Professional Documents
Culture Documents
Past................................................................................................................26
Saudi Aramco Through The Decades...............................................................28
1930s - Origins................................................................................................30
1940s - Foundations 34
1950s - Momentum 38
1960s - Development 42
1970s - Growth 46
1980s - Transformation 50
1990s - Global Reach 54
S a ud i A ra mc o 7 5 th Ye a r A n n iversary
Present.........................................................................................................58
Future..........................................................................................................74
Environmental Stewardship..........................................................................86
Sponsors................................................................................................................................95
Baker Hughes.......................................................................................................................96
Halliburton...........................................................................................................................98
Schlumberger........................................................................................................................100
KACST-SAC...........................................................................................................................102
KACST...................................................................................................................................103
KFUPM..................................................................................................................................104
KFUPM Research Institute......................................................................................................105
In the Founder's
Footsteps
Introduction
Throughout its 75-year history, challenges posed by boom times a for-profit basis solidified the
Saudi Aramco has always relied and lean times alike, and their Company’s unique status as a
upon the judicious guidance of shared history is a success story stateowned oil company but one
the rulers of Saudi Arabia. In of progress, development and that operates with a high degree
turn, the Kings have placed their transformation. of autonomy – a living symbol
trust in Saudi Aramco to derive of the wisdom of the country’s
the maximum benefit from the Since its inception in 1933, the rulers.
country’s rich natural resources Company has been granted the
for the people of Saudi Arabia. flexibility to manage its own Within these generous bound-
Together, the Kingdom and its affairs. The creation of Saudi aries, Saudi Aramco has trans-
national petroleum enterprise, Aramco in 1988 as a commercial formed itself from an oil pro-
Saudi Aramco, have met the enterprise to be operated on ducing company into a fully
integrated international petro- by meeting the employees who combination of the blessings of
leum enterprise, with operations have contributed so much to the God for its petroleum reserves,
in exploration, producing, pro- well-being of the people of Saudi the wise stewardship of the rulers
cessing, refining, shipping and Arabia – and to the well-being of of Saudi Arabia, and the efforts
marketing of crude oil, natural people around the globe. Many of its employees who understand
gas, refined products and soon, of these visits are described with- that the people of Saudi Arabia
petrochemicals. in this supplement. – and billions of people around
the world – rely on Saudi Aramco
All six Kings of Saudi Arabia have There is no other petroleum to provide them with the energy
shown their support, in part, by company on the planet quite like they need to live fuller, more pro-
visiting Company operations and Saudi Aramco and its success is a ductive lives.
T
he story of Saudi Aramco arrangement, Casoc struck
begins with the vision of oil in commercial quanti-
King ‘Abd al-‘Aziz who, ties on March 3, 1938, at
aware of oil discoveries else- Dammam Well No. 7.
where in the region, sought the
expertise of an international oil Little more than a year
company to explore his kingdom later, King ‘Abd al-‘Aziz,
for the natural resources that on his first visit to
would allow him to guide the de- Company operations
velopment of his young country. in Dhahran and Ras
On May 29, 1933, after months Tanura, on May
of negotiations, the King’s minis- 1 turned a valve
ter of finance signed the Conces- that sent the
sion Agreement with Standard first tanker load
Oil of California, or Socal, an act of Saudi oil to
that would eventually transform the world. The
Saudi Arabia and the global pe- next year, Ca-
troleum industry. soc discovered
the Abqaiq
King ‘Abd al-‘Aziz had to wait field, the first
nearly five years for his bold move sign that Saudi
to yield results, as the California Arabia could
Arabian Standard Oil Company, contain vast
or Casoc, as the Company was petroleum re-
now called, endured hardships serves and that
and difficult conditions, suffer- the Company, renamed the Ara- was the start-up of the Ras Ta-
ing setbacks along the way until, bian American Oil Company, or nura Refinery in late 1945.
on the verge of pulling out of the Aramco, in 1944, had the po-
tential to become one of the King ‘Abd al-‘Aziz paid his last
most important oil companies in visit to Aramco in January 1947,
King ‘Abd al-‘Aziz, on world history. when, among other activities,
he personally received about
his first visit to Company
Both the Government and 200 American employees, their
operations in Ras Tanura, Aramco endured lean times dur- wives and children. In a sign of
turned a valve that sent the ing World War II, as exploration Aramco’s growing significance
was curtailed and production to the global petroleum indus-
first tanker load of Saudi oil cut back, but once the war was try, in 1948 Standard Oil of New
to the world. over, Aramco began expanding Jersey and Socony-Vacuum Oil
rapidly, one example of which (both now ExxonMobil) joined
8 • Saudi Aramco - 75 years
I n the Fo u n d e r's Fo o tsteps
ra tulatory cable
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King Sa‘ud
Reigned 1953 - 1964
A
s Crown Prince, King the Eastern Province – the be- Caravan) at a time when Ara-
Sa‘ud visited Company ginning of the Aramco-built bic publications were
operations in December Government Schools few and far be-
of 1937 and again in 1950, visit- Program. The program tween in Saudi
ing a trade school where he wit- was championed by Arabia. Many
nessed young Saudis learning the a young King Fahd, contemporary
skills needed for the petroleum then Education Min- authors in the
trade – an early example of the ister. Arab world
transformation taking place in were inspired
Saudi society, as the sons of pearl The first school by Al-Qafilah
fishermen, merchants, farmers opened in Dam- to become
and Bedouin began to climb the mam, in De- writers and
ladder that would take them to cember f o r
the top of Aramco within two
generations.
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began sending promising young Directors. In the last few years a long and mutually beneficial
Saudi employees to study at of King Sa‘ud’s reign, two sig- relationship, with the university
U.S. colleges and universities. nificant milestones in the history conducting research vital to the
That same year, in October, King of the petroleum industry were Company’s success and many of
Sa‘ud announced his support for reached, one on the global stage its graduates enjoying long ca-
the creation of schools for girls and one at home. In 1960, the reers with the Company.
nationwide and in 1961, Aramco Organization of Petroleum Ex- a n , 19 5 7
D hahr
agreed to extend its commit- porting Countries (OPEC) was g
r tin
ment to building schools for sons formed. pa
De
King Faysal
Reigned 1964 - 1975
T
he eleven years of King over to the Government in Sep-
Faysal’s rule were marked tember 1964. Aramco also
by big changes in the world, agreed to support the recruit-
the region, the country and the ment and training of female
Company. Both Saudi Arabia teachers.
and Aramco emerged stronger
from these trying times. Aramco, under the guid-
ance of King Faysal, com-
In 1965, King Faysal inaugu- pleted major explora-
rated the College of Petroleum tion, production and
and Minerals in Dhahran. Aram- distribution
co has been committed to the projects
school’s success since its incep- to bol-
tion. In 1969, the first Saudi em- ster the
ployees of Aramco enrolled in Compa-
the college. The following year, ny’s place
Aramco contributed millions of among
dollars to the school’s expansion interna-
program and in 1971, the uni- tional oil
versity issued its first degrees. compa-
nies. The
During King Faysal’s reign, the Berri field
program to build and maintain was dis-
schools for the daughters of covered in
Saudi employees became real- 1964, followed by a string of on-line in 1972. Two years be-
ity, with the first two schools, in significant finds, including Zuluf fore, Aramco’s shipments of oil
al-Khobar and Rahimah, turned in 1965, Marjan, Karan and Jana and petroleum products from
in 1967 and Shaybah in 1968. Ras Tanura surpassed 1 billion
barrels for the year for the first
Aramco, under the That same year, Aramco became time, and in 1971, oil production
guidance of King the first oil company in history increased more than 25 percent
Faysal, completed major to produce 1 billion barrels of oil over the previous year. Another
exploration, production in a year. offshore terminal, Ju‘aymah, be-
and distribution gan operations in 1974, with an
projects to bolster To better deliver vital supplies initial shipping capacity of 1 mil-
of oil to the world, the first two lion bpd.
the Company’s place
loading berths at Ras Tanura’s Sea
among international oil
Island Terminal opened in 1966, Under King Faysal, the Saudi Gov-
companies. with two more berths coming ernment began negotiations that
cis
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anura, 1963
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cent. These were the first steps to cornerstones of the Plan was the
complete ownership of the Com- call for Aramco to design, build
and operate the Master Gas Sys-
pany, which came in 1980. The
tem to provide fuel for a national
negotiated purchase of Aramco
network of diversified industries.
was yet another symbol of the
relationship, based on mutual The Master Gas System, a legacy
respect and trust, between the of both King Faysal and Aramco,
Saudi Government and the U.S. remains the backbone of Saudi
owner-companies of Aramco. industrial development.
Saudi Aramco - 75 years • 13
Roy a l Vi si ts to S au d i A ramco
King Khalid
Reigned 1975 - 1982
T
he time of King Khalid saw Seawater Treatment
tremendous economic and Plant and the Master
industrial growth in the Gas System (MGS).
Kingdom, driven in large part
by the expansion of Aramco’s The MGS was de-
oil and, increasingly, natural gas signed to provide
production capacity. This growth fuel or feedstock
was highlighted in 1976 when for electrical power
Aramco became the only Compa- plants, cement and
ny in the world to produce more desalination plants,
than 3 billion barrels of crude oil and for petrochem-
in a single calendar year. ical, fertilizer and
steel-making fa-
The Government and Aramco cilities. In November
together embarked on a capital 1977, King Kha-
program in the mid to late 1970s lid com-
that was unprecedented in indus- mis-
trial history – a program that was
unmatched until the current cap-
ital program that was launched
in 2005. In 1977, Aramco had
three of the world’s largest proj- sioned the Berri Gas Plant, the The MGS had a dramatic impact
ects under way at the same time: first plant completed in the on domestic contractors as well as
the Zuluf GOSP-2, the Qurayyah MGS. on industries ranging from earth
moving to construction, steel, ce-
The next year, a major compo- ment and welding, with Aramco
nent of the MGS was complet- awarding hundreds of contracts
The Government and ed when Aramco built an NGL worth billions of dollars to Saudi
Aramco together pipeline across the country from firms.
Shedgum to Yanbu‘. As part of
embarked on a capital
the overall MGS, two vast indus- Acting upon King Khalid’s Royal
program in the mid trial cities were constructed at Decree creating the Saudi Con-
to late 1970s that Jubail on the Gulf and at Yanbu‘ solidated Electrical Company, or
on the Red Sea. The latter, which SCECO, in August 1976, Aramco
was unprecedented in
included several major Aramco worked out a plan to combine 26
industrial history. facilities, was formally dedicated local power companies with its
in 1979. own power plants, thus creating a
14 • Saudi Aramco - 75 years
I n the Fo u n d e r's Fo o tsteps
Be rri Gas Plant,
ting 197
a 7 980
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itin
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bu ’ , 19 8 0
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Vis
, 1980
ymah
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King Fahd
Reigned 1982 - 2005
T
he reign of King Fahd in- The following year saw the cre-
cluded both boom times ation of the Company’s interna-
and lean times for Aram- tional shipping subsid-
co, which weathered its gravest iary, Vela International
challenge and emerged as the Marine Limited. By
world’s leading petroleum enter- 1995, a program to
prise, a position it retains to this build 15 advanced
day. Early in his rule, King Fahd supertankers was
oversaw the appointment in No- completed. To-
vember 1983 of Ali I. Al-Naimi day, Vela is rec-
as the first Saudi president of ognized as one
Aramco, effective January 1984. of the premier
The rise of His Excellency Al-Nai- tanker fleets in
mi through the ranks of Aramco the world,
was a testament to the potential trans-
of the Saudi people, nurtured by porting
the Company’s world-class train- m i l -
ing programs. lions
of bar-
King Fahd visited Dhahran on rels of
the occasion of the Company’s crude
50th anniversary, in May 1983, oil and
and inaugurated the Exploration petro-
and Petroleum Engineering Cen- leum products safely around the 8th November 1988, when King
ter, or EXPEC, a facility which al- globe. Fahd issued a Royal Decree that
lowed Aramco to perform many established the Saudi Arabian Oil
of the geoscience and petroleum During a December 1986 visit Company, or Saudi Aramco. Ali
engineering tasks previously per- by King Fahd, the University of I. Al-Naimi became CEO at this
formed by outside companies. Petroleum and Minerals was time. Seven years later, in 1995,
renamed King Fahd University Abdallah S. Jum’ah was named
of Petroleum and Minerals, or President and CEO and Al-Naimi
The final act in the
KFUPM. The following year, the was appointed Minister of Petro-
transformation of new Aramco Exhibit opened leum and Mineral Resources, po-
Aramco took place on 8th to the public, and through the sitions they retain today.
years, it has hosted thousands of
November 1988, when school children who learn about Also in 1988, under the guid-
King Fahd issued a Royal the petroleum industry and the ance of King Fahd, Saudi Aramco
legacy of Arabic science. took its first steps on the path to
Decree that established becoming a truly integrated in-
Saudi Aramco. The final act in the transforma- ternational petroleum enterprise
tion of Aramco took place on when a Company subsidiary and
Vis
Vis
I na
amco Training
ting Ar Ce
ra nte
u r,
ug
Ra
I na
sT
anu
ra,
1986
Texaco established Star Enter- mandate to expand exploration The trust placed in Saudi Aramco
prise, the Company’s first joint beyond the limits set in the origi- by the rulers of the country was
refining and marketing venture nal Concession Agreement. again demonstrated in July 1993
in the United States. Star Enter- when King Fahd issued a Royal
prise later evolved into Motiva Confronted with its severest test
Decree merging all of the King-
Enterprises, LLC, a joint venture in 1991, Saudi Aramco success-
fully contained and then cleaned dom’s oil refineries, product dis-
between Saudi Refining Inc. and
up one of the largest oil spills in tribution facilities and interests
Shell. The Star Enterprise venture
was followed in 1991 by an eq- history, a tragic result of the Gulf in three joint-venture refineries
uity venture with SsangYong Oil War. During the crisis, the Com- into Saudi Aramco. With this act,
Refining Co. Ltd. (today’s S-Oil) pany did not falter in its pro- King Fahd had transformed Sau-
in the Republic of Korea and in duction of petroleum, helping di Aramco into the world’s third
1994 by an equity venture with stabilize world energy markets. largest refiner. Under the leader-
Petron in the Philippines. No Company production facili- ship of King Fahd, Ali I. Al-Naimi
ties or Government installations and an expanding Saudi manage-
In 1989, Saudi Aramco made such as desalination plants were
ment, Saudi Aramco was trans-
the first oil discoveries in central shut down as a result of the spill
formed from an oil producing
Saudi Arabia, followed in 1992 – a proud testament to Saudi
Aramco’s ability to perform at company into a fully integrated
by discoveries on the Red Sea
coastal plain. These discoveries the highest levels under any cir- petroleum enterprise, with op-
were a result of a Government cumstance. erations spanning the globe.
Saudi Aramco - 75 years • 17
Roy a l Vi si ts to S au d i A ramco
A
s Crown Prince and then Qatif-Abu Sa‘fah project,
as King, ‘Abd Allah guid- inaugurated by Crown
ed Saudi Aramco into a Prince ‘Abd Allah in
higher profile in the global pe- December 2004. The
troleum industry, expanding the following year, the
Company’s international ventures Saudi Government
and extending the Company’s and Saudi Aramco
reach into downstream activities, unveiled the most
including petrochemicals and ambitious capital
associated industries. Under his project in the
leadership, Saudi Aramco forged Company’s his-
in-Kingdom joint ventures in nat- tory: a slate of
ural gas, embarked on the largest crude oil produc-
capital program in its history and tion expansion
took the lead on the creation of projects that,
a world-class graduate research by 2009,
university. will
raise the
In a stunning display of technol- King-
ogy and human ingenuity, Saudi dom’s
Aramco brought the Shaybah maxi-
project on-line and in March mum
1999, Crown Prince ‘Abd Allah sustained output of crude the Government, Saudi Aramco
inaugurated the facility, and in oil by 2 million bpd to about entered into discussions with
April, he inaugurated the Dhah- 12 million bpd – an increase international petroleum compa-
ran-Riyadh-Qasim multiproduct roughly equal to the output nies for possible gas exploration
pipeline and the Ras Tanura Re- of some leading oil-exporting and production joint ventures in
finery upgrade project. nations. the Kingdom. In 2004, the last
of four joint venture agreements
Additional oil production ca- With domestic demand for was signed for upstream gas
pacity was added with the natural gas increasing, Saudi projects in the Rub’ al-Khali.
completion of the 800,000 bpd Aramco placed greater empha-
sis on finding and producing The natural gas strategy does
Saudi Aramco, under the non-associated gas. One of the not end with the production of
direction of King ‘Abd Allah, first tangible results of this strat- gas, but extends to associated
egy was the Hawiyah Gas Plant, downstream industries, thus
has entered into long-term inaugurated by Crown Prince further diversifying the national
partnerships abroad that will ‘Abd Allah in October 2002. economy and creating new jobs
This was soon followed by the for Saudi citizens. To this end, in
ensure future markets for Haradh Gas Plant, inaugurated March 2006, ground was broken
Saudi Arabian crude oil. by the Crown Prince in January on a joint venture with Sumito-
2004. Under the direction of mo Chemical Co., Ltd. of Japan,
I na
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2
Qa tif, 2004
a ting
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Abdullah Al-Tariki:
First Saudi Board Member
Engaging, dynamic, courageous and outspoken, Abdullah H. Al-Tariki is
widely remembered as a world figure in the politics of oil and energy.
A Saudi native, Al-Tariki originally came from Zilfi, the son of a camel
owner who organized caravans between Saudi Arabia and Kuwait. At an
early age, Al-Tariki was noted for his intelligence and was sent to schools in Kuwait and Cairo. He later
earned a scholarship to the University of Texas, where he studied chemistry and geology.
Al-Tariki was responsible for many firsts in Saudi Arabia. He was one of the first American-educated
Saudis and is believed to be the first Saudi trained in both chemistry and geology. At 35 years of age,
his role with the Directorate of Oil and Mining Affairs was to process petroleum statistics from Aramco
and provide these to the Royal Family with his analyses.
In 1954, he became director general of Petroleum and Mineral Affairs. In 1959, Al-Tariki was the first
Saudi elected to Aramco’s Board of Directors. Upon creation of the Ministry of Petroleum and Mineral
Resources in 1960, Al-Tariki was appointed the first oil minister.
Al-Tariki was pivotal in supporting both the nationalization and the Saudization of the company.
Among his other accomplishments, Al-Tariki was instrumental in the founding in 1960 of the Organiza-
tion of Petroleum Exporting Countries (OPEC), and in his later years, served as an oil consultant and an
activist in Arab affairs.
During his lengthy tenure with the company, Shalfan served a variety of
functions within the organization and a key role in the Public Relations Department. Shalfan worked at
the Aramco Oil Exhibit and quickly developed a strong reputation for his warm and engaging treatment
of exhibit visitors.
Originally from the Najd, Shalfan as a young boy was brought to Bahrain where he encountered two
Western geologists in pursuit of oil. Although quite young, Shalfan offered his expertise as a native of
Saudi Arabia, to accompany the gentlemen in their exploration efforts. Such began his adventures in
the search for oil, which led Shalfan ultimately to the well called Dammam No. 7, where Max Steineke
and his geological team reached their goal for commercial oil discovery in 1938.
Shalfan experienced first-hand this momentous period in history, important both for the Kingdom of
Saudi Arabia and the world. Describing the rapid pace of transformation within Saudi Arabia as a result
of discovering oil, Shalfan proclaimed, “We have gone from nothing to everything.”
A resident of Jeddah who worked as a clerk in the local police station, Basrawi
responded to an ad for Aramco employment. Because he could read and write
Arabic he was quickly hired. He was told he was going to be an English teacher!
Basrawi did not actually know English, but he soon taught himself the language, learning as he went,
only a lesson or two ahead of his students.
At the time Basrawi taught at the Jabal School, there were 3 or 4 teachers and over 100 students. His
work was cut out for him, and he quickly found himself to be a natural teacher with a penchant for
organizing youth sports and field trips. Basrawi remembered teaching Ali Al-Naimi for two years during
his time at the Jabal School. Al-Naimi, he recalled was a very prepared student.
Following his years at Jabal, driven by his own educational goals, Basrawi attended college in Beirut. He
was among the first group of Aramco students to study in Lebanon. He later returned to Dhahran for a
job in the company’s Government Relations division.
Basrawi is also well known as a personality on Aramco Television, where he hosted educational pro-
grams for 17 years. Through this programming, women in the Eastern Province in Saudi Arabia learned
to read and write during an era when there were no schools for girls. He later hosted a popular quiz
show where Aramco contestants competed on the subjects of math, history, geography and religion.
One of Aramco’s important pioneers, Basrawi reflects back on his time with Aramco and thinks it is
wonderful that the Saudi employee of today has even more opportunities for education than during his
era.
Additional positions Ohliger held included resident manager, general manager, vice president and chair-
man of the Aramco Board of Directors. He retired from Aramco in 1957 and subsequently returned to
the United States with his family.
On the 50th Anniversary of Aramco, Ohliger returned to the Eastern Province and other areas in Saudi
Arabia, met with management and toured the new Exploration and Petroleum Engineering Center (EX-
PEC). He commented to “The Arabian Sun” during that return visit to the Kingdom that his work and
time with Aramco brought him a “satisfaction more inward than anything else.” He also talked about
the overwhelming transformation of the Kingdom in the years he had been away and said the devel-
opments “for the country as a whole, including Aramco in the last 10 years, have been greater than
all the preceding years.” Much of the transformation was the result of a highly successful oil industry
built through the hard work of Aramco’s early pioneers, and Ohliger, whether he would admit it or not,
played a significant role in this success.
It was 1934 when Davies visited the Arabian Gulf on his first trip. On behalf of Socal (Standard Oil
Company of California) and its subsidiary Bapco, Davies worked with the team that located the first
wildcat well in Bahrain. Based on this discovery and his superior instincts, Davies recommended efforts
to obtain a concession agreement in Saudi Arabia. He was convinced of the Kingdom’s great potential
for oil exploration.
This instinctive knowledge led to a tremendous future for Davies with the company, including his pres-
ence in 1939 when King ‘Abd al-‘Aziz turned the valve that permitted oil to flow onto the first export
tanker at Ras Tanura. Davies’ career with the company flourished after the momentous entrance of
Saudi Arabia into commercial oil production.
Davies’ career path included President of Casoc (California Arabian Standard Oil Company); Aramco
Vice President of Exploration and Production; Executive Vice President of Aramco; and eventually CEO
and Chairman of the board. He also served on the senior leadership team during the season that
Aramco relocated its headquarters from New York to Dhahran. He relocated his family to Dhahran and
resided in the Kingdom for the remainder of his Aramco career.
In a display of honor, Aramco’s first floating storage vessel was named the “F.A. Davies.” Liston Hills,
President of Aramco at the time, described Davies as a man “whose vision, professional skills and per-
sistence were instrumental in the uncovering of vast petroleum reserves in the Gulf.”
Undisputedly a key figure in the company’s history, CEO Frank Jungers over-
saw momentous growth during his time with Aramco. Originally from North
Dakota, Jungers was educated in Oregon and Washington State in engineer-
ing. He served in the U.S. Navy and then immediately went to work for Standard Oil of California in San
Francisco. It was 1947, and Jungers was just 23 years of age when he was sent to Saudi Arabia for the
first time. He was immediately given a permanent assignment in the Kingdom to work on a construc-
tion project. He quickly developed a reputation for maintaining very positive relations with the Saudi
workforce. This is the reputation that Jungers carried with him throughout his career and an attribute
that made him a great success with the company.
Unlike some of the earlier pioneers who built the company and its facilities from the ground up, Jungers
joined a going concern, and worked hard to enhance and improve its operations. The course had al-
ready been laid out by his predecessors. Jungers, however, faced equally daunting challenges, as he
was running Aramco during an era of massive change.
A natural problem solver, Jungers was tapped early on for managerial roles in Ras Tanura and then
in Dhahran. In his desire to communicate better with his Saudi workforce, Jungers became fluent in
Arabic. In 1971, Jungers was appointed as President of Aramco and served as Chairman of the Board
and CEO from 1973 to 1978. During his time of senior leadership, Jungers oversaw the creation of
the Kingdom’s Master Gas System, the negotiations surrounding the Saudization of the company, and
the OPEC oil embargo. A key figure during a critical time, Jungers today is recognized for his 30 years
of service with Aramco and his dedication to the growth and professional development of the Saudi
workforce during his tenure.
In 1944, Rentz was invited to Jeddah by Karl Twitchell, an American mining engineer who was instru-
mental in the signing of the Concession Agreement in 1933. With his superb command of the Arabic
language, Rentz was recruited as a translator for a mere 9-month opportunity, but went on to serve 17
years with Aramco.
With his comprehensive grasp of the language and culture, Rentz provided a critical role in Aramco’s
Government Relations Department. He also served as Chief of the Arabian Research and Translation
Division, and Supervisor of Arabian Research. Rentz established high standards for Arabic translation
and research. He is also recalled for his contributions to a series of Aramco handbooks detailing the
history of Saudi Arabia, the petroleum industry and of Aramco itself.
Like other Americans who served with Aramco, Rentz was able to return to Dhahran later in his life to
see how the country had changed. At the age of 71, Rentz was struck by the size of the buildings and
the overwhelming accomplishments of the company. Rentz’s contributions in research, scholarship and
service were a significant part of that success.
Steineke is well known for his efforts at Dammam Well No. 7, which in 1938 produced oil in commercial
quantities for the first time in Saudi Arabia. With no promise of success – and previous unsuccessful
drilling attempts – the teams kept drilling at Steineke’s urging, which led to the discovery that ultimately
transformed the Kingdom. It was no surprise that Steineke was awarded the prestigious Sidney Pow-
ers Memorial Medal in 1951, the highest honor for a petroleum geologist. Steineke’s perseverance and
commitment to Aramco give him a very special place in both the company and world history.
Upon gaining approval, Husseini took part in a health education outreach program where she contrib-
uted directly to Aramco’s communities. With other Aramco employees, Husseini traveled and educated
Saudi families on personal care, health practices and sanitization. Her impact on Aramco and its female
work force – as well as on the improved health care of the surrounding communities – has left a lasting
mark on the company.
Al-Ajmi is currently retired, and is a published author of “The Legacy of a Lifetime”. In a 2007 interview,
Al-Ajmi recounts his experience in the early days of Aramco. He provides thoughts on the future of
Aramco and says he hopes to see managers who are able to grow and learn beyond what the founders
were capable of. In speaking to a group of new engineers at Aramco, Al-Ajmi tells them he is glad to
not be competing with them. “That’s the kind of organization that we hope to maintain in Aramco”,
Al-Ajmi says, “…as a generation leaves, they leave people better than themselves”.
Kerr’s later years with Aramco were spent in the New York office where he hosted many associates from
Aramco and Saudi Arabia. His lasting marks as an Aramco “pioneer” were the innovative contributions
borne from his spirit and dedication to the country and company.
1930s
>> Origins
‘Drill deeper’
Chief Geologist Max Steineke to Casoc executives in San Francisco in 1938.
Max Steineke is widely recognized as the geologist most responsible for the discovery of oil in
Saudi Arabia. Steineke was a senior geologist with Socal, arriving in Dhahran in the Fall of 1934.
In March and April 1937, he crossed the Arabian Peninsula both ways, gaining a comprehensive
idea of the structure and stratigraphy of the peninsula, on which all subsequent geological
knowledge is based. Prior to the success of Dammam No. 7, Casoc had suffered a string of
expensive setbacks. Casoc executives asked Steineke if it was worthwhile to continue
operations. His advice: “Drill deeper.” The oilmen drilled down 1,441 meters into
the Arab formation where Dammam No. 7 finally struck oil, and by 22nd
March 1938, was producing 3,600 barrels per day.
cou nted at th
of Dhahran, 1938 being eD
oto 0 0 utc
ly
p h 5,0 h
3
Ba
£
r
Ea
nk
of
. Ji
nt
oc's first payme
dda
h, Aug 25,1933
C as
aS
To
tri p
Kh
au
to
Al
d i bo
Ba
g
vin
y watches.
hra
lea
in, A
a
Calarabi
19
pa
36.
on
Pho
Explorati
an , 1938
D hahr
o of HM King Abd Al Aziz takes
ot
the salute aboard the D. G.
ph
1940s
>> Foundations
In 1940, there were signs of a big oil field at Abqaiq and a major new discovery at Abu Hadriya.
The drilling location for Abu Hadriya No. 1 had been partly based on seismographic evidence,
a new development in exploration. When the well struck oil in March 1940, at twice the
depth of Dammam No. 7, it was an early vindication for exploration geophysics. This
significant strike also showed that similar deep geologic structures in Saudi Arabia
might yield oil. In January 1944, when the company was renamed the Ara-
bian American Oil Company, or Aramco, oil was critical for post-war
industry, aviation and the recovery of wartorn Europe.
er installation a Ready to run a bit into the well hole, two Saudi Arabian employees
biliz t Tw
n sta ilig of Aramco guide the drill pipe and bit down through rotary table on
ra h the platform of their rig near Abqaiq. May 1949.
h
t.
ha
Dh
's D
ahr
View of Aramco
an
, 1949. Photo by
: T.
W F.
al t
ers
ke
on don y in the ce
ers nte
rid r,
wo
Um
h t
wit
m
Sab
en
Date gard
a h , Ho
fuf, 1949.
nt of Ras Tanur
nfro a re
e unloa
ding passe
ng e m el i fin
n rs ca e
pla an
ai r
ry.
his
Ph
d
o
nd
mc
ca
o
na
to b
rgo
Ar a
Saudi ma
, 194
y
s
: R. Y. Richie
Aviation'
0. Photo by: B.
H. Mo
od
1950s
Mediterranean Sea port at Sidon, Lebanon. from Dammam to Riyadh.
>> Momentum
h Sowayig
Farida
r an x-ray at Aram , an
d h, Sa
w n fo co n ud
o ica i.
n gd Dh
er
Dh
Am
ah
ah
i
ay
ran
ra n
lly,
nl
Susan Ke
, Ja
ma
He a
nuary 1952.
Saudi
r guide. Phot
ip ionee ob
Ph o
ud y: R
Sa us
to
n,
by
se
tha
T.
ll L
F. W
im
alte
ee
nR
rs
Khamis Ib
Survey exploration
party on desert
in Eastern Saudi
Arabia. Geologist
Falcon hunting is still
communicates with
practiced in Arabia.
headquarters via
These birds are
walkie-talkie as his
trained to hunt rabbits
companion sights
and hubara - while
through a transit.
others are highly
Exploration surveying.
trained in the hunting
Abqaiq, September
of gazelles. Desert,
1952. Photo by: T. F.
November 1955. Photo
Walters
by: Khalil Nasr
Ain Dar no. 57 looms above a herd of watering camels while herdsman smile.
Located approximately 68 kms (41 Miles) north and west of Abqaiq, Aramco's
producing headquarters, no. 57 is situated in the north Ghawar field, 8 kms (5 miles)
due south of Ain Dar no. 56., Ain Dar no. 57, September 1957. Photo by: V. K. Antony
Saudi Aramco - 75 years • 41
1961 - Aramco’s first shipment of 1962 - Cumulative 1963 - Crude oil reserves
liquefied petroleum gas (LPG), the crude oil production total 57.8 billion barrels;
equivalent of 75 million cubic feet reaches 5 billion gas reserves total 24.1
1960s
of gas, is loaded onto a specially barrels. trillion scf.
designed tanker at Ras Tanura.
>> Development
Aramco’s exploration efforts during the 1960s led to the discovery of 16 oil fields. Crude oil
production continued to soar in this decade. In 1965, Aramco exceeded production of more
than 2 million barrels per day, and on 22nd November 1967, the 9 billionth barrel of crude
oil was produced. Aramco became the first company to produce 1 billion barrels of
crude oil in less than one year in 1968, its 30th year of commercial oil production.
In 1969, production reached nearly 3 million barrels of oil per day. Saudis
comprised slightly more than 75 percent of Aramco’s workforce, and
76 percent of those Saudi employees held semi-skilled, su-
pervisory or professional jobs.
o
db
to
us e
by:
B
Buggies
. H. Moody
Saudi operators
sewing in the Dammam
cooperative industries
garment factory, March
1966. Photo by: A. Latif
Yousif
1970s
nation in the world.
>> Growth
ot
Ghamidi
te
hy
Da
m
iller
a . Abha, June 19
97 2 .
Photo by: A. M rabi 72.
. Al iA
ir, 1 -Kh ud Ph
r, As al Sa o
to
st
te
ifa
by
We
wa
:S
uth
i ng
a'id
Topography spr
ouses in So
a. Al-Ghamidi
age h
Vill
1980s
>> Transformation
In 1980, the Saudi Government signed an agreement for full ownership of Aramco. Aram-
co began its transformation from a booming, oil-producing concern into an integrated
international oil company. In 1988, the company’s name became Saudi Aramco,
and in 1989, it undertook a multibillion-dollar program to reach a maximum
sustained crude oil production capacity of 10 million barrels per day.
As the decade closed, Saudi Aramco celebrated its 50th year
of crude oil exports on 1st May 1989.
unset pict
o : 3 (s ure
lant n ) Ut
uary 1982. Ph p hm
n , Fe b r ot o nt
ra by
e
an
h
atm
ha :
iya
tr e
R.
D
h,
.
Ro
May
se n
aly
1982. Pho
Data an
garte
n
, u ti
to by
cks
:
a
S
s t
.M
ur
lf Am
Su in
y:
lib
Saudi student. Dammam,
J.E
le
obi
May 1982. Photo by: S. M.
.
Cha
Ar a m c o m
Amin
m
pney
1990s
Shaybah, 1998
in
i on
by: A. G. Waine
Explo
2000s
A
bdulrahman F. Al-Wu- engineering and construction
haib, then vice president, process. Established in 1983 to
Project Management, and develop a national research cen-
currently vice president, Ras Ta- ter for construction, it consists of
nura Refining, reported on the a consortium of leading owner
series of construction accom- companies and contractors who
plishments before an attentive join together to find better ways
gathering of some 500 Institute of planning and executing capi-
members representing 83 com- tal construction programs.
panies. Assisting him in a panel
presentation and discussion that Al-Wuhaib saluted the construc- Abdulrahman F. Al-Wuhaib presented
followed were four key members tion industry organization in his the Shaybah story to the Construction
of the project team. They includ- presentation, giving credit to the Industry Institute.
ed Nadhmi Al-Nasr, manager, national forum for planning, en-
Shaybah Development Projects gineering and construction tech-
Department; Abdullah M. Okab, and has participated on a num-
niques developed and fostered ber of research teams over the
manager, Shaybah Producing
by the organization. He indicated years.
Department; Rudy Ionides, proj-
that the techniques had strong
ect director, Overseas Bechtel,
influence particularly in team “Picture yourself, a project man-
Inc.; and Hamid Amin, area gen-
eral manager, Consolidated Con- building and schedule compres- ager, sitting in a nice cool office
tractors International Company. sion, two important areas that in the headquarters building,”
J.G. Palmer, quality coordinator, played a major role in the suc- said Al-Wuhaib, as he began his
Project Management, served as cessful completion of the Shay- presentation. “Suddenly the boss
moderator. bah program. stops by and says the company
needs to develop a grass-roots oil
The Construction Industry Insti- The Shaybah presentation field in Shaybah, one of the hot-
tute is a research organization marked the first time that Saudi test and harshest environments
Aramco has appeared on the an- on earth. It is 340 miles from the
with an all-encompassing mis-
nual conference agenda. Saudi nearest town. Vehicular travel will
sion: to improve the quality, safe-
Aramco has been a member of take four days over sand dunes.
ty, scheduling, competitiveness
the Construction Industry Insti- No problem, you say. It will be a
and cost-effectiveness of the
tute, through ASC, since 1992, challenge, but it can be done.
“Just after the front-end engineer- miliar to many in Saudi Aramco landscape, and all of our pro-
ing is underway, the boss comes acquainted with Shaybah’s back- tection measures were enforced
back and says your schedule is cut ground and development. He throughout construction.
by 25 percent—a whole year! You covered the project scope, the
have a total of three years to start obstacles faced, and explained “As you can see, the terrain is
production. Now this is a real un- how the project team met a starkly beautiful, but treacher-
dertaking.” ous and unforgiving. With tem-
myriad of challenges.
peratures sometimes reaching
Al-Wuhaib challenged his audi-
A map showed Saudi Arabia, 135 degrees Fahrenheit, anyone
ence: “How would you manage
and execute a project this big, in the pipeline network and fiber unfortunate enough to get lost
such a remote and harsh environ- optic cables, and the Abqaiq in this environment would most
ment, in only three years?” Plants and mammoth gas/oil likely pay with his life. The loca-
separation plants (GOSPs) and tion is 340 miles from the near-
The Shaybah team, he said, ac- related facilities. His audience est town, 240 miles from the
tually built Saudi Aramco’s larg- saw scenes depicting the local nearest road. Until the new road
est oil production plant in this topography, large salt flats sur- was finished, surface travel took
extremely short time frame. rounded by sand dunes towering four days, men digging out stuck
700 feet, and viewed pictures of vehicles and sleeping on sand
“Success was achieved through early construction work where dunes under the stars—nice in
the combined efforts of a com- bulldozers leveled the imposing winter but a different story in
mitted team of employees, con- dunes to make way for men and summer.”
tractors and suppliers, from the machines.
President of Saudi Aramco to The team faced extraordinary
the welders in the field. One “The desert environment has difficulties, Al-Wuhaib said,
team, with one vision and one been undisturbed for thousands with transportation, equipment
mission—that was Shaybah.” of years,” Al-Wuhaib explained, maintenance, and worker safe-
“and the project team felt that ty, health and morale. His rapt
Panoramic view of the its protection had to be one of audience chuckled when he
project their top priorities. Environmen- explained that even sand and
Using slides as he spoke, Al-Wu- tal impact assessments were con- gravel for concrete had to be im-
haib took his audience through ducted to minimize and mitigate ported because none of the local
a scenario that has become fa- potential harm to this delicate sand was suitable.
Saudi Aramco - 75 years • 67
The Shaybah Story:
n scene in early
c t io st a
stru g ipe rack under co
n -2 p nst
P
Co
es
OS ru
c
.
G
tio
h
ba
n .
y
Sha
s 500,000
to proces bpd
ed .
is gn
de
ties
de-handling facili
Cru
e. Runway an
sabl d
the R
esidential p en ha
t as
/Ind
us dis n
r
ga
e tr
in
s
r
o
als
fac
de
ial
ilitie
the
Co
A cc
A ci
t o pe
.
at
s. ion
into e d ule s
everyday sch
75 Anniversary th
He also emphasized the pivotal tion and pride for all who have that we call the culture of Saudi
role of King Abdullah in the past left their mark through-out our Aramco, built on the discipline,
decade in supporting and guid- history of oil production. This commitment, reliability and ac-
ing several key megaprojects and industry will continue to bring countability of each and every
energizing Saudi Arabia’s eco- progress and advancements in employee. Under the guidance
nomic and industrial capabilities, the future, thanks in no small
of our country, the company has
all for the sake of the people and part to the support of our coun-
been allowed to work indepen-
the Kingdom. try’s leadership, as well as to the
dedication, hard work and inno- dently and on pure business acu-
vation of this company’s valued men — two key elements in the
“Today, our employees, both
employees.” success of Saudi Aramco and its
Saudi and expat, recall 75 years
competitive prowess.
of dedication and hard work to
President & CEO Speaks
build and develop Saudi Arabia’s Jum’ah spoke next, reflecting “As proud as we are of our past
oil industry, an industry that has upon the company’s successful and present, we see an even
spread its wealth and prosper- past and promising future, and brighter future ahead of us,”
ity throughout the Kingdom, expressing on behalf of Saudi Jum’ah said. “The work and proj-
from north to south and east to Aramco’s employees their pride ects we have now will make us
west,” said Al-Naimi. for being part of this historic
better prepared for the next 75
moment and for working in the
“While I realize there are no years; they cement Saudi Aram-
home of the Saudi oil industry.
words to convey how much this co’s status as a fully integrated
event means to the Kingdom and “We are proud to have inherited company, one of a kind in terms
to Saudi Aramco,” Al-Naimi said, a strong tradition of devotion of its expertise, its size and its
“I want to, through this speech, and dedication to our work,” fundamental role nationally and
highlight the sense of apprecia- said Jum‘ah, “as well as a culture globally.”
Jum’ah introduced Saudi Aram- of King Abdulaziz’s historic sec- Miles Snyder, who was one of the
co’s latest gift to the Kingdom, ond visit in 1947. children who shook hands with
the King Abdulaziz Center for King Abdulaziz in 1947, said a
Knowledge and Culture, to be This celebration was, in part, a few words about both momen-
erected in that very spot near the re-enactment of that visit, from tous occasions, then and now.
Saudi Aramco Exhibit. A short the setup of the tents down
film outlined the center’s pur- to the visitors, dressed as they “What was the 1947 event like?
pose and all that it would offer would have been in the 1940s. It was wonderful,” said Snyder.
to the people of the country. Costumes included women’s “We American kids were able to
white gloves and hats. shake the hand of a real King!
After the speeches, 75 children
came on stage to entertain the
guests, dancing to Arabic songs
written specially for Saudi Aram-
co and its 75th Anniversary, fol-
lowed by gifts given to King Ab-
dullah and the GCC leaders.
The proposed King Abdulaziz Center for Knowledge Minister of Petroleum and Mineral Resources Ali I. Al-
and Culture, shown here in an architectural image, was Naimi and a young Saudi performer present a gift from
announced May 20 in Dhahran by Abdallah S. Jum‘ah as Saudi Aramco to King Abdullah at the 75th Anniversary
part of the 75th Anniversary celebration. celebrations. (Photo by Abdullah Y. Al-Dobais)
We all remember the event well. may we please have the honor of ardah, a traditional sword dance
We remember the sight of the being photographed with you?” performed by Saudi Aramco em-
King, seated in a large easy chair ployees and expats.
atop a colorful carpet, with a lit- Soon afterwards, King Abdullah
and his guests watched a series Lydia Fitzmorris, speaking on be-
tle table with cookies on it beside
half of employees and families,
him. He was surrounded by his of international folklore perfor-
addressed the King in Arabic,
colorful retinue, including many mances. Children performed
saying, “Your visit makes the cel-
of his sons. dances from “The Phantom of ebration of the 75th Anniversary
the Opera,” along with a Latino of Saudi Aramco an unforget-
“Today, we join not as children but segment and a khaliji dance. The table event in our lives and those
as adults; many of us are grand- performances concluded with the of our children.”
parents,” Snyder said. “When
we were young, that sense of
magic was everywhere, living as
we did in the Kingdom of Saudi
Arabia,” Snyder said of his expe-
riences. “Each of us regards our-
selves richer, wiser, more tolerant
and understanding because of
this great adventure.”
Enormous projects
Saudi Aramco
In a global project environment where many large projects struggle to meet their
cost and schedule targets, Saudi Aramco has been successfully executing its world-
class mega projects with ever shorter schedules, and well within budget.
O
f the five mega projects plants, facilities for capturing
executed in the last 10 valuable petrochemical feed-
years, two were recipi- stock, and new crude oil produc-
ents of the Project Management tion facilities are all part of Saudi
Institute’s prestigious Project of Aramco’s ambitious domestic
the Year Award, and one was capital program to increase oil
honored at the 2005 Interna- supplies and support.
tional Petroleum Technology
Conference. Collectively, the Hawiyah, Khur-
saniyah, Khurais, Shaybah and
Saudi Aramco is currently ex- Manifa programs will by 2011
ecuting a series of new mega increase revenue to the King-
projects that will help meet the dom, and promote the local
world-wide energy demand in- economy by increasing oil pro-
creases and ensure the com- duction capacity by 2.85 million
pany’s leadership position for barrels per day (bpd), sales gas
years to come. Huge new gas by 1.4 billion cubic feet per day A key factor in the company’s
processing (cfd), ethane production by 450 mega-projects success has been
million cfd, and condensate by the broad cooperation of corpo-
325,000 bpd. All these proj- rate Project Management per-
ects are being executed sonnel with internal stakeholders
on demanding sched- and contractors to deliver these
ules and within budget projects. The cooperative spirit
without a significant means that integrated teams re-
increase in company solve technical issues swiftly, op-
personnel while ex- timize scope, streamline design
panding the Saudi reviews and achieve full control
Arabian procurement of the quality and schedule. An-
and construction con- other major contributor to the
tent of the projects. success of these projects has
been the use of best practices -
This section will explain in value engineering, construc-
how this is being achieved. tability, planning for startup,
benchmarking, scope definition lenges. Today, the company’s million) are now predominantly
and control, and the formal use mega projects are executed us- engineered and built using local
of lessons learned - to promote ing international engineering contractors.
excellence. firms for preliminary engineering
and international EPC (engineer- Mega Project History
Saudi Aramco is fully dedicated ing, procurement and construc- Saudi Aramco has a 70-year his-
to supporting Saudi Arabia’s role tion) contractors for detailed tory of successful project execu-
as the leading provider of ener- engineering, procurement and tion. Its facilities tend to be very
gy to the world, and history has construction, in tandem with lo- large compared to similar facili-
demonstrated its success. The cal subcontractors. Engineered ties worldwide. For example, the
company will continue to build materials are purchased from company’s recent gas-oil sepa-
on its achievements through in- international suppliers and local ration plants (GOSPs) routinely
novation, solid integration and a manufacturers when possible. process 300,000 bpd of crude to
strong will to meet future chal- Smaller projects (up to $600 produce oil, water, and gas from
wells averaging 5,000 - 10,000 and 420 million cfd of gas. The
bpd each. Pipelines ranging up program will also provide 4.5 mil-
to 60 inches in diameter trans- lion bpd of seawater for injection
port the oil to terminals. to support the increased produc-
In 1988, Arabian American Oil tion from Khurais and Ghawar
Enormous projects were the order
Company (Aramco) became Sau- fields. The seawater injection
of the day early in the company’s
di Aramco, as the original U.S. pipeline network will consist of
history, with constantly press-
partners were bought out by the 920 kilometers of 48”- 60” pipe.
ing needs to build new GOSPs,
Saudi Arabian Government. This In addition, the program will
water injection facilities to main-
change was accompanied by in- also increase the existing East/
tain reservoir pressure, pipelines,
creased hiring of Saudi nationals. West NGL pipeline capacity from
oil stabilization units and export
In the late 1980s, the company 425,000 bpd to 555,000 bpd to
terminals. Major capacity expan-
manage the increased NGL pro-
sions were built in the mid-1970s. started using lump-sum turnkey
duced at Khurais. Other pipeline
Until the late 1970s, projects in (LSTK) contracts for the largest
work includes all of the oil gath-
Saudi Aramco were managed by projects, and local contractors
ering and water injection distri-
operations organizations work- for smaller projects. There were
bution and sour gas to Shedgum
ing through major international no more mega projects until the Gas Plant. Infrastructure work
EPC companies. early 1990s. includes an air strip, residential
facilities for up to 1,000 person-
In 1977, Aramco started man- Mega Projects - Top 10 nel, and an industrial complex to
aging its projects with an inter-
Megaprojects in Saudi Aramco handle facility maintenance.
nal organization, using Program
are generally defined as projects
Management Contractors. The
or programs exceeding $1 bil- Manifa Field Development
first mega project was a very
lion in value. The projects listed (2006–2011)
large gas collection and distri-
here are the company’s largest to Under the Manifa program, Sau-
bution program - known as the
date. di Aramco plans to install central
Master Gas System - to eliminate
facilities at Manifa to process
natural-gas flaring at the well- Khurais Field Development 900,000 barrels per day of Ara-
head and provide Saudi Arabia (2005–2009) bian Heavy crude oil. The Manifa
with natural gas as a commercial The Khurais program will build Central Processing Facilities (CPF)
resource. At that time, with ex- facilities for 1.2 million bpd of will include gas and oil separa-
penditures running about $3.5 Arabian Light crude through a tion, wet crude handling, gas
billion per year (2002 equivalent), new Central Processing Facil- compression, gas conditioning,
the Project Management organi- ity (CPF), the largest of its kind crude oil stabilization, produced
zation had six general managers in Saudi Arabia, near the town water disposal and water injec-
and 19 departments to manage of Khurais. A new gas plant will tion facilities. The CPF will be
the gas program and multiple treat the associated gas, produc- designed to process 900 mbcd
smaller projects. ing 70,000 bpd of condensate of crude oil, approximately 120
80 • Saudi Aramco - 75 years
Mega Projects
million scfd of associated gas common goals for the extended The company was also moving
and 50 mbcd of hydrocarbon project team; lessons learned away from doing its own inspec-
condensate will be produced from previous projects. tion to requiring contractors to
as a result of this crude incre- inspect their own work. The proj-
ment. The gas and condensate • Organizational factors: formal ect, though ultimately successful,
will be processed at Khursaniyah implementation of best practic- was completed nearly two years
Gas Plant, and the crude will be es; a culture of continuous im- behind schedule. The company
transported to Ju‘aymah Termi- provement; project team conti- learned from a multitude of mis-
nal for export. This program is nuity; and successful contracting takes on this project, so that in
challenging primarily because of strategies. the future it must:
the location of the Manifa field
in shallow water in the western Many of these factors are ap- • Assure that all stakeholders are
Arabian Gulf, requiring a 41-km plied to the whole project sys- completely aligned;
asphalted causeway and 27 drill- tem. With the increased de-
ing pads in the shallow water. mand for oil, Saudi Aramco has • Provide very clear project scopes
significantly increased its capital and minimize scope changes af-
This shallow bay contains the program, with six active corpo- ter the Design Basis;
most prolific shrimping area in rate mega projects and three
Saudi Arabia, and all precautions joint-venture mega projects. The • Clearly state the quality require-
will be taken to maintain this vi- company continues to set ag- ments in the contract, not in an
tal resource for the country. The gressive targets. attachment;
program will include installation
of four oil-producing offshore Factors contributing to • Keep management and key
platforms with ten producing technical personnel on the job
success
and two evaluation wells each, for the entire project.
and seven water-injection plat- The Ras Tanura Refinery Up-
forms with ten water injectors grade Program, started in 1991 Another mega undertaking, the
each. Electric submersible pumps and completed in 1998, was a Shaybah project, was started
will provide artificial lift for pro- watershed project in many re- in 1995 and completed just 36
duction, which will be shipped spects. This $1.3 billion project months later, on time and on
without processing for multi- was the first major expansion of budget, despite the amazing lo-
phase flow transportation to the the RT Refinery, which started gistical challenges of building the
causeway and shore-based CPF. refining oil in 1947. There were company’s first major project in
very few personnel in the com- the deep desert. Project man-
The entire Shaybah oilfield com- pany that had managed any agement professionals learned
plex had to be self-sufficient, mega projects, much less a com- from success on this project:
so the scope included a Boeing plex refinery project, so experi- minimal scope changes; well de-
enced industry engineers were fined scope; tight communica-
737-capable airport. There were
hired to help. tion internally and externally; and
two dominant contributing fac-
tors to these successes: alignment of all stakeholders.
Safety performance for con- Areas participating. Nine major • Project team integration for
struction contractors has also improvement areas were iden- groups of small projects based
improved substantially, with less tified, and the initiatives are all on mega project success in this
than one lost-time incident per moving into the implementation area;
10 million man-hours in each of phase.
the last four years. It is impor- • More rigorous review of plot-
tant to note that this statistic is These initiatives are expected to plan layouts and equipment pe-
not comparable with U.S. statis- have a great impact on cost and ripherals and instrumentation;
tics because there are no OSHA schedule performance of all Sau-
regulations; minor injuries and di Aramco projects: • Procurement process improve-
off-site traffic accidents are often ments including standardized
not recorded. • Greater use of Innovative Con- procurement systems for local
tracting Strategies, which focus contractors and requisition tem-
Since 1998, VE studies have on converted LSTK, using reim- plates;
saved over $2 billion - roughly bursable engineering and pro-
7 percent of project value, and curement and then converting • Construction productivity im-
value improvements initiated by to a regular lump-sum contract provements for local contrac-
the project team or contractors at 50–70 percent of detailed de- tors who employ personnel from
has exceeded $1.8 billion. sign; Third World countries with lim-
ited industrial experience. The
Further Improvement • Standardized Component De- initial focus is on reducing inter-
sign. The first effort was a stan- ruptions;
Saudi Aramco conducted its sec- dardized substation design using
ond IPA system benchmark in precast walls and roof with top-
early 2004 for 30 projects that • Productivity improvement for
entry electrical wiring, allowing a local design contractors, focuses
started during 1999–2003. The slab floor and experienced erec-
results showed improvement on construction feedback to the
tion subcontractors. This design design process and design qual-
from the original study in 2000, will save design time and about
with average schedules about 25 ity control;
3–4 months in substation con-
percent longer than industry and struction;
costs about 15 percent higher. • The Integrated Project Tech-
However, it identified multiple nology initiative will increase the
• Increased accountability dur-
specific areas for improvement. use of information technology
ing the design basis (IPA FEL 1 &
Consequently, the company 2) now uses a more formalized (IT) for improved project pro-
launched a Corporate Capital gate approval process. Since cesses, data management and
Program Best in Class initiative 1998, value engineering studies flow, and for program manage-
with 23 of the 24 Administrative have saved over $2 billion; ment reporting.
T
he King Abdullah University biosciences and engineering, try to drive economic growth
of Science and Technology materials science and engineer- and create jobs. These goals
(KAUST) builds on the tra- ing, and applied mathematics of forming a knowledge-based
dition of the Arab golden age and computational science. The economy, supporting scientists
of knowledge, when from the university, in collaboration with and their work at national and
8th to 11th centuries, scholars the world's foremost research international levels, and benefit-
of Baghdad's Bayt al-Hikma, or and academic institutions, will ing the world through research
House of Wisdom, preserved recruit top students globally to and economic development will
and enlarged on Greek and Ro- pursue master's and doctoral be achieved through partner-
man discovery, anticipated and degrees and conduct research. ships and collaborative agree-
informed Renaissance scholar- KAUST's Innovation Center, a ments with leading universities
ship, and made seminal contri- key element of the university, and research centers around the
butions to geometry, physics, will link researchers and indus- globe.
optics, medicine, logic, engineer-
ing and other fields. As wisdom's
new house, KAUST is chartered
to bring the world to Saudi Ara-
bia on one campus to explore
and develop solutions that will
transcend national boundaries to
serve the world.
In addition, KAUST's $20 billion promises to usher in a new era multistory public complex com-
endowment will place the uni- of scientific and technological memorating the 75th anniversary
versity in the upper echelon of discovery. This unique coopera- and supporting King Abdullah's
the world's top-funded institu- tive research complex is intend- vision of a knowledge-based so-
tions of higher learning. ed not only to advance academ- ciety. In addition to housing a li-
ic knowledge and strengthen brary, learning facilities, a media
It is true that KAUST's physical and diversify the economies of
campus represents a mega-proj- center and an auditorium, the
Saudi Arabia and the region, center will host a variety of cul-
ect, but Saudi Aramco's partici-
but also to contribute to global tural events.
pation is the result of more than
economic and social advance-
the company's success with gi-
ment by producing generations In 2007 Saudi Aramco took
ant construction projects. For
nearly 75 years, the company of leading scientists, engineers
many steps to create jobs and
has been the Kingdom's inter- and technologists to find solu-
boost the domestic economy, in-
national model, with 65 nation- tions and innovations benefit-
cluding procuring two contracts
alities working together to help ing all humankind. In June, the
for the construction of 65 new
meet the world's energy needs. KAUST website (www.kaust.
edu.sa) and logo were launched, offshore oil and gas production
platforms and structures. In addi-
Leadership in Community and on October 21, KAUST's
Enrichment groundbreaking on the Red Sea tion, a new yard in the Dammam
In a major, unprecedented un- coast north of Jiddah took place Port area will allow offshore fab-
dertaking at the direction of the before 1,500 dignitaries from rication to be done in Kingdom
government, Saudi Aramco is around the world. for the first time, capturing jobs
developing the King Abdullah in construction, procurement,
University of Science and Tech- In 2008 preliminary engineer- housing, transportation and
nology (KAUST), a world-class ing started on the Saudi Aram- other areas that previously were
graduate research university that co Cultural Center, a planned foreign-sourced.
Saudi Aramco - 75 years • 85
Environmental Cornerstones
Environmental
Saudi Aramco is committed to minimizing our footprint on the environment. We're focusing
research and development on cleaner, more efficient operations, processes and products. Our
good stewardship is reflected in environmental awareness programs to encourage conservation
and other environmentally responsible actions. And of course, it is reflected in our operating
record. A shining example is our shipping subsidiary, Vela, which in 2007 completed more than
1,000 voyages, transporting nearly 2 million bpd of crude oil to customers in the United States,
Europe, India and the Far East, without a significant environmental incident.
Research and cleaner transportation fuels will Saudi Aramco's scientists also
Development limit sulfur content and dramati- unveiled impressive environmen-
In another technological devel- cally reduce benzene content tal innovations in 2007. Hanaa
opment, Saudi Aramco is devel- and aromatics in gasoline. H. Habboubi, a scientist in the
oping new pre-refining process- R&D Center's Biotechnology
es to desulfurize whole crude oil Another environmental achieve- Group, led studies on genetically
and produce sweetened oil. This ment was funding a third diesel modifying bacteria so it can pro-
step anticipates that less sweet hydrotreater project at Ras Ta- vide a range of services for Saudi
crude will be available to global Aramco, from reducing sulfur in
nura Refinery, which will pro-
markets, and refiners will in- reservoirs to actually “eating” oil
duce low-sulfur diesel. When
in contaminated soil.
creasingly need to meet market the hydrotreater is completed in
requirements for lower sulfur- 2010, emissions from diesel fuel Environmental Programs
content clean fuels. produced in Kingdom will be re- As part of our Environmen-
duced by 95 percent. tal Master Plan, in 2007 Saudi
Saudi Aramco's fuel quality
road map, a plan stretching into
2030 for cleaner, higher qual-
ity fuels, sends a clear message "Our good stewardship is reflected
worldwide that hydrocarbon fu-
els can meet the most stringent in environmental awareness
environmental standards. The
map sets a timetable for intro- programs to encourage conservation
ducing clean fuels meeting am-
bient air quality standards in the
and other environmentally
Kingdom's urban centers. Our responsible actions."
86 • Saudi Aramco - 75 years
Environmental Stewardship
Stewardship
"A new technology called the
“Cutting Edge Membrane Bio
Reactor” process will raise the
reused wastewater proportion to
more than 90 percent."
Aramco completed 12 projects wastewater treatment facilities The company also participated in
valued at almost $1 billion, and in major Saudi Aramco commu- the Ministry of Water and Elec-
20 more for a total of about nities. Additionally, a new tech- tricity's collaboration with Japan
$1.87 billion have been ap- nology called the “Cutting Edge to develop an energy efficiency
proved. Future plans include an Membrane Bio Reactor” process plan for Saudi Arabia's residen-
additional 10 projects with a to- will raise the reused wastewater tial, commercial and industrial
tal value of $564 million. proportion to more than 90 per- sectors.
cent within a few years.
Saudi Aramco's comprehensive As part of ongoing efforts, Saudi
groundwater protection pro- Saudi Aramco has established a Aramco conducted its annual
gram incorporates field sampling corporate Energy Management
Recycling Awareness Campaign.
and laboratory analytical func- Program with the ambitious
We also launched the Recycling
tions to monitor groundwater goal of improving energy perfor-
Website, extended community
quality, and other methodologies mance by 50 percent by the end
recycling programs and contin-
to protect human health and the of 2010. We're also collaborat-
environment. ing with national and interna- ued to promote our Water Con-
tional universities on energy con- servation Program through vari-
Saudi Aramco also implemented servation training and research. ous media.
programs to minimize ground- In another energy management
water consumption and promote initiative, Saudi Aramco is devel- The company approved 14 en-
reuse of treated wastewater. oping, along with other govern- ergy conservation initiatives this
Currently, more than 72 percent ment agencies, a national energy year that are anticipated to save
of the company's sanitary waste- policy and implementing a King- $27.5 million per year in Saudi
water is recycled for beneficial domwide awareness program Aramco facilities, and 15 more
recycling via tertiary sanitary to improve energy conservation. initiatives are under evaluation.
Saudi Aramco - 75 years • 87
Reliable energy supplies far into the future
Crude Oil
N
ot long ago, Saudi Aram- ploration strategy that aims to tion capacity, which by the end
co President and CEO replace reserves to match our of 2009 will reach 12 million
Abdallah S. Jum’ah is- annual crude oil production and barrels per day (bpd).
sued a challenge to the wider add at least 5 trillion standard
oil industry: Find enough new cubic feet of non-associated These efforts to discover new
resources to add 1 trillion bar- gas reserves per year. The pro- resources and add to reserves
rels to world reserves over the gram includes drilling and seis- for years to come are just one
next 25 years. That challenge mic activities to generate pros- reason Saudi Aramco is the
began at home. Saudi Aramco pects and improve imaging in world's cornerstone for crude
is leading the strategic develop- support of finding both oil and oil.
ment charge to help ensure reli- non-associated gas. Some of
able energy supplies far into the the capacity added by these Two Days, Two New Oil
future. Saudi Aramco is continu- major crude oil increments Discoveries
ously seeking new oil resources, will offset natural decline, and Success stories for 2007 includ-
as well as expanding production the remainder will expand our ed two new oil discoveries, both
through efforts including the maximum sustained produc- located in the Eastern Province
two largest single increments in
its history (Khurais and Manifa),
and expertly managing its exist-
ing portfolio of some 100 fields
to maximize recovery. And as
the world’s oil supplies become
more challenging to produce,
Saudi Aramco is taking the lead
in developing technologies to
produce conventional oil re-
serves more efficiently.
Saudi Aramco’s mega-project slate is geared to ramp up production in response to the growing global need for energy.
Collectively, these strategic increments alone will match the daily oil production of some oil exporting countries.
An unprecedented number of
major crude oil increments were
in progress during the year:
Khursaniyah is near completion,
and Shaybah, Khurais, Nuayyim
and Manifa are under construc-
tion.
Natural Gas
Discoveries and also was discovered at the Jana-6
Expansions offshore well.
Saudi Arabia's expanding do-
mestic economy and industrial Gas Cornerstones
enterprises depend heavily on The Karan Gas Field Develop-
Saudi Aramco's natural-gas re- ment Project will provide off-
serves. Current use is at the high- shore platforms and pipelines
est level in the history of our gas for the production of 1.5 billion
program. To meet this demand, scfd of gas by 2012. Associated
Saudi Aramco is working hard to gas from Khursaniyah will be
find reserves and build its pro- processed at Berri Gas Plant until
duction and distribution capac- the new Khursaniyah Gas Plant is
ity. Total gas production average completed. Scheduled to begin
was 8 billion scfd at year-end. operations at the end of 2008,
Saudi Aramco plans to increase the new plant will process 1 bil-
gas capacity to 13 billion scfd by lion scfd of associated gas from
year-end 2011. Khursaniyah, Abu Hadriyah, Fa-
dhili and neighboring fields.
Saudi Aramco’s exploration ef-
forts were rewarded with the The Hawiyah NGL Recovery Plant,
discovery of two significant gas on track for start-up in third-
reservoirs in 2007, both located quarter 2008, will process nearly industry, creating thousands of
in oil fields originally discovered 4 billion scfd of sales gas to yield job opportunities for Saudi citi-
in 1967. Karan-7, an extension 310,000 barrels of natural gas zens. Approximately 379 km of
of our largest gas field, Karan, is liquids. The NGL products will be related pipelines and two pump
located six km south of Karan-6, used as feedstock for the King- station upgrades were complet-
a 2006 reservoir discovery. Gas dom's expanding petrochemicals ed in November 2007, and are
ready to deliver the NGL prod- supply to industries at the Yan- The mystery of black powder,
ucts to end users. bu' and Rabigh petrochemicals a corrosive nuisance that clogs
complexes. and damages control valves,
Another component of the proj- parts and pipelines and whose
ect, the expansion of Ju'aymah The Master Gas System Eastern origin has stymied the industry
Gas Plant, is set for startup in Region Expansion Project, fund- for years, was solved when Saudi
second-quarter 2008 and will ed in July 2007 and slated for Aramco's Research and Develop-
fractionate additional NGL prod- completion in 2010, will expand ment Upstream Program com-
ucts. The last part of the pro- the MGS distribution system with pleted a two-year study and pre-
gram, the Hawiyah Gas Plant 215 km of 56-inch pipeline par- sented its findings in Norway in
Expansion, will process an addi- allel to existing lines and increase 2007. The company's scientists
tional 800 million scfd of non- capacity by 30 percent. determined that black powder
associated gas.
results from the gas components
Innovations and of oxygen and moisture; they
The integrated Khurais program
Breakthroughs also identified the culprit's pun-
will dehydrate and compress
Saudi Aramco has developed ishing properties, which include
450 million scfd of gas, and the
new drilling practices that led to tiny particles of metal, sand, dirt,
Manifa Oil Field program will
drilling horizontal wells targeting hydrocarbons and elemental
produce 120 million scfd of gas
separate layers and improving sulfur. The team worked closely
by third-quarter 2011.
access to gas reserves. As part with the Pipelines Department
The expansion of Yanbu' Gas of this process, we also devel- to isolate black powder's origin
Plant will increase ethane and oped clean drilling-fluid designs and composition, and Southern
NGL processing by 185,000 in 2007. An added benefit of Area Labs contributed to the
bpd, and will support the stra- this latest fluid development is a breakthrough by conducting gas
tegic aim of growing feedstock much lower cost. analysis.
Petroleum: Energy's
Cornerstone
According to the International Energy Agency, global demand for energy is projected to
grow by more than 50 percent over the next 25 years, exceeding 325 million barrels of oil
equivalent per day.
Why? Oil is a proven commodity, ulations of emerging economies future energy mix, we must also
and for decades to come, fossil such as China and India become recognize that many of these
fuels are expected to continue to more mobile thanks to improved options face significant techni-
comprise some 85 percent of the lifestyles. cal, commercial, environmental
“energy pie.” Much of that de- and cost hurdles on the road to
mand stems from transportation What about other types of en- feasibility and viability.
requirements; a recent World ergy, such as wind and solar,
Energy Council study concludes nuclear and renewables? Given On the other hand, from the
that through 2050, cars will con- spiking energy demand, contri- standpoints of abundance, reli-
tinue to depend primarily on pe- butions from all energy sources ability and affordability, fossil
troleum fuels and internal com- will be needed. So while we fuels are an established resource
bustion engines. And there will believe that alternative and re- with extensive production, trans-
continue to be more cars on the newable resources should be portation and distribution net-
roads, too, especially as the pop- developed as part of the world's works. They are expected to ac-
Board of Directors
Sponsors
B e st i n C l a s s
S P ONSOR
S P O N SOR
AT 7 5,
YO U A R E
STILL
N O. 1.
Congratulations, Saudi Aramco, from Halliburton.
For decades, we’ve been proud to help the world’s leading oil producer
meet global energy needs. And we continue to stand ready to support you
in supplying energy for future generations.
HALLIBURTON
Since our first wireline log for Saudi Aramco in 1941 we have
collaborated to deliver innovative products, services, and solutions
that optimize reservoir performance throughout Saudi Arabia.
www.slb.com
S P ONSOR
It is the vision of the leaders of the Kingdom of Saudi Arabia that has allowed the Oil and Gas
industry in Saudi Arabia to flourish. This vision was channelled through the Ministry of Petro-
leum and Minerals and Saudi Aramco and has developed the wider national industry.
Saudi Aramco has emerged from the past 75 years as a world class oil company and an industry
benchmark. It has become synonymous with best quality performance, environmental and
social responsibility and the engineering of mega-projects.
Saudi Aramco continues to develop the necessary technology, human resources and knowledge
vital to meet the challenges of Exploration and Production, E&P, in Saudi Arabia. Today Saudi
Aramco is successfully undertaking a number of Mega projects and developing complex fields
such as the Shaybah development in Rub Al Khali and the offshore Manifa by using extended
reach wells. Over the last few decades Saudi Aramco has played an unprecedented role in
contributing to Saudi Arabia’s economic prosperity and development.
King Abdulaziz City for Science and Technology, KACST, is proud to work with Saudi Aramco on
many research projects and looks forward to a positive contribution in developing the national
strategy for localization and development of Oil and Gas E&P technologies with a vision of
technology leadership by 2025.
For the next 75 years and beyond, we, at KACST, wholeheartedly wish Saudi Aramco further
success, growth and contribution to the Kingdom.
S P ONSOR
S P O N SOR
EPRasheed
Contacts
United Kingdom Houston Saudi Arabia Brazil
n William Bart Goforth n Ana Felix
n Head Office
william.goforth@eprasheed.com n Akram ul Haq afelix@braziloilandgas.com
Tel: (44) 207 193 1602 PO BOX 3260, Jeddah 21471
Tel: (1) 713 304 6119 Tel: (55) 21 9714 8690
n Brian Passey akram.ul.haq@saudiarabiaoilandgas.com
Tel: (966) 557 276 426 n Josefina Filardo
brian@bspmedia.com
jfilardo@braziloilandgas.com
n Sally Cole n Mohanned AlSagri Tel: (55) 11 9119 2104
sally@bspmedia.com mohanned.alsagri@saudiarabiaoilandgas.com