Sa‘ud, and Deputy Crown Prince
delivered on its commitments, reaching
the company’s strategies, and endorsed HRH Mohammed ibn Salman. The
record levels of oil production and gas
its five-year business plan. Board of Directors is grateful for their
processing, and discovering three new
leadership, which empowers the men
Seen from a long-range perspective, oil fields and two new nonassociated
and women of Saudi Aramco to safely
challenging times are also times of gas fields. The growing resource port-
and sustainably deliver the energy that
opportunity. Continued economic folio reflects national energy impera-
makes new opportunities possible.
development and rising standards of tives, with Saudi Aramco’s drive to
living will propel worldwide growth in develop the Kingdom’s unconventional
energy demand, but declining invest- gas resources offering the potential for
ments by energy producers raise concerns a cleaner, more efficient fuel for domes-
about another cycle of supply constraints tic power generation and more plentiful Khalid A. Al-Falih

and therefore more market volatility. supplies of feedstock — vital elements Minister of Energy, Industry and Mineral Resources

Saudi Arabia, under the leadership of in the country’s continued prosperity. Chairman of the Board of Directors
 Saudi Aramco
Annual Review 2015
11

In a historic move, we pledged, with The company devoted its resources

other Oil and Gas Climate Initiative to addressing the needs of affected
members, to take steps necessary to employees and their families. The
reduce greenhouse gas intensity in the close-knit Saudi Aramco community
global energy mix — further demon- grieved as a family, and absorbing the
strating our company’s commitments lessons learned from this incident, we
to energy efficiency and reducing renewed our determination to prevent
environmental impacts through tech- future tragedies.
nology solutions.
Our achievements in 2015 are the direct
This year we lowered the energy inten- result of the hard work and commitment
sity of our operations and leveraged of our people, an effort deeply appre-
the market downturn to renegotiate ciated by the entire management team.
contracts, helping us to achieve signifi- The men and women of Saudi Aramco
cant cost savings. We launched our are firmly dedicated to the resolution
In-Kingdom Total Value Add program, that energy is opportunity — a prom-

President’s Foreword designed to double the percentage of

locally produced energy-related goods
ise we are proud to honor to our cus-
tomers, partners, and stakeholders
and services contracted by Saudi Aramco every day.
to 70% by 2021, driving investment,
Holding true to our long-term strategy,
economic diversification, and job
in 2015 we delivered on our core mis-
creation in the Kingdom. We also
sion of reliably supplying energy to the
Kingdom and the world, and marked
continued progress toward becoming
the world’s leading integrated energy We marked
continued progress
Amin H. Nasser
and chemicals enterprise, a top refiner,
President and Chief Executive Officer
and a creator of energy technologies.

If there is one constant in the oil and

toward becoming
the world’s leading
gas industry, it is change. The key to
navigating downturns is resilience,

integrated energy
the quality that enables us to not only
remain on course, but to find opportu-
nity in the midst of challenge. We
remained resilient and maintained excel- and chemicals
lence because, as experience teaches
us, capital efficiency combined with
sustained investment in projects, tech-
enterprise.
nology, and people is a proven formula
for powering through a down cycle. advanced our strategic goal of support-
From achieving our highest level of ing the Kingdom’s shift to a knowledge-
crude oil production on record, com- based economy through a suite of
mencing operations at our Sadara initiatives that promoted skilled voca-
joint venture with The Dow Chemical tions and higher education, the growth
Company, and the startup of our Wasit of new businesses, innovation, and
Gas Plant, to the launch of two new entrepreneurship.
branches of our global research network Amid our achievements, however, we
in Beijing and Detroit, our successes suffered a devastating loss. On August
reflected Saudi Aramco’s dual commit- 30, as a result of a fire at a leased
ment to help ensure global energy residential complex in al-Khobar, one
security and bolster the Kingdom’s employee and nine dependents lost
economic growth. their lives and 83 individuals were
admitted to hospitals with injuries.
12 Energy Is Opportunity

Key figures

12.8m bpd
total hydrocarbon* production

energy is
opportunity
People around the world depend on a corporate transformation founded
the products we produce — crude oil, on the principles of capital efficiency,
natural gas, refined products, and technology and innovation, operational
chemicals — to help them achieve their excellence, and integration. Our Enter­
aspirations. That’s what drives us: prise Risk Management framework and
The knowledge that our products are the recently approved Corporate Crisis
the foundational materials upon and Business Continuity framework
which people and societies across along with other systems have created
the globe depend for economic an organization capable of responding
growth and prosperity. quickly to changing conditions and
have prepared us to weather extended
We possess a deeply held belief that
periods of market turbulence.
energy is opportunity and we are com­
mitted to ensuring our products reach We anticipate market volatility to
the millions of people who rely on them. continue for some time. Yet, we are
Delivering on that commitment requires confident that markets will inevitably
people who are determined to perse­ rebound. According to the International
vere through good times and bad. Energy Agency’s (IEA) World Energy
Outlook 2015, the global economy is
Though 2015 was a particularly chal­
forecasted to grow at an average
lenging year for our industry, at Saudi
annual rate of 3.5% from 2013 to
Aramco our history is one of not merely
2040, expanding to more than 2.5
withstanding adversity, but becoming
times its current size over the period.
stronger as a result. More fundamen­
Moreover, the IEA expects global liquids
tally, what we do to overcome adversity
consumption to rise by about 17%
builds strength. Successful businesses
compared to the current level, reaching
look for opportunities to thrive while
roughly 108 million barrels per day (bpd)
continuing to pursue their goals.
in 2040. Similarly, the global demand
Shifting market conditions are nothing for natural gas in 2040 is also expected
new to our industry. Over the course to increase by about 47% compared to
of time, markets favor agile and diver­ 2013 levels. These favorable indicators,
sified companies that operate efficiently combined with our track record of
and stay true to their core values. For operational excellence, safety, reliability,
*crude oil, sales gas, ethane,
NGL, and condensate the past several years, we have executed efficiency gains, and a relentless focus
 Saudi Aramco
Annual Review 2015
13

on results, position us to take an opti­ demand while also meeting the global capabilities of our people by driving a
mistic view of the future. call on our crude oil production. performance-based work culture and
continuing to invest nearly $1 billion
The highest performing companies do Downstream, our plan to integrate our
per year in the world’s largest corpo­
not cut corners, but are frugal. They refining network with chemicals produc­
rate training program.
invest their capital wisely and focus tion and associated value parks reached
on generating value efficiently and a major milestone with the startup of In 2015, we lived our belief that energy
effectively. Just as farsighted financial the Sadara Chemical Company, our is opportunity by continuing to amplify
investors find opportunities in down joint venture with The Dow Chemical the positive effects of our business
markets, we believe current market Company. Our SATORP and YASREF activities for the benefit of the greatest
conditions present opportunities for joint venture refineries were fully number of people possible. We contin­
fiscally disciplined companies. We have onstream and progress on the Jazan ued our legacy of contributing to the
taken measures to capitalize on current Refinery and Terminal was well under­ development of the Kingdom, leading
market trends, including purchasing way. The expansion of Petro Rabigh, by example and promoting greater
materials at reduced prices and rene­ our integrated refining and petrochem­ energy efficiency, enabling economic
gotiating contracts to reflect today’s ical venture with Sumitomo Chemical growth and diversification, and support­
supply and demand realities. of Japan, advanced toward its startup ing the growth of a knowledge-based
in 2016. society. We neared completion of our
In 2015, we steadily continued our
landmark King Abdulaziz Center for
journey toward becoming the world’s We invested in new technologies that
World Culture, while our citizenship
leading integrated energy and chemi­ promise to deliver greater levels of
programs helped strengthen the com­
cals company. We responded to the operational efficiency, enhanced per­
munities in which we operate, at home
unsettled business climate on numerous formance, and environmental benefits.
and around the world.
fronts, optimizing capital expenditures, Through our global network of research
deferring low-priority projects, and low­ centers and technology offices, we It has been an extraordinarily challeng­
ering our direct controllable costs — investigated technologies to reduce ing year, but one filled with equally
without diminishing our determination greenhouse gas emissions created by extraordinary accomplishments made
to deliver on our strategic vision. the production and use of petroleum possible by the resolve and ingenuity
while also meeting the growing of our people. The success we achieved
Our determination was manifest in a
demand for energy. We funded startup attests to the leadership and resiliency
robust capital program that resulted in
companies whose innovative technolo­ we have always demonstrated in times
the highest levels of crude oil produc­
gies complement our innovation strat­ of adversity. Our leadership position is
tion and raw gas processing we have
egy and offer the potential to form not something we aspire to for its own
ever achieved. These accomplishments,
the basis of new businesses and create sake — it is the result of our determi­
in concert with progress in our uncon­
new jobs in the Kingdom. We not only nation to advance the enduring success
ventional gas program, are tangible
focused on building operational capa­ of our industry, our company, and the
results of our commitment to ensuring
bilities, but also raised the professional Kingdom of Saudi Arabia.
that we meet the Kingdom’s energy

Our Values

excellence citizenship
we drive for best results and are we are a positive influence on the
agile in addressing new challenges. Kingdom, its environment, and in
the communities where we live
safety and work.
we operate safely and are committed
to the well-being of our workforce. accountability
we take responsibility for our
integrity actions and for meeting corporate
we follow ethical standards in objectives.
conducting our business.
14 Upstream:
Sustaining Excellence

Key figures

261.1b barrels 11.6b scfd

crude oil and condensate reserves raw gas processed

297.6t scf 8.0b scfd

gas reserves sales gas production

10.2m bpd
crude oil production
 Saudi Aramco
Annual Review 2015
15

upstream:
sustaining excellence
We often refer to our Over 80 years later, the same pioneer- Our maximum sustainable crude oil
company’s founding ing spirit and unceasing drive for excel- production capacity of 12 million bpd
generation as pioneers: lence still inspire the men and women is supported by our practice of optimiz-
They were the first to of Saudi Aramco. ing the mix of crude oil grades from a
discover and bring into balanced portfolio of mature and young
For us, sustaining a commitment to
production the world’s reservoirs. We continue to explore for
excellence means continuously improv-
largest hydrocarbon and discover additional crude oil and
ing upon our achievements, especially
reservoirs. gas reservoirs — striving to replace
when it comes to developing the
100% of produced oil with new reserves
Kingdom’s resources for the future.
and growing reserves annually.
Every day, products made from our
resources enable people across the In 2015, to meet our production tar-
globe to live more fulfilling and pro- gets, we produced an average of 10.2
ductive lives. From fuels and lubricants million bpd of crude oil, a new all-time
to performance textiles and advanced record. Our total raw gas processing
plastics, it all starts with our resource averaged 11.6 billion standard cubic
base. Managing these resources feet per day (scfd), also an all-time
requires excellence in every aspect record. Supplies of sales gas averaged
of our upstream operations. 8.0 billion scfd and ethane averaged
794 million scfd.
16 Upstream:
Sustaining Excellence

Total natural gas liquids (NGL) produc- From exploration to

tion averaged 1.3 million bpd. Our suc-
cess in growing gas production allows
production
us to deliver on our commitment to Building on more than eight decades of
provide additional volumes of gas as exploration experience in Saudi Arabia,
fuel and feedstock for domestic indus- our geoscientists continue to enhance
tries and displace liquids as a source of our understanding of the Kingdom’s
power generation. hydrocarbon resources. Through a
long-term outlook, effective planning,
One of our priorities in 2015 was to
and the use of cutting-edge technolo-
focus on organizational and techno-
gies, we continue to find new fields,
logical shifts that increase capital effi-
add reserves, and develop more effi-
ciency. Our upstream contributions
cient methods to produce and process
encompassed innovative solutions from
oil and gas. We marked progress
A young operator checks equipment in
exploration, drilling, and production
toward increasing the recovery rate of
our Shaybah facility, representative of the to the initiation of a new supply chain
dedication that enabled us to produce oil in place from our major oil reservoirs
operating model for our work in
more than 10 million bpd of crude oil, with a plan to reach a recovery rate
unconventional resources. Other effi-
a company record. of 70%, helping to ensure sustainable
ciency gains supported by operational
and reliable supplies of energy for the
excellence principles included combining
Kingdom and consumers around
work, reducing or eliminating redun-
the world.
dant tasks and equipment, employing
new or alternative technologies, man-

Our energy reserves

agement training, improving collabora-

5
new oil and gas fields discovered
tion with vendors, reengineering, and
bringing work in-house.

Though we have prioritized fiscal disci- will help power

pline and introduced cost efficiencies,
our attention remains squarely fixed
prosperity for
on sustaining excellence in safety. The
safety of our people is paramount to us.
generations.
Beyond our standard safety protocols
and training programs for employees,
we instituted additional safety improve- Our exploration program — encompass-
ment measures, including onstream ing the Kingdom from the Rub’ al-Khali
inspections, replacement of aging to the Red Sea and the northwestern
equipment and trunk lines, and proactive region — continually pushes the bound-
plant integrity and health assessments aries of technology. During 2015, we
to ensure safe and reliable operations. discovered five new oil and gas fields,
raising the total number of discovered
Stimulating new opportunities for peo- oil and gas fields in the Kingdom to 134.
ple here in the Kingdom and across the
world through the safe, sustainable, We discovered three new oil fields:
and reliable provision of energy is our Faskar, offshore in the Arabian Gulf
strategic purpose. Our success in this near the Berri field; Janab, east of the
endeavor starts with our upstream busi- Ghawar field; and Maqam, in the
ness. By combining the energy of our eastern Rub’ al-Khali. We also discov-
people and our unique expertise with a ered two new nonassociated gas fields:
single-minded pursuit of excellence, our Edmee, located west of Haradh, and
hydrocarbon reserves will help power Murooj in the Rub’ al-Khali. We contin-
prosperity for generations to come. ued our program to explore the shal-
low waters of the Red Sea, completing
our largest single survey of the seabed
encompas­sing Saudi Arabian territorial
waters. Onshore, we commenced drill-
ing in the Jazan and Um-Luj areas.
 Saudi Aramco
Annual Review 2015
17

Computer simulations based on data gathered from monitoring microseismic events enable us to manage the Kingdom’s resource base for
the benefit of generations to come.

We also added reserves through delin- reduce data processing times by a as we invested considerable resources
eation drilling, discovering three new factor of 10, improving our ability to to find and produce gas from shale and
gas reservoirs and seven new oil res- model and characterize the perform­ tight gas formations. The target areas
ervoirs in existing fields. By applying ance of reservoirs over time to opti- for our unconventional gas program are
best-in-class reservoir studies, including mize field development and increase in northern Saudi Arabia and the greater
sophisticated algorithms developed recovery. Our investments in seismic Ghawar area, including the Jafurah
in-house to process and analyze have yielded more efficient planning, Basin. We acquired 138 billion seismic
high-definition 3-D seismic data, we best-in-class reservoir management traces in these three areas and com-
were able to successfully delineate and practices, and improved success rates pleted an ambitious slate of explora-
extend the booked limits of existing in discovering new fields and reservoirs tion, appraisal, and production wells.
reservoirs. Our exploration program and extending reserves in existing
We deployed a range of new technolo-
balanced opening new frontiers and reservoirs.
gies and applied lessons learned from
play concepts while maintaining an
Our new discoveries and reserves within the industry to accelerate our
uninterrupted focus on delineation and
maintained Saudi Aramco’s crude oil progress. New technologies include
appraisal programs in existing fields to
reserves at 261.1 billion barrels. Total seismic imaging to identify “sweet”
realize their full potential and assess
gas reserves rose to 297.6 trillion scf. spots in reservoirs, extended reach
them for future development.
Our relentless efforts to expand the horizontal wells to improve reservoir
These increases were underpinned by Kingdom’s oil and gas reserves sustain contact, multistage fracture stimula-
our investments in the latest technology. our capability to meet future energy tion, and underbalanced coiled tubing
We increased the computing capability needs, at home and around the world. drilling to tap into productive layers.
of our Exploration and Petroleum
Multistage fracturing in horizontal
Engineering Center (EXPEC) Computer
Center by 177% for reservoir simula- Unconventional gas wells, for example, enables higher
sustained gas rates, transforming low
tions and by 76% in seismic capacity. program producing wells to commercially viable
These improvements enable signifi-
Our pursuit of unconventional gas con- assets. Rigorous simulation modeling
cantly larger reservoir simulations and
tinued to gather momentum in 2015 empowers our engineers to improve
18 Upstream:
Sustaining Excellence

Crude oil production

2011–2015
(million barrels per day)

2015: 10.2

2014: 9.5

2013: 9.4

2012: 9.5

2011: 9.1

0 2 4 6 8 10 12

We supply more crude oil to the global economy than any other company, producing nearly
1 in every 8 barrels of world oil production.

completion and simulation practices, opportunities for Saudi nationals in

and optimize well placement and spac- the region.
ing to attain higher well productivity.
In addition to our continued success in
The entire process chain employs inte-
expanding the Kingdom’s conventional
grated teams of petroleum engineers
gas reserves, our growing ability to
and geoscientists who collaborate to
find and produce unconventional gas
ensure every link in the chain, from
broadens the use of gas as a cleaner
exploration through to delineation,
fuel for power generation and seawater
development planning, facility con-
desalination, and as feedstock for
struction, installation, commissioning,
diversified industries, spurring economic
startup, and production, is completed
growth and freeing up more crude oil
safely, efficiently, and cost-effectively.
for value-added refining or export.
Gas from our discoveries in northern
Saudi Arabia will be delivered to the
Ma’aden facilities at Wa’ad Al Shamaal Oil production
by the end of 2017 when the facilities Since Dammam Well No. 7 began pro-
will be ready to receive gas. Additional ducing commercial quantities of crude
gas for small and medium industrial oil in 1938, we have built an unparal-
businesses will be supplied by 2018, leled reputation for being a reliable
fueling the growth of new employment supplier of crude oil to energy markets
 Saudi Aramco
Annual Review 2015
19

around the world. Today, the produc-

tion of this essential energy resource
remains at the core of our business,
and we supply more crude oil to the
global economy than any other oil pro-
ducer, producing nearly 1 in every 8
barrels of world oil production.

We manage the development of the

Kingdom’s crude oil resources to maxi-
mize lasting value. To maintain our
record level of production safely and
reliably, in 2015 we completed a chal-
lenging roster of well workovers, well
integrity and monitoring service jobs,
and major tests and inspections. The
effectiveness of our long-term vision
to manage assets was demonstrated
when two of our long-established
wells reached impressive lifetime pro-
duction levels in 2015. Abqaiq Well 49,
drilled in 1949, and Abqaiq Well 84,
drilled in 1961, reached cumulative
outputs of 144 and 233 million barrels,
respectively.
To achieve the greatest benefits from
our investments in production technol-
ogy, we established a Production Oper­
ations Surveillance Hub in Ju’aymah
that empowers production engineers
to make effective decisions in real
time. The Hub is designed to integrate
intelligent field technologies such as
electrical submersible pump sensors,
smart well completions, downhole
monitoring systems, and multiphase
flow meters in a single solution. By
centralizing all surveillance in a single
hub, we are able to anticipate and
respond to problems more quickly and
manage equipment and assets more
efficiently.

Our offshore Manifa field, with a

production capacity of 900,000 bpd,
has been recognized for its design
and engineering features that help
protect and preserve the environment
of Manifa Bay. The Manifa facility, which
is self-sufficient in electrical power
generation, also produces associated
gas as a feedstock for industrial cities.

We remain committed to our upstream capital program, ensuring that we meet the
Kingdom’s energy needs while answering the global call on our crude oil production.
20 Upstream:
Sustaining Excellence

Wasit Gas Plant

Decades ago, natural gas was Our latest gas plant, Wasit, is Wasit’s design reflects our plan Apprentice Program. This youth-
viewed as a less valuable designed to process 2.5 billion to become self-sufficient in ful team shouldered a big
byproduct of crude oil produc- scfd of nonassociated gas and power generation. By converting responsibility — the cogenera-
tion, but beginning with the supply 1.7 billion scfd of sales waste heat to steam, Wasit has tion plant had to deliver power
creation of the Master Gas gas to the Master Gas System, the capacity to generate 798 and steam to support the com-
System in the early 1970s, we fueling electrical power and sea- megawatts of power. This pro- missioning activities preparing
have harnessed the power of water desalination plants and cess, known as cogeneration, Wasit to come onstream.
natural gas to spur the diver­ supplying feedstock for the pet- allows us to produce electricity
Wasit, combined with the other
si­fication of the Kingdom’s rochemical industry. Our contin- as a byproduct of our operations.
gas plants in the Master Gas
economy. ued success in increasing supplies Less fuel is required to produce
System, enables us to process
of cleaner burning natural gas energy and less fuel is consumed,
more than 11 billion scf of gas
makes it possible for us to reduce thereby lowering emissions.
every day, delivering on our com-
emissions, enable new industries,
Behind the power of cogenera- mitment to safely and sustainably
and release more crude oil for
tion is the power of people. Our power progress and prosperity.
value-added refining or export.
employees oversaw the design
and construction of the cogene-
ration plant. All the members of
the cogeneration operations
team are Saudis, many of whom
are young graduates of our
 Saudi Aramco
Annual Review 2015
21

Our Wasit Gas Plant will be fed by nonassociated gas from our offshore fields.

We made significant progress toward prosperity. To meet this challenge, we

completing the expansion of our plan to nearly double our supply of
Shaybah field to increase production gas over the coming decade to more
of Arabian Extra Light crude oil by than 20 billion scfd, taking clean gas to
250,000 bpd, raising overall production more than 70% of our utilities fuel mix
capacity to 1 million bpd. The project is — among the highest rates in the world.
on track to come onstream in the first
In 2015, we achieved a record for raw
half of 2016.
gas processing, averaging 11.6 billion
In addition to our large-scale oil produc- scfd. Greater volumes of gas mean more
tion projects designed to meet antici- feedstock for industries to expand and
pated future demand, we sustained new ones to emerge, helping to drive
our Maintain Potential program. For the creation of new jobs. The increased
example, in 2015 our largest offshore use of cleaner burning natural gas in
tie-in platform, weighing in excess of the Kingdom’s fuel mix also brings with
6,000 metric tons and too large for it environmental benefits in the form
standard marine cranes, was installed of lower emissions.
in Safaniyah using an innovative “float
over” method. The platform serves as
the main crude oil gathering and power Raw gas processed
supply hub for North Safaniyah and 2011–2015
was energized through the laying of a
(billion scfd)
46 km, 230 kilovolt submarine cable
— the longest of its kind in the world 2015: 11.6
installed as a single piece without a
field splice.
2014: 11.3

Gas production and

2013: 11.0
processing
Our ability to increase supplies of natu-
2012: 10.7
ral gas to reduce the Kingdom’s reliance
on liquid fuel for electricity generation
and to power seawater desalination
2011: 9.9
plants is vital for the country’s continued
22 Upstream:
Sustaining Excellence

Increasing supplies of natural gas is essential for the Kingdom’s economic growth, and in 2015 we processed a record 11.6 billion scfd.

We plan to nearly with excess energy delivered to other Elec­tricity Company’s new Duba Power

double gas
company plants. Plant, a high-efficiency plant that will
combine solar power with energy
The NGL recovery plant at Shaybah

supplies over the

generated from the fuel supplied by
was commissioned and started NGL
Midyan. Together, our gas plant and
production in December. Designed to

coming decade.
the power station will spur economic
process as much as 2.4 billion scfd of
development in the area, generating
associated gas and recover 275,000 bpd
opportunities for training, job growth,
of ethane plus NGL, the Shaybah facility
and new businesses.
will feed these new volumes of NGL via
Wasit Gas Plant, one of the largest pipeline to Ju’aymah for further pro-
nonassociated gas plants we have ever
built, came onstream in October. The
cessing before being delivered as petro- Efficiency gains
chemical feedstock to industrial cities.
plant will be fed with nonassociated gas By maintaining an unwavering focus
from offshore fields, ultimately reaching Construction of gas processing facili- on securing more value from the
2.5 billion scfd. Wasit will have the ties at our Midyan Gas Plant in the Kingdom’s hydrocarbon resources
capacity to produce a maximum of Tabuk region of northwestern Saudi while exercising fiscal discipline, we
1.7 billion scfd of sales gas and frac- Arabia was roughly 50% complete by attained substantial gains in capital
tionate 240,000 bpd of NGL. Once the end of 2015. We anticipate bring- and operating efficiencies across our
it reaches full operating capacity in ing the plant onstream by the end of upstream activities. We used the mar-
mid-2016, the addition of Wasit to our 2016, with the capacity to produce ket downturn to renegotiate contracts
portfolio will represent a significant and process 75 million scfd of nonasso- to achieve significant cost savings for
increase in our gas processing capacity. ciated gas and 4,500 bpd of conden- construction and equipment, and for
The cogeneration plant at Wasit makes sate. The plant will deliver sales gas services related to drilling, well stimula-
the facility self-sufficient in power, and con­densate to power the Saudi tion, testing, and logging, even while
 Saudi Aramco
Annual Review 2015
23

Our operations span the Kingdom from the

Arabian Gulf to the Red Sea, enabling us to
safely and reliably deliver our products to
customers.
24 Upstream:
Sustaining Excellence

Our continued success is based on the application of capital efficiency, technology and
innovation, and operational excellence.

rig count numbers declined globally also minimizing the burning of liquids
across the industry. Through more for power generation.
efficient well designs, we were able to
We eliminated the use of drilling rigs to
increase the average daily drilling depth
replace downhole gauges by deploying
of new gas wells by 21%, enabling
gauges retrievable by wirelines in our
faster well completion times and driv-
offshore Marjan, Safaniyah, and Zuluf
ing costs down.
fields. This rigless approach is safer and
Revitalizing existing vertical wells also delivers significant cost savings by
through drilling horizontal extensions — freeing up drilling rigs for other work.
or sidetracks — improved the crude oil We are evaluating this method for pos-
production rates of older wells. This sible deployment in other fields.
technique extends the operational life
A team of young employees at our
of oil wells, deriving additional value
Hawiyah Gas Plant, in collaboration with
from existing assets by lowering drilling
our Process and Control Systems organi-
costs, utilizing existing flow lines, and
zation, pioneered the development of a
shortening tie-in time.
breakthrough hydraulic turbine electric
Not all efficiency gains are technology generator, or turbocharger, which con-
driven: We optimized 52 tests and verts hydraulic energy that is tradition-
inspections of major facilities to align ally wasted at the plant into electrical
with the needs of customers to maxi-
mize the delivery of products while
 Saudi Aramco
Annual Review 2015
25
power. The technology achieves signifi-
cant cost savings and lightens the
greenhouse gas footprint of the plant.
The turbocharger — the first of its
kind in the world — was deployed in a
pilot demonstration in early 2015 and
performed to expectations with an
average output of 300 kilowatts. The
turbocharger is being monitored and
if deemed a success, may be rolled out
across other company facilities.

Hydrocarbons are the bedrock of the

Kingdom’s economy. Our significant
upstream investments in capital proj-
ects, manpower, and technology are
reflected by our world leading oil pro-
duction capacity and growing supplies
of natural gas.

As the country transitions to a more

diversified economy — one based
on new industries, innovation, and
knowledge — it is our responsibility
to manage the resource base for the
greater benefit of the country and for
energy consumers around the world.
Meeting this challenge year after year
rests on the expertise of our upstream
people to exercise capital and opera-
tional efficiency, deliver world-scale
projects, and pursue the breakthroughs
that will make oil and gas more acces-
sible, sustainable, and beneficial.

Coming onstream in October, Wasit Gas Plant exemplifies our steadfast focus on maintaining
our position of upstream leadership.
26 Downstream:
Maximizing Value

Refining capacity

1.0m bpd
wholly owned domestic

1.9m bpd
domestic joint ventures

2.5m bpd
international joint ventures

5.4m bpd
worldwide

Saudi Aramco share of

3.1m bpd
refining capacity
 Saudi Aramco
Annual Review 2015
27

downstream:
maximizing value
The building blocks of many At Saudi Aramco, we apply business Integrating across the value chain from
of today’s most important acumen, creativity, and cutting-edge upstream through refining, chemicals,
consumer and industrial science to transform our crude oil and base oils, marketing, and power gener-
products are contained in gas resources into a multitude of useful ation is the key to capturing maximum
crude oil and gas — and products that benefit people around value from our resources, while also
Saudi Arabia is fortunate to the world. This generates financial diversifying risk. Integration between
possess both in abundance. value for our company and the nation our domestic and global downstream
— but we do not stop there. We lever- facilities maximizes economies of scale
age each step in the hydrocarbon pro- while securing market share in specific
cess from wellhead to market to create high-value, high-growth markets and
opportunities that produce shared segments. Inte­gration across our global
value for our partners, our customers, downstream system also helps us take
and consumers in the Kingdom and advantage of real-time synergies and
around the globe. facilitates the transfer of best practices
and operational excellence models.
The journey from raw materials to
Locating our refining and chemicals
refined products and chemicals requires
sites adjacent to each other and next to
major investments in strategic partner-
value parks allows us to meet domes-
ships, infrastructure, technology, and
tic and international demand for our
people. In 2015, we continued to make
products, spurs diversification of the
the necessary investments in these
domestic economy, and generates
areas to advance the realization of our
skilled employment opportunities.
downstream strategy and extract the
utmost value from every hydrocarbon
molecule we produce.
28 Downstream:
Maximizing Value

Sadara
Sadara Chemical Co., our It has been hailed a “game Strategically located in Jubail Sadara and PlasChem Park are
joint venture with The changer” in the regional chemical Industrial City, Sadara and its vital components of our overall
Dow Chemical Company, industry — and for good reason. integrated PlasChem value park plan to integrate refining assets
is the largest integrated will become a hub for chemical with chemicals production. This
At the heart of the Sadara com-
chemicals plant ever built conversion plants, manufacturers, approach, replicated across
plex is a “cracker” that breaks, or
in a single phase. and associated service industries, our domestic and international
cracks, a mixed feed of ethane
potentially generating thousands downstream portfolio, will
and naphtha molecules to form
of direct and indirect jobs for generate significant benefits for
new ones, including ethylene and
Saudis. The Sadara complex on the Kingdom by adding value to
propylene, making it the first such
its own will employ more than the resource base, driving skilled
chemicals facility in the GCC.
4,000 people when the plant is job creation, and facilitating
By using naphtha — sourced fully operational. the transfer of knowledge and
from our refining network — as technology — core stepping
The venture marks a number
a feedstock, Sadara will deliver stones for the country’s transition
of milestones for the Kingdom
new streams of high-value chem- to a knowledge-based economy.
and the industry: The first poly-
icals, enabling the growth of
urethane plant and 14 new tech-
new industries that will convert
nologies in Saudi Arabia, the
these streams into products used
largest foreign direct investment
in packaging, construction, elec-
in the Saudi petrochemical sec-
tronics, furniture, and in the
tor, and the largest Islamic bond
automobile industry.
(sukuk) issuance in the Saudi
capital market.
 Saudi Aramco
Annual Review 2015
29

Our integration strategy is paying divi- Saudis, and reinforcing our commitment
dends. Due largely to the commission- to generate maximum value from the
ing of SATORP and the startup of full Kingdom’s hydrocarbon resources.
operations at YASREF, crude oil and Through a calculated mix of wholly
condensate throughput to our domes- owned facilities and joint ventures, we
tic wholly owned and joint venture produce a slate of refined products
refineries rose 9% above 2014 levels. and high-value petrochemicals for
Inter­nation­ally, we pursued organic domestic and international consumers
growth to build capacity and further and industries, helping to enable future
integrate chemicals manufacturing growth and prosperity.
with existing and planned refineries,
The Sadara Chemical Company, the
and inorganic growth by forming joint
world’s largest chemical complex built in
ventures and pursuing potential acqui-
a single phase, ushers in a new era of
sitions to increase market presence
economic diversification and growth for
and enhance chemicals competencies.
the Kingdom, bringing with it new prod-
In 2015, we marked historic milestones ucts, new jobs, and new knowledge.
on our journey to become a world
leading integrated energy and chemi-
cals company. Sadara, our joint venture
with The Dow Chemical Company, We marked historic
commenced first production. Through
our Aramco office in Europe, we
milestones on our
signed a binding agreement to create
journey to be an
integrated energy
ARLANXEO, a new joint venture with
LANXESS, a German specialty chemi-

and chemicals
cals company.

Here in the Kingdom, we achieved

greater levels of self-sufficiency in
power generation and we actively company.
promoted energy efficiency initiatives
while supporting the national agenda
of optimizing the fuel mix through Located in Jubail Industrial City on the
the increased use of natural gas, Arabian Gulf coast, Sadara will be the
renewables, and opportunity fuels first chemicals complex in the Gulf
that otherwise would be wasted, such Coop­era­tion Council (GCC) countries
as petroleum coke. to crack naphtha, which will support the
manufacturing of diverse products not
Growing our downstream business
previously produced in the Kingdom. The
creates additional opportunities — not
complex includes a mixed feed crack­ing
only for our company, but also for new
unit capable of processing 85 million
businesses in Saudi Arabia while deliv-
scfd of ethane and 53,000 bpd of naph-
ering reliable, sustainable energy and
tha as feedstock to produce 3 million
new chemical products to consumers
tons of performance plastics and high-
around the world.
value chemicals per year.

Sadara will generate job opportunities

Domestic refining and for thousands of Saudis and create
chemicals thousands more indirect jobs. On track
for full production by early 2017, Sadara
In 2015, we marked significant achieve- is a key element of our intent to become
ments toward our goal of expanding a leading global chemicals producer.
our refining and chemicals capabilities
within the Kingdom, helping to diver-
sify the Kingdom’s economy, providing
high-quality job opportunities for
30 Downstream:
Maximizing Value

Ethane production
2011–2015
(million scfd)

2015:794
2015: 794

2014: 809

2013: 796

2012: 851

2011: 792

NGL production
2011–2015
(million barrels)

2015: 474.4

0 200 400 600 800 1000

2014: 471.3

2013: 455.9 The Saudization level of our YASREF joint venture refinery is nearly 74%, emblematic of our
efforts to drive job creation.

2012: 482.0

Adjacent to Sadara is the PlasChem by domestic subcontractors and the

2011: 461.4
value park where manufacturers will company has an overall Saudization rate
transform the chemical streams from of nearly 65%. During 2015, we began
Sadara into advanced products for con- exploring the development of a
sumers in emerging markets, create world-class chemicals complex and
new value chains that lift the Kingdom’s associated value park to be integrated
chemicals industry beyond basic com- with SATORP and other existing sites in
modity chemicals, and foster the growth Jubail, further amplifying the economic
of new downstream businesses. These benefits made possible by our down-
new businesses have the potential to stream investments.
create thousands of direct and indirect
0 100 200 300 400 500 Our joint venture with China’s Sinopec,
jobs for Saudis. The Ministry of Petrol­
the Yanbu Aramco Sinopec Refining
eum and Mineral Resources has
Company (YASREF), based in Yanbu’
approved 24 differentiated projects for
on the Red Sea coast, started com-
implementation in the PlasChem Park.
mercial operations in April and has
The Saudi Aramco Total Refining generated nearly 1,200 direct jobs and
and Petrochemicals Company 5,000 indirect jobs, with Saudization
(SATORP) in Jubail, our joint venture at the refinery reaching almost 74%.
with France’s Total, achieved one full YASREF also commenced exports of
year of operations with no lost-time petroleum coke, or petcoke. Petcoke
injuries. Roughly 80% of the refinery’s contains more energy with less ash and
construction activities were executed is a manifestation of our commitment
 Saudi Aramco
Annual Review 2015
31

Our refinery under construction in Jazan will form the industrial heart of the greater Jazan Economic City, helping drive sustainable economic
growth in the region.

to extract more value from crude oil for Saudis. Over a 15-year period, more Also located on the Red Sea coast
while also meeting customers’ needs than 70,000 new jobs could be created is the Rabigh Refining and Petro­
for reliable sources of fuel at com­ as the industrial city attracts a range chemical Company (Petro Rabigh),
petitive prices. of medium and light industries and our integrated refining and petrochem-
associated service companies. ical venture with Sumitomo Chemical
Sadara, SATORP, and YASREF are cor-
of Japan. We are expanding the plant
nerstones of our commitment to become The Jazan project includes the construc-
in a second phase that will increase
a world leading refiner and chemicals tion of the world’s largest integrated gas-
the production capacity of the ethane
producer, add value to the country’s ification combined cycle (IGCC) power
cracker, add a new world-scale aro-
resource base, and help drive the plant, capable of utilizing the refinery’s
matics complex, and create 22 process
Kingdom’s economic growth and vacuum residue stream to efficiently
plants. The Phase II facilities will pro-
diversification. generate nearly 4,000 megawatts of
duce a variety of high value-added
electricity — enough to power the
Construction of our wholly owned petrochemical products, supplying
refinery and also supply electricity to
Jazan Refinery and Terminal in feedstock for a diverse array of indus-
the Jazan Economic City tenants. By
the Kingdom’s southwest continued tries. The project is on track for initial
the end of the year, engineering for the
steadily in 2015. The 400,000 bpd commissioning in mid-2016. We also
refinery was 91% complete, procure-
refinery and terminal facilities are the launched the Technical Learning
ment was 52% complete, and construc-
industrial heart of the government’s Academy at Petro Rabigh to train
tion was 14% complete. Com­missioning
greater Jazan Economic City project, and young operators and equip the Saudi
of the Jazan Refinery and completion
part of a broad plan to drive sustainable workforce with advanced skills.
of the IGCC power plant are scheduled
economic development in the region
for 2018. The terminal project is expected
and create employment opportunities
to be completed in April 2018.
32 Downstream:
Maximizing Value

We continued our collaboration with network and our efforts in 2015 sup-
Sumitomo Chemical on marketing and ported this goal.
construction activities for the Rabigh
Saudi Arabia, through Saudi Aramco,
PlusTech Park, an industrial zone inte-
is the number one crude oil supplier
grated with Petro Rabigh where manu-
to six major Asian countries — China,
facturers can establish factories to create
Japan, South Korea, Taiwan, the
products from the petrochemical feed-
Philippines, and India — but our rela-
stock produced by Petro Rabigh. Thus
tionship with the region goes far
far, 29 local and international compa-
beyond the reliable supply of petroleum
nies from the plastics conversion indus-
energy to include research alliances,
try have signed agreements to operate
materials supply, education, engineering
in the park. By the end of 2015, 11
and technical services, training, and
conversion companies had started pro-
other mutually beneficial endeavors. In
duction with the remaining 18 firms in
the downstream sector, we participate
the design or construction phase. Out
Integrated with Petro Rabigh, the manu- in integrated refining, chemicals, mar-
facturers in PlusTech Park amplify the value of the 29 companies, 21 are joint ven-
keting, and distribution companies in
of our hydrocarbon resource base and tures between local owners and inter-
create jobs. China, Japan, and South Korea.
national partners, affirming Petro Rabigh
and PlusTech Park as accelerators of the In China, our crude oil exports account
Kingdom’s economy and engines for for nearly 10% of the country’s demand.
domestic job creation. Our portfolio of downstream assets in
China is designed to benefit energy and
equity chemicals A project to build a new clean trans-
feedstock consumers and maximize
portation fuel plant at our Riyadh

7,016kt per year

production capacity returns on the Kingdom’s hydrocarbon
Refinery is on track to be completed
resources. In the Fujian Province, we
in 2016. The new plant will increase
have an equity ownership in a joint
gasoline production by 2,000 bpd
venture called the Fujian Refin­ing and
and produce premium low-sulfur fuel,
Petrochemical Company Limited
helping improve air quality in the
(FREP). New ethylene oxide and ethyl-
Kingdom. We are also exploring the
ene glycol units, part of a debottle-
potential of adding a full-conversion
necking project mechanically completed
refinery and petrochemical plant to our
at year-end 2014, came onstream in
existing Yanbu’ Refinery, increasing
the first half of 2015, increasing the
its competitiveness and helping to sat-
plant’s productivity.
isfy domestic demand for refined fuels.
Combined with our YASREF refinery
joint venture in Saudi Arabia, FREP and
Global refining and the Sinopec SenMei (Fujian) Petroleum
chemicals Company (SSPC), a fuels marketing
and distribution joint venture company,
We continuously explore and evaluate herald the opening of what we antici-
opportunities, whether grass roots or pate being a modern “silk road” busi-
participatory, to grow our refining and ness alliance with companies in China.
chemicals portfolio, particularly in This alliance will enable opportunities for
China and the ASEAN region, an area investments in the energy and chemi-
we are targeting for sustained growth. cals sectors in China and Saudi Arabia,
Our partnerships in refining and mar- and support research to improve
keting ventures in China, Japan, South energy efficiency, lower greenhouse
Korea, and the United States enable us gas emissions, and ensure sustainable,
to traverse the length of the value chain affordable energy.
from wellhead to consumer, adding Our investment in South Korea’s S-OIL,
value to our resources at every step. one of the country’s leading refiners,
We envision developing an integrated complements our downstream ven-
refining, marketing, and petrochemical tures in China and Japan and creates
new opportunities along the value
 Saudi Aramco
Annual Review 2015
33

We are developing
an integrated
refining, marketing,
and petrochemical
network.”

Veteran personnel oversee our Kingdomwide

production, processing, and distribution
network from our Operations Coordination
Center, and mentor the next generation.
 34 Downstream:
Maximizing Value

The Motiva refinery in Port Arthur, Texas,

is a key element of our strategy to build
an integrated, global downstream system.
 Saudi Aramco
Annual Review 2015
35

chain in the major energy markets In the United States, where we are the Ship calls at
in Asia. In 2015, the S-OIL Board number two supplier of crude oil, we Saudi Aramco terminals
approved the funding for a project continued to upgrade equipment and
2011–2015
to upgrade facilities to improve the improve operating efficiencies at the
(crude oil)
competitiveness of its fuels business Motiva Refinery in Port Arthur, Texas,
and to promote further petrochemicals the largest refinery in the U.S. The 2015: 2,210
integration by expanding its olefins refinery is operated by Motiva Enter­
production. prises, a refining and marketing joint
venture between our Houston based 2014: 1,936*
In November, we signed a Heads of
subsidiary, Saudi Refining Inc., and
Agreement with PT Pertamina, the
an affiliate of Shell Oil. Motiva’s high-
national oil company of Indonesia, to 2013: 2,018
quality fuels are marketed under the
formalize key business principles for
Shell brand through roughly 8,300
the joint ownership, operation, and
retail stations to millions of consumers
upgrade of the Cilacap Refinery located 2012: 2,068
in the eastern, southern, and Gulf coast
in Central Java, Indonesia. The proposed
regions of the U.S. In 2015, work
upgrade will allow the refinery to
commenced to integrate the company’s 2011: 1,959
process more sour crude oils, meet high-
two Louisiana refineries in Convent and
quality product specifications, and pro-
Norco, optimizing the product slate
duce basic petrochemicals and lubricant
and reducing operating costs. *Due to further data reconciliation,
base oils. The basic engineering design
this figure has been revised.
study for the refinery upgrade is We marked a significant milestone in
expected to be completed in 2016. our journey to become a globally inte-
grated energy and chemicals company
Ventures such as these form an essen-
when our European subsidiary, Aramco
tial part of our approach to cultivate
Overseas Company B.V., and LANXESS,
downstream opportunities in Asia, an
a German specialty chemicals company,
area we believe will provide long-lasting
signed a binding agreement in Sep­tem­
prospects for investment, collaboration,
ber to create ARLANXEO, a new 50-50
and technology development to meet
joint venture company. The proposed 0 500 1000 1500 2000 2500
the growing energy needs in the region.
joint venture will develop, produce, mar-
We plan to strengthen our network ket, sell, and distribute performance
of offices in Asia by creating an office polymers used by global tire and auto
in the suburbs of New Delhi in Gurgaon, parts manufacturers, and in the con-
India. Aramco Asia, headquartered in struction and life science industries.
Beijing, China, oversees our regional
Saudi Aramco brings resources to
strategy, providing a range of services
continue investing in new technology
and business support to us and our
while LANXESS will contribute to the
partners. The incorporation of the
joint venture its existing global syn-
Aramco Asia India Private Limited
thetic rubber and elastomers business
office, which will be absorbing the
units, 20 production sites, and four
services of Aramco Overseas Company
research centers in nine countries
B.V.’s branch office in India, will enhance
across Europe, Asia, and the Americas.
our Aramco Asia network to facilitate
The transaction is subject to approval
our growing interests in India.
by authorities, with closing of the
transaction expected in the first half
of 2016.
36 Downstream:
Maximizing Value

2015 exports by region

(percent)

6.4
6.4

65.0 crude oil 16.6

5.6

6.8
9.4

refined
34.5 49.3
products

Far East U.S.

Northwest Europe Other
Mediterranean
Our joint venture with LANXESS, a specialty chemicals company, diversifies our portfolio and
will lead to greater economic opportunity in the Kingdom.

Once established, the joint venture will Sales and marketing

study global growth prospects, includ-
ing potential opportunities in the Saudi Aramco Products Trading
Kingdom, further promoting economic Company (ATC), our wholly owned
diversification and creating high-skill, subsidiary for trading petroleum prod-
high-value manufacturing jobs. The ucts, traded an average of more than
research programs undertaken by the 1.1 million bpd of refined petroleum
joint venture, such as the development products and 3.7 thousand tons per
of energy saving tires, complements our day of chemical products. In 2015,
own research into fuel efficient engines. ATC expanded its market presence by
reaching out directly to third parties
The partnership with LANXESS diversi- for product sales and purchases, opti-
fies our portfolio, increases our com- mizing operations of the storage and
petitive position, and scales up our blending facility, introducing chemical
global presence while creating more products sales and marketing, and
commercial opportunities for sustainable increasing chartering activities in
growth in Saudi Arabia by unlocking response to growing trade volumes.
the full economic potential of the
Kingdom’s hydrocarbon resources.
 Saudi Aramco
Annual Review 2015
37

Our participation in integrated refining, chemicals, and marketing companies in the Far East allows us to traverse the entire value chain,
adding value at every step.

Distribution We also continued construction work By developing wholly owned world-

to increase supplies of natural gas to class facilities and participating in refin­
We operate a Kingdomwide distribu­ the Central and Western regions of ing and chemicals joint ventures, both
tion network of pipelines, bulk plants, Saudi Arabia through our Master Gas within the Kingdom and globally, we
air refueling sites, and terminals that System. The Phase 1 expansion, which continued to amplify the economic
safely and reliably deliver crude oil, NGL, will increase East-West capacity from impact of our downstream investments,
gas, and refined products to power the 2.0 billion scfd to 2.6 billion scfd, was facilitate sustainable industrial develop­
Kingdom’s economy. Our network of 27% complete at year-end and is ment, and drive job creation.
pipelines is nearly 22,000 km in total scheduled to be completed in 2017.
length. To ensure we meet future The overall project, slated to be com­
needs for crude oil from our domestic pleted in 2018, will add nearly 950 km
and international customers, we are of new pipelines to the network. The
planning to increase the capacity of additional volumes of gas will reduce
our 1,200 km East-West Crude Oil the need to burn liquids for industry
Pipeline from 5 to 7 million bpd. and power generation, thereby helping
lower greenhouse gas emissions.
38 Technology:
Pioneering Advances

Key figures

226
new patents filed

123
new patents granted
 Saudi Aramco
Annual Review 2015
39

technology:
pioneering advances
Sustained investment in To achieve this goal, we foster a culture focus on the development of globally
technology — particularly of innovation and knowledge sharing. competitive technologies and the
in today’s challenging By investing in new technologies, we establishment of a technology port­
business climate — is a key seek to improve operating efficiencies, folio that creates value across the
enabler of our company’s decrease greenhouse gas emissions, business and supports the creation
long-term resilience and and create greater economic opportu- of a vibrant knowledge economy in
essential for us to realize nities for the people of the Kingdom. the Kingdom.
our strategic intent of
We seek to create sustainable compet- Collaborating with local and global
becoming the world’s
itive advantage through the introduction centers of technical excellence comple-
leading integrated energy
of a balanced portfolio of technically ments and enhances our own in-house
and chemicals company.
feasible and commercially viable tech- research capabilities. Within the
nology options — all in support of our Kingdom, we have joined efforts with
goal to realize the greatest value from research universities to advance our
the Kingdom’s hydrocarbon resources. work on new technologies for
As part of our broader efforts to upstream and downstream disciplines,
address climate change on a global and we nurture alliances between
scale, we are pursuing technological academia and industry by engaging
solutions to cut greenhouse gas emis- with leading energy service companies
sions while also growing sustainable in research and innovation parks.
supplies of energy.
Internationally, we have productive
The alignment we have forged between research and education associations
our research and technology delivery with world-renowned technical universi-
organizations and our upstream and ties. We also invest globally in startup
downstream businesses ensures a and high-growth companies developing
40 Technology:
Pioneering Advances

FUELCOM
The benefits of crude oil as At Saudi Aramco, we seek to from oil suitable for the next Novel technologies developed
the basis for transportation increase the efficiency and generation of high-efficiency through the FUELCOM program
fuels — in terms of the energy environmental performance of and low-emission combustion could dramatically alter the way
inherent in every molecule, fuels derived from oil to ensure engines. One of the technologies automobile engines are config-
its reliability, accessibility, future generations can enjoy the under investigation is a new ured and the composition of fuels
and affordability — are economic benefits of sustain- engine-fuel system that could that power them. The results of
unsurpassed. able supplies of petroleum while enable diesel-like levels of effi- this research have the potential
also protecting the natural ciency in a gasoline engine, but to set a new course for the
environment. with far lower emissions and global transportation industry
higher mileage. and create greener, more
What will fuel the engines of
efficient cars.
tomorrow? The answer is under Launched in February 2013,
investigation by our global FUELCOM is a 10-year collabora-
network of research centers tive research program between
through an initiative known as the Fuel Technology team at our
FUELCOM: Fuel and Combustion R&D Center in Dhahran, the
for Advanced Engines. The Clean Combustion Research
FUELCOM program addresses Center at the King Abdullah
fundamental aspects of hydro- University of Science and Tech­
carbon fuel combustion in recip- nology in Thuwal, Saudi Arabia,
rocating, or piston, engines. The and teams from our Paris and
goal is to formulate fuels derived Detroit research centers.
 Saudi Aramco
Annual Review 2015
41

Growing our global research network

requires sustained investments in people,
facilities, and equipment.

technologies aligned with our vision. toward our vision of becoming a pio-
These relationships allow us to enhance neer in technology development.
the intellectual rigor of our research by
Investments in building our research
providing access to top qualified talent
capacity are designed to achieve a last-
and creating opportunities for training
ing competitive advantage and make
and development.
us more adaptable and resilient as a
Strategically located in technology company. Our unwavering dedication
hubs in key energy markets, our global to pursue breakthrough technologies
research network attracts leading and generate innovative ideas is a cor-
researchers interested in doing the nerstone of our commitment to help
best work of their careers. The network build a secure energy future here in
provides an environment for innovation the Kingdom, and for people around
to flourish and underscores our drive the world.
to achieve global leadership in energy-
related technologies. Our approach is
steadily building results. For example, Technology highlights
during 2015, we were granted a record
Pursuing game-changing innovations
number of patents — 123 — by the
generates potentially wider benefits,
United States Patent and Trademark
such as creating businesses to manu-
Office, marking significant progress
facture and service new technologies,
42 Technology:
Pioneering Advances

The Makman-2 supercomputer ranks 28th on a global list of top computers, and improves our ability to manage hydrocarbon reservoirs
for the long term.

inspiring a new generation of Saudi • Our GigaPOWERS simulator success- per second, the Makman-2 super-
researchers and scientists, and fully tested a 1.2 billion cell model, computer represents a 260% growth
enabling a globally competitive one of the largest real field simulation in our total simulation computing
Saudi energy sector. models in the industry. The model will capacity compared to 2014. Along
help evaluate production strategies for with other supercomputers in our
Upstream Khuff reservoirs in the Ghawar field. EXPEC Computer Center, the
We focus on key domains within explo- We also made significant progress in Makman-2 will enable us to create
ration, drilling, and production with developing the next generation of multi-billion cell simulation models,
the goal of increasing the Kingdom’s GigaPOWERS with the deployment further improving our ability to man-
hydrocarbon reserves and improving of the Makman-2 Reservoir Simula­ age reservoirs for the benefit of
recovery rates of oil from major reser- tion Supercomputer, which ranked generations to come.
voirs at a lower cost and with greater 28th on a global list of top super-
reliability. Some upstream technology computers. With a computing
developments from 2015 included: capacity of 2.25 trillion operations
 Saudi Aramco
Annual Review 2015
43

Our investments •W
 e completed a field prototype of

in research
our new cable deployed electric
submersible pump, which can be

are designed to
deployed and retrieved in one
day — independently of a workover

achieve a competitive
rig — significantly lowering costs
for this process. We also focused on

advantage.
developing a reliable high-speed
electric submersible pump for slim
hole completions, with the potential
to further boost operating efficiencies.
• Heavy oil mobilizer technology could •D
 ate trees, the symbol of Saudi Arabia,
enhance the recovery of heavier may offer an ingenious, low-cost
grades of crude oil, leading to solution to a drilling challenge:
increases in reserves of recoverable Preventing the loss of expensive
oil. We are also evaluating the drilling mud. We examined the waste
potential for chemical and thermal components of date trees to deter-
enhanced oil recovery technologies mine whether this material can be Our research into SmartWater Flooding
as part of this effort. effective in sealing rock formations shows the potential to raise our oil
recovery rate.
while drilling oil and gas wells.
• S martWater Flooding holds the
Drilling fluid engineers engaged with
potential to improve our oil recovery
organizations in al-Hasa, an oasis in
rate by an additional 4% to 8% from
the Eastern Province, and performance
carbonate reservoirs. We conducted
evaluation tests produced positive
demonstration projects in North
results. Final testing is scheduled for
‘Uthmaniyah and Khurais, drilled
completion in early 2016. We have
pilot wells, and deployed monitoring
filed three patent applications in the
and surveillance equipment to acquire
United States for this environmentally
log data. We also completed detailed
friendly solution that also may enable
design and engineering work for the
new business and job creation in
main surface facilities.
local communities. We are also
• A pioneering seawater-based fractur- evaluating the potential use of local
ing fluid, developed in-house, was sand as an alternative proppant in
successfully tested in an acid fractur- fracturing operations.
ing job in the field. This approach,
• We filed a patent application for our
which leverages our extensive sea-
high-density cement technology,
water infrastructure used to support
which provides better wellbore isola-
reservoir water flooding, could help
tion in high-pressure gas wells. This
preserve groundwater resources. Patents
technology reduces gas migration in
•O
 ur first demonstration project for 2011–2015
deep gas wells and helps eliminate
carbon dioxide (CO2) sequestration expensive remedial operations. We
250
250
and enhanced oil recovery, located in conducted 10 field tests and plan to 226
the North ‘Uthmaniyah area of the cement 25 wells in the Khursaniyah 200
200
Ghawar field, started injecting CO2 in field with the new formulation.
July 2015. The expected gain 150
in oil 150
recovery from the CO2 injection is Downstream and cross-business 123
projected to be between 7%100and Downstream, we focus on anticipating 100
9%. A state-of-the-art monitoring customer needs for refined products
and chemicals and develop technolo- 50
and surveillance plan to track50 the
CO2 plume in the subsurface, moni- gies to ensure we meet the growing
0 0
tor the performance of the CO2 expectations of our stakeholders.
2011 2012 2013 2014 2015
the awarded During
injection process, and assesspatents 2015, we continued to push the
patents filed
effectiveness of the field pilot2015
was123 boundaries
2015 226of downstream technology
2014 99 2014 154
designed and deployed. 2013 57 in our2013
pursuit
151 of breakthroughs. Key Filed
2012 58 areas2012 129 have included oil
of focus Awarded
2011 31 2011 221

Awarded
44 Technology:
Pioneering Advances

upgrading, crude oil to chemicals incorporate this technology into our

technology, oil and gas treatment, the processes for developing feedstocks.
development of catalysts to raise the Our SuperButol™ technology may
efficiency of our refining operations, play an important role in producing
the progression of technologies to cleaner fuels and lowering emissions.
allow for the direct conversion of crude
•W
 e leveraged our collaboration with
oil to high-value derivatives, enhanced
the King Abdullah University of
network integrity, and advanced mate-
Science and Technology (KAUST)
rials for high-growth sectors.
to examine the use of ceramic
•W
 e evaluated a new catalyst (CAN-15) membranes for the pre-treatment of
developed at our Riyadh Refinery, produced water before desalination,
which enhances performance in the and to provide guidelines for select-
processing of heavy, de-metalized oil ing membranes. Laboratory tests
(oil that has had heavy metals such as proved the feasibility of using
vanadium removed). The catalyst has ceramic membranes to treat water
boosted the production of distillates, produced from oil and gas fields.
We foster a culture of innovation to make and as a result is creating additional Ceramic membranes offer a reliable,
petroleum energy more sustainable and to
build a secure energy future. value. A commercial trial is scheduled cost-effective, and environmentally
for completion in early 2016. friendly method for treating pro-
duced water. Our R&D Center also
•O
 ur unconventional technology for
developed a preliminary design for
oil upgrading with a supercritical
using membrane distillation to desali-
water process seeks to increase the
nate produced water at our gas-oil
API gravity of oil, and thereby raise its
separation plants. Research is ongo-
value for commercial production. Our
ing to develop these techniques with
pilot plant validated the technology
the objective of treating produced
and work is underway to build a
water on-site at company production
10 bpd demonstration unit in collab-
facilities, helping conserve the
oration with S-OIL of South Korea,
Kingdom’s freshwater resources.
with full operations planned for 2016.
•W
 e pioneered an acoustic based
•W
 e continued development of a
dewatering system that permits the
technology for converting crude oil
timely control of water discharge from
to chemicals, resulting in significant
the dewatering tank system. An
improvements in the yields of ethylene
initial pilot system was installed in a
and propylene. Our project team col-
crude oil tank at the Riyadh Refinery
laborated with a technology company
in 2009 and the system was pat-
and a university in the United States
ented in 2015. The technology costs
to design, build, and operate an inte-
70% less than a conventional dewa-
grated ethylene pilot plant to demon-
tering system. The first phase of the
strate the feasibility of the technology.
deployment covered 31 storage tanks
The potential for this pioneering
and resulted in significant cost avoid-
technology to add value to our crude
ance. We plan to install this system in
oil resource base is significant.
terminals, bulk plants, and refineries
• T he one-step process offered by our in the second phase of deployment.
proprietary SuperButol™ technology In addition, we are evaluating the
enhances the value of mixed butane commercialization of this technology.
streams and produces a clean burning
fuel additive that boosts gasoline Strategic
octane. During 2015, we worked Greenhouse gas management, cleaner
with a technology partner to develop burning fuels, and more efficient
a licensing and deployment system engines were our key strategic research
and also reached agreement with focuses during 2015. The goals remain
another technology partner to to radically improve fuel efficiency, lower
develop a feasibility study to emissions, and provide more affordable
energy — benefits with global impact.
 Saudi Aramco
Annual Review 2015
45

Our collaboration with the King Abdullah University of Science and Technology includes research in the areas of robotics, materials science,
and information technology.

•W
 e continued our investigation of •A
 t a 15 megawatt thermal boiler •W
 e continued our research efforts
solutions that reduce CO2 emissions facility in the United States, we suc- focusing on the technologies needed
from transportation through a cost- cessfully tested the oxy-combustion of to develop advanced engine-fuel sys-
effective onboard vehicle CO2 capture heavy residue with pure oxygen and tems for gasoline and diesel engines.
system. Our carbon management with enriched air. Test results indi- Our goal is to promote the develop-
technology includes an onboard sys- cated an increased combustibility of ment and adoption of efficient and
tem capable of capturing 25% of the fuel with 50% lower nitrous cost-effective oil-based engine-fuel
the CO2 emitted through vehicular oxide emissions, demonstrating the systems while addressing global CO2
exhaust systems, with a goal to potential of using difficult to burn and energy demand challenges. We
capture as much as 60%. heavy residues for efficient and clean have demonstrated fuel efficiency
power generation with the potential benefits from low octane gasolines
for 90% CO2 capture. in heavy- and light-duty engines at
46 Technology:
Pioneering Advances

our R&D Center in Dhahran and at program at all of our bulk plants to This technology determines the effec-
our global research centers in Paris help support the country’s drive to tiveness of one or more seals that
and Detroit, and have shared our reduce fuel consumption. provide a watertight barrier to isolate
findings with the automotive indus- hydrocarbon inflow control devices in
In support of our strategy to maximize
try. As a result, in 2016 we envision open hole wells. The commercialization
value creation, we are expediting the
establishing our first-ever collabora- and deployment of this technology
migration of projects from research to
tion with one of Europe’s leading will deliver significant cost avoidance
development and deployment. This
automakers. savings through the early detection of
effort includes prototyping, licensing,
water leakage in well completions,
• F uel detergents to increase fuel effi- and commercialization. In addition to
thereby decreasing the instances of
ciency are one of the methods under developing new chemicals and tools, we
well closures.
investigation to help reduce domestic are aggressively evaluating local mate-
consumption of motor fuels. Results rials and chemicals to replace imported Our inflatable contingency ease scraper
from fleet trials showed potential products to reduce costs and create technology, which helps prevent pro-
annual Kingdomwide fuel savings of opportunities for local businesses. In duction loss in offshore facilities, will
more than 5.6 million barrels per year 2015, two licensed technologies were be commercialized through a licensing
of diesel and more than 3 million signed with third parties during the agreement signed with a new company
barrels per year of gasoline. The year to commercialize our intellec­ created by IK Inter­national in Norway
detergents are being piloted at two tual property. and our Saudi Aramco Energy
company bulk plants. If the estimated Ventures (SAEV) corporate capital
A licensing agreement was signed with
financial savings obtained in the fleet venture subsidiary.
a Norwegian technology company to
tests can be confirmed in the bulk
commercialize our patented technol-
plant trials, we plan to implement the
ogy for monitoring packer integrity.

Global research network

research center technology office

Aberdeen
Delft
Paris

Detroit
Boston Thuwal Dhahran
Beijing

Houston
Daejeon
 Saudi Aramco
Annual Review 2015
47

The opening of our research center in Beijing, China, strengthens our capability to develop upstream technology, including improvements to
reservoir management to maximize recovery.

Investments in Paris), and three technology offices

(Aberdeen, Daejeon, and Delft), all of
• In November, we inaugurated our
Detroit Research Center. The
technology aid which are aligned with our R&D Center 4,645 square meter Center is config-

affordable,
and EXPEC Advanced Research Center ured with four fuel and engine dyna-
(EXPEC ARC) in Dhahran. mometer research labs and features

sustainable
a vehicle lab equipped with an envi-
Our global research network marked
ronmental chamber. The Center can
two significant milestones in 2015:

energy supplies.
accommodate light-duty and heavy-
• Our Beijing Research Center duty fuels research programs and
became operational and 42 employ- also offers full on-site integration and
ees were on staff by the end of the the demonstration of new vehicle
year. The Center conducts research technologies. Our Strategic Transpor­
Global research network
on chemical enhanced oil recovery tation Analysis Team, based in the
Establishing and growing a global
and advanced seismic imaging tech- Detroit Center, provides dynamic
research and technology presence is
nologies, including automated fault industry analysis relevant to our fuels
an integral component of our drive to
detection and improvements in data research and development activities.
develop breakthrough solutions for the
quality through super resolution. The
challenges faced by our industry. The Academia and industrial
results of our research are already
network we have established reflects collaboration
producing cost savings and improve-
our belief that investments in technol- Collaboration with global universities
ments in exploration and reservoir
ogy development are critical for main- and industry leaders, both domestically
management. The Center is also
taining an affordable, accessible, and and internationally, provides opportu-
evaluating the expansion of research
sustainable energy supply to the world nities for developing and acquiring new
activities into the downstream sector
while also reducing greenhouse gas technologies, evolving new skills in our
in areas such as transportation effi-
emissions. workforce, recruiting top talent, and
ciency, greenhouse gas management,
Our research network includes our advanced control and power systems, helping to strengthen the research
in-Kingdom research center at KAUST, robotics, materials science, nanotech- capacity of in-Kingdom universities in
five international research centers nology, and advanced computing. areas aligned with our business objec-
(Beijing, Boston, Detroit, Houston, and tives. For example, in 2015 we signed a
48 Technology:
Pioneering Advances

Memorandum of Understanding with address business and technical chal-

Dammam University to strengthen lenges of vital importance to the
the university’s education, research, petroleum industry.
and economic development.
We also continued to support work by
Elsewhere in the Kingdom, our joint leading energy companies associated
efforts with KAUST focused on with DTVC, which manages a research
advancing research in downstream and innovation park adjacent to and
domains such as fuel technology and integrated with KFUPM. In 2015, we
cleaner burning engines, as well as established a dedicated Technology
other leading-edge developments in Coordination Group, and met regularly
information technology, materials sci- with DTVC companies to facilitate new
ence, nanotechnology, robotics, and research and development.
solar energy materials. A new Saudi
Researchers in DTVC have begun efforts
Aramco R&D Center is under develop-
to tackle challenges in geophysics and
ment on the KAUST campus. When
petroleum engineering, refining and
fully operational, the 15,300 square
petrochemical processes, water man-
meter center will host 139 full-time
agement, energy efficiency, renewable
researchers and support staff exploring
energy, and advanced computing. The
carbon management, computational
work underway at DTVC supports the
modeling, oil and gas network integra-
wider transition to a knowledge-based
tion, and environmental protection. In
economy and breakthroughs in these
addition to our 23 full-time scientists
research domains will have far-reaching
and engineers currently conducting
benefits for the Kingdom’s economy.
research at KAUST, we also sponsor
employees pursuing advanced degrees In 2015, Huawei joined the roster of
at KAUST and hire graduates, creating international energy technology firms
a conduit of talent to drive innovation established at DTVC. A Joint Innovation
in our company and in our industry. Center dedicated to pursue informa-
tion and communication technologies
Research performed as part of our
for the oil and gas industry will focus
multifaceted interactions with the
on areas of interest such as unified
King Fahd University of Petroleum
communications, high-performance
and Minerals (KFUPM), located
computing labs, mobility, and the
adjacent to our headquarters, spans
digital oil field.
upstream and downstream focus areas,
including enhanced oil recovery, res­ Our research and education association
ervoir quality prediction, near surface with the Massachusetts Institute of
seismology, drilling optimization, sub- Technology (MIT) in the United States,
quality gas treatment, CO2 capture fostered by our research center in
and utilization, and the upgrading of Boston, continued to advance upstream companies specializing in drilling ser-
heavier crude oils to lighter, more valu- and downstream research efforts, with vices, well technology, spectrometers,
able grades. a focus on low carbon energy, model- and construction technology.
ing, visualization, simulation, advanced Our investment in Novomer, a U.S.-
In 2015, we continued work with
materials, and power generation. based technology company that uses
KFUPM to create a new College of
Petroleum Engineering and Geo­ CO2 as feedstock to produce high-
Investing in energy
sciences, a project that includes the performance, cost-effective, and envi-
Our commitment to invest in innovation
construction of a new laboratory build- ronmentally friendly polymers and
reaches beyond our own global research
ing and the establishment of a private chemicals, is a landmark step in our
network and collaboration with universi-
subsidiary company under the Dhahran journey to diversify further downstream.
ties. Our SAEV corporate capital venture
Techno Valley Company (DTVC) to subsidiary invests in startup and high-
support associated nonacademic
Domestic alliances
growth technology companies that offer We support collaboration through an
activities. The new college will provide the potential to maximize the value of expanding “open innovation network”
a collaborative and cross-disciplinary our resource base, create new indus- that taps into cross-functional sources
environment that will bring faculty, tries, and spur job creation. In 2015, of scientific expertise and researchers
students, and industry together to SAEV completed four investments in around the world. The alliances we have
 Saudi Aramco
Annual Review 2015
49

Strategically located in the heart of the

automotive industry, our Detroit Research
Center investigates engine-fuel systems
to boost efficiency and lower emissions.

created for cooperative engagement the Research Products Development City for Science and Technology (KACST)
will secure our commitment to the sus- Company (RPDC), a partnership with and the Saudi Technology Develop­
tainability of our resources, promote government, academia, and research. ment and Investment Com­pany
growth in the domestic economy, and We believe that organizations such as (TAQNIA), to create the Saudi
help drive job creation opportunities RPDC will bring people together and Company for Research Elements
for Saudi businesses and citizens. help turn their ideas into real products, (SARE), which will provide a compre-
generating sustained economic devel- hensive and robust supply chain man-
To further boost the spirit of innova-
opment and helping spur growth in agement service for all in-Kingdom
tion in the Kingdom, we participate in
the domestic R&D sector. During 2015, research centers and universities.
the Saudi Arabia Advanced Research
four research projects were identified
Alliance Agreement (SAARA), an Our investments in, and support for, a
for commercialization. A market assess-
alliance formed to promote intellectual wide spectrum of research initiatives
ment was conducted and phased proj-
property commercialization and tech- and alliances, at home and abroad,
ect development proposals were
nology development. Our participation affirm our commitment to become a
developed in coordination with RPDC.
in this initiative includes providing global leader in the development of
project funding and technology proj- As part of our greater efforts to local- energy-related technologies while also
ects for potential development to ize service and material supply services, supporting the creation of a knowledge-
SAARA’s commercial entity known as we collaborated with the King Abdulaziz based economy in the Kingdom.
50 HS&E:
Protecting Resources

Key figures

lost-time injuries per 200,000

0.06
man-hours

22:1
minor to major injury ratio
 Saudi Aramco
Annual Review 2015
51

health, safety,
and environment:
protecting resources
An enterprise-wide, organi- Managing our performance in these Medicine, delivers the best possible
zationally driven focus on areas in daily operations is critical, care for our people and contributes
health, safety, and the above all, for managing risk. Mitigating to the health and well-being of the
environment is a central health risks promotes well-being and people of Saudi Arabia through collab-
tenet of our operations. ensures employees, our most valuable oration, research, and education.
resource, can do the best work of their
Safety is one of our five core values
careers. A top-down approach to miti-
and we strive to embed a safety first
gating safety risks creates a work cul-
mindset, both on- and off-the-job, in
ture that places a premium on ensuring
our employees and their families, and
employees have the training, equip-
in contractor companies working with
ment, and protocols they need to com-
us. During 2015, we bolstered many
plete tasks safely. Managing risks to
of our safety initiatives as part of our
the environment minimizes the impact
efforts to develop a safety culture. We
of operations on local and global com-
continued our efforts to improve road
munities and helps to protect and sus-
and traffic safety in the Kingdom — a
tain the natural environment for future
challenge that confronts not only our
generations.
employees but everyone who lives in
We have earned a reputation for dili- the country.
gently supporting and enhancing the
On rare occasions, unfortunate inci-
health of our employees, retirees, and
dents may occur. One such incident
dependents. Johns Hopkins Aramco
occurred on August 30 when a fire
Healthcare (JHAH), our health care
broke out at a leased residential
joint venture with Johns Hopkins
compound in the city of al-Khobar.
52 HS&E:
Protecting Resources

Regrettably, our Aramco family lost natural environment provide a founda-

one employee and nine dependents. tion for future progress and develop-
Additionally, 83 individuals were ment. Our desire for a prosperous
admitted to JHAH and local hospitals tomorrow drives our commitment to
with injuries. We responded immedi- continuously improve our health, safety,
ately to find replacement housing for and environmental performance through
those who were displaced from their innovative thinking, the creative appli-
homes and treated the injured. We cation of technology, and setting new
cooperated with the government in stand­ards of excellence.
its investigation and used the lessons
learned to strengthen our safety proce-
dures to prevent similar incidents. Health
We continued making progress toward Realizing the goals for our company and
reducing the environmental impact of the Kingdom is only possible through
our operations through a number of the sustained health and well-being
means, in particular, the search for of our employees and their families.
technological solutions to lower green- In 2015, JHAH offered a wide range
house gas emissions through carbon of wellness and preventative health
capture and sequestration, and research programs to improve the quality of the
into advanced engines and fuel for- health care experience for employees,
mulations. In a major milestone, we retirees, and their families. JHAH also
launched a pilot program to capture CO2 introduced new technologies and pro-
and inject it underground to enhance grams designed to enhance patient care
oil recovery. We also worked to improve and treatment, including a new robotic
wastewater management and preserve urology surgical system, an outpatient
groundwater resources, conserve and cardiac rehabilitation program, and a
enhance biodiversity, and minimize fellowship program to develop patient
waste disposal. safety and quality teams.

Our efforts to protect the environment

are not limited to Saudi Arabia. We
also endeavor to effect positive change We endeavor to
on a global scale. With other leaders
in the energy industry, we support the effect positive change
efforts of the Oil and Gas Climate
Initiative, a collaborative effort that on a global scale.
seeks to spur practical action in areas
such as the role of natural gas, green-
house gas reduction, and lasting energy As part of the push to improve and
solutions. At the United Nation’s Climate expand health care services for our
Change Conference, the 21st Conference employees, work progressed in 2015
of the Parties (COP21), held in Paris to upgrade the al-Hasa Health Center,
in December, we exhibited elements now part of the JHAH network, to
from our portfolio of greenhouse gas establish an 80-bed community hospi-
management technologies and initia- tal. The upgrades include additional
tives, including carbon capture and capabilities and improved inpatient and
storage, and research into cleaner, more outpatient care. When completed in
efficient engines. We also participated 2016, the facility will be capable of
in the 6th Ministerial Conference of the providing services to 50,000 people
Carbon Sequestration Leadership Forum and will be an exemplar of quality
in Riyadh and the Global Methane medical care in the region.
Initiative for the Oil and Gas Sector
In a prime example of our commitment
Workshop and Exhibition in al-Khobar.
to pioneer new services, we completed
We believe the health and safety of our construction of the Shamah Autism
people and the preservation of the Center in Dammam — the first
 Saudi Aramco
Annual Review 2015
53

Participants in the Johns Hopkins Aramco Healthcare Nursing Program, designed to advance nursing practices, take part in a ceremony
marking their commitment to pursue a doctoral degree in clinical nursing.

multidisciplinary autism center for 100 children aged three to eight. A is enrolled in a two-year program with
Saudi children in the Eastern Province. cadre of Saudi professionals working Johns Hopkins University School of
In conjunction with a local special edu- at the Center will benefit from the Nursing. JHAH also hosts a residency
cation and rehabilitation center and a experience and best practices of the program for Saudi nursing students
U.K.-based autism school, the Center, international partner, further raising and collaborates with local universities
which opened in late 2015, will fill criti- health care capabilities in the Kingdom. on educational and career develop-
cal gaps in the way autism is treated ment projects.
JHAH launched the first Doctorate of
in the Province.
Nursing Program in Saudi Arabia to
The Center will provide comprehensive develop advanced nursing practices, Safety
behavioral treatment programs and which help to extend physician care
diagnostics, in line with international and build more attractive career paths During 2015, we maintained our unre-
standards, with a strong focus on early for nurses. The first cohort of 13 stu- lenting focus on protecting our people
intervention therapy for approximately dents, including Saudis and expatriates, and assets by living safety every day
54 HS&E:
Protecting Resources

Lost-time injury rate

2011–2015
per 200,000 work hours

0.15

0.12

0.09

0.06 0.06

0.03

0
2011 2012 2013 2014 2015

and by conducting initiatives to improve • We drew more than 80,000 visitors to •W
 e renewed our support for the
our safety performance and that of con- our traffic safety village in al-Khobar Saudi Aramco Chair for Traffic Safety
tractors working for us. Integrated with and opened a new traffic safety at the University of Dammam. Over
our companywide rollout of an opera- village in the city of Dammam. Our the first three years of the program,
tional excellence framework is a safety Traffic Safety Signature Program was research and analysis were conducted
management system that empowers the primary sponsor of the 3rd Traffic in areas such as crash investigations,
organizations to identify and mitigate Safety Forum in November, reaching highway studies, and traffic data
risks to improve safety performance. more than 1,000 people. The Program analysis, and a Bachelor of Science
also distributed copies of its curricu- program in Transportation was cre-
Saudi Arabia has one of the highest
lum materials to more than 4,900 ated, among other accomplishments.
traffic fatality rates in the world. To
schools, reaching 850,000 students
combat this issue, particularly among •W
 e installed 2,100 driver monitoring
in the Eastern Province and Riyadh.
younger drivers who represent the devices in the private vehicles of our
These materials, and the traffic safety
future of the Kingdom, we deploy trainee employees to monitor the
villages, are designed to instill respect
multiple measures to promote safe movement of the vehicles and driver
for driving laws and ingrain safe driv-
driving and general road safety, behavior. Data from the devices
ing habits in the nation’s youth.
including the following: enabled us to assess driver behavior
 Saudi Aramco
Annual Review 2015
55

Our commitment to improve driving

safety in the Kingdom begins with
the youngest generation.

and educate trainees on safe driving mass transportation program and We understand that our success is
practices. employees volunteered to install underpinned by our commitment to
speed monitoring chips in their protecting our people and those who
•O
 ur vehicle management program
vehicles. Defensive driving training perform work for us. Ensuring safety
installed more than 7,400 automatic
is offered at our remote facilities, practices on- and off-the-job helps
vehicle location systems in company
and new roads designed to improve uphold our standards of excellence
owned and leased vehicles, repre-
safety are under construction in the while also raising the safety perfor-
senting 61% of our vehicle fleet.
Haradh area. mance of our contractor companies
These systems allow us to remotely
in the Kingdom.
track vehicles and monitor tire health, We also took steps to improve the
seat belt use, speed and other safety practices of our contractors.
safety factors. For example, we conducted more than Environment
3,600 audits and we inspected more
•O
 perating facilities in remote areas We believe technology solutions offer
than 670 contractor construction and
pay special attention to instilling a the key to protecting and preserving
residential communities. We held 45
safe driving mindset in their employ- the environment while sustaining the
safety training sessions for company
ees, particularly young people. For benefits to be derived from hydrocarbon
and contractor employees in contractor
example, at Tanajib we introduced a resources. Our global research network
communities during the year.
56 HS&E:
Protecting Resources

is dedicated to achieving breakthrough • Raising the efficiency performance capturing CO2 onboard vehicles.
innovations in engine efficiency, more of their own operations and of Currently, the technology can capture
environmentally friendly fuels, onboard road vehicles up to 25% of the CO2 emitted through
carbon capture from mobile sources, the vehicle’s exhaust system. Through
and other technology domains that continuing research, we plan to make
hold the promise of balancing energy
sustainability with protection of the We seek to balance the concept more cost-effective and
compact, with a goal of capturing as
environment.
energy sustainability much as 60% of the CO2 emitted.

with environmental
In April, we participated in the Global In addition, we highlighted our research
Methane Initiative for the Oil and to advance the technology of oxy-
Gas Sector Workshop and Exhibition
in al-Khobar. International experts
gathered to discuss the challenges of
protection. combustion, which improves the
combustion of difficult to burn liquid
fuels while capturing CO2 at a high rate
balancing the ever-growing worldwide and purity, and our investment in tech-
need for energy while meeting that In November, we supported the 6th nology startups such as Novomer,
demand in an environmentally sustain- Ministerial Conference of the Carbon which develops catalysts capable of
able way. Sequestration Leadership Forum in converting CO2 into products such as
Riyadh, co-chaired by HE Ali I. Al-Naimi, polyurethane.
Along with nine other global oil and
gas companies, we support the Oil the Saudi Arabian Minister of Petroleum Our in-house and collaborative research,
and Gas Climate Initiative, a CEO and Mineral Resources, and Dr. Ernest investments in technology, and support
led, technology driven, voluntary oil Moniz, the U.S. Secretary of Energy, for global environmental initiatives are
and gas industry initiative that strives during which delegates from the 25 part of a holistic approach that comple-
to catalyze practical action on climate member countries gathered to share ments the Kingdom’s broader energy
change by collaborating on technology knowledge and highlight technology framework. Our long-term approach
development and sharing best prac- innovations focused on addressing and scale amplify the impact of our
tices. On October 16, the group, which climate change challenges. The forum ability to drive economic growth and
together supplies nearly 10% of the provides governments with an interna- enable wider access to energy while
world’s energy, issued a collaborative tional platform for reaching a shared increasing energy efficiency and lower-
declaration agreeing to strengthen commitment on research, development, ing emissions.
actions and investments to contribute and the deployment of innovative sys-
to reducing greenhouse gas emissions. tems and methods for capturing, stor- Conserving resources
In the wake of COP21, the group ing, and using CO2 in ways that reduce Born of necessity as an energy com-
expressed its support for the historic the impact on the environment. pany in a desert nation, we have long
result achieved in Paris, which creates been pioneers in water conservation.
At the Forum, representatives from our
significant opportunities for innovation Our water conservation roadmap gov-
Petroleum Engineering organization and
and investments in support of lower erns our water usage through actions
R&D Center presented the company’s
greenhouse gas emission solutions. such as the use of flow meters, wider
greenhouse gas management solu-
applications for wastewater, assess-
The key areas where the participating tions, highlighting two groundbreaking
ment of conservation opportunities,
companies will focus their collabora- achievements: The CO2 capture and
implementation of best practices, and
tion include: enhanced oil recovery project and the
the promotion of water conservation
onboard carbon capture system for
• Increasing the share of gas in the awareness among employees, their
vehicles. The CO2 capture project, the
global energy mix, eliminating families, and local communities.
largest project of its kind in the Middle
routine flaring, and reducing meth- East, injects compressed CO2 into As part of our water conservation plan,
ane emissions flooded oil reservoirs as a mechanism we conducted a study on injecting sec-
• Investing in R&D and innovation to for CO2 storage, simultaneously ondary treated sewage effluent to sup-
reduce greenhouse gas emissions, enhancing oil recovery. port enhanced oil recovery operations.
progressing carbon capture and In addition to saving groundwater,
We also showcased our mobile carbon
storage, and increasing the share treated sewage effluent also reduces
capture device for vehicles — the only
of renewables scale and limits incompatibility effects
such device in the world capable of
in reservoir formations.
Saudi Aramco
Annual Review 2015
57

Company scientist Dr. Tidjani Niass

explains our mobile carbon capture
device to Laurent Fabius, president of
COP21, at the Paris conference.
58 HS&E:
Protecting Resources

CO2 Capture
Every day, we have the capa- The CO2 is then piped 85 km to are being used for the first time This pioneering work in carbon
bility to capture and process the ‘Uthmaniyah oil field and in the industry, including vertical capture and sequestration is just
45 million standard cubic feet injected into the oil reservoir, compression technology for the one element of our Corporate
of CO2 at a plant in Hawiyah. sequestering the gas while also CO2 compressor, 4-D seismic Carbon Management Technology
helping to maintain pressure in data and electromagnetic surveys Roadmap, guided by the Advanced
the reservoir and recover more oil. for reservoir observation, and Research Center of our Explor­
novel chemical tracers to monitor ation and Petroleum Engineering
This pilot project, the first of its
CO2 saturation. Center (EXPEC ARC). Our efforts
kind in the Middle East in both
to capture CO2 emissions are
scale and operation, marks a Over the next few years, we
linked to the work being carried
major milestone in our long- will evaluate the demonstration
out by our global research net-
standing commitment to protect project for potential future appli­
work to reduce emissions — all
the environment while sustainably cation at other facilities and oil
part of our holistic approach to
and reliably delivering energy to fields in the Kingdom, and shared
energy sustainability.
the world. with others in the Middle East
and worldwide — a testament
Key objectives of the project are
to our aspirations to help solve
to boost oil recovery by 7% to
global energy challenges, facili-
9% and permanently sequester
tate knowledge transfer, and
roughly 40% of the injected CO2.
spur innovation.
A number of unique technologies
 Saudi Aramco
Annual Review 2015
59

We also use treated wastewater for of flare gas recovery systems and our
irrigation, with roughly 46% of our Flaring Minimization Roadmap that
irrigation needs for landscaping in our establishes guidelines to further reduce
communities met by recycled sanitary flaring. We have set ambitious targets
wastewater. At our North Park office and track key performance indicators
complex in Dhahran, we initiated a for flaring minimization. As a result
pilot program for reusing “gray water” of these initiatives, our flaring levels
— recycled water from wash basins — are less than 1% of our annual gas
for landscape irrigation, industrial pro- production and the future trend is for
cesses, toilet flushing, and replenishing even lower levels of emissions.
groundwater basins. Water conserva-
We are incorporating tail gas treatment
tion efforts such as these, scaled up
technology in our existing sulfur plants
across our communities and facilities,
to further reduce sulfur dioxide emis­
and combined with our efforts to edu-
sions, and our Fadhili Gas Plant, Jazan
cate the public, serve as a model for
Refinery, and Jazan integrated gasifica-
other industries and businesses, and
tion combined cycle power plant will
have the potential to contribute signifi-
include tail gas treatment units. The
cantly to preserving the Kingdom’s
tail gas treatment process at the Fadhili
water resources.
Gas Plant, for example, is designed to
The planting of trees to serve as recover 99.9% of the produced sulfur.
windbreaks and to prevent sand from Lower emissions contribute to improved
encroaching on roads and into com- air quality in the Kingdom and are part
munities and facilities has long been of our broader efforts to protect the
one of our standard practices in facili- natural environment.
ties planning. We are now able to
In addition to reducing emissions, we
combine this approach with a new
adhere to a rigorous zero discharge
water conservation technology devel-
policy for our drilling and workover
oped by a company in Riyadh. The
operations to minimize the release of
technology features a polymer capable
hydrocarbons to the environment. In
of absorbing 600 times its own weight
2015, we recovered 1.2 billion scf of
in water, allowing newly planted trees
gas and more than 260,000 barrels of
to retain water, which reduces irriga-
crude oil through this approach.
tion requirements. In 2015, we sup-
ported the planting of roughly 3,500 Effective waste management is
trees suited to desert conditions on another area in which we seek to
5.5 km of land in Khurais. If the tech- reduce our impact and spread the
nology proves successful, we will use benefits of our approach throughout
it on tree planting projects elsewhere the Kingdom. We conduct recycling
in the Kingdom, improving road safety awareness programs in our residential
and providing habitat for birds and communities and offices, as well as in
wildlife, while also saving water. local schools, universities, and munici-
palities. Since 2009, we have collected
Improving air quality by lowering emis-
more than 400 U.S. tons (over 360,000
sions is addressed through a number
kg) of plastic, glass, and aluminum for
of initiatives, such as the installation

flared gas of annual gas production

 1%
60 HS&E:
Protecting Resources

Paper and carton recycled recycling and more than 7,400 U.S.
2011–2015 tons (over 6.7 million kg) of paper and
carton from our offices and residential
(kilograms)
communities.
2015: 884,505
Protecting biodiversity
Our Corporate Biodiversity Plan sets
2014: 907,185 requirements for protecting the terres-
trial and marine environments adjacent
to, and within, our operations by con-
2013: 816,466
serving and enhancing biodiversity,
preventing or mitigating impacts, mini-
2012: 846,403 mizing waste disposal on land, and
assessing and rehabilitating sensitive
natural habitats.
2011: 1,172,083
We continued to make progress on the
construction of the Shaybah Wildlife
Sanctuary, a 637 square km fenced
sanctuary for wildlife in the Rub’ al-Khali.
Plastic, glass, and Construction began on access roads
aluminum recycled and a perimeter fence to protect vege-
2011–2015 tation from overgrazing and damage
(kilograms) from vehicles. Once vegetation is well
established, we plan to reintroduce large
2015: 18,143
2015: 794 native animals such as the Arabian oryx
and sand gazelle.
2014: 56,245 Balancing preservation of the natural
environment with operational require-
ments is a hallmark of our company’s
2013: 54,431
character. During construction of a new
gas compression station, part of our
2012: 54,431 project to expand the Master Gas
System, we moved and replanted more
than 190 mature Acacia trees. The
2011: 48,988 trees are part of an ecosystem that
includes a variety of native plants,
insects, birds, and wildlife, and are also
a source of ingredients used in tradi- Overall, in 2015 we planted 400,000
GRAPH appears w/ mangrove seedlings. To date, we have
tional medicine. Replanting the trees
waste management planted a total of 900,000 seedlings
preserves this important habitat and
also helps to prevent soil erosion. along the shores of the Eastern Province,
well on our way toward our target
We finalized the design of our man­ of 2 million by 2017. In addition to
grove eco-park in Rahima Bay on the restoring critical habitat for marine life
Arabian Gulf coast and planted 10,000 and birds, mangrove forests serve as
mangrove seedlings. When completed, the most significant natural CO2 sink in
0 200000 400000 600000 800000 10000001200000
the park will protect 63 square km of the Kingdom.
mangrove forest, salt marsh, and sea-
grass habitats — important nurseries We continued to monitor the health
for fish and shrimp and vital foraging of coral reefs in the Arabian Gulf
and roosting sites for migratory birds. through our partnership with KFUPM.
The eco-park will help foster knowl- To provide more habitat for a greater
edge and appreciation of this fragile diversity of marine life and boost fish
ecosystem. resources for local fishermen, we

0 10000 20000 30000 40000 50000 60000

 Saudi Aramco
Annual Review 2015
61

Our efforts to protect biodiversity in the

Kingdom include restoring coral reefs in
the Arabian Gulf.

deployed 728 artificial reef modules Adjacent to the fish hatchery, we devel- build awareness and appreciation for
and more than 1,200 limestone rock oped a mangrove tidal lagoon to serve environmental stewardship. More than
baskets in 25 designated locations in as a nursery area for released fish and 1,600 schools participate in the program
the Arabian Gulf as part of a compre- we have also deployed a large artificial across the Kingdom, and more than
hensive reef restoration program. reef array to provide additional habitat. 1,000 Friends of the Environment groups
We also cleaned 35 km of shoreline In collaboration with KFUPM and an have been established in schools.
around Abu Ali Island, built 12 artificial international consultant, we conducted
As the Kingdom’s national petroleum
nests for flamingos and ospreys, and four studies of fish habitats and fisher-
company and the world’s leading pro-
cleaned culverts leading into the bay to ies management in the Arabian Gulf.
vider of energy, our challenge is clear:
improve water circulation and quality.
In partnership with the Ministry of Deliver sustainable supplies of energy
We also made progress on our project Education, we established the Saudi while protecting the natural environ-
to enhance Arabian Gulf fisheries Aramco Environmental Education ment. Our ability to meet this challenge
resources. We are building a fish hatch- Program to conduct environmental rests in large part on our continued
ery with the capacity to release 10 mil- awareness workshops for elementary success in the health, safety, and
lion juvenile native fish each year to school teachers. We provide educational environmental areas.
replenish fish stocks, helping to sustain tools for teachers and students to
the region’s traditional fishing industry. develop classroom projects that help
62 Enabling Opportunities:
Our Commitment to the Kingdom

Key figures

value of material procurement value of contract procurement

$26b
spending awarded to local awarded to local market

$2.1b
manufacturers

percentage of contract procurement

80%   
percentage of material procurement awarded to local market
spending awarded to local

37%
manufacturers
 Saudi Aramco
Annual Review 2015
63

enabling opportunities:
our commitment
to the Kingdom
Our commitment to create It forms the lens through which we and our ideas to create the conditions
more value in everything evaluate our commercial endeavors for for mutual benefit. By using our busi-
we do underlies our drive to opportunities to generate value beyond ness activities as launch pads for the
go beyond simply generat- our immediate business objectives. It further development of the Kingdom
ing revenue. impels us to capitalize on the potential and its citizens, we can help enable a
multiplier effects of our investments healthy and dynamic economic ecosys-
and projects to promote sustainable tem where all can thrive.
economic development that fosters an
One way we magnify the effect of our
energy efficient society, high-value job
commercial operations is by accelerat-
creation, and diversification.
ing the growth of a globally competi-
Energy efficiency is an imperative for tive Saudi energy services sector. This
prosperity in today’s world. As steward will be accomplished by using a two-
of the nation’s energy resources, we pronged approach. We are planning
have an obligation to promote the anchor projects such as the Ras al-Khair
wise and responsible use of energy. Maritime Yard to kick-start the creation
We support the nation’s commitment of entire industries through single,
to a sustainable energy economy by major development projects with key
championing best practices in conser- partners. Second, through the use of
vation and efficiency. incentives and other measures of
broad-based support, we work to
We believe energy is opportunity. We
increase the overall competitiveness
therefore have a responsibility to com-
of targeted energy-related sectors.
bine our core competencies with the
energy of our resources, our people,
64 Enabling Opportunities:
Our Commitment to the Kingdom

Leading by Example
Sometimes seemingly small One such example is our cam- 42 gigawatt hours, equal to sav- estimated to provide a total
changes can pay huge divi- paign to replace less efficient ing more than 80,000 barrels of annual savings of 40,000 barrels
dends in the quest to find incandescent lights in our facili- oil equivalent per year, resulting of oil equivalent.
solutions for limiting impacts ties, offices, and communities in in a reduction in CO2 emissions
By improving our own energy
on the environment. favor of environmentally friendly of more than 31,000 metric tons.
efficiency, we create a model
LED lighting.
Installing LED lighting is just one for others to follow. The shift to
Over the last two years, we facet of our Lead by Example ini- an energy efficiency culture
upgraded lighting in 18,000 tiative for improving energy effi- within our company and in the
homes and 200 office buildings, ciency, which strives for a 35% Kingdom is at the core of our
installing more than 550,000 LED reduction of total energy use in commitment to build a sustain-
light bulbs. We are well over our buildings, transportation, and able energy economy.
halfway to attaining our goal of communities by 2020.
replacing 14,500 street lights
Our other impact priorities for
with LED fixtures, and by the end
energy efficiency and sustainability
of 2016 we plan to replace a total
include the use of high-efficiency
of 60,000 fluorescent lights with
cooling and heating systems with
LED lamps.
smart meters in our residential
The LED lights installed thus far homes and industrial buildings,
are estimated to produce annual and the implementation of new
energy savings in excess of fuel efficiency standards in our
vehicle fleet, which alone is
 Saudi Aramco
Annual Review 2015
65

Annual energy savings from LED lights

installed thus far are estimated to exceed
42 gigawatt hours.

Our progress during 2015 contributed We do not consider our business to

to our goal of increasing the level of be an either-or proposition. We have
locally produced materials and services always conducted our operations to
we procure to 70% by 2021. The drive meet our business objectives and have
to support the domestic energy sector endeavored to maximize their impact
has the potential to create thousands to benefit the people of the Kingdom.
of new direct and indirect jobs and
establish the Kingdom as a hub for the
provision of engineering and oil field Living energy efficiency
services, as well as the manufacturing In 2015, we continued making prog-
of critical and everyday supplies. ress toward becoming self-sufficient in
Further downstream, we see our meeting our own needs for electricity
expanding chemicals business as a while also increasing energy efficiency.
driver of economic diversification. Not On a national level, we supported the
only will our chemicals complexes efforts of the Saudi Energy Efficiency
provide prospects for skilled employ- Program (SEEP), a subcommittee of the
ment, but the associated conversion Saudi Energy Efficiency Center (SEEC),
parks will attract new manufacturing to improve domestic energy efficiency.
and support service industries that will Our energy efficiency efforts are
stimulate even more employment and guided by our Energy Management
business opportunities. In anticipation Program, which is rooted in four core
of the demand for skilled employees, we principles: Reduce energy consumption
are partnering with local businesses and at our facilities by 2% per year, design
government agencies to build training new facilities to be energy efficient,
institutes to empower the Saudi work- increase overall energy efficiency, and
force to take advantage of, and thrive, influence and promote energy efficiency
in the jobs of the future. at the national level.
66 Enabling Opportunities:
Our Commitment to the Kingdom

Energy intensity required One measure of success is energy The energy efficiencies gained in our
intensity — the energy required to homes and commercial buildings will
to produce one barrel of
produce one barrel of oil equivalent save more than 1 million barrels of oil
oil equivalent expressed in terms of thousands of equivalent per year, equal to avoiding
2011–2015 Btu. In 2015, our energy intensity was more than 330,000 metric tons of
(thousands of Btu) 108,000 Btu per barrel of oil equiva- CO2 emissions each year, roughly the
lent at year-end — an improvement in amount emitted by more than 60,000
160 efficiency of nearly 8% compared to cars in one year.
2014 and 23% compared to 2011.
In transportation, we are replacing more
Leading by example than 7,600 V-8 cars and trucks in our
At Saudi Aramco, we are targeting a vehicle fleet with six-cylinder models.
120 35% reduction in energy consumption This past year alone, we replaced nearly
108 1,500 passenger cars and 1,500 trucks.
in our buildings, transportation, and
communities by 2020, and by doing Improving the overall fuel economy in
so we are creating a model for other our vehicle fleet will generate an annual
80 companies to emulate. savings of more than 40,000 barrels
of oil equivalent. We also switched
2011 2012 2013 2014 2015 Lighting and air conditioning are two more than 1,100 hydrocarbon tankers
of the largest consumers of power in operated by a contractor from steel
office buildings and communities. to lighter weight aluminum, increasing
Realizing energy savings in these two safety and generating additional fuel
areas alone can significantly lower savings. To help increase fuel efficiency
consumption levels. In 2015, we com- nationwide, we worked closely with
pleted a program to replace more than SEEP on a government awareness cam-
550,000 incandescent lights with paign to promote simple fuel economy
efficient LED bulbs. We commenced tips for drivers in the Kingdom.
work on the second phase of the light-
ing program to replace approximately Cogeneration
60,000 light bulbs in office buildings Achieving self-sufficiency in electrical
and facilities with energy efficient LED power for our operating plants through
luminaries by the end of 2016. We also cogeneration is a key element of our
installed a total of 8,000 LED street energy management efforts. Cogenera­
lights in company communities, more tion systems capture the heat from a
than halfway toward our goal of plant’s exhaust stream and convert it
14,500. Annual energy savings from into useful thermal energy, lowering fuel
the LED lights installed thus far are esti- requirements and reducing emissions.
mated to exceed 42 gigawatt hours, In 2015, we added a total of 2,163 mega­
equal to saving more than 80,000 bar- watts of power generating capacity.
rels of oil equivalent per year, which
We completed the expansion of
corresponds to a reduction in CO2 emis-
cogeneration units at our Ju’aymah,
sions of more than 31,000 metric tons.
Shedgum, and ‘Uthmaniyah gas plants
Air conditioning and heating systems and are building new cogeneration
account for 70% of the total energy power facilities at our Abqaiq, Hawiyah,
consumption in homes and buildings. and Ras Tanura facilities. The power
By installing smart energy meters and plants will be owned and operated
more efficient air conditioners, and by a joint venture between domestic
upgrading external insulation in our companies and Saudi Aramco.
communities, we are reducing power
consumption and setting an example
for the construction industry to follow.
In 2015, we continued to make prog-
ress toward our targets of installing
smart energy meters in 1,000 homes
and 350 commercial buildings by 2016.
Saudi Aramco
Annual Review 2015
67

The cogeneration unit at our Wasit Gas

Plant converts waste heat into useful
thermal energy and reduces emissions.
68 Enabling Opportunities:
Our Commitment to the Kingdom

The 1 megawatt concentrated photovoltaic system at our Tabuk Bulk Plant is the first such utility-scale plant in the Middle East.

Savings achieved by peak seasonal Our grass roots Fadhili Gas Plant will New solar installations in 2015 included
production strategic plan include a cogeneration plant with the our first rooftop photovoltaic setup
2011–2015 capacity to produce roughly 1.3 giga- on our Power Systems office building
watts of power and 3.2 million pounds in Dhahran. The system includes 144
(millions of barrels of oil equivalent)
per hour of steam. We continued work photovoltaic modules, and over its
2015: 2.8 on the front-end engineering in 2015 as lifespan, will generate approximately
part of our Joint Development Agree­ 1.2 million kilowatt hours of clean
ment with the Saudi Electricity Company energy, mostly during peak demand
2014: 2.6 and a third party. times. At our Tabuk Bulk Plant, we
commissioned a 1 megawatt pilot proj-
Renewable energy ect using concentrated photovoltaic
2013: 15.1 Research into the practical and scal- technology — the first such utility scale
able use of renewable energy, particu- plant in the Middle East. A solar ther-
larly solar and wind, combined with mal water heating system, designed to
2012: 6.5 engaging key stakeholders, lie at the raise energy efficiency by 60%, was
heart of our efforts to catalyze the installed in the main building of JHAH
Kingdom’s renewable energy policy in Dhahran.
2011: 1.5
and help optimize the energy mix.
Our research into solar energy is also
We continued to build momentum in calculated to result in knowledge and
Updated data to come. our analysis and application of solar technology transfer to the Kingdom
power during the year. Working with and to create new opportunities for
the Saudi Electricity Company, we business growth and job creation. We
installed 10 monitoring stations at are beginning to see early signs of suc-
various project sites to calculate poten- cess as evidenced by the completion of
tial energy yields and determine the a feasibility study with a local company
best locations for siting future solar and Solar Frontier, a subsidiary of Showa
power facilities. Shell, our affiliate in Japan, for creating
0 5 10 15 20
 Saudi Aramco
Annual Review 2015
69

Energy conservation savings

in company operations
2011–2015
(thousands of barrels per day of oil equivalent)
195.1

2015: 176.7* 18.4

2014: 150.0 26.7*

2013: 132.1 17.9

2012: 122.9 9.2

2011: 112.8 10.1

Carry-over from Previous Years

Year’s Increment
Optimizing gas production to meet power requirements in peak demand periods has saved
more than 28 million barrels of oil equivalent since 2010. *Due to further data reconciliation,
these figures have been revised.

a fully integrated solar manufacturing raise efficiency to 45% and minimize

entity in Saudi Arabia. the use of diesel for power generation.

Following completion of a wind Our Peak Seasonal Production Strategic

resources assessment in 2014 at Plan optimizes spare plant capacity and
seven locations across the Kingdom, gas production priorities in coordination
we upgraded wind masts and installed with reservoir management best prac-
nine additional monitoring stations. tices to supply additional gas volumes to
Data gathered from the 16 masts will meet power requirements during peak
0 50 100 150 200
help confirm likely production yields demand periods to reduce the use of
from potential wind power sites. liquids. In 2015, the Plan enabled us to
save 2.8 million barrels of oil equiva-
lent. Since starting the program in 2010,
Meeting demand we have saved more than 28 million
Wise stewardship of domestic energy barrels of oil equivalent, reducing emis-
consumption is imperative to ensure sions and freeing up greater volumes
the future prosperity of the Kingdom. of crude oil for refining into higher
Electricity demand has grown more value products and for export.
than 7% per year during the last A more efficient energy sector requires
decade. One approach to managing upgraded skills and knowledge. To
energy demand growth is to raise the help prepare the workforce, we signed
efficiency of the country’s utility sector, a Memorandum of Understanding in
a focus of our Energy to the Kingdom December with the Technical and Voca­
(E2K) initiative. In 2013, utility sector tional Training Corporation (TVTC), the
efficiency stood at 32%. At year-end Saline Water Conversion Corporation,
2015, efficiency was boosted to 35%, KFUPM, the Saudi Electricity Company,
a full percentage point above the tar- General Electric (GE), and Siemens, to
get of 34%. The long-term goal is to establish National Power Academies
70 Enabling Opportunities:
Our Commitment to the Kingdom

in the Dammam and al-Hasa areas. The

Academies will develop world-class train-
ing institutes, providing new and emerg-
ing programs, including renewables,
energy efficiency, smart grids, realistic
labs and workshops, and applied
research and development centers.

Building a domestic
energy sector
Nurturing the development of a globally
competitive domestic energy sector is
a keystone of our approach to leverage
our core activities and capabilities to
spur economic growth and create new
jobs. In December, we launched our
In-Kingdom Total Value Add pro-
gram, designed to position local con-
tent at the heart of our procurement
process. The program’s goal is to dou-
ble the production of locally manufac-
tured energy-related goods and services
contracted by Saudi Aramco to 70%
and increase the export of Saudi-made
energy goods and services to 30% by
2021. Development of the Saudi work-
force is also one of the primary goals
of the program, and we envision the
domestic energy goods and services
sector delivering thousands of direct
and indirect jobs for Saudis over the
long term.

The program will benefit from collab-

orative connections with R&D centers
and entrepreneurship and incubation
hubs such as Dhahran Techno Valley.
Our efforts to improve science, tech-
nology, engineering, and math (STEM)
education in the Kingdom will help
strengthen the enabling environment
for the program, as will our partner-
ship with the Ministry of Labor to
establish 25 national training centers
— eight of which are already active,

Our In-Kingdom Total Value Add program positions local content at the heart of our
procurement process and will spur the growth of new jobs.
 Saudi Aramco
Annual Review 2015
71

Nurturing the development of a domestic energy sector is envisioned to double the production of locally manufactured energy-related goods
and services, and help diversify the economy.

with 12 in development and five in the We continued the development of the the region and our own forecasted
planning stage. Ras al-Khair Maritime Yard near Jubail requirements. For example, a local fab-
on the Arabian Gulf coast. This world- rication yard in the Dammam Port has
The scale of our business and associated
class ship repair and fabrication yard supplied us with more than 90,000
capital expenditure programs creates
will include state-of-the-art facilities metric tons of offshore equipment
significant opportunities for suppliers to
for building, repairing, and maintaining in recent years, including platforms
invest in Saudi Arabia and partner with
ships, offshore drilling rigs, and offshore deployed in our Hasbah and Arabiyah
us on a long-term sustainable basis. We
platforms. During 2015, we signed a fields. By sourcing materials and ser-
expect to spend more than $300 billion
Memorandum of Under­standing with a vices locally, we help create jobs for
over the next decade, of which 70%
South Korean firm to develop the yard Saudis and drive the development of
will eventually be local content, driving
and also drive advancement of maritime capabilities needed for producing
economic diversification, increased
diesel engine manufacturing in the export quality goods — an essential
global competitiveness, and domestic
Kingdom. We estimate this project has basis for sustaining wealth creation in
job creation.
the potential to generate more than the Kingdom.
In 2015, we awarded 37% of our mate- 80,000 direct and indirect jobs, and will
We took steps toward launching a new
rial procurement spending, worth $2.1 position the Kingdom to be a technol-
onshore rig manufacturing initiative
billion, to local manufacturers while ogy hub for regional maritime engineer-
that will leverage our significant capital
the value of our contracts awarded to ing and construction expertise.
outlays for drilling services. We com-
local companies reached $26 billion,
The future for the offshore fabrication pleted pre-feasibility studies with four
representing 80% of our overall con-
industry in Saudi Arabia is promising, companies and analysis and discussions
tract procurement.
given the prospects for growth in are ongoing. Since this industry is
72 Enabling Opportunities:
Our Commitment to the Kingdom

The two National Industrial Training Institute campuses train Saudi high school and technical
college graduates for higher skilled fields.

equipment and materials intensive, it Our investments to promote the devel-

offers an opportunity for us to localize opment of world-class energy goods
production and secure supply chain and services industries in the Kingdom
elements that serve both our needs will encourage further investment in
and those of regional markets. the country, spur economic diversifica-
tion, and drive job creation.
We are exploring the possibility of
creating a company that can competi-
tively manufacture and supply us — Shaping a competitive
and other companies in the region
— with drilling proppants, used in the
workforce
hydraulic fracturing of oil and gas wells. The future success of our business
Phase I of the pre-feasibility study for depends not only on the prudent man-
ceramic-based proppant manufacturing agement of the Kingdom’s hydrocar-
was completed in 2015. bon resources — it also hinges on
providing opportunities for people to
develop the skills they need to imag-

We expect to spend ine, design, and produce high-value

products and services. Whether through

more than $300 skills training, financial support, or

partnerships based on complementary

billion over the next expertise, we are building the founda-

tions for sustainable economic growth

decade — targeting in the Kingdom.

70% local content. The nonprofit National Industrial

Training Institute (NITI), a joint ven-
ture with TVTC, continued to grow in
2015 with the inauguration of the
al-Hasa branch in June. Designed to
 Saudi Aramco
Annual Review 2015
73

Maharat, a training consortium formed in collaboration with contracting companies on our Jazan project, develops young Saudis for
specialized construction trades.

train and develop Saudis from high and more than 1,100 were enrolled at In November, we signed a Memorandum
schools and technical colleges for year-end. Over the next four years of of Understanding with Princess Nora
higher skilled fields, the NITI campuses the refinery project’s construction Bint Abdulrahman University and a
in al-Hasa and Abqaiq feature state-of- phase, Maharat is expected to train local contractor to support the creation
the-art classrooms, labs, and work- and place roughly 5,000 Saudis for of a Women’s Business Park. We also
shops for a combined total of nearly construction-related jobs. completed a feasibility study for the
3,500 trainees. By the end of the year, Park and began developing a master
One of the service industries primed
70 NITI graduates joined our operations plan. The vision is to provide employ-
for growth in the domestic energy sec-
and those of our domestic ventures, ment for 20,000 women over the next
tor is inspection and quality assurance.
while another 1,300 trainees signed decade, with a mix of new graduates
To help meet our own anticipated
employment contracts. and experienced professionals deliver-
manpower requirements and those of
ing outsourcing services in information
Formed in collaboration with our local other companies, we supported the
technology, business processes, and
and international engineering, procure- establishment of the Inspection
engineering services.
ment, and construction contractors on Technology and Quality Assurance
the Jazan Refinery and Terminal project, National Institute to prepare young One of the anchor tenants for the
the Jazan Contractors Consortium Saudis for these new careers. The insti- Women’s Business Park is the GE-Tata
for Training and Employment tute commenced operations late in Business Process Outsourcing Service
(Maharat) develops young Saudis 2015 at TVTC’s newly constructed Center, a collaborative venture between
from the Jazan region for specialized facility in Ju’aymah with a capacity for Saudi Aramco, GE, and Tata, and the
construction trades. In 2015, a total of up to 2,000 trainees per year. first all-female business service center
715 Saudis graduated and received jobs in the Kingdom. The Center, which
74 Enabling Opportunities:
Our Commitment to the Kingdom

We are developing a master plan for a Women’s Business Park in Riyadh, designed to provide employment opportunities for 20,000 women
in the fields of information technology, business processes, and engineering services.

provides business support in finance, to receive support from our Aramco business incubator for female entrepre-
accounting, supply chain management, Entrepreneurship Center. neurs at the University of Dammam.
and human resources to us and to GE,
Our vision for fostering a culture of
currently employs 759 female employ- Examples of the types of businesses
innovation to solve domestic energy
ees, with an 81% Saudization rate. We receiving our support include nonde-
and resource challenges is gathering
contributed 232 full-time equiv­alent structive testing and quality assurance
steady momentum, as evidenced by
jobs for women at the Center by the services, point of sale hardware and
the early results from the first Inter­
end of the year. payment transaction technology,
national Technological Innovation
medical lab services, and the formation
Competition, launched by the Aramco
of a joint venture with an international
Empowering partner to develop, manufacture, and
Entrepreneurship Center in mid-2014.
The Competition, designed to solicit
entrepreneurs service technology for our offshore
innovative solutions in using renewable
facilities. By the end of the year, the
One of the primary engines driving job energy for seawater desalination,
Center had reviewed 449 applications,
creation in any economy is the growth was conducted in collaboration with
conducted 272 interviews, provided
of small- and medium-size enterprises. GE, the Saline Water Conversion Cor­
coaching for 50 entrepreneurs on devel-
We nurture entrepreneurship in the pora­tion, and key stakeholders such as
oping business plans, and approved
Kingdom by providing financial sup- KACST and KAUST.
18 projects. In addition, the Center
port and advisory assistance in such
approved four investment proposals.
areas as business plan development,
mentoring, consultation, and the We also assist university students with
execution of business agreements. In establishing small businesses through
2015, we celebrated a milestone with our Co-op-to-Entrepreneur Program at
the approval of the 50th Saudi venture KFUPM and in October we launched a
 Saudi Aramco
Annual Review 2015
75

We nurture
entrepreneurs by
providing financial
support and advice.
Winners of the award — representing
Saudi Arabia, Italy, Singapore, the
Netherlands, and the United States —
were announced at the Saudi Water
and Power Forum in Riyadh in early
2015. Some of the technologies are
being piloted while others are in active
development, including plans to build
the world’s first large-scale desalination
plant powered by solar energy in
Saudi Arabia.

This kind of success places the Aramco

Entrepreneurship Center at the forefront
of driving collaborative efforts to boost
entrepreneurship, generate new ideas
and technology, and discover innovative
solutions. The increase in small- and
medium-size businesses, combined with
our efforts to raise energy efficiency,
diversify the Kingdom’s energy mix,
and support the growth of a domestic
energy sector, will serve as a catalyst
for future job growth in the Kingdom.

We support entrepreneurs like Ahmed Al-Ghamdi, seeking to create a factory for gauges,
and Sarah Aljishi, who plans a lab to make products for the health sector.
76 Human Resources:
Driving Performance

Key figures

total number of employees at

year-end

65,266
54,666
Saudi

10,600
expatriate
 Saudi Aramco
Annual Review 2015
77

human resources:
driving performance
Passion, purpose, perfor- At Saudi Aramco, we inspire passion Our ambitious goal to become the
mance. We believe each in our people by offering them the world’s leading integrated energy and
follows the other. opportunity to do the work they chemicals company requires the skills
dreamed of doing, and by supporting of a diverse range of technical and
them in achieving more than they professional specialists to help us carry
thought possible. Our employees out our core functions, as well as a
derive a sense of purpose from know- host of other enabling activities such
ing their work has the potential to as establishing partnerships, nurturing
make a positive difference on a global investment, contributing to the develop-
scale. By creating the conditions for ment of the Kingdom, launching new
our people to follow their passion with businesses, entering new markets, and
a clear purpose, we cultivate a high- delivering innovative technologies.
performance workforce ready to take
To support our people in such a dynamic
on any challenge.
and fast-paced workplace, we run the
Every day, our team of more than world’s largest corporate training pro-
65,000 people combines passion, pur- gram and foster a continuous learning
pose, and performance to achieve a environment. From our youngest recruits
common objective: Unlocking the full to our experienced professionals and
potential of the Kingdom’s resources senior leadership, we offer capacity
to create more opportunities for people building programs tailored to help
here at home and around the globe. them meet the growing responsibilities
linked to our evolving business. And
because we have our eye on the future,
78 Human Resources:
Driving Performance

Workforce
2011–2015

2015: 65,266

2014: 61,907

2013: 57,283

2012: 54,041

2011: 56,066

0 10000 20000 30000 40000 50000 60000 70000 80000

We foster a continuous learning environment to achieve our strategic intent of becoming

the world’s leading integrated energy and chemicals company.

we actively identify and develop high individuals are attracted to our com-
achieving Saudi high school and college pany because of the values we uphold,
students by helping to equip them with our belief in merit-based performance,
the specialized and soft skills required and our culture of innovation. They stay
for success. Whether they ultimately because of the opportunities we provide
work for us or for another company, for them to achieve unprecedented
or follow their own entrepreneurial success in their field of expertise —
aspirations, we help prepare them to either individually or as a valued mem-
make meaningful contributions to the ber of a multidisciplinary team.
local economy.
We are an energy company powered
The ability to attract, develop, and by the creative and intellectual energy
retain top talent is a critical differentia- of our people. Through the fusion of
tor in competing effectively on a global energy, people, and ideas, we were
level. Today’s top performers are look- able to transform our aspirations into
ing for opportunities to do the best reality in 2015. We know that with
work of their careers. They want to the right support and an empowering
work for companies whose values, work environment, there is no telling
purpose, and ambitions match their where an idea we have today will lead
own. In 2015, our workforce grew to us tomorrow.
another all-time high of 65,266 of the
best minds in our industry. These
 Saudi Aramco
Annual Review 2015
79

Enhancing systems and decision making — form the basis

of a results-based work culture. To
To enable our people to do their best help instill these behaviors, in 2015
work and improve efficiency, we con- we held 45 interactive forums, trained
tinually upgrade our corporate man- 170 champions, and delivered targeted
agement systems. We continued to communications to all employees and
implement our Enterprise Risk Man­ leaders. We also delivered targeted
agement framework to enable us to workshops to 22 organizations, reach-
respond more rapidly to complex and ing 20,000 employees across the
challenging resource requirements and company, and a two-day performance
operating environments. By providing a management education program for
better understanding of risks and risk- 943 leaders to drive accountability and
reward tradeoffs, Enterprise Risk Man­ engage employees.
agement empowers informed decision
making and in 2015 it allowed us to Our training programs build capacity to help
better weather market dynamics and Investing in people our people meet the growing responsibilities
linked to our evolving business.
continue delivering on our business
Delivering on our intent to become the
objectives. The framework is being
world’s leading integrated energy and
integrated into our corporate planning
chemicals company requires more than
and accountability process so we can
investments in technology and capital
control and mitigate unexpected events
projects — most importantly, it requires
that might impact security, employee
investments in people. Underinvestment
safety, the environment, and operational
in talent only amplifies the cyclical
reliability — factors that may hinder us
nature of our industry. To ensure we
from achieving our strategic intent.
meet our aspirations, we emphasize
We continued to pursue our Capital continuous development and skill
Efficiency Initiative by rolling out our building to drive performance through
Capital Management System to ensure a wealth of courses, training centers,
capital projects are aligned with cor- internships, and mentorship programs
porate targets. Within this system, we to pass on knowledge to the next
analyze projects to establish optimized generation.
portfolios that account for different
conditions, providing flexibility to adapt
to changes in global economic cycles
by reprioritizing projects and efficiently We are an energy
deploying resources.
company powered
Our efforts to improve capital perfor-
mance are combined with our drive by the power of
for operational excellence to identify
gaps, define areas for improvement,
and realize new efficiencies. The struc-
our people.
tured approach and relentless focus on
results afforded by the operational excel- In 2015, we sustained our momentum
lence system empowers our people to to recruit candidates best matched to
sustain optimal performance across our meet our requirements and achieve
company in reliability, safety, and cost our aspirations, adding 2,185 new
efficiency. By the end of the year, more employees. In addition, 3,774 appren-
than 920 employees had been certified tices and 383 graduates of our College
as operational excellence assessors. Degree Program for Non-Employees
We are building a high-performance joined the company, bringing the over-
mindset across the enterprise by chal- all total of people joining our work-
lenging and rewarding our people. Four force to 6,342.
critical behaviors — people conversa- We continually evaluate our human
tions, empowerment, collaboration, resource development programs and
80 Human Resources:
Driving Performance

Nearly 8,000 young Saudis are enrolled in our Apprentice Program, and more than 3,700 apprentices joined our workforce in 2015.

Saudi workforce seek new opportunities to involve local 7,800 apprentices enrolled in the pro-
2011–2015 service providers. In 2015, we began to gram. Since the program’s inception,
phase out a legacy vocational training more than 28,000 participants have
program with our new Industrial graduated, creating a wealth of talent
2015: 54,666
2015: 794
Sponsorship Program, created in developed from within the company.
partnership with the Colleges of Excel­
The growing complexity of our busi-
2014: 51,653 lence, the Kingdom’s leading authority
ness requires a workforce with higher
for applied training. The new program
skills. To attain this level of talent, we
will sponsor high-achieving male and
support academic development
2013: 48,385 female students during their second or
through a suite of programs designed
third year at intermediate colleges and
for Saudi non-employees who, upon
institutions who are studying majors
2012: 46,259 successful completion of their degrees,
aligned with our critical skills require-
may be offered positions in the com-
ments, with the intent of hiring them
pany. The College Preparatory Program
once they graduate.
2011: 48,649 readies young people to excel in their
We launched an initiative to replace studies while the Associate Degree
traditional text-based instruction in Program and the College Degree Pro­
our Apprentice Program for Non- gram provide support while at school.
Employees with integrated smart More than 5,000 college students have
learning environments centered on graduated under these programs to
interactive engagement. By year-end, date and joined the company’s profes-
we rolled out five smart learning courses sional ranks.
for roughly 3,000 of the more than

0 10000 20000 30000 40000 50000 60000

 Saudi Aramco
Annual Review 2015
81

We offer a suite of academic programs, including sponsoring students to study abroad, that are designed to develop tomorrow’s leaders.

In 2015, we overhauled the degree Raising professionals In 2015, our Upstream Professional
programs, mandating enrollment in Development Center, dedicated to
the top 200 universities worldwide and During 2015, we pursued a wide spec- bridging the knowledge and skills gap
establishing the Al-Ruwwad (Arabic trum of initiatives designed to raise the between veteran upstream personnel
for “The Pioneers”) program designed professionalism and technical proficiency and newer staff, conducted more than
to achieve early acceptance for stu- of our employees. We strengthened 430 training sessions for more than
dents in selected schools. Overall, in relationships with domestic and inter- 7,200 participants and facilitated 280
2015 more than 2,000 Saudi students national businesses and universities petroleum engineers receiving certifi-
sponsored by Saudi Aramco were to build skills and enrich the learning cation from the Society of Petroleum
studying in leading universities in the experience of our increasingly youthful Engi­neers. The Center also commenced
United States, Europe, and Asia. The workforce. In-house, we continued to a systematic onboarding program, guid-
skills and experiences they gain help strengthen and expand our inter­active ing more than 170 new employees in
empower the next generation of our training environments, online course three cohorts through three 11-week
company’s leadership. offerings, and professional develop- sessions. More than 1,000 employees
ment courses. have participated in this program
Sustained investments in developing
Our Young Leaders Advisory Board, to date.
our people are essential to our future
success as we enter new business sec- known as YLAB, provides our young In addition to sponsoring employees to
tors and industries, and as we create professionals with a platform for active study at overseas universities, we also
and deploy new technologies. Enhancing engagement with management on a offer a suite of academic programs
our development programs and estab- wide range of issues. Composed of from leading universities and training
lishing new initiatives for shaping the 16 men and women serving 18-month institutions tailored to meet our specific
next generation of Saudi talent ensures terms, YLAB explores creative solutions needs through our Hosted University
our workforce will continue to advance for improving work processes, raising Program. By hosting international
the standards of excellence in our indus- performance levels, and motivating degree programs in Saudi Arabia, we
try for the benefit of the Kingdom. other young employees to pursue gain economies of scale and cost
excellence in their careers. The program efficiency, improve our skills base,
has been benchmarked as a best prac- and facilitate knowledge transfer to
tice by other firms and government the Kingdom. In 2015, we established
agencies in the Kingdom. two new master degree programs.
82 Human Resources:
Driving Performance

Upstream Professional Development Center

The energy industry is It is a time of great opportunity Center provides participants reservoir engineering, unconven-
undergoing a period of for those with the drive to make rewarding opportunities to tional resources, and upstream
unprecedented change. the breakthrough discoveries that bridge experience and knowl- computing.
New tech­nologies and will spur new ideas and new edge gaps across multiple
The Center’s facilities include
methodologies are possibilities. upstream disciplines. The Center
cutting-edge 3-D imaging envi-
changing the ways we offers innovative training and
At Saudi Aramco, we believe the ronments that virtually immerse
discover and produce oil bonding networks that promote
talents we need for tackling students inside oil and gas reser-
and gas resources and learning and collaboration to
future challenges are found in our voirs deep underground, realistic
derive additional benefits help young professionals tap
people. That is why we created drilling simulators, and computer-
from this energy. into the vast well of knowledge
the Upstream Professional Devel­ ized core sample analysis tools.
acquired by senior professionals
op­ment Center: To provide an Combining interactive classroom
over years of service.
integrated training program that instruction with practical prob-
combines technical depth and With more than 7,000 partici- lem solving, the Center’s instruc-
breadth with mentoring programs pants receiving training in 2015 tors prepare young employees
to prepare our workforce for the alone, the Upstream Professional for future challenges and keep
unique challenges that lie ahead. Development Center creates senior employees current with
individual development plans for the latest advances in their field,
Essentially a corporate university
employees across nine disciplines: underscoring our commitment to
with instructional materials devel-
Drilling, facilities engineering, managing the Kingdom’s hydro-
oped to match the specific needs
geol­ogy, geophysics, petro­ carbon resources for the benefit
of upstream professionals, the
physics, production engineering, of generations to come.
 Saudi Aramco
Annual Review 2015
83

Participants in our Young Leaders Advisory

Board actively engage with management
on a wide range of issues.

We began offering a program in pipe- has arrangements with roughly 200

line engineering under a collaborative host companies, and over a span of
arrangement with the University of two decades, more than 1,000 profes-
Northumbria and Penspen Integrity, a sionals have participated in the intern-
world leader in pipeline training. With ship program. In 2015, nearly 150
IFP Energies Nouvelle, an internationally company professionals were on assign-
renowned research and training orga- ments of up to 18 months.
nization based in France, we launched
a program in refining and petrochemi-
cals to help equip the future leaders Preparing leaders
of our downstream business with the
We develop leaders who motivate their
tools for managing increasingly com-
teams to pursue excellence and realize
plex technologies and markets.
the potential opportunities created by
Our Women in Business program achieving our strategic intent.
focuses on the professional develop-
Our Leadership Series for Managers,
ment of our female employees and
initiated in 2014, provides leaders with
helps young women become more
enhanced core capabilities. In 2015,
empowered and able to capitalize on
40 managers and 431 front-line division
their strengths. In March, we marked
heads and supervisors attended a series
the fifth anniversary and 50th session
of workshops while our Advanced
of this proven program, which has
Manager program honed the leader-
served nearly 850 female employees
ship skills of 51 participants — a pro-
since its inception.
cess that helps create a pipeline of
Our journey to become a global inte- talent to guide the company’s future
grated energy and chemicals enterprise performance.
also requires building international
Technical skills alone will not enable us
business and industrial acumen, skills
to achieve our strategic intent: Our
not so easily learned in traditional
leaders need to be able to communi-
classes or training programs. Many of
cate effectively, forge collaborative
our leaders are assigned multi-year
teams, make critical decisions, and
positions with our Aramco offices in
empower and inspire their teams. To
Asia, Europe, and the United States.
instill these talents in our supervisors
Professional staff gain similar experi-
and foremen, we operate the Leader­
ence through internships in North
ship Program for Industrial Unit
American companies in the manufac-
Heads, a three-month training pro-
turing, energy, financial, information
gram that thus far has graduated more
technology, telecommunications, and
than 260 participants.
medical sectors. Our Houston office
84 Human Resources:
Driving Performance

Young professionals gain experience through internships in North American companies in the manufacturing, energy, financial, information
technology, telecommunications, and medical sectors.

Collaboration is at the core of our global Creating sustainable The first phase of our South Dhahran
research network. Our pioneering Home Ownership Program, comprising
Research Leadership Development communities more than 2,700 housing units, is on
Program cultivates critical leadership Since 1951, our Home Ownership track for completion in 2019. A planned
qualities in our R&D Center leaders, Program has financed more than sustainable community, South Dhahran
developing essential skills for fostering 64,700 new homes for Saudi employ- will meet high energy-efficiency stan-
a culture of innovation. The first pro- ees. In 2015, we introduced several dards and feature mosques, open green
gram, conducted in three phases over enhancements to the program, includ- space, and bicycle and walking paths
four months, is underway in Dhahran ing increasing the minimum and maxi- to offer a template for housing devel-
with a cohort of 23 selected partici- mum financing amounts for homes opment in the Kingdom.
pants from across our global research and extending benefits to apartment Healthy, safe, and vibrant communities
network. This leadership program is ownership. We conducted 60 aware- are a prerequisite for the well-being of
envisioned as a key driver in our trans- ness sessions on the updated program employees and their families. Beyond
formation to become a global leader in for roughly 3,000 eligible employees. providing essential services for our
advancing technology breakthroughs
in our industry.
 Saudi Aramco
Annual Review 2015
85

Our Home Ownership Program, active since 1951, has financed nearly 65,000 new homes for Saudi employees, helping create healthy, safe,
and vibrant communities.

employees, our communities also serve We continued work on the expansion

Our communities
serve as models of
as models of environmentally sustain- of our Dhahran residential community,
able living through the use of energy with more than 1,500 housing units

sustainable living.
efficiency technologies, water conser- planned to be ready for employees and
vation practices, and recycling pro- their families by 2018. New company
grams. In 2015, we marked considerable housing in Shaybah and Tanajib was
progress in the expansion of our resi- finished in 2015, with additional hous-
dential communities to accommodate ing units in Ras Tanura and ‘Udhailiyah
our expanding workforce. in the planning and design stage.
86 Citizenship:
Inspiring Tomorrow

Key figures

female university students

4,600+
attending seminars

6,700+
contestants in iRead

10,000+
students participating in iSpark

students and teachers reached

200,000+
by iThra Youth

printed and digital titles planned for

1+m
King Abdulaziz Center library
 Saudi Aramco
Annual Review 2015
87

citizenship:
inspiring tomorrow
As a global business, we We have worked hard to garner the We base our citizenship role on
are interconnected with trust and support we enjoy in commu- the economy, knowledge, and the
the people in the societies nities in the Kingdom and around the environment — broad areas where we
where we operate. world. In turn, our operations generate believe we can make a positive impact
commercial opportunities for local on Saudi society.
businesses and employment prospects
Education is a vital component of the
for citizens. Beyond the practicalities of
Kingdom’s transition to a knowledge-
simply doing business, we conduct vol-
based economy. We concentrate our
unteer and outreach activities that fos-
efforts on helping develop the next
ter healthy societies and enhance the
generation of innovators by focusing
lives of people.
on the development of STEM skills in
By acting from a foundation of shared the nation’s youth. In addition, we
value with citizens — whether in the seek to widen intellectual curiosity and
realms of economic opportunities, cross-cultural awareness, which are
knowledge and skills building, cultural also important foundation stones for
enrichment, or community engagement building an economy based on knowl-
— we seek opportunities where our edge and innovation.
commercial interests coincide with our
Our landmark King Abdulaziz Center
citizenship goals, ensuring that our
for World Culture will lead our com-
business activities benefit our company
mitment to promote these values for
and the communities where we operate.
88 Citizenship:
Inspiring Tomorrow

The Center
Soaring high above the low With an iconic design inspired The Center’s efforts to support Once open, the Center aspires
desert hills near the site by the geology that formed the the Kingdom’s transition to a to positively engage growing
of the first commercial oil wellspring of the Kingdom’s knowledge-based society focus numbers of visitors at the
discovery in the Kingdom economy, the Center is poised to on promoting science, technol- greater cultural park and
is a new source of energy: become a beacon of knowledge ogy, engineering, art, and math­ through a diverse array of
The King Abdulaziz Center and innovation. ematics skills in the nation’s outreach programs, energizing
for World Culture. youth. The Keystone component, a desire for knowledge and
By fostering a culture of intellec-
for example, is an idea incubator helping to build the foundation
tual curiosity and a love of learn-
and entrepreneurship hub. A for a prosperous future.
ing, the Center will help shape
suite of programs within the
the next generation of Saudi tal-
iThra (Arabic for “enrichment”)
ent and spur economic and social
Youth initiative engages students
development through knowledge,
and educators across the Kingdom
creativity, and culture. Home to
in hands-on learning experiences.
Saudi Arabia’s first-ever children’s
museum, galleries for natural
science and Islamic culture, and a
library, the Center stands at the
heart of a cultural park that also
features a new Energy Science
Center, extensive gardens, and
a mosque.
 Saudi Aramco
Annual Review 2015
89

generations to come. Scheduled to encouraging a broader interest in

open in 2016, the Center will host a STEM skills, promoting energy effi-
variety of multidisciplinary educational ciency and safety, and supporting
programs designed to instill a creative research into energy solutions.
ethos and a thirst for learning and
knowledge. The Center
The King Abdulaziz Center for
A suite of outreach programs under the World Culture — our flagship initiative
umbrella of iThra Youth has reached for engaging the nation’s youth — will
more than 200,000 students and join the collection of institutions in the
teachers across Saudi Arabia, providing Kingdom dedicated to knowledge and
interactive sessions to enrich STEM skills creativity. In 2015, we met key construc-
and encourage reading. We also sup- tion milestones for the building, and by
port university-level forums and train- the end of the year construction was
ing courses in information technology 95% complete. During the year, we
and English. continued to prepare the Center for its
opening while conducting outreach

Our heritage is built

programs across the Kingdom.

Our suite of iThra Youth programs

on a bedrock of reached thousands of young people

around the Kingdom, helping the next

citizenship. generation master the skills required to

innovate and contribute to the country’s
By focusing on the development of math
and science skills, we help nurture the next
generation of innovators.
scientific and economic development.
The iSpark program, which offers
Our community outreach programs hands-on workshops in advanced
seek to motivate people to become technology, science, and multimedia
more active and engaged members of for ninth and 10th graders, reached over
their communities. We strive to raise 10,000 students across four regions in
awareness of impactful issues, inspiring 2015. Overall, iSpark has reached
citizens to make positive contributions 53,000 students and delivered more
to advance the Kingdom’s progress, than 1 million hours of learning content.
whether by leading a healthy lifestyle,
We launched the third edition of iRead
conserving energy and water, or help-
at the Riyadh Book Fair, where the
ing the less fortunate.
Reader of the Year and photography
Our heritage is built on a bedrock of competitions attracted more than
citizenship. Since our earliest days, we 6,700 contestants and received more
have engaged local communities to than 1 million views on the iRead web-
generate economic benefits, create jobs, site. The program is playing a significant
enhance skills and knowledge, and care role in cultivating a love of reading,
for the natural environment. We con- knowledge sharing, and critical thinking
tinue to enlarge the reach and impact — essential skills for developing a
of our citizenship efforts — inspiring, workforce that is globally competitive.
nurturing, and leading by example —
Three iThra Lab and iThra Youth
to help ensure the future growth and
Forums were held at Jazan, Madinah,
prosperity of our nation.
and at the Saudi Science and Creativity
Festival in Riyadh, attracting a total of
Knowledge 180,000 participants. The iThra Lab
offered interactive activities and work-
We provide enhanced educational shops in fabrication and STEM skills
activities to make lasting contributions facilitated by trained instructors while
to the Kingdom’s vision for a knowledge- the iThra Youth Forum was a one-day
based society. These efforts include event developed to spark imagination
interactive learning opportunities for and creativity in young people.
the Kingdom’s student population,
90 Citizenship:
Inspiring Tomorrow

FABLAB-Dhahran, the Center’s digital To nurture a passion for learning, we

fabrication laboratory located on the stocked the Center’s library with
campus of KFUPM, attracted more than 109,000 Arabic and English books, the
4,200 visitors and engaged nearly heart of what is designed to become a
1,400 participants at 252 workshops world-class learning resource featuring
on topics such as 3-D printing, laser multimedia and audiovisual capabilities,
cutting, electronics, and robotics, nur- a children’s library, and more than
turing the “maker” potential of the 1 million printed and electronic titles
next generation of innovative Saudi in its holdings.
business people.
Laying foundations
The iDiscover Knowledge Incubator In addition to initiatives conducted by
represents the evolution of our success­ the King Abdulaziz Center, we also
ful iDiscover Program, which toured engaged in a number of other programs
nine cities in 2013–2014 and provided that support the Kingdom’s vision to
new math and science teaching tech- expand the scientific and technical
Our iRead program, with its Reader of the niques to 2,000 teachers. Operating competencies of the country’s popula-
Year competition, helps cultivate a passion after school hours in the Eastern tion, laying the foundations for a more
for learning and knowledge.
Province, al-Baha, and Tabuk, and envi- innovative and prosperous society.
sioned as permanent training labs for
male and female students and teachers, We continued to support enhance­
the knowledge incubators delivered ments to company built public
interactive math and science content schools by equipping them with
developed by the Lawrence Hall of modern technology, upgrading safety
Science at the University of California, features, and improving energy effi-
Berkeley, and the Math Zoom Academy. ciency. By the end of the year, we had
In all, iDiscover has reached 15,500 stu- transformed more than 800 traditional
dents in 12 cities across the Kingdom classrooms in 77 elementary schools to
and delivered more than half a million “smart” classrooms featuring the latest
learning hours. technology, installed 258 high-efficiency
air-conditioning units at 57 schools,
To broaden its reach and magnify its installed modern fire alarm systems at
impact beyond live programs, the 25 schools, and improved school park-
Center is developing online educational ing and traffic flows to increase safety
content in Arabic, including interactive at 33 schools.
computer games designed to bolster
iDiscover impact STEM skills. We also continued our In collaboration with the Ministry of Edu­
support of talented Saudi designers cation, we launched STEMania, a pilot
and artists to showcase their work at program held in six public schools over
leading regional cultural events. four weeks, to boost the STEM skills

12
cities
of female students. A hands-on, after
Through 2015, we focused on readying school program for seventh through
the Center for opening its doors to ninth grade public school female
the public in 2016, including working students and teachers, STEMania is
toward receiving gold LEED certifica- founded on a “Learning by Doing”

2,000
teachers
tion. We finalized partnerships with model that creates enthusiasm for
distinguished international institutions learning and discovery. The program
such as the Peabody Museum at reached 300 students and trained
Harvard University, the National Center 33 public school science teachers.
for Performing Arts in Beijing, the

15,500
students
American Alliance of Museums, the For the second consecutive year, our
Association of Science Technology Women Development Program con-
Centers, and Cirque du Soleil. These vened more than 350 female university
relationships will enable us to bring students and faculty members from

500,000+
learning hours inspirational exhibitions and programs across the Kingdom for a full-day
to the Eastern Province while strength- seminar focused on transitioning from
ening our ability to align the Center’s university to the professional workforce.
offerings to support the growth of We also hosted a two-day university
innovative thinking. collaboration forum — the first of its
 Saudi Aramco
Annual Review 2015
91

Operating after school hours, our iDiscover Knowledge Incubator labs deliver interactive math and science content to teachers and students,
laying the foundations for a knowledge-based society.

kind — for more than 220 women from intent to lead by example in improving Through our community-based initia-
30 universities across the Kingdom to the energy efficiency performance of tives, we strive to empower teachers
discuss opportunities in our workforce. the housing industry. KAPSARC is posi- and students with the tools they need
Our Female Universities Outreach tioned to become a foundation for to advance their performance, instill a
Pro­gram conducted a series of semi- the Kingdom’s research and innova- love for learning in the wider popula-
nars to help bridge the gap between tion ecosystem and accelerate its drive tion, and provide opportunities for citi-
university life and work, reaching more to become a leader in developing zens from all walks of life to become
than 4,600 students including more energy solutions. actively engaged in their communities.
than 3,200 at Taibah University. By
We completed our project to enhance
forging relationships with domestic
the infrastructure of Thuwal, the town
universities, we leverage their academic Global citizenship
adjacent to KAUST. Overall, we built
resources to help solve challenges faced
two flood control channels, seven new Whether they live in the United States,
by the energy industry, and at the same
schools equipped with the latest in Europe, or Asia, and whether they
time help build their capacity in areas
smart classrooms, a medical clinic, work in one of our Aramco offices or
such as recruitment, training, and
mosques, a cultural park, roads, a sew- in a joint venture or project office, our
research and development.
age treatment plant and an electrical people are involved in their communi-
We completed construction of the substation. The project improved the ties. They volunteer their time to pro-
King Abdullah Petroleum Studies quality of life for residents and enables tect the environment and help the less
and Research Center (KAPSARC), an sustainable future growth. fortunate, they mentor students and
international research and policy center support schools, and they are engaged
Our community outreach efforts also
investigating issues related to energy in improving the quality of the places
include promoting healthy lifestyles
economics, the environment, and they call home.
and well-being. In November, we were
policy studies. Staffing levels reached
a key sponsor of the 20 th Annual The United States
107 employees, including 61 research-
Charity Run on the Dammam Corniche. For the 11th consecutive year, our
ers. The residential community received
More than 8,000 runners registered for Houston office was the title sponsor
LEED certification — the first of its kind
the event, which included a 5K event of the annual Aramco Houston Half
outside of North America and one of a
dedicated for people with special needs. Marathon. Some 200 of our employ-
kind in terms of size — reflecting our
ees and family members volunteered
 92 Citizenship:
Inspiring Tomorrow

Completed in 2015, KAPSARC is a

keystone in the Kingdom’s research
and innovation ecosystem.
 Saudi Aramco
Annual Review 2015
93

Wherever they live and work around the world, our people are involved in making a positive impact on their communities.

during the three-day event and also Europe computing, and other disciplines
supported “Run for a Reason,” a In the Netherlands, our office in The aligned with our business objectives.
charitable component. Staff from the Hague supported charitable runs, Our Beijing office also joined with
Aramco-Boston R&D Center, as well as walks, and bicycling events and staff Tsinghua University to sponsor two
staff, family members, and company from our London office volunteered programs run by Clean Air Asia, sup-
sponsored summer students from our with a charity group on a park regen- porting research into air quality and
Houston office, donated time to initia- eration project. The London office also technologies for creating low emission
tives supporting local food banks. helped facilitate the expansion of the urban environments.
Volunteers from our Houston office Cambridge Chemistry Challenge,
Our Tokyo office provides support for
also joined community efforts to which encourages young people to
the Okinawa Coastal Ocean Observ­
improve and sustain seashore study chemistry, enabling the number
atory System, a marine conservation
habitats in Galveston Bay, Texas. of participating students in the U.K. to
initiative of the Okinawa Institute of
nearly double and raising global par-
The 2015 Advanced Motorsports Science and Technology that helps pre-
ticipation to more than 16,000 high
Enterprise program at Michigan Tech­ serve coral reefs and enables research
school students from more than 90
nological University, which promotes into maintaining biodiversity.
countries, including GCC nations.
interest in new automotive technolo-
We believe that by engaging with local
gies, is aligned with research under- Asia communities across a spectrum of
way at the Detroit branch of our The Academy of Mathematics and shared values, we aid the growth of
global research network and creates Systems Science, a national academic sustainable and dynamic societies. This
potential synergies between academia research center in Beijing, China, belief is backed by our support of bene-
and the energy and automotive indus- received assistance from our Beijing ficial citizenship programs and initiatives
tries. We sponsored the participation office to help the Academy expand its and by the volunteer efforts of our
of more than 150 undergraduate and research and training capabilities in com- people, inspiring brighter futures here
graduate students in the program. putational mathematics, engineering in the Kingdom and around the world.
 94 2015 in Numbers

2015 in numbers
Crude oil and Gas reserves
condensate reserves (associated and nonassociated)
(billions of barrels) (trillions of scf)

2011: 259.7 2011: 282.6

2012: 260.2 2012: 284.8

2013: 260.2 2013: 288.4

2014: 261.1 2014: 294.0

2015: 261.1 2015: 297.6

75 250

Crude oil production Sales gas and ethane produced

(annual/billions of barrels) Sales Gas (millions of scfd)

2011: 3.3 2011: 6,823

2012: 3.5 2012: 7,349

2013: 3.4 2013: 7,488

2014: 3.5 2014: 7,783

2015: 3.7 2015: 7,979

0 1000
(daily/millions of barrels) Ethane (millions of scfd)

2011: 9.1 2011: 792

2012: 9.5 2012: 851
2013: 9.4 2013: 796

2014: 9.5 2014: 809

2015: 10.2 2015: 794

Raw gas processed NGL from hydrocarbon gases

(billions of scfd) (millions of barrels)

2011: 9.9 2011: 461.4

2012: 10.7 2012: 482.0

2013: 11.0 2013: 455.9

2014: 11.3 2014: 471.3

2015: 11.6 2015: 474.4

0

scf = standard cubic feet

scfd = standard cubic feet per day
NGL = natural gas liquids
 Saudi Aramco
Annual Review 2015
95

Crude oil and refined products:

production and exports (millions of barrels)

2014 2015
Crude oil production, excluding condensate blended 3,480 3,708
Crude oil exports 2,544 2,603
Refined products production 566* 641
Refined products exports 168 232

NGL — production from hydrocarbon gases (millions of barrels)

2014 2015
Propane 181.0 181.3
Butane 119.8 119.5
Condensate 83.5 83.1
Natural gasoline 86.9 90.5
Total NGL production 471.3 474.4

NGL — produced for sale (millions of barrels)

2014 2015
Propane 167.5 165.5
Butane 97.8 96.9
Condensate 1.8 1.3
Natural gasoline 62.9 67.5
Total NGL sales 329.9 331.2

Sulfur recovery Sulfur exports

(millions of metric tons) (millions of metric tons)
2015 4.9 2015 3.8
2014 4.4 2014 3.6*

*Due to further data reconciliation, these figures have been revised.

96 2015 in Numbers

Refining capacity (thousands of bpd)

Saudi Aramco
or Affiliate Saudi Aramco
FACILITY Total Capacity Ownership Share of Capacity
Ras Tanura 550 100% 550
Riyadh 126 100% 126
Jiddah 78 100% 78
Yanbu’ 245 100% 245
Petro Rabigh 400 37.5% 150
SAMREF — Yanbu’ 400 50% 200
YASREF — Yanbu’ 400 62.5% 250
SASREF — Jubail 300 50% 150
SATORP — Jubail 400 62.5% 250
Total domestic 2,899 1,999

Motiva — USA 1,070 50% 535

S-OIL — South Korea 669 63.4% 424
Showa Shell — Japan 445 14.96% 66.65
FREP — China 280 25% 70
Total 5,363 3,094.65

Chemicals production capacity (kilotons per annum)

Out-of- Total Saudi Aramco

PRODUCT GROUPINGS In-Kingdom Kingdom Capacity Share*
Ethylene 1,300 1,100 2,400 763
Propylene 1,100 1,823 2,923 1,162
Paraxylene (Including Xylenes) 700 3,551 4,251 2,081
Benzene 600 1,268 1,868 912
Polyolefins 1,614 1,503 3,117 981
Others 1,316 1,775 3,091 1,117
Total 6,630 11,020 17,650 7,016
*Saudi Aramco’s share of capacity is based on the percentage allocation of the capacity volumes based on the ownership structure in the respective
entities. Saudi Aramco’s share of Sadara is not included. Sadara was commissioned on December 5, 2015, but did not produce commercial volumes of
chemicals by year-end.
 Saudi Aramco
Annual Review 2015
97

Principal products manufactured at in-Kingdom refineries (millions of barrels)

Jet Fuel/ Asphalt

2015 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil & Misc. Total
Ras Tanura 5.487 19.227 42.304 8.495 71.828 34.385 8.029 189.755
Yanbu’ 3.461 3.8 10.485 (0.457) 34.037 35.110 — 86.436
Riyadh 2.11 — 11.379 3.95 21.249 0.026 7.184 45.898
Jiddah 0.714 2.54 3.738 (0.047) 2.922 7.790 6.383 24.040
Total domestic 11.772 25.567 67.906 11.941 130.036 77.311 21.596 346.129

Saudi Aramco Share (millions of barrels) Jet Fuel/ Asphalt

2015 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil & Misc. Total
SAMREF (0.571) — 23.766 9.882 21.147 14.310 — 68.534
SASREF 1.269 10.540 2.255 8.963 14.112 12.678 — 49.817
Petro Rabigh 0.969 6.181 4.566 4.204 9.051 11.565 — 36.536
SATORP 0.629 3.525 15.639 10.070 43.732 0.643 12.079 86.317
YASREF — — 14.222 — 35.505 — 4.684 54.411
Total share 2.296 20.246 60.448 33.119 123.547 39.196 16.763 295.615
Grand total 14.068 45.813 128.354 45.060 253.583 116.507 38.359 641.744
Negative figures primarily indicate products that were reprocessed into other refined products.

Principal products manufactured at in-Kingdom refineries (millions of barrels)

Jet Fuel/ Asphalt

2014 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil & Misc. Total
Ras Tanura 4.993 14.967 43.884 7.753 76.135 32.486 7.155 187.373
Yanbu’ 2.374 3.246 11.537 (0.354) 29.343 30.873 — 77.018
Riyadh 1.784 — 10.926 2.682 19.213 0.032 6.521 41.157
Jiddah 0.940 2.892 3.983 (0.039) 2.398 9.217 6.388 25.780
Total domestic 10.091 21.105 70.329 10.042 127.089 72.608 20.064 331.328

Saudi Aramco Share (millions of barrels) Jet Fuel/ Asphalt

2014 LPG Naphtha Gasoline Kerosene Diesel Fuel Oil & Misc. Total
SAMREF (1.091) — 25.027 11.109 18.782 14.380 — 68.207
SASREF 1.330 11.693 2.216 9.411 14.221 13.280 — 52.151
Petro Rabigh 1.319 7.303 6.868 4.894 11.709 13.414 — 45.507
SATORP 1.303 3.941 11.130 8.238 31.576 7.485 — 69.027*
Total share 2.861 22.937 45.241 33.652 76.288 48.559 — 234.892*
Grand total 12.952 44.042 115.570 43.694 203.377 121.167 20.064 566.220*
Negative figures primarily indicate products that were reprocessed into other refined products.

*Due to further data reconciliation, these figures have been revised.

98 2015 in Numbers

Domestic product sales by region (millions of barrels)

2015 Central Eastern Western Total 2014 Central Eastern Western Total
LPG 2.095 7.513 5.806 15.414 LPG 1.785 7.377 5.346 14.509
Gasoline 71.873 41.014 93.511 206.398 Gasoline 70.359 38.919 83.018 192.296
Jet Fuel/ Jet Fuel/
Kerosene 9.632 3.011 18.723 31.366 Kerosene 8.820 3.141 15.837 27.798
Diesel 81.248 64.540 130.756 276.544 Diesel 83.416 61.588 121.111 266.115
Fuel Oil 0.32 2.273 132.879 135.472 Fuel Oil 0.393 1.614 127.899 129.906
Asphalt Asphalt
& Misc. 7.59 12.401 11.126 31.117 & Misc. 6.810 10.422 11.359 28.591
Total 172.759 130.753 392.801 696.313 Total 171.584 123.061 364.570 659.215

2015 exports by region Far East Northwest Europe Mediterranean U.S. Other
(percent)

Crude Oil Refined Products NGL*

5.6
26.7
16.6
34.5

6.4
49.3 4.3
65.0 6.4
69.0
9.4
6.8

*includes sales on behalf of SAMREF and SASREF

Ship calls by product type Crude oil Products LPG

2,500

2,000

1,500

1,000

500

total ship calls: 2011: 3,160 2012: 3,265 2013: 3,074 2014: 2,760* 2015: 3,109

*Due to further data reconciliation, this figure has been revised.

 Saudi Aramco
Annual Review 2015
99

Human Resources

65,266
employees

Saudi 54,666
expatriate 10,600

Saudi development programs

Participants enrolled at year-end 2015

704 1.5%
Regular Development programs GenY turnover

98%
College Degree Program for top performer retention

1,407
Non-Employees (CDPNE)

2,000
College Degree programs

7,818
Apprentice Program

CDPNE graduates joining

383
the company

Apprentice graduates joining

3,774
the company
100 Awards

awards
EXPEC ARC received two honors at the Our Ras Tanura Refinery won the is anchored by our Corporate Values:
World Oil Awards. The Best Explor­ Emerson Global Reliability Award for Integrity, Safety, Accountability, Excel­
ation Technology award recognized Reliability Program of the Year, the lence, and Citizenship. Through the
our collaborative efforts with a leading first time a company in the Middle East application of our values, we achieve the
industrial partner for the successful field had received the honor. highest business and ethical standards,
deployment of 3-D reservoir saturation with ongoing dedication to building
At the Annual Technical Conference
mapping from crosswell electromagnetic and maintaining trusted relationships.
and Exhibition, the flagship event of
surveys in horizontal wells. Our Produc­
the Society of Petroleum Engineers Our comprehensive Corporate Govern­
tion Technology Team received the
(SPE), a number of company person- ance structure is the mechanism that
Best Production Chemicals award
nel received awards of distinction and helps us define our strategic direction
for chemically induced pulse fracturing
a President’s Award for Section and ensures our industry leadership. It
for unconventional reservoirs.
Excel­lence was conferred on the also shapes how we are seen by the
Our YASREF joint venture refinery SPE Saudi Arabia Section, which held world — including our customers, sup-
won the Construction Project of 160 events attended by some 20,000 pliers, and new and existing business
the Year accolade at the 2015 Platts participants in a single year. partners. Our standards and integrity
Global Energy Awards. flow from our Board of Directors, which
Our Traffic Safety Signature Program
encompasses a wealth of diverse expe-
The production and processing teams was awarded the Public Awareness
rience and a future-oriented mindset.
at our Khurais and Abqaiq facilities Campaign Award by the Intelligent
The Board demands that management
earned awards from Frost and Sullivan’s Transport Systems and Road Safety
adhere to the highest personal and pro­
Manufacturing Leadership Council. Forum for the second consecutive time.
fessional ethical standards, and ensures
Khurais collected two awards: The
Our Saudi Aramco Environmental regular reporting and best-in-class
Sus­tainability Leadership award
Education Program received an independent auditing practices. The
recognized our resource and energy
award for the Best Oil/Gas CSR/HSE independent audit process, endorsed
optimization efforts, and the Engineer­
Initiative at the Abu Dhabi Inter­ and monitored by the Board, ensures
ing and Production Technology
national Petroleum Exhibition and an independent, confidential, and
Leadership award recognized our inno-
Conference Awards. robust review of company operations
vative integrated analytical engineering
and provides a clear and transparent
performance monitoring tool. Abqaiq The International Federation of Training
reporting channel from the indepen-
earned an award in the Big Data and and Development Organizations recog-
dent auditors to the Board.
Advanced Analytics Leadership cate- nized our Communities of Commitment
gory for an innovative system to improve and Practice knowledge-sharing initia- We employ a suite of policies, codes,
energy performance, marking the tive with a Global HR Certificate of and guidelines to support and guide
third time Abqaiq has won this award. Merit award. We were honored with our employees as they navigate the
the Best Employee Value Proposi­ complexities of our global operations.
At the 2015 Oil & Gas Middle East and
tion award by LinkedIn Talent MENA. These policies are our compass, and
Refining & Petrochemicals Middle East
Aramco’s office in The Hague was named the benchmark against which we mea-
Awards, our Enhanced Oil Recovery
the Best Employer in South Holland sure our performance and that of our
Focus Area team, part of EXPEC ARC’s
by Europe’s leading survey company. partners — contractors, consultants,
Reservoir Engineering Technology
suppliers, affiliates, and joint ventures
organization, won the Enhanced Oil Saudi Aramco’s publication, AramcoWorld,
within the Kingdom of Saudi Arabia
Recovery Project of the Year award was honored in October in New York
and abroad.
for the Kingdom’s first carbon capture, with 10 magazine industry awards
sequestration, and CO2 enhanced oil from the international juried competi- Our Supplier Code of Conduct and
recovery project. tion sponsored by Folio magazine. In-Kingdom Total Value Add program
ensure our values and ethical standards
We received a safety award in the
are extended to, and maintained across,
International Facilities category at the
Ethics and integrity our supplier network, enabling long-
94th Annual Gas Processors Associ­ation
Our behavior is what defines us — as term mutually beneficial partnerships
Convention and eight separate gas and
a company, as employees, and as peo- that support the delivery of our com-
NGL facilities were recognized with
ple. As we continue to strive to be the mitments to our stakeholders.
Facility Safety Awards.
world’s leading integrated energy and
chemicals company, everything we do
Saudi Aramco
Annual Review 2015