IADC– SAPCChapterMeetingNovember23rd 2017

CreatingaNewIndustryintheKingdomofSaudiArabia

KingSalmanInternationalComplexforMaritimeIndustriesandServicesThecomplexcomplimentstheSaudienergyindustryandhelpstomeetthedevelopmentanddiversificationobjectivesoutlinedbytheVision2030.

RasAlKhair

Macroeconomicimpact

80,000 jobs

by2030

SaudiArabia

$17billionGDPimpact

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AttributesthatsupportavibrantmaritimeindustryTheKingdomofSaudiArabia’sbuiltinadvantages

MajorthroughputofseabornetradeintheKingdom

Largeandconsistentdemandforoffshoreactivities

≈500mlntonsofseabornetrade

>85Commercialvessels >44Offshorerigs >400Offshoreplatforms ≈300offshoresupport

vessels≈2000callsonAramco

terminals

NationalmaritimesectordevelopmentHolisticapproachtocapturingopportunities

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EPCIChampion

MaritimeFinancialServices

MaritimeFinancialServices

MaritimeAcademy

NationalChampionShippingServices

MarineServicesChampion

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KSAMaritimeSector

Complete

UnderDevelopment

Initiated

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DeliveringsignificantmacroeconomicimpactImpactby2030

JobCreation ImportSubstitution GDPImpact

80,000localjobs

30,000directjobsofwhich

$12billion(USD) $17billion(USD)

Strategicworld-classpartnershipLeveragingcommercial&technicalexpertisetowardsacompetitivebusiness

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SaudiAramco&Bahri• ‘Drivers’- guaranteedproduct

offtake• Localizationpolicyaimedto

supportlearningcurve&ensuresustainability

HHI&Lamprell

• Leadingtechnicalpartners• Cost-efficientproduction• Design&Engineeringcapabilities• StrongSupplyChaininvolvement

Financial

TheSaudiCouncilofEconomyandDevelopmentAffairscommittedtosupportthe

project

SupervisoryCommittee

Establishedtoensuremaximumstakeholder

alignmentandengagementforthesuccessfortheMaritimeComplexandtheindustry

SaudiAramco

TVTC

Customs

SAGIA

SEAPA

Bahri

PIF

RCJY

InfrastructureSupport

SIDF CostGuard

Infrastructure Support

Human Capital

Gov. Regulations &

ServicesFinancial Services

Investment Promotion

Immigration

FinancialServices

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GovernmentengagementCreatinganenablingcommercialandoperationalenvironment

Collaborationbetweenindustryandgovernment

Saudi Arabian General Investment Authority (SAGIA) – to attract investors and localize supply chain

Saudi Arabian Customs Authority – creating dedicated customs facilities

Saudi Immigration –providing in yard immigration facilities

Saudi Port Authority (SEAPA) – operation and provision of marine services for the nautical channel

Royal Commission of Jubail & Yanbu (RCJY) – community and infrastructure development

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Focusedmaritimetraining&developmentDedicatedMaritimeAcademyandcollaborationwithlocalinstitutions

Partnerships NationalMaritimeAcademy

• AnewlyestablishedacademywhichwillbelocatedinAlJubailIndustrialCity(temporaryfacility)

• In2020apermanentNationalMaritimefacilitywillbeopenneartheyardinRasAlKhair

Mandate

Totrainandhire7000studentsinthenext10yearsforthefollowingareas:

Welding

Fabrication(structural&piping)

Electrical

Instrumentation

Electronics

Mechanics

Draftsmen

Equipmentoperators

RasAlKhair

YardlocatedinRasAlKhair,SaudiArabiaStrategicallylocatednewoffshoreactivities

AluminumSmelter

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Phosph

ate

KingSalmanInternationalComplexforMaritimeIndustries& Services

Offshorecluster– supplychain

RasAlKhairPort

RasAlKhairIndustrialCity

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SaudiMaritimeJVproductmix

Jack-upRigs CommercialVessels

OffshoreSupportVessels

Maintenance,Repair&Overhaul

Regionalcomparison• Largestcombineddrydockarea• Largestshipliftglobally@25,000te• Largestcombinedliftcapabilityatdry-dock@2,150te• Longestquayside@9,000meters• Largesttotalcombinedarea@11millionsqm

Uniqueinscaleandintegration

Integrationwithdiverseproductmix

MROCommercialVessels,OSVs&Rigs NewBuildOSVs

NewBuildOffshoreRigs

NewBuildCommercialVessels

OffshoreRigFabrication

AnnualCapacity:4rigsStartDate:2019

Shipbuilding

AnnualCapacity

3 VLCCs

StartDate:2020

15 Othervessels

MROCommercialVessels,OSVs&RigsNewbuildOSVs

MROZone

137Vessels

StartDate:2021

OSVsNewBuild

25 Offshoresupportvessels

StartDate:2021

116OSVs

15Rigs

Office,supportfacilities&accommodation

StartDate:2021Campcapacity:18,000employeesFacilitiesinclude:• Corporateoffice• Clientoffice• Training&developmentcenter• Medical• Recreational• Fullcateringoperation• Dedicatedsecurity&monitoringbuilding• EMGcenter

TechnologytodelivercompetitiveadvantageAdoptinglatestinnovationsandbestindustrypractices

Processautomation

3Dprinting

RoboticsVirtualreality

BigDataanalytics

Softwareintegration

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‘PartnersforMaritimeAdvancement’

lowcostsmanufacturing+

lowassetlifecyclecosts

Customeroffering

SaudiMaritimeYard

SupplyChainoffering

Leverageontheguaranteedvolumeofofftakestoforgelong-termstrategicpartnershipswithsuppliers&customers

Stronglinkbetweensuppliers&customers,andcollaboratewithcompetitors

• Sparepartsmanagement• Equipmentassembly• Equipmentinnovation• Equipmentfinancing• Equipmentaftersalesactivities• Equipmentlifecyclemanagement

• Consolidatedlifecyclemanagementservice

• Dataanalyticsonequipmentperformance&totaloperations

• Leadreductioninassetlifecyclecost&directproductdevelopment

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