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inside this review

board upstream of directors operations page 06 page 18 chairman's downstream message operations page 08 page 30 president's securing foreword the future page 09 page 42 our enabling operations excellence page 10 page 52 our citizenship in our business communities page 12 page 64 our our performance company in 2017 page 16 page 76 King Salman ibn ‘Abd His Royal Highness Prince Al-‘Aziz Al Sa‘ud Mohammed ibn Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud The Custodian of the Two Holy Mosques Crown Prince, Deputy Premier, and Minister of Defense 6 7

board of directors HE Khalid A. HE Dr. Ibrahim HE Mohammed HE Mohammed HE Yasir O. Al-Falih A. Al-Assaf A. Al-Jadaan M. Al-Tuwaijri Al-Rumayyan HE Khalid A. Al-Falih has been HE Dr. Ibrahim A. Al-Assaf is Minister HE Mohammed A. Al-Jadaan is currently HE Mohammed M. Al-Tuwaijri is currently HE Yasir O. Al-Rumayyan currently serves Chairman of the Board of Saudi of State and a member of the Council Minister of Finance for Saudi Arabia. He the Minister of Economy and Planning for as the Managing Director and Secretary Aramco since April 2015. of Ministers, having previously been the also serves as Chairman of the Board of Saudi Arabia. In addition to other roles, General of the Board of the Saudi Arabian Minister of Finance of Saudi Arabia. He is Directors of the General Authority of he serves as Chairman of the National Public Investment Fund. He is also Advisor He is Minister of Energy, Industry and the Governor of the Islamic Development Zakat and Tax, Chairman of the Fiscal Center of Privatization, Chairman of the to the Saudi Council of Ministers. In the Mineral Resources for Saudi Arabia. Bank and serves as a Governor at the Balance Program Committee, Chairman General Authority for Statistics, and is a past, HE Al-Rumayyan served as the HE Al-Falih served as the President and International Monetary Fund and Arab of the Financial Stability Committee, and member of the Saudi Council of Ministers. CEO of Saudi Fransi Capital LLC and as a Chief Executive Officer of Saudi Aramco Monetary Fund, among other roles. Chairman of the Board of the General He has formerly served as CEO and Head Member of the Board of Directors at The from 2009 until 2015, and previously Authority of Customs. He also serves as of HSBC’s Global Banking & Markets, Saudi Stock Exchange (Tadawul) Company. held a range of roles at the company. HE Al-Assaf has a Ph.D. in Economics a member of a number of international MENA, and as Managing Director of from Colorado State University, a HE Al-Rumayyan has a Bachelor’s degree in HE Al-Falih has an MBA from King Fahd boards, including the Board of Governors JP Morgan Chase Bank, Saudi Arabia. Master’s degree in Economics from the Accounting from King Faisal University, and University of Petroleum and Minerals, of the International Monetary Fund, and HE Al-Tuwaijri has previously served on University of Denver, and a Bachelor’s has completed the General Management and a Bachelor’s degree in Mechanical the Board of Governors of the World Bank. the boards of HSBC Bank Egypt, HSBC degree in Economics and Political Program at the Harvard Business School. Engineering from Texas A&M University. Holdings, MENA, and Saudi British Bank. Science from King Saud University. HE Al-Jadaan has a degree in Islamic Economics from Imam Muhammad bin HE Al-Tuwaijri has a Bachelor’s degree Saud Islamic University, and a degree from the King Faisal Air Academy, and in Legal Studies from the Institute an MBA from King Saud University. of Public Administration, Riyadh.

Sir Mark Mr. Andrew Mr. Andrew Ms. Lynn Laverty Mr. Peter L. Mr. Amin H. Moody-Stuart N. Liveris F.J. Gould Elsenhans Cella Nasser Sir Mark Moody-Stuart serves as Vice Mr. Andrew N. Liveris is a member of the Mr. Andrew F.J. Gould serves as Ms. Lynn Laverty Elsenhans is currently Mr. Peter L. Cella is currently a member of Mr. Amin H. Nasser has been Chairman of the UN Global Compact, Board of Directors of IBM Corporation, Chairman of the International Advisory a member of the Board of Directors of the Board of Directors of ServiceMaster President and Chief Executive Officer and Chairman of the Global Compact an Executive Committee Member and Board at Boston Consulting Group Baker Hughes, a GE Company, as well Global Holdings Inc. He previously of Saudi Aramco since 2015. Foundation, and Chairman of the past Chairman of the U.S. Business Center for Energy Impact, and as as GlaxoSmithKline plc. She previously served as President and CEO, Chevron He has served in a number of leadership Innovative Vector Control Consortium. Council, and on the Board of Trustees Director of BJ Services, a private oil served as Chairwoman, President, and Phillips Chemical Company LP, and as positions at Saudi Aramco, including as Previously, he served as Managing of the King Abdullah University of field services company. Mr. Gould was Chief Executive Officer of Sunoco Inc. Senior Vice President, Petrochemicals, Senior Vice President for Upstream. Director of Royal Dutch Shell, as a Non- Science and Technology. He formerly the Non-Executive Chairman and Non- and worked for Royal Dutch Shell, where North America, BASF Corporation. Executive Chairman of Anglo American served as Chairman and CEO of The Executive Director of BG Group plc, she held a number of senior roles, He has also served on the boards of Mr. Nasser has a Bachelor’s degree in plc, and as Director of Accenture plc. Dow Chemical Company, and was a and served as the CEO and Chairman including Executive Vice President of Chevron Phillips Chemical Company LP, Petroleum Engineering from King Fahd Sir Moody-Stuart was a Non-Executive member of the Board of Directors of of Schlumberger Oilfield Services. Global Manufacturing. She has previously and the American Chemistry Council. University of Petroleum and Minerals, Director of HSBC Holdings plc, and DowDuPont Inc. and of Citigroup Inc. served on the Boards of Flowserve and has completed the Senior Executive Mr. Gould has a Bachelor’s degree Mr. Cella has a Bachelor’s degree in also served as co-Chairman of the G8 Corporation, International Paper Company, Program at Columbia University. Mr. Liveris has a Bachelor’s degree in in Economic History from Cardiff finance from the University of Illinois at Task Force on Renewable Energy. and Motiva Inc., among others. chemical engineering from the University University, and a Chartered Accountant Urbana-Champaign, and an MBA from Sir Moody-Stuart has a Bachelor’s of Queensland in Brisbane, Australia. degree from the Institute of Chartered Ms. Elsenhans has a Bachelor’s degree in the J.L. Kellogg Graduate School of degree in Natural Sciences and a Ph.D. Accountants in England and Wales. applied mathematics from Rice University, Management-Northwestern University. in Geology from Cambridge University. and an MBA from Harvard Business School. 8 9

chairman’s president’s message foreword

Over the course of 2017, the oil market strengthened believe this stronger downstream portfolio will not only add At Saudi Aramco, we are united in our determination to This year we were granted 230 U.S. patents — a record high significantly as the global economic recovery contributed to more value, promote sustainable growth, and secure outlets be the world’s leading integrated energy and chemicals for Saudi Aramco. healthier oil demand, and the industry ended the year with a for future oil production, but also strengthen the company’s producer. This year we made significant progress to realize In the Kingdom, we intensified our efforts to facilitate a generally more upbeat sentiment. Saudi Aramco performed resilience and robustness. this aspiration. diverse and competitive energy sector, forming joint ventures exceptionally well during the year, with its strong performance We must be able to depend upon a reliable supply chain for To maintain our preeminence in the upstream sector, we for onshore and offshore drilling, a maritime yard, and aided by the oil market recovery. Saudi Aramco to remain the lowest cost operator and the remained focused on our core objective of creating and engineering services. In 2017, the metric for iktva, our global Notwithstanding an improved market picture, the oil industry’s most reliable supplier of oil. That is why the Board supports sustaining value from the Kingdom’s hydrocarbon resource supply chain efficiency initiative, showed improvement. Our preparedness for the future remains in question as the sector the localization of goods and services within Saudi Arabia base for generations to come. We discovered two new oil localization strategy is intended to optimize our costs and build has lost an estimated $1 trillion in planned investments since with the aim of enhancing the efficiency and reliability of fields in 2017 and stayed on course to increase the capacity a world-class supply chain ecosystem, strengthening our ability the market downturn began. The situation becomes more the supply chain, helping industrialize and diversify the of our Khurais field by 300,000 barrels per day in 2018. In to meet our commitments to customers around the globe. disconcerting when seen in the light of global demand Kingdom’s economy and promoting small- to medium-sized gas, we readied our Midyan nonassociated gas field, All these developments are designed to enhance the growing at the rate of 1 to 1.5 million barrels per day annually, enterprises. Besides advancing the company’s strategic and commenced projects to expand production and processing robustness, resilience, and integration of our business — not and maturing oil fields around the world exhibiting steepening operational goals, these initiatives are also fully aligned with capacity, and brought online the first unconventional gas in only to weather challenging times, but to thrive in them. natural declines that must also be offset by continuing Vision 2030, the Kingdom’s blueprint to develop and diversify Saudi Arabia. Boosting our gas supplies is in line with our core However, no one company can do so alone. In 2017, we investment in the industry. the Kingdom's economy and position it as an economic upstream objective to provide additional fuel and feedstock continued to expand our strategic collaborations with other st To respond to this situation, significant new investments are powerhouse for the 21 century. for local industry while enabling increased exports of higher energy producers, service providers, manufacturers, research required in additional capacity and expanded and upgraded In the meantime, the company continued to prepare itself for value liquids. institutions, and universities. Together, we are committed to infrastructure, as well as the development of pioneering the listing of its shares, a landmark event the company and its In the downstream sector, our primary objective is to extract reliably meeting the energy demands of billions of people technology to make petroleum energy more sustainable and Board anticipate with excitement. maximum value along the hydrocarbon value chain and for decades to come, helping to meet society’s lower carbon accessible. Saudi Aramco is committed to playing its unique To intensify the development of a world-class workforce elevate our downstream business to the level of leadership we goals, and remaining at the cutting-edge of technology. part in meeting the world’s energy needs today and tomorrow ready to man and steer its expanding domestic and enjoy in upstream. In pursuit of this objective, we continued The past year was an exceptional one for Saudi Aramco — by continuing to invest wisely throughout the cycle and across international businesses, to help the Kingdom’s youth seize to expand our global network, completing key agreements made possible only through the outstanding efforts of our the value chain, reinforcing our preeminent leadership position these wide-ranging opportunities, and to rapidly grow the and projects. In the United States, the full acquisition talented men and women. I thank them for their relentless in the industry. proportion and participation of women in its workforce, Saudi of Motiva Enterprises was finalized, with Saudi Aramco commitment to safely, reliably, and responsibly deliver energy Because petroleum is expected to remain a major part of Aramco is committed to supporting education and training in retaining the Motiva name and becoming the sole owner of to the Kingdom and the world, helping ensure a brighter the world’s long-term energy mix, Saudi Aramco is not only science, technology, engineering, and mathematics (STEM), North America’s largest single-site crude oil refinery at Port future for us all. investing to further strengthen our premier upstream oil as well as finance, business, and other important disciplines. Arthur, Texas. In Malaysia, we reached an agreement with position, but also working diligently to lighten the carbon These efforts will not only strengthen the growing industrial Petronas to participate in RAPID, a refinery and integrated footprint of oil. We are leveraging our excellence in research base in the Kingdom, but also help realize the ambitions of the chemicals complex in the state of Johor. In China, we signed and innovation to address areas of strategic technology Saudi people. a Memorandum of Understanding with Norinco, a diversified importance. These include advancing sustainable transport industrial conglomerate, to participate in the expansion of one I would like to emphasize that Saudi Aramco’s many refinery and build a new one. And in Saudi Arabia, we fully through the development of ultra-clean and integrated fuel accomplishments over the past year would not have been engine systems of the future, and driving other high-impact commissioned the Sadara chemicals manufacturing plant, our possible without the vigorous support and visionary guidance joint venture with Dow Chemical. solutions such as carbon capture, utilization, and storage as imparted by The Custodian of the Two Holy Mosques King well as beneficial uses of carbon. In addition, considering Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud, and the Crown Prince HRH Elsewhere, we continued to seek solutions for safe, the projected rapidly growing role of cleaner natural gas, the Mohammed ibn Salman ibn ‘Abd Al-‘Aziz Al Sa‘ud. sustainable, and reliable supplies of energy that help to company expects to double the domestic production of gas address the climate challenge. We sustained growth while while taking steps to establish a profitable international gas On behalf of the Board of Directors, I thank the men and maintaining strong cost discipline, enabled by our Operational business. women of Saudi Aramco across the world who once again Excellence program and our focus on capital efficiency. Even delivered outstanding performance amid a challenging Concurrently, Saudi Aramco is moving steadily to build a world more importantly, we improved our safety performance, environment. I would also like to thank our customers, reducing lost-time injuries. leading position in the downstream segment of the business. partners, suppliers, and the communities in which we operate As detailed in this Annual Review, state-of-the-art refining for their contributions to our shared success. We also know that the transformative power of innovation and marketing manufacturing complexes continue to be is integral to our future success. In 2017, we pursued implemented in the Kingdom and in the fast growing markets breakthrough technologies across a number of strategic of Asia and the United States. Oil feedstocks are playing domains, including low emission transportation, carbon an increasingly larger role in the company’s petrochemicals capture, utilization, and storage, and the direct conversion production, which is on its way to becoming a world-class of crude oil to chemicals. Our research and development business. In addition, differentiated and branded base lube strategy seeks to unlock greater value, create more economic oils, manufactured at wholly owned and joint venture facilities, Khalid A. Al-Falih opportunities, and reduce greenhouse gas emissions, Amin H. Nasser are moving toward a leading international position. We Chairman of the Board of Directors delivering benefits for energy consumers and producers alike. President and Chief Executive Officer 10 11

Saudi Aramco headquarters power and water utility venture refining and chemical joint ventures, and listed subsidiaries: global office terminal SAUDI ARABIA • Saudi Aramco Mobil • Yanbu Aramco Sinopec MAASTRICHT FUJIAN TOKYO our R&D center/technology office • Rabigh Refining and Refinery Company Refining Company (YASREF) • ARLANXEO Holding BV • Fujian Refining and • Showa Shell Petrochemical Company (SAMREF) • Saudi Aramco Total Refining Petrochemical Company Sekiyu KK wholly owned refinery (Petro Rabigh) • Saudi Aramco Shell Refinery and Petrochemical company SEOUL Ltd. Company (SASREF) (SATORP) • Sadara Chemical Company • S-Oil Corporation • Sinopec SenMei operations Petroleum Company Ltd.

Boston Milan Jazan Dhahran Singapore Tokyo

New York City The Hague, Maastricht, and Delft Jiddah Ras Tanura New Delhi Daejeon

Washington, D.C. Paris Thuwal Ju'aymah Seoul

Detroit London Rabigh Jubail Shanghai

Houston Aberdeen Yanbu' Riyadh Xiamen

Duba Fujian

Beijing 12

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• Lead in technology development processing of crude oil and natural gas, and innovation refining, gas fractionation, the production our our • Be an employer of choice of petrochemicals, and distributing petroleum products and gas to domestic • Promote sustainability, citizenship, and a customers. We own and operate three robust domestic energy sector domestic refineries, with a fourth We arebusiness the world’s largest company under construction, to supply gasoline, integrated oil and gas company. Governance diesel, and other products to local customers and consumers. In addition, Our behavior is what defines us — as a we participate in five refineries with company, as employees, and as people. international partners in the Kingdom, We are dedicated to building and four of which have integrated chemicals maintaining trusted relationships. manufacturing capability. Our corporate governance structure Internationally, we are represented in defines our strategic direction and seeks the three major global energy markets to promote our industry leadership. It of Asia, North America, and Europe. shapes who we are and how we are Our Global Research Network, which seen by the world — including by our includes satellite offices in these same customers, suppliers, and new and strategic regions, is dedicated to existing business partners. Our Board addressing global energy challenges of Directors (the “Board”), which through technology solutions. We are the world’s competitive — helping ensure global encompasses a wealth of diverse largest integrated oil energy security. experience and a future-oriented mindset, We hold stakes in refining and and gas company. The scale of our upstream and sets standards for integrity and marketing businesses in China, the downstream operations, and our ethical behavior. Republic of Korea, and Japan. In the Our vision is to be the world’s leading United States, through the full acquisition expertise across the hydrocarbon The Board oversees our regular reporting integrated energy and chemicals of Motiva Enterprises LLC, we retained value chain, position us to identify and and independent auditing practices. The producer, operating in a safe, the Motiva name and assumed sole capitalize on new opportunities and enter audit process, endorsed and monitored sustainable, and reliable manner. ownership of North America’s largest new markets. Equally important is our by the Board, is intended to ensure an Our performance is made possible single-site crude oil refinery. commitment to be a safe, responsible, independent, confidential, and robust through the power and ingenuity of and reliable provider of petroleum — one review of company operations and In total, our domestic and international our people, combined with cutting- of the world’s most important sources provide a clear and transparent reporting downstream operations have a gross edge technology and the steadfast of energy — enabling the progress of channel from the auditors to the Board. refining capacity of 4.9 million barrels execution of our long-term reservoir people, communities, and countries per day. management strategy. around the globe. Our business Our chemical manufacturing capability To achieve our vision, we continue to is achieved with leading industry players Headquartered in Dhahran, Saudi Arabia, make progress on our journey to grow Our strategic objectives through our joint ventures and listed we manage the Kingdom's proved additional value and strengthen our subsidiaries in Saudi Arabia, China, At Saudi Aramco, our planning, decision reserves of 332.9 billion barrels of oil resilience to crude oil market volatility Japan, South Korea, and the Netherlands. making, and projects are guided by, equivalent. To supply global markets, through the strategic integration of Through these ventures, we produce and seek to fulfill, our strategic major export shipping terminals are our downstream operations and the commodity chemicals as well as business objectives: located at ports on the Arabian Gulf and development of our chemicals business. differentiated products. • Reinforce our preeminent position as the the Red Sea, while domestic demand is Our commitment to research and world’s leading crude oil producer by served through a Kingdomwide network We continue to pursue opportunities development underpins our vision. production volume of strategically situated refineries and an to further increase our chemicals and The development and deployment extensive natural gas pipeline system. refining capacities in key strategic markets • Capture value from strategic integration of advanced technology is critical to to enable sustainable growth and greater the execution of our strategy and is • Expand natural gas activities value creation. embedded in our operational model. Domestic and global We focus on innovative ideas and We have identified four strategic enablers operations to help us meet these objectives: technologies that will make our resources Our operations in Saudi Arabia include more accessible, useful, sustainable, and • Maintain capital discipline and financial exploration, the production and prudence, and manage risk 18 19

key figures oil equivalent reserves upstream 332.9billion barrels

crude oil with blended condensate produced operationsFor 85 years, we have been entrusted with the stewardship of the Kingdom’s 10.2million bpd oil and gas reserves.

raw gas processed

12.4billion scfd

natural gas supplied

8.7billion scfd 20 21

Designed to maximize long- • Maintain our position as the term value, our upstream world’s leading crude oil un matched strategy focuses on leveraging producer by production our competitive advantages in volume, and provide production and scale. By consistent, reliable, and Our upstream strategy: tempering production from competitive crude oil supply mature fields, accelerating to customers This laser technology tool, Leveraging advantages younger fields and secondary developed in-house, is designed to reservoirs, and developing fresh • Further diversify operations be multifunctional — able to drill, to maximize value reserves from new increments, to capture value from frac, and perforate wells. we plan to create and sustain strategic integration value for generations to come. • Expand natural gas activities To maintain our standing in the to supply the Kingdom’s upstream sector, we seek to: natural gas market

For 85 years, we have been entrusted enables us to replace reserves through The Kingdom ended 2017 with proved

Upstream Operations Upstream with the stewardship of the Kingdom’s oil new discoveries, the delineation and reserves in the fields we operate of 332.9 and gas reserves. reassessment of existing fields, and billion barrels of oil equivalent. 2017 revisions of reserve estimates in producing In this time, we have grown to become reservoirs and fields. New discoveries the world's leading producer of crude oil and condensate. Throughout 2017, we remained Crude oil and gas exploration activities committed to discovering new during 2017 resulted in the discovery Over the decades, we have matured our conventional and unconventional of two new oil fields and one new gas understanding of the Kingdom’s geology hydrocarbon resources across the reservoir. The new oil fields discovered in and built an integrated network of oil and Kingdom, aided by the development 2017 were: Sakab, southeast of Haradh, gas production and processing facilities. and deployment of data acquisition and and Zumul, in the Rub’ al-Khali. The new Saudi Aramco annual review By combining technologies developed processing technologies. gas reservoir discovered in 2017 was Jauf, in-house with leading industry practices, in the Sahba field. we enhance our reserves base and Our unconventional gas exploration optimize production from Saudi program targeted three areas: Northern Oil production: Investing Arabia’s reservoirs. Arabia, the South Ghawar area, and the to meet demand Jafurah Basin east of Ghawar. The International Energy Agency’s Exploration: Adding to In the Red Sea, using an autonomous (IEA) World Energy Outlook 2017 our resource base system that deploys seismic nodes on New Policies Scenario estimates that the seabed via reinforced armored rope, global energy needs will expand by Exploration has been the cornerstone of we reduced the costs of 3-D seismic 30% between today and 2040. With Saudi Aramco since the Kingdom first data acquisition in our survey of two petroleum energy resources expected granted a concession to our predecessor, blocks measuring 800 square kilometers to form a key component of the world’s Standard Oil of California, in 1933. (km) and 900 square km. The choice of energy mix for the foreseeable future, Decades of onshore and offshore locations for the 3-D seismic survey was we continue to invest in our capability exploration in Saudi Arabia have resulted We are developing laser technologies informed by a large-scale hydrographic to meet current and projected future in an extensive portfolio of oil and gas conceived to perform perforation, waterless survey — a first for these waters. We demand. fracturing intitiation, descaling, and other fields that includes the world’s largest anticipate the results of the survey tasks to solve production challenges. onshore and offshore oil fields (Ghawar We have consistently produced five will help optimize field operations and and Safaniyah, respectively). This grades of Arabian crude oil. These grades, facilities, including rig movements, laying accumulated knowledge and expertise and the wide range of blends that can of pipelines, and supply vessel routes. 22 23

In support of our drive to sustain value from the Kingdom’s resource base for generations to come, we are working to increase the production capacity of our Khurais facility.

be produced using them, are compatible significantly boost long-term supply. In with most refineries around the world. 2017, we pursued a host of initiatives to This compatibility, combined with our maximize oil recovery, including advanced flexible crude oil production capacity, well completion technologies, artificial enables us to quickly respond to lift optimization, and debottlenecking of increases in market demand for crude production systems. oil in general and to fluctuations in We continued efforts to develop demand for specific grades. secondary reservoirs, such as 'Ain Dar and In 2017, we produced an average of 10.2 Lower Fadhili, and to optimize surface Upstream Operations Upstream million barrels per day (bpd) of crude oil, facilities. For example, we upgraded including blended condensate. offshore platforms, installed new tie-in 2017 platforms, and replaced key trunk lines in Our production strategy is guided by four our Safaniyah field. We also stayed on interlinked considerations: course to increase the plant capacity of • The crude oil grades available our Khurais facility by 300,000 bpd in • The long-run value of different crude 2018. oil slates We completed a major project to • Our ability to sell the crude oil grades de-mothball one of the gas-oil separation Saudi Aramco annual review in strategic markets plants (GOSPs) at our offshore Zuluf field. Production from GOSP-3 was suspended • The near-term requirements based in 1995. During a six-month program, we on a long-term assessment of inspected, repaired, and installed new future performance equipment and utilities to bring GOSP-3 To execute our production strategy, safely back online to sustain the field we focus on completing technical production capacity at 800,000 bpd of assessments for producing fields and crude oil. exploiting potential synergies through the

integration of subsurface computational 10 Gas processing: .7 10 models with surface facility networks. 10 .2 Powering growth .2 And because our principal oil fields are 9. 9.

linked with our extensive network of The expanding industrialization of 7 7 integrated facilities, we have the flexibility Saudi Arabia, and the increasing use of to send crude oil to multiple plants for cleaner burning natural gas for power 20 20 generation and seawater desalination, 20 20 20 16 14 15 13 processing, stabilization, and shipping. 17 and as feedstock for the petrochemicals Given the scale of our reserves, even sector, provide opportunities for us to small percentage increases in recovery create significant additional value beyond Crude oil production rates and production efficiency can crude oil. (million bpd) 24 25

We are the sole supplier of natural gas in the Kingdom, the seventh largest natural gas market in the world.

This year, we made progress on several • Expansion of the gas processing capacity new gas processing plants. Designed of our Hawiyah Gas Plant by 1.1 billion to boost supplies of natural gas, the scfd. The new gas processing facilities,

plants are expected to enable increased expected to be on-stream in 2021, are review annual Aramco Saudi exports of higher value liquids, provide anticipated to raise total production feedstock to the petrochemical industry, capacity of the plant to approximately 3.6 and reduce domestic reliance on liquid billion scfd, making it one of the largest fuels for power generation. Additionally, gas processing facilities in the world. the increased use of gas is expected to • Commencement of engineering, help lower greenhouse gas emissions and procurement, and construction of improve air quality. a natural gas liquids (NGL) deep

In 2017, we processed an average of 12.4 recovery train at our ‘Uthmaniyah 2017 billion standard cubic feet per day (scfd) Gas Plant to recover ethane and other of raw gas and supplied 8.7 billion scfd NGLs from the natural gas produced from Upstream Operations of natural gas with an energy content of the ‘Uthmaniyah plant and from the 1,080 Btu per standard cubic feet (scf). Hawiyah Gas Plant expansion. In 2017, we achieved the following in our Improving production, expanding capacity three unconventional gas exploration focus areas: In 2017, we readied our Midyan nonassociated gas field in northwestern • In northern Arabia, we achieved raw gas Saudi Arabia. The facilities in the field production while reducing drilling costs are designed to produce 75 million through optimized well design and drilling scfd of natural gas and 4,500 bpd of practices, and made available 55 million condensate. This gas will be scfd of natural gas to the Wa’ad al-Shamal used to displace liquid fuels for Industrial Complex. power generation. • In South Ghawar, we completed wells We completed wells toward the that showed high gas and condensate development of the Hasbah-Khursaniyah flows while also reducing drilling costs 12 increment designed to feed the Fadhili through well design optimization and .4 12 the application of fit-for-purpose .0 11 Gas Plant, which is designed to process 11 .4 technologies. 11 .3 2.5 billion scfd of raw gas. The gas from .0 the Khursaniyah field is planned to feed • In the Jafurah Basin, we completed a the specially designed cogeneration plant number of wells and reduced drilling 20 20 20 20 20 that can handle low Btu gas. costs through improved well design 16 14 15 13 17 We made significant commitments and execution. to improve production from existing Raw gas processed gas fields and expand gas processing (billion scfd) capacity, including: A massive dehydration unit rolls into our Fadhili Gas Plant. The unit improves the efficiency of the gas treatment process and helps ensure the purity of gas for distribution to customers. 26 27

Upstream R&D highlights: Our upstream R&D addresses key oil Enhancing discovery, and gas challenges: Improving seismic boosting recovery processing and analysis, increasing the effectiveness and efficiency of “Advanced technology will continue to play a pivotal At Saudi Aramco, we are dedicated to gas exploration, optimizing enhanced achieving technology breakthroughs crude oil recovery methods, raising role in helping us improve oil well productivity, that enable us to meet the needs of our crude oil recovery rates, enhancing oil customers more efficiently and cost- well productivity, and lowering increase recovery, and deliver better cost efficiency.” effectively while helping to minimize the production costs. environmental impact of our activities. Our upstream research activities are Mohammed Y. Al-Qahtani, Senior Vice President, Upstream We are harnessing the power of the primarily performed in-house, with Fourth Industrial Revolution through support from our Global Research our use of Big Data and supercomputing, Network research centers in Houston, and through ongoing investigations into Boston, and Beijing, and from our nanotechnology applications. technology offices in Aberdeen,

Scotland and Delft, the Netherlands. demonstration project in ‘Uthmaniyah, with the goals of sequestering carbon Highlights from our upstream R&D dioxide (CO ), developing related programs in 2017 include the following: 2

technologies, and enhancing oil review annual Aramco Saudi Enhancing discovery recovery. To assess the effectiveness of the field pilot, the migration of the We continued to increase the power and subsurface plume from the injected speed of GigaPOWERS, our parallel oil CO2 is being tracked through 4-D and water enhanced reservoir simulator, geophysical monitoring, interwell tracer and TeraPOWERS, our next-generation tests, geochemical sampling, and time- reservoir and basin simulator, to improve lapse logging. The crude oil production our computational modeling. These

response due to CO2 injection continued 2017 enhancements improve the resolution to show positive results. of the models, giving our petroleum Upstream Operations engineers a better understanding of Our state-of-the-art Advanced reservoir mechanics to enable maximum Geosteering Center in Dhahran enables recovery and sustainable production real-time monitoring of drilling rigs for the long term. hundreds of kilometers away to achieve precise, optimal well placement. Live We developed GeoDRIVE, our next- drilling and downhole data is transmitted generation, integrated seismic imaging by satellite from rigs to the Advanced platform that enables ultra-high Geosteering Center where teams of resolution subsurface mapping and experts analyze the data to make real- characterization, and tested the platform time decisions. Geosteering allows us in collaboration with the King Abdullah to position wells for maximum reservoir University of Science and Technology contact, resulting in enhanced well (KAUST). Our geophysical expertise, productivity and reduced development integrated with the power of Shaheen costs. In 2017, our Geosteering program 8.

II, a KAUST supercomputer, successfully achieved 93% reservoir contact efficiency. 7 8.

produced a 3-D image of subsurface 3 8.

Smart Flood uses injected seawater 0 geologic layers at a record resolution of 7. 8

with ionic compositions that have 7.

7.5 meters. This capability will enhance 5 our understanding of challenging been optimized to enhance the subsurface environments and help "sweep" of oil in carbonate reservoirs 20 20 and improve recovery rates. In 2017, 20 20 20 16 14 15 13 optimize drilling for exploration 17 and production. we completed tie-in activities and commissioned multiphase flow meters Boosting recovery at our ‘Uthmaniyah Smart Flood Natural gas supplied demonstration project. (billion scfd) We continued monitoring the performance of our multi-well

Researchers at our Houston R&D Center explore the use of seawater as a fracturing fluid to minimize the use of freshwater, a scarce commodity in the Kingdom. 28 29

Maintaining our reputation as a • Khurais field: Planned 2021, increasing to 75,000 reliable producer of crude oil, increase of crude oil bpd in 2026 un matched and as a leading producer of production capacity by natural gas, requires ongoing 300,000 bpd in 2018 • Fadhili Gas Plant: Designed to investment in our production process up to 2.5 billion scfd At a glance: capacity. In 2017, we continued • Fazran field: Planned of gas, with start up planned to plan and execute a slate of increase of crude oil in 2019 Oil and gas mega-projects: production capacity by 75,000 bpd in 2020 • Hawiyah Gas Plant: Planned processing capacity mega-projects • Dammam field: Expected expansion of 1.1 billion scfd start up of 25,000 bpd in

We are exploring the use of seawater (ESP). This technique enables the rapid research projects. Nanotechnology for fracturing operations to minimize deployment of ESPs using the pump’s shows the potential to enable the the use of freshwater resources. We power cable, rather than a workover rig. monitoring and analysis of reservoir completed a field trial in Haradh and three In 2017, we completed two installations, performance — and possibly intervention more field trials are planned for 2018. with a third planned for 2018. We also — directly from within the reservoir. In progressed preparations for a field trial of 2017, we identified scalable formulations Using cameras and sensors to Targeting improved well site safety, a slimmer version of the technology. of surface nanoparticles, which we plan document geological features, our as well as significantly reduced field GeoDrone solution improves safety to use in a single well chemical tracer field operation costs and downtime, we To improve recovery rates and long- and the accuracy of field data while test in 2018. also reducing costs, since geologists continued our field trials of a cable term reservoir management, we are can conduct virtual field trips from Upstream Operations Upstream deployed electric submersible pump conducting a suite of nanotechnology their desktops. 2017

Saudi Aramco annual review 30 31

key figures seaborne crude oil exports downstream 6,879thousand bpd

NGL produced for sale operationsOur downstream business is one of the company's 993thousand bpd engines for growth and diversification.

refined products production

657million barrels

pipeline network

21,000+km 32 33

Our downstream strategy seeks produce — and a robust • Create a top-tier, globally to enhance the value of our portfolio that is more resilient integrated chemicals business Our global downstream portfolio spans the hydrocarbon value un matched resource base by targeting to market turbulence. chain and includes chemicals manufacturing, trading, refining, and • Increase integration of increased horizontal and vertical marketing — creating greater value from our resource base. To achieve our strategic downstream facilities integration across the objectives in the downstream Our downstream hydrocarbon value chain. The business, we continued to • Implement our crude oil successful execution of our pursue the following key goals: placement strategy strategy: strategy would deliver a world leading, strategically integrated • Optimally meet the • Maximize value creation from Integrating to add value downstream network — one Kingdom’s refined power and cogeneration that maximizes the worth of the product needs, while integration opportunities hydrocarbon molecules we building a world-scale global refining system

Our downstream business is one of meet the needs of our growing domestic the company’s engines for growth and international customer base.

Downstream Operations and diversification. Our global downstream network We started building our first pipelines supplies a diverse and expanding range 2017 and shipping facilities in 1938, loaded the of products. We are a major refiner and first tanker to ship Saudi Arabian crude among the global leaders in base oils. oil in 1939, and commenced refining Chemicals is the fastest growing demand operations at our original Ras Tanura sector for crude oil, and our ventures in refinery in 1941. this sector position us for future growth and long-term value creation. Since then, we have built an extensive global downstream network that is We also seek innovative new routes

Saudi Aramco annual review designed to provide a diversified portfolio to value. For example, our proprietary of non-crude oil revenue streams, create CONVERGE® technology transforms

resilience in times of crude oil price emissions by using captured CO2 to make volatility, secure dedicated outlets for an array of high performance polyols with our crude oil in strategic growth markets, a broad range of applications. and allow us to maximize value across the entire supply chain — from the In-Kingdom downstream: wellhead to customers. Expanding opportunities Adding value In Saudi Arabia, we manage a downstream network that encompasses through integration gas fractionation, refining, distribution, In Saudi Arabia, our downstream and power generation that efficiently operations encompass wholly owned supports our operations. Within this and joint venture refineries and chemicals system are the Sadara chemicals joint plants, and a Kingdomwide distribution venture and Petro Rabigh (an integrated network. The close integration of refining and chemicals company), eight our upstream operations with our refineries (three wholly owned), 23 bulk downstream system enables us to plants, two international airport refueling respond safely, reliably, and efficiently to sites, more than 21,000 km of pipelines, 34 35

and 20 export berths at six marine ports, fractionation plants. The MGS collects In support of our strategy to optimize owned subsidiary, Aramco including the Port of Ras Tanura — the all associated and nonassociated gas supply and distribution of petroleum Chemicals Company, to consolidate world’s largest group of crude oil export produced in the Kingdom and connects products in the Western region, we and manage the marketing of certain terminals. key gas production sites with demand began a project to convert the industrial chemical products. centers in the Kingdom. complex that includes our wholly owned We partner with world leading refining Our chemicals expansion strategy is Jiddah Refinery into a petroleum and chemicals companies in Saudi To accommodate growing domestic supported by our expectation that products distribution center, without Arabia to produce a slate of products for demand, we are expanding the capacity the petrochemicals industry will be

domestic and international customers, of the MGS. The expanded system should refining operations. The conversion the fastest growing sector for crude We monitor and control our entire generating greater value from our deliver the twin benefits of reducing project also seeks to enhance safety and oil, accounting for 15% of all crude oil hydrocarbon production and distribution system from our Operations resource base and expanding market the use of liquids for power generation environmental performance. And the loss demand by 2040. By increasing our Coordination Center in Dhahran, opportunities for our products with and enabling opportunities in energy of the relatively low refining capacity of participation in this market, we seek to ensuring the reliable delivery of energy conversion industries and manufacturers. consuming industries. Phase I of the the 50-year-old Jiddah Refinery — 77,000 create greater long-term value from our to Saudi Arabia and the world. We are the sole supplier of refined expansion project was completed in bpd — will be more than offset by our resource base and enhance our resilience

Downstream Operations products to the large and growing January 2018, adding 1 billion scfd of YASREF and SATORP (Saudi Aramco to oil market fluctuations. domestic market. And because our capacity, raising the total capacity of the Total Refining and Petrochemical Co.) Completing chemicals mega- 2017

upstream operations supply crude oil MGS to 9.6 billion scfd. The expanded joint ventures in Yanbu’ and Jubail, directly to our domestic refining system system delivers increased supplies of respectively, and by the start up of our projects: Sadara and Petro Rabigh through our extensive pipeline network, natural gas to customers in the King Jazan Refinery. Sadara, our joint venture with The Dow we optimize supply costs. Abdullah Economic City and the Rabigh Chemical Co. in Jubail Industrial City, area in the Western region. Toward a top-tier chemicals business Our fourth wholly owned refinery, began full operation of the last of its expected to be on-stream in 2018, Phase II of the expansion project — Our chemicals operations span the sector 26 plants during the year. The facility is located in Jazan in the Kingdom’s designed to raise capacity to 12.5 from the production of basic chemicals achieved reliable operations at full design southwest region, and is designed to billion scfd — is in the engineering, such as aromatics, olefins, and polyolefins, feed capacity of 85 million scfd of ethane Saudi Aramco annual review add 400,000 bpd of capacity to our procurement, and construction stage to more complex products, including and 53,000 bpd of naphtha. domestic network. and is expected to be completed in late polyols, elastomers, and advanced At our Petro Rabigh venture with 2019. When complete, Phases I and II are synthetic rubber. Sumitomo Chemical on the Red Optimizing supply and distribution planned to add more than 1,600 km of In Saudi Arabia, our operations supply Sea Coast, we achieved mechanical Our distribution system spans the pipelines to the system, further enabling all of the feedstock required by our completion of the Rabigh Phase II 2 the growth of the high demand utility ,8 Kingdom, cost-effectively connecting chemicals facilities and all of our domestic project, which includes a new aromatics 2 6 and industrial sectors in the Central and 6 oil and gas facilities with refineries chemicals joint ventures. Most of complex, an expanded cracking facility, 9 1 , 2

1

,

Western regions. 0

4 and terminals, and delivering fuel and our international joint ventures are and differentiated polymer units.

2 2

9 9 ,

1 feedstocks to industrial customers. From Work continued to de-mothball and integrated with refineries, providing Commissioning and start up of all units our Operations Coordination Center integrate the Yanbu’ South Terminal production flexibility, and opportunities is expected in 2018. in Dhahran, operators can monitor and with the Yanbu’ Crude Oil Terminal, for cost competitiveness. control our entire hydrocarbon production Transforming power with commissioning of the facility Our aspiration is to become a top-tier, and distribution system, ensuring the safe, anticipated to begin in 2019. The globally integrated chemicals business. Our investments in power, which efficient, and reliable delivery of energy to International refining Domestic refining additional capacity enables crude oil We are pursuing three routes to fulfill this primarily support our upstream and capacity Saudi Arabia and the world. capacity deliveries to the YASREF (Yanbu Aramco aspiration: Leveraging existing downstream operations, seek to achieve (thousands of (thousands of We own and operate the Master Gas Sinopec Refining Company) and Jazan assets, developing a global business economies of scale by considering bpd) bpd) System (MGS), an extensive linked refineries while maintaining our West platform, and seeking selective organic adjacent demand centers and capturing Total capacity network of pipelines, gas processing Coast export capability. and inorganic growth. In 2017, we opportunities for advantaged fuels. Total capacity Saudi Aramco share plants, and NGL recovery and began work to launch a wholly In addition, our strategy is to identify Saudi Aramco share 36 37 Downstream Operations 2017

opportunistic growth in the domestic business to a sustainable commercial in the United States. We also participate placement of our crude oil in the region, The world calls for energy at the power market. business through the generation of in a joint venture specialty chemicals and add to our refining and chemicals Ju’aymah offshore terminal on the Arabian Gulf, where a supertanker loads service and trading revenues. company, ARLANXEO, headquartered in manufacturing, and marketing capacity in We continued to transform our crude oil from a single-point mooring. the Netherlands. strategic markets. power business from dependency The joint venture power cogeneration on third parties to self-sufficiency in facilities at our Hawiyah Gas Plant, In 2017, we continued to evaluate and In China, we signed a Memorandum electricity and cogenerated steam, while Abqaiq Plants, and Ras Tanura Refinery pursue opportunities to increase our of Understanding with China North maintaining a steadfast concentration on were operational in 2017. In addition, refining and chemicals capacities in key Industries Group Corp. (Norinco) to Saudi Aramco annual review safety, reliability, and energy efficiency. the construction progress on the strategic markets. We also explored participate in its planned refinery In 2017, we maintained self-sufficiency cogeneration facility integrated with opportunities to integrate chemicals expansion and a 300,000 bpd greenfield

in power generation, with excess power our Fadhili Gas Plant reached 51% at manufacturing with potential joint refinery in Panjin in Liaoning Province. 5.5 .6 exported to the national grid under a year-end. venture refineries, and to develop or Also in China, we marked the 10-year 5

1 commercial agreement. Company expand chemicals production facilities at anniversary of our Fujian Refining and . 4

power efficiency reached 67% by year- Global downstream: existing joint ventures. Petrochemical Company joint venture. 1

end, an improvement of 1% over the Over the past decade, with our partners 6

3

8

In Malaysia, we executed Share Purchase .

Expanding integration .

6 previous year. the Fujian Provincial government, Sinopec, 5 Agreements with Petronas to participate Worldwide, we participate in refining and and ExxonMobil, we have tripled the In 2017, we created Aramco Power. in a grassroots full conversion refinery marketing ventures in China, Japan, and facility’s crude oil production capacity, Its establishment advances the and integrated chemical cracker to be South Korea, and are sole owners of the increased the capacity of its ethylene transformation of the company’s power located in Johor Bahru, Malaysia. The Motiva refining and marketing company cracker, and added a new ethylene 2017 crude oil exports project, known as RAPID (Refinery and oxide/ethylene glycol unit. by market Petrochemical Integrated Development), includes a 300,000 bpd refinery, 3 million In Indonesia, following the joint (percent) tons per annum of olefins capacity, and venture development agreement Asia downstream chemicals manufacturing signed with Pertamina in 2016, we Northwest Europe In 2017, we continued to pursue opportunities to increase our units. Situated adjacent to Singapore, completed basic engineering for the Mediterranean the refined trading products hub for upgrade and expansion of the Cilacap U.S. refining and chemicals capacities in key strategic markets. Asia, the venture is planned to increase Refinery in Central Java. Other 38 39

In New Delhi, India, we opened a new ARLANXEO for a planned elastomers “We capture value by integrating at the office for our Aramco Asia-India affiliate. plant to be located in Saudi Arabia. The office will strengthen our presence operational and geographical level — connecting in the country and potentially enable Growing sales and marketing broader opportunities between Saudi Aramco and leading Indian entities. In our drive to grow our base oils oil and gas supply, refining, chemicals, and base business, in 2017 we marked a number In the United States, the dissolution of of milestones, including establishing a the 18-year-long Motiva joint venture global interchangeable slate of Saudi oils in regions of high growth potential.” was finalized during the first half of the Aramco branded base oils among our year. Saudi Aramco retained the Motiva LUBEREF, S-Oil, and Motiva affiliates, Abdulaziz M. Al-Judaimi, Senior Vice President, Downstream name and assumed sole ownership of and launching the brand at three major North America’s largest single-site crude base oil and lubricants conferences. oil refinery, located in Port Arthur, Texas. We also commenced domestic sales of In addition, Saudi Aramco retained 24 aramcoDURA® and aramcoPRIMA® base terminals and an exclusive license to sell oils. With the completion of the LUBEREF fuel under the Shell brand in Texas and expansion project in Yanbu’, we are also involved in chartering activities to increase the value of lower quality gas, much of the U.S. Midwest and Southeast. aiming to become a leading supplier of deliver products to clients, and is the and save water. In the Netherlands, ARLANXEO is global base oils, with gross production largest charterer in the Middle East The use of membrane-based our specialty chemicals joint venture capacity of 4.7 million tons per year. region. In 2017, ATC continued to review annual Aramco Saudi technology potentially offers a cost- that produces, markets, and distributes expand its market presence by Saudi Aramco Products Trading effective approach to upgrade low Btu synthetic rubber and elastomers. In entering new markets. Company (ATC) is our wholly owned gas for use in cogeneration electrical 2017, we began design of a project subsidiary based in Dhahran, with power plants, helping minimize the use to utilize crude C4 from Sadara a branch in Singapore. ATC is Saudi Downstream R&D of liquids for power generation. In 2017, to produce butadiene and related Aramco’s trading arm and conducts progress was made on the removal of acid coproducts such as MTBE and high highlights: Leveraging trading activities in refined products, gases through specialized membranes. purity isobutylene as feedstock for technology to add value

liquid chemicals, and polymers. ATC is

We also completed a study that 2017 Our investments in downstream R&D seek confirmed the capability of membranes to to maximize the value of our resource recover high levels of helium with a high Operations Downstream base through process improvement enrichment factor, which could become a and enhanced production efficiencies potential commercial opportunity. while supporting integration across the hydrocarbon value chain. Our research Upgrading oil, enhancing refining includes the following key priorities: We are investigating the feasibility of • Oil and gas treatment: Crude oil upgrading heavy oil for refining, separation and gas separation petrochemical, and power generation technologies applications. This research program could • Oil upgrading and refining: Supercritical result in more flexibility in processing upgrading of heavy oil, and production heavy crude oil grades and residue of novel catalysts for cracking low value fractions of crude oil to create greater refinery streams value. One focus area is our proprietary supercritical fluid technology for • Chemicals: Converting lower value upgrading low value refining streams to feedstocks and increasing the share of distillates and chemicals. In addition, a crude oil in chemicals production number of evaluations were completed • Oil and gas network integrity: in 2017, including a process economy Advanced sensing, prediction, and evaluation for lube oil and low-sulfur monitoring technologies marine fuel oil. Commercially available refining catalysts Improving efficiency and are designed for generic feedstock, and performance: Oil and gas treatment conversion processes can negatively Technologies to upgrade and enhance impact product yields and quality. We oil and gas treatment show potential are conducting research into specific to improve production performance, catalyst formulations and processes

In pursuit of our aim to become a leading supplier of global base oils, we launched sales of our aramcoDURA® and aramcoPRIMA® base oils. 40 41

In 2017, we continued to make was nearly 90% complete at license to sell fuel at more progress on projects across the year-end than 5,000 service stations An advanced materials researcher at our Boston R&D un matched hydrocarbon value chain to Center uses X-ray diffraction to determine properties critical • Sadara, Jubail, Saudi Arabia: • S-Oil, South Korea: Three enhance our performance in the for research programs ranging from corrosion to catalysts. downstream sector. These Start up of all remaining refinery upgrade packages At a glance: projects include: plants achieved in first half completed at the Ulsan of 2017 refinery to improve refinery • Jazan Refinery, southwest efficiency and productivity Downstream projects Saudi Arabia: Continued • Motiva, United States of progress on a 400,000 bpd America: Assumed sole • RAPID, Johor, Malaysia: grassroots refinery, terminal, ownership of North Refining and chemicals and integrated gasification America’s largest single-site joint ventures formed combined cycle power plant. crude oil refinery, retained with Petronas Construction of the refinery 24 terminals, and an exclusive

to enhance the performance of our and increase octane. In 2017, the refining conversion processes such as technology was successfully scaled up and hydrocracking, fluid catalytic cracking, demonstrated, and the basic engineering and hydrotreating. Key objectives of the package study was completed for research include increasing product yields potential commercial deployment. and producing high quality feedstocks for production of propylene or base oils Maintaining reliability through from heavier feedstocks. In 2017, we network integrity developed 15 new catalysts based on The safe and reliable delivery of our zeolite minerals, and completed pilot products to customers is paramount. With Downstream Operations plant testing of 16 catalyst systems. an emphasis on corrosion and materials, our R&D efforts seek to protect and 2017

Transforming the resource base enhance the integrity and performance The conversion of advantaged liquid of our oil and gas network. Our goals are feedstock to chemical building blocks to significantly reduce the annual cost of and the enhancement of lower value inspection and monitoring, and ultimately streams from refinery and petrochemical the cost of corrosion, through the use sources have the potential to create of autonomous robots and advanced greater value from our resource base sensing and prediction capabilities.

Saudi Aramco annual review and strengthen our diversification and To achieve our goals, we are developing resilience as a business. cost-effective robotic sensing and With our partner Sumitomo Chemical of inspection tools to monitor shallow Japan, we increased the throughput of water and onshore pipelines. Additionally, our Petro Rabigh 1-Butene plant through we developed and released a storage tank the development of a novel anti-fouling calibration robot, improving inspection additive technology (AFA). quality and reducing calibration time from 16 hours to four hours. To create Our CAN-FCC catalyst offers a high additional value and enable greater tolerance for heavy oil streams in fluid opportunities for domestic businesses, a catalytic cracking processes and increases number of these technologies are being the yield of various distillates and commercialized for local, regional, and chemicals. In 2017, we demonstrated an global deployment. additional propylene yield improvement with this catalyst over the existing catalyst used in one of our joint venture refineries. Our SuperButol technology targets the conversion of mixed low-value butenes streams for use as a gasoline blending component to improve fuel combustion 42 43

key figures

flaring< 1%intensity securing

patents230 granted by the U.S. Patent and Trademark Office theAt Saudi Aramco, future sustainability is an ethos that infuses all aspects of our company — in Saudi Arabia million11.5 boe of high value and wherever we do business around the world. liquids displaced with nonassociated gas during peak summer demand 44 45

• Demonstrated CO2 emissions • Began construction of reduction in a vehicle with a a new research center un matched fully integrated octane on at KAUST to support demand system innovation in upstream and downstream domains and in At a glance: • Aramco Performance environmental protection 57 Materials sold its first a secure method for anyone to report market, including those imported or 2 Key achievements in consignment of CONVERGE® • Completed the installation suspected fraud, unethical conduct, and produced locally. In crude oil production

products — high of multiple flare gas 28 23

business irregularities related to Saudi and processing, carbon intensity is a 22 performance polyols created, recovery systems 5 17 15

sustainability 0 6 14 Aramco business. measure of the greenhouse gas emissions 12 5

in part, from CO 10 2 4 9 3 57 associated with producing a barrel of oil 1 Additionally, our Supplier Code of from the well to the refinery. The study Conduct promotes our values and 20 20 20 examined crude oil grades supplied from 20 20 16 14 15 extends and maintains our ethical 13 17 over 100 oil fields in 20 countries and standards across our supplier network, concluded that Saudi Arabian crude oils helping enable long-term, mutually have the lowest carbon intensity. New United States beneficial partnerships. patents filed and The low carbon intensity advantage of granted Saudi Arabian crude oil is a result of Securing a sustainable Granted multiple factors, including our long- future with technology Filed standing practices in well completion, At Saudi Aramco, we believe that reservoir management, and flare continued investments in further reducing minimization. For example, technologies the greenhouse gas intensity of crude oil such as mobility geosteering, multilateral and its derivatives will reap benefits for wells with smart completions, and energy producers and consumers alike. peripheral water flooding, have led Our R&D programs address four areas to low water production per barrel (or of strategic importance: Sustaining low water cut) relative to the depletion stage carbon intensity crude oil, growing of the reservoir, which directly translates non-fuel applications for crude oil, to lower energy requirements to process and recycle water, and consequently At Saudi Aramco, sustainability is an ethos and growth of our business, foster new advancing sustainable transport, and reduces our greenhouse gas emissions in Securing the Future that infuses all aspects of our company partnerships, and maintain the trust of driving high-impact solutions. And to oil production and processing. — in Saudi Arabia and wherever we do the communities that host our operations. address these areas we are harnessing 2017 business around the world. the power of the Fourth Industrial Our corporate values underpin all our Growing non-fuel applications Revolution with technologies that include For us, sustainability means improving operations and guide our business big data, advanced analytics, and artificial We are pursuing non-fuel uses for crude our environmental performance, and conduct. They are the basis for a suite intelligence. For example, our Engineering oil to unlock greater value, create more the positive social impacts of our of policies, codes, and guidelines that Solutions Center combines operational economic opportunities, and reduce operations, while increasing our efficient govern our employees as they implement data, advanced analytics, and in-house greenhouse gas emissions. use of resources, assets, and capital. the company’s business strategy. technologies and expertise to monitor Our commitment to sustainable These same components shape our We are collaborating with SABIC, the company energy consumption and Saudi-based global chemicals company,

Saudi Aramco annual review practices governs our corporate and Compliance Program that serves as the achieve near zero flaring intensity. professional behavior and guides us benchmark against which we measure on a crude oil to chemicals project. In 2017, we signed a Memorandum of to conduct our business dealings and our performance and that of our partners Sustaining low carbon Understanding to pursue the next phase. interactions in accordance with legal — contractors, consultants, suppliers, intensity crude oil and ethical standards. affiliates, and joint ventures within the The project — the first between Saudi A study conducted in 2017 and published Kingdom of Saudi Arabia, and globally. Aramco and SABIC, two of the largest Sustainability steers our future outlook, in early 2018 in Nature Energy examined economic entities in the Kingdom — is spurring us to develop and implement We have a dedicated Corporate the well-to-refinery carbon intensity of all anticipated to process 400,000 bpd of meaningful solutions to global energy Compliance office charged crude oil grades supplied to the Chinese crude oil to produce approximately and climate challenges by pushing the with monitoring and supporting limits of innovation and technology — our Compliance Program, and all while being a steadfast contributor with tracking external legal and to the world’s energy needs. regulatory developments. Our employees are required to At Saudi Aramco, we believe that continued Working responsibly review our Conflict of Interest and and ethically Business Ethics Policies on a regular basis. Any ethics concerns from our investments in further reducing the greenhouse gas Our continued commercial success is employees or third parties can be clarified dependent upon meeting the highest through our established communication intensity of crude oil and its derivatives will reap standards of business practices. By doing and reporting channels. For example, so, we seek to ensure the continuation our General Auditor Hotline provides benefits for energy producers and consumers alike. 46 47

At our Boston R&D Center, materials are prepared for nanoscale analysis via a scanning electron microscope, which helps inform the development of advanced materials for corrosion prevention and mitigation.

9 million tons of chemicals and base oils fuel engine systems that achieve high annually in addition to transport fuels. efficiencies with very low emissions. For example, our researchers are Our own crude oil to chemicals working on novel technologies that technology program aims to expand can use low octane gasoline fuels in petrochemicals manufacturing by light-duty vehicles, potentially achieving eliminating intermediate refining steps an estimated efficiency improvement and converting crude oil directly to of 25%. chemicals. In 2017, we successfully piloted a thermal crude oil to chemicals Our octane on demand technology technology (TC2C) that resulted in program, which uses two fuels to attain higher chemicals yield than previously the necessary anti-knock quality, strives achievable. We also established a strategic for an estimated efficiency improvement partnership with leading technology of 8% compared to gasoline engines. providers, Chicago Bridge & Iron and In 2017, we completed a vehicle Chevron Lummus Global, to de-risk and demonstration at our Paris research center scale up this technology. with a fully integrated octane on demand system that reduced CO emissions. We continued to expand the use 2 of innovative nonmetallic materials, We are also seeing promising including the deployment of more than opportunities to significantly increase 2,300 km of nonmetallic pipes, resulting efficiency in heavy-duty vehicles. At in significant life cycle cost avoidance our Detroit research center, we are across company operations. Expanding developing and demonstrating efficient applications for nonmetallic materials, and affordable fuel engine systems that including for the automotive, building can use low octane gasoline fuels such as

Securing the Future and construction, packaging, and Gasoline Compression Ignition (GCI) renewable energy sectors could create technology with the potential to lower 2017

additional markets for our crude oil CO2 emissions. and enable potential opportunities for local manufacturers. Driving high-impact solutions Our carbon management programs help Advancing sustainable transport support our efforts to address climate In collaboration with engine technology challenges, contribute to global energy developers and major automakers, we supply, and enable the sustainable greenhouse gas emissions while helping • A company that is developing innovative, are advancing new engine and fuel growth of our business. To achieve Saudi Aramco annual review provide the energy the world needs is high efficiency opposed piston engines technologies to reduce exhaust emissions these aspirations, we are investigating illustrated by our founding membership with the potential to substantially reduce and improve fuel economy — twin goals cost-effective and efficient low-carbon of the Oil and Gas Climate Initiative the greenhouse gas emissions produced that help address the global climate footprint technologies, including carbon (OGCI). Together, the 10 OGCI members by vehicles — a technology Saudi Aramco challenge and contribute to continued capture, utilization, and storage, and produce more than one-fifth of oil and showcased at the North American mobility and economic growth. improved energy efficiency and energy gas globally, and our collective efforts International Auto Show in Detroit in mix diversification. A key research area for us is the have the potential to reduce greenhouse early 2018 gas emissions on a significant scale. development of efficient and affordable Our intent to contribute to reducing • A cement and concrete production 14

In 2016, the OGCI announced an company that uses CO2 to produce 0 13

investment of $1 billion over the next cement and cure concrete, with the 2 12 12

10 years through OGCI Climate potential to lower CO emissions in 4

2 3 11

Investments to develop and accelerate concrete production up to 70%, and 6 “We are committed to reducing greenhouse gas the commercial deployment of innovative water consumption by 80% 20 20 low emissions technologies. OGCI 20 20 20 16 14 15 13 • A project to design the first commercial 17 Climate Investments announced its scale gas power plant with carbon emissions by focusing our research, development, and first three investments in 2017. These capture and storage capability investments deliver on the organization’s Energy intensity required to produce funding on high-impact technologies that reduce cost commitments to concrete action to spur Creating value from emissions the growth of promising low-emission one barrel of oil We see CO not just as an emission to equivalent technologies. The investments include: 2 and create significant environmental advantages.” be controlled, but as an opportunity (thousands of Btu)

Amin H. Nasser, President and CEO, Saudi Aramco 48 49

“Improving the internal combustion engine remains the most cost-effective and timely means to reduce greenhouse gas emissions from the transport sector — and those improvements can yield dramatic results.”

Ahmad O. Al-Khowaiter, Chief Technology Officer

to create additional value. Our Kingdom raising its utility sector efficiency CONVERGE® polyols technology to 37.9% by year-end, an improvement of

converts CO2 into cost competitive and nearly 6 percentage points since 2013. sustainable polyols used in a broad Our Peak Summer Production review annual Aramco Saudi range of high performance applications Program provided additional volumes from automobile seating to insulation. of nonassociated gas to reduce the Containing up to 50% CO , CONVERGE® 2 use of liquids in power generation polyols have a significantly reduced during the summer. In 2017, we carbon and energy footprint when displaced 11.5 million barrels of crude compared to conventional petroleum- oil equivalent, freeing up higher value based polyols. liquids while reducing emissions. We

Our Aramco Performance Materials also continued our collaboration with 2017 affiliate in the U.S. commenced the Saudi Energy Efficiency Program

commercial operations in 2017, selling to promote energy efficiency practices Future the Securing its first consignment of CONVERGE® through awareness campaigns. products in the first quarter of 2017. Leading by Example Driving energy efficiency, Our Lead by Example Program, reducing emissions established in 2012, strives to achieve a 35% reduction by 2020 in non- Our energy efficiency efforts seek to industrial energy consumption in reduce energy consumption at company company buildings, transportation, facilities, design new facilities to be and communities. Phase two of the energy efficient, increase overall energy program to replace 60,000 fluorescent efficiency, and influence and promote lights in office buildings and facilities energy efficiency at the national level. with more efficient LED lighting was In 2017, Saudi Aramco flaring intensity nearly complete at year-end. In addition, remained at less than 1% of annual gas motion sensor switches were installed in production and we continued progress closed office spaces, resulting in a 60% toward our eventual goal of zero reduction in power usage from office routine flaring. As part of our Flaring lighting, and 16 power meters were Minimization Program, we completed installed in office facilities during the the installation of multiple flare gas year to monitor consumption. recovery systems, including at our In transportation, we have replaced onshore Safaniyah facilities. more than 4,000 company vehicles In line with our efforts to boost energy with more efficient six cylinder models efficiency, our Energy-to-the-Kingdom and affected the conversion of nearly (E2K) initiative contributed to the 3,000 hydrocarbon tankers operated by

We are developing and testing next-generation, lower emission internal combustion engines as well as the fuels that power them, helping to ensure a sustainable energy future. 50 51

218.7 contractors from steel to lighter weight technologies, accelerating the Kingdom’s “As energy demand continues to rise, Saudi Aramco will 2017: 208.3 aluminum to reduce fuel consumption. ability to conduct advanced scientific 10.4 research, and promoting entrepreneurship encourage the adoption of energy efficient technologies as 2016: 195.0 Accelerating innovation and the development of new technology 13.3 through collaboration enabled businesses. 2015: 176.6 In a separate project with KFUPM, we move toward reduced energy intensity, a more diversified 18.4 In a challenging environment, no we are working to establish a world- one player is able to succeed on its 2014: 149.9 class Petroleum Engineering and 26.7 own. Collaboration enhances our energy mix, and a smaller environmental footprint.” Geosciences College. In 2017, we competitiveness and further enables 2013: 132.1 completed retrofitting a building and Ahmad A. Al Sa’adi, Senior Vice President, Technical Services 17.8 the expansion and strategic integration the construction of two new buildings of our global business. And as our to house state-of-the-art laboratories on Energy conservation business has grown into new markets the KFUPM campus and at the Dhahran savings in company and products, so too has our collaborative operations Techno Valley Science Park. network expanded, encompassing (thousands of other energy producers, engineering In our local region, we signed boe per day) companies, service providers, equipment Memoranda of Understanding with the Internationally, we collaborate with capital affiliate, continued its mission to Year’s increment manufacturers, R&D institutions, Abu Dhabi National Oil Company a network of academic and industry appraise promising opportunities and Carry-over from and universities. (ADNOC) and with Masdar, a research partners, including the invest globally in startup and high growth previous years renewable energy and sustainable Massachusetts Institute of Technology, technology companies of strategic interest In the Kingdom, we engage and review annual Aramco Saudi urban development company based in Stanford University, Imperial College, to us. In 2017, SAEV made six new participate with key national stakeholders, All figures revised Abu Dhabi, UAE. With ADNOC, we plan Tsinghua University, KAIST (the Korean investments and piloted five technologies including the King Abdulaziz City for based on further to collaborate to identify technologies Advanced Institute of Science and from its portfolio companies. data reconciliation. Science and Technology (KACST), King that could deliver improved performance Technology), and IFPen on topics related Fahd University of Petroleum and Minerals and efficiency across the oil and gas to the global challenge of a sustainable (KFUPM), and KAUST in the pursuit of Conserving water resources value chain. The agreement with Masdar energy future. high-impact research and technology enables collaboration on sustainable We continued to implement our water initiatives of strategic importance to our conservation strategy to conserve the

and renewable energy development to business. Our participation centers on Exploring energy solutions 2017 yield advancements in clean electricity Kingdom’s nonrenewable groundwater initiatives aimed at advancing nascent through our Global resources and serve as a role model

generation and carbon capture. Future the Securing Research Network for water conservation practices. Our Global Research Network enables We completed a slate of water innovative research in high-impact, long- conservation strategies, including term, value-creating domains. Comprised using wastewater in a variety of of three in-Kingdom research centers applications, assessing conservation and eight satellite research centers opportunities, implementing best and technology offices in strategic practices, and promoting water international locations, the network is conservation awareness. Significant dedicated to addressing global energy savings were achieved at industrial and sustainability challenges and creating facilities and in communities by substantial competitive advantage for applying best practices and water our business. saving technologies. In 2017, we started construction to expand our Exploration and Petroleum Engineering Advanced Research Center (EXPEC ARC) in Dhahran. The expansion project includes laboratories and offices for 850 professionals and support staff. We also launched construction of our new R&D center at KAUST.

Investing in energy Saudi Aramco Energy Ventures (SAEV), our technology and energy venture

We seek to advance sustainable transport by developing ultra-clean fuel

engine systems at our Detroit R&D Center, and by converting CO2 into cost competitive and sustainable polyols through our CONVERGE® technology. 52 53

key figures Saudi Aramco and wholly owned subsidiaries enabling 70,762employees

Saudi Aramco lost-time injury rate Ourexcellence success as a business rests on our attention to safety 0.02per 200,000 work hours and the development of our people. To enable increasingly efficient operations, we support endeavors to enhance the more than domestic energy sector and diversify the economy. 22,000professional development training participants 54 55

• Our STEMania Program • In-Kingdom joint venture reached nearly 3,000 female with Jacobs Engineering un matched students across the Kingdom Group for professional program and construction • ARO Drilling and SANAD management services At a glance: drilling joint ventures commenced operations • Established centers of concern to us. To help ensure standards the awareness of common safety Enabling excellence engineering excellence at five and practices are met, in 2017 we concerns — on- and off-the-job. • The King Salman local offices highlights International Complex for conducted more than 2,400 audits Maritime Industries and • Began planning Phase I of the and inspections of contractor Embedding a Services targets construction King Salman Energy Park communities. Our Loss Prevention of vessels and offshore performance culture drilling rigs organization communicated their findings to proponent organizations Our Operational Excellence (OE) to implement improvements. initiative provides a framework for managers and describes how they can We supported the Qyadati driver safety implement the system to fulfill their safety program, an online multi-language driver and loss prevention obligations. It drives awareness program. Now mandatory for our efforts to cost-effectively achieve all supplemental manpower and project leading performance in safety, reliability, management contractors, 19,000 driving and efficiency. certificates were issued in 2017. Working to integrate our day-to-day More than 3,000 contractor employees work into the OE structure, a dedicated in our Southern Area Oil Operations OE organization provides consultation, organization benefited from an innovative training, and certifying of OE safety campaign. The “Our Safety is implementers and assessors. In 2017, we You” campaign featured a number of conducted 51 OE integrated assessments, educational platforms specially designed yielding significant opportunities for to encourage participation and promote improved performance. We remained

Our success as a business rests on our the 2016 LTI rate of 0.05. There were

Enabling Excellence attention to safety and the development no on-the-job fatalities for Saudi of our people. To enable increasingly Aramco employees. Our ongoing 2017 efficient operations, we support efforts to embed safety awareness endeavors to enhance the domestic through on-the-job training was key energy sector and diversify the economy. to our improved performance. A robust supply chain, innovative energy Understanding that off-the-job traffic and technology entrepreneurs, and a accidents in Saudi Arabia are a critical globally competitive workforce are in safety concern, we proactively manage our strategic interest and play an driver performance through monitoring

Saudi Aramco annual review important role in improving our devices. At year-end, 79% of the commercial performance. company’s in-Kingdom fleet had the monitors installed. Overall, our Traffic By supporting capacity building in the Safety Signature Program has Kingdom’s energy sector, fostering contributed to a 30% reduction small- to medium-sized enterprises, and in motor vehicle accidents for Saudi establishing national training centers, Aramco employees. 0.09 we plan to enhance the reliability of our supply chain, improve the efficiency of Our efforts to improve driver safety were 0.

06 our operations, and build our workforce recognized by the American Society of 0.05 0.05 of the future. Together, we believe these Safety Engineers, which gave its 2017

0.02 programs will accelerate growth and Safety Innovation Award to our driver create new value for our company, as well safety system. The system measures as for the Kingdom. patterns in biometric signals and

20 20 20 20 20 incorporates safety engineering principles 16 14 15 13 17 Our safety performance and behavior change to help reduce traffic accidents. Saudi Aramco The lost-time injury (LTI) rate for Saudi lost-time injury rate Aramco employees at year-end was Caring for contractors 0.02 per 200,000 work hours, a (per 200,000 The safety, health, and well-being of our work hours) significant improvement compared to contractor workforce is of paramount

Every day, our team works together to unlock the full potential of the Kingdom’s resources. 56 57

In the Core Room of our Upstream Professional Development Center, young engineers and geoscientists enhance their knowledge through hands-on, immersive instruction.

on track to assess all Saudi Aramco approach brings the knowledge and departments by the end of 2019. expertise of leading global universities and institutions to the Kingdom to Enhancing capability deliver customized, business centered To become the world’s leading integrated academic degrees. In 2017, we initiated energy and chemicals producer, we need a specialized and accelerated master's people with best-in-class capabilities. degree program in geophysics from Accordingly, we deliver continuous the University of Leeds in the U.K. development and skill building Since the program’s inception in 2009, opportunities to our workforce. Tailored more than 10 international universities to meet the growing responsibilities have participated and more than 400 of our evolving business, we offer a employees have earned degrees. wealth of online and classroom courses, Developing leaders specialized training centers, internships, and mentorship programs. The achievement of our strategic vision requires new skills at every level. Our suite of development programs range Nowhere is this more relevant than from equipping entry-level employees among our leadership. with the right skills to sponsoring employees for advanced degrees at In 2017, we delivered a suite of international universities. professional training programs designed to build capabilities to support our Accelerating skills development strategic vision and our entry into new Our future success is dependent upon the industry sectors to more than 22,000 progressive development of our upstream participants from various levels of

Enabling Excellence professionals, especially as our workforce professional employees and management. trends younger: Nearly 60% of Saudi We also commenced our Emerging 2017 Aramco’s workforce is 35 or younger. Our Women in Leadership Program Upstream Professional Development to identify women with outstanding Center (UPDC) is designed to provide leadership and professional career accelerated skills building and knowledge potential. Selected employees attended transfer to young men and women the Advanced Women in Leadership entering the exploration and petroleum Program conducted by Wharton engineering fields. University of the Pennsylvania Institute of 57 55

54, Executive Management.

Saudi Aramco annual review UPDC offers immersive and interactive ,866 51 ,4 48 666 ,653 66

,385 learning environments, including Preparing the next generation cutting-edge drilling simulators and a 4-D facility that enables the visualization In addition to supporting our incumbent of the subsurface and the modeling of workforce, we prepare new generations production strategies. In 2017, 5,700 to be “job ready.” Our Industrial participants attended more than 350 Sponsorship Program prepares Saudi 20 20 20 20 20 16 14 15 13 17 training sessions. high school graduates and vocational college students for jobs in administration, Our Hosted University Program operations, security, fabrication, and Saudi Aramco: expands advanced degree opportunities maintenance. In 2017, more than 3,200 Saudi employees for our employees. This cost-effective

“Saudi Aramco’s efforts to support a culture of innovation have yielded positive results: The number of granted patents has increased from nine in 2009 to 230 in 2017.”

Muhammad M. Al Saggaf, Senior Vice President of Operations and Business Services 58 59

apprentices graduated from the program Building sustainable and joined the workforce. communities To ensure we maintain a steady stream of The health and well-being of our entry-level Saudi professionals, we offer employees and their families are the College Degree Program for Non- essential enabling factors for our In 2017, 2,000 trainees graduated from Employees (CDPNE), a highly selective people to perform at their best. We scholarship program for male and female continued progress in 2017 on several Saudi high school graduates. Participants large-scale planned communities, each company supported national training centers. who successfully complete the 10-month of which is designed to model leading College Preparatory Program in Dhahran sustainability practices. are sponsored to study for a bachelor’s degree at KFUPM or at an international Our largest project is the South Dhahran university in a discipline aligned with our Home Ownership Program (Ajyal, strategic needs. In 2017, 308 CDPNE Arabic for “generations”), which is graduates joined the workforce. planned to provide 8,500 residential units. We completed 180 houses in 2017. In our Overall, nearly 2,500 company sponsored East Dammam I project, we distributed housing units for occupancy in our students, will confer specialized students were enrolled at colleges and 228 villas, and in East Dammam II, we main community of Dhahran. certifications and professional degrees for universities in North America, Europe, distributed 764 lots ready for owners to personnel to work in the energy sector Asia, and Australia in 2017. These begin home construction. Since 1951, Enabling a skilled workforce • The National Information Technology review annual Aramco Saudi program graduates, and employees our Home Ownership Program has Academy: Designed to accommodate returning from internships with global As we enter new markets and businesses, financed more than 68,000 new 1,000 trainees studying mobility, data companies, bring with them new helping build skills and capacity in the homes for Saudi families. analytics, and cloud computing, the ideas and a broader understanding of Saudi workforce is aligned with our long- academy is scheduled for a soft international business, benefiting our In addition, we developed a slate of term needs. It also benefits the Kingdom’s launch in 2018 with an initial enrollment company and the Kingdom. new housing in existing communities, efforts to diversify the economy. In 2017, of 100 students including the completion of 360 we continued our support for national training academies whose goal is to • The Aviation Academy: With a capacity

2017 create a globally competitive workforce. for 400, the academy opened with an In 2017, 2,000 trainees graduated from initial enrollment of 150 trainees Enabling Excellence Enabling 15 active training centers. Highlights from Our STEMania Program aims to increase selected academies include: the interest of female students in the • The National Construction Training STEM fields. In 2017, the program Center: Expected to train and certify reached nearly 900 students in the 2,000 Saudis over the next three years, Eastern and Central Provinces. the center commenced operations at a We also continued our initiative to facility in Nariyah with an enrollment of deliver seminars to help senior female more than 400 trainees university students prepare for their • The Maritime Academy: With a target transition into the workplace. In enrollment of 1,450 trainees, the 2017, we delivered 9 seminars for academy is planned to support the approximately 7,000 students. Overall, operation of the King Salman since the program’s inception in 2015, International Complex for Maritime approximately 16,000 students have Industries and Services benefited from these seminars. • The Saudi Arabian Drilling Academy: More than 200 trainees are enrolled in Developing a globally the core program and the first class of 94 competitive energy sector is expected to graduate in mid-2018 To secure our long-term future, we are • The National Power Academy: Developed always seeking ways to optimize costs, in collaboration with the Saudi Electricity enhance the reliability of our supply Company, KFUPM, and the Technical and chain, and identify greater efficiencies Vocational Training Corporation (TVTC), in our operations. Nowhere is this more the academy, with a capacity for 1,200 important than in our home base of

Modeling leading sustainability practices, our new community housing projects provide a high quality of life for our employees and their families. 60 61 Enabling Excellence 2017

Saudi Arabia. Opportunities to realize the reliability of our supply chain and with Nabors Industries Ltd. for onshore services for social infrastructure projects, Together with leading industrial these improvements coincide with Vision optimize operational costs and rigs, and Aramco Rowan Offshore including government projects, on an partners, we are advancing the development of a sustainable Saudi Aramco annual review 2030, the Kingdom’s strategy to attain inventories, which strengthen our Drilling (ARO), with Rowan Companies arm’s length basis within Saudi Arabia. and competitive Saudi Arabian greater levels of sustained economic ability to meet our commitments to plc for offshore rigs. The ventures, which The joint venture will help build capacity energy sector. growth and diversification. customers around the globe. As the own and operate the rigs, commenced in the Kingdom and create opportunities base of small- and medium-sized operations in 2017 and are expected to for other players in this sector, with the Launched in 2015, iktva is our global enterprises expands, and as national deliver approximately 5,000 local jobs. potential to deliver approximately 3,000 supply chain efficiency initiative that will leaders in the oil and gas ecosystem jobs. Second, we established centers help facilitate the further development advance to become regional and Engineering opportunities of engineering excellence at five local of a diverse, sustainable, and competitive international players, economic growth and partnerships contractor offices. energy sector ecosystem in the Kingdom. and job creation will be accelerated. Our iktva measurement continued to Engineering and construction are We signed a number of other This transition will enhance the business improve, with a goal to localize 70% of potential high growth sectors closely tied Memoranda of Understanding with climate in the Kingdom and generate expenditures for goods and services by to our business objectives. In pursuit of international companies aligned with new opportunities for us to operate even 2021. To support further growth to reach opportunities to reduce costs, strengthen our strategic objectives. Each of the more efficiently and achieve significant our 2021 target, we hosted the iktva our supply chain, and spur job creation, agreements is designed to enable cost savings. Small- and Medium-Sized Enterprises we marked a pair of milestones toward greater efficiency and improved Forum and Exhibition at the Dhahran In 2017, we pursued a number of our ambition of executing 80% of our performance in our operations, along Expo that illustrated to 1,000 enterprises initiatives in the domestic energy sector engineering work in-Kingdom. with the added benefits of creating the breadth of opportunities Saudi consistent with our localization strategy, First, we entered an in-Kingdom joint high value jobs for Saudis and furthering Aramco offers. including forming two joint ventures venture with Jacobs Engineering Group, the Kingdom’s economic diversification. to help optimize drilling costs: Saudi These agreements cover areas such By investing in the domestic oil and which aims to provide professional Aramco Nabors Drilling (SANAD), as digitization initiatives, gas turbine gas ecosystem, we plan to enhance program and construction management 62 63

maintenance and repair, human capital manufacturers and suppliers of goods development, and oil field goods to the energy sector to locate their and services. facilities in the Kingdom. Completion of Phase I of the park Localizing our supply chain in 2021 is designed to deliver the The King Salman International infrastructure and services needed to Complex for Maritime Industries attract investments by energy-related and Services is envisioned to become manufacturing and services companies — a world-class maritime complex and a many of which are the company’s supply hub for regional maritime engineering, chain partners. After full development is construction, and related expertise. The complete in 2035, King Salman Energy complex, which is expected to generate Park is anticipated to create an estimated more than 80,000 jobs by 2030, targets 100,000 direct and indirect jobs. localizing essential links of our supply chain related to offshore drilling and Fostering entrepreneurs shipping activities. Expected benefits include reduced response times, improved and new businesses agility, and cost optimization. Small- to medium-sized enterprises are Plans for the maritime complex include key components of economic growth. facilities to construct vessels and offshore Our support for Saudi entrepreneurs is drilling rigs and platforms; associated designed to nurture new technologies capabilities for maintenance, repair, and businesses of potential value to our and overhaul; an engine manufacturing business as well as strengthen the health plant; a maritime academy; and offshore of the Kingdom’s innovation ecosystem. In 2017, our wholly owned subsidiary, Enabling Excellence engineering, procurement, construction, and installation capabilities. the Saudi Aramco Entrepreneurship Center (Wa’ed), screened 238 new loan 2017

In 2017, we established International and equity applications. A new advisory Maritime Industries, a joint venture program was launched that provided with Dubai-based engineering firm 15 consulting sessions for 300 potential Lamprell plc, the National Shipping Co. of entrepreneurs in three cities. Since its Saudi Arabia (Bahri), and Hyundai Heavy inception in 2011, Wa’ed has provided Industries in South Korea for the maritime support for 100 companies. yard. Major operations are expected to commence in 2019, with full production In 2016, we helped inaugurate the Saudi Aramco annual review capacity of the facility reached in 2022. Kingdom’s first all-women business and technology park. In 2017, we and With McDermott International Inc., our original partner, Princess Nora bint we signed a binding Memorandum of Abdulrahman University in Riyadh, signed Understanding for the construction a joint venture agreement with Wipro, a of facilities at the complex, including global IT and business process services fabrication for offshore oil and gas provider. The park, which provides developments at Ras al-Khair. We also business support services to leading awarded the engineering, procurement, companies in the Kingdom, including and construction contract for dredging Saudi Aramco, is envisioned to generate and reclamation. greater opportunities for Saudi women to join the workforce, ultimately targeting A park for energy the creation of up to 20,000 jobs. A major component of the expanding in-Kingdom energy ecosystem is the King Salman Energy Park. In 2017, we began planning for development of Phase I of the park. Located in the Eastern Province, the project is expected to attract international third-party

Small- and medium-sized domestic enterprises play a growing and important role in our supply chain, and could generate new opportunities for us to operate more efficiently. 64 65

key figures iSpark

schools52 visited citizenship in

students4,792 reached our communitiesWe believe in the power of energy to learning71,880 hours provided transform lives, lift communities, advance iDiscover human progress, and sustain our planet.

teachers887 trained

5,869students reached

learning135,120 hours provided

I Want to Hear

1,000hearing aids distributed 66 67

• The King Abdulaziz Center • Galveston Bay Foundation, • Chuncheon Global Water for World Culture, Saudi U.S.: Helping to restore Forum, South Korea: Our flagship citizenship initiative, the King un matched Arabia: Expected to draw oyster reefs as part of the Supporting a study on water- Abdulaziz Center for World Culture, encapsulates 1.5 million visitors each year Foundation’s larger efforts to energy-food interconnections our goal to accelerate human potential through preserve and protect the bay and sustainable economic promoting knowledge, inspiring creativity, and • Shaybah Wildlife Sanctuary, At a glance: development encouraging innovation. Saudi Arabia: A safe haven • Earthwatch Institute, Oxford, Citizenship programs for migratory bird species U.K.: Through educational and for plants and animals partnerships, the Institute’s in action that occur only in the CLEAR program allows Arabian Peninsula students to take part in data collection to inspire a love of • SI Move, worldwide: science and the environment Studies the movement of life on the planet and enables scientific exchange Saudi Aramco annual review annual Aramco Saudi

We believe in the power of energy to preservation of the natural environment transform lives, lift communities, advance for future generations is vital to our

human progress, and sustain our planet. success, and to the continued quality of 2017 life for us all.

When we put our energy to work, we Communities our in Citizenship enable others to seize opportunities that can change the world. Accelerating human The quality of our future depends potential in the Kingdom on what we do today. We recognize Our ability to maximize value from the that education underlies economic Kingdom’s resource base is dependent and societal progress, and therefore, upon developing the next generation we concentrate on building STEM of highly skilled workers. Our efforts to competency in the youth of Saudi boost STEM competency in youth spark Arabia and in communities where imaginative and analytical thinking that we operate internationally. may one day help us resolve some of the Through our many community outreach world’s most pressing energy challenges. programs in Saudi Arabia, we strive The King Abdulaziz Center for to facilitate the successful growth World Culture: Enriching minds, of sustainable micro industries that inspiring imaginations give people the tools to improve the economic future of their families and The company’s flagship citizenship their communities. Through targeted initiative, the King Abdulaziz Center donations, we help enable those most in for World Culture, is positioned to need to attain their full potential. make a tangible, positive impact on the Kingdom’s future by inspiring a passion Domestically, the Kingdom is home to for knowledge, creativity, and cross- a diversity of unique and ecologically cultural engagement. The Center, and the sensitive habitats that require careful renovated Energy Exhibit, opened in the stewardship. Internationally, our offices second half of 2017 and drew more than and operations are located in a variety 44,000 visitors to cultural and educational of environments. The protection and exhibits and programs. 68 69

During the year, the Center continued which showcases the Kingdom as a to implement programs that enriched global crossroads, was on display for knowledge and creativity across the three months in Beijing and Seoul, Kingdom. Examples of such programs drawing more than 40,000 and 120,000 include iSpark, a touring program visitors, respectively. that delivered scientific, technological, The international “Bridges Art Through programs and partnerships, and engineering content to schools Program,” comprised of a series of in communities along the southern impactful cultural engagements to we promote STEM skills in Saudi Arabia borders of the Kingdom, and iDiscover, embrace common values and positively an educational program that provided shape wider relationships, continued to and in our international locations. new interactive math and science offer compelling cultural events in 2017. instruction techniques to teachers. Our More than 50 Saudi artists participated in digital fabrication laboratory, FABLAB- nine exhibitions, including shows at the Dhahran, guided a project team of 40 Los Angeles County Museum of Art and participants to design and fabricate a the Brooklyn Museum, drawing more Newtonian Reflector Telescope. than 320,000 visitors. of our commitment as a sustainable Aramco Fellowship helps support a total Reflective of our commitment to help business. Wherever we work, we strive of seven Ph.D. fellows in the field of preserve and promote the Kingdom’s Accelerating human to link our support for the needs and energy studies. review annual Aramco Saudi heritage, and in collaboration with the potential internationally priorities of local communities with our Saudi Commission for Tourism and strategic objectives and competencies. Asia National Heritage, we sponsored the Around the world, supporting the “Roads of Arabia” exhibition tour of communities in which we operate is Our chosen areas where we can best South Korea: Provided assistance for China and South Korea. The exhibition, fundamental to our success and part leverage our expertise and create long- the design and construction work for a term mutual value are in STEM education, renewable energy themed playground youth development, culture, and social at the Seoul Energy Dream Center, a museum and educational complex.

welfare. Examples of how and where we 2017 sought to make a positive difference in Japan: Backed research and development

2017 include: Communities our in Citizenship activities, including CO2 capture and storage, by the Kyoto-based Research North America Institute of Innovative Technology for The Houston Museum of Natural Science: the Earth. Ongoing support for the renovation and Multiple countries: Open to students in expansion of the Wiess Energy Hall in China, Malaysia, Singapore, South Korea, the heart of the energy capital of North and the Philippines, the “Aramco-Enactus America. The museum draws more than Innovative Challenge” inspired students 2 million visitors each year. to develop innovative solutions that Michigan Science Center (MiSC): With address issues related to environmental a mission to inspire curious minds of all sustainability and energy efficiency in ages to discover, explore, and appreciate their communities. STEM learning, we supported MiSC with the addition of a new energy module Supporting communities to their “Energy on the Move” traveling in the Kingdom exhibit, which reaches more than 300,000 people annually. Enhancing sustainable practices Europe We aspire to make a positive and lasting difference by equipping the people in The Netherlands — Maastricht University: our local communities with the skills, Established support for a Ph.D. program resources, and know-how to create self- focused on sustainable approaches for sustaining enterprises. bio-based materials, including biomass and bioenergy. We endeavor to support programs that draw upon local resources and traditional United Kingdom — the Oxford Institute crafts. For example, we continued our for Energy Studies (OIES): The Saudi support to enhance the development of

With programs such as iSpark and iDiscover, we give young people the means to achieve more in their lives as they strive to attain their full potential. 70 71

Through training and resources, we help enhance the honey industry in al-Baha, southwest Saudi Arabia, expanding economic opportunities for the community.

the beekeeping and honey industry Supporting our in al-Baha, including training 500 international communities beekeepers, planting 50,000 seedlings to support honey production, and In addition to supporting communities fulfilling ISO certification requirements in Saudi Arabia, we seek to contribute for the research and training center we meaningful assistance to the communities previously established. that host our offices and operations around the world. Our efforts include Similarly, we are assisting coffee support for a wide range of citizenship farmers in the Jazan region, home activities, including disaster relief, literacy to our refinery and terminal project. and STEM skills development, and We provided training in cultivation and volunteer work by our employees for production for 560 farmers and enhanced charitable causes. infrastructure at 76 farms. Additional community programs targeted North America to create greater economic opportunities Our Houston subsidiary is home to our and instill sustainable practices include: North American office and a number of • Benefiting 50 families in al-Jawf through our affiliates. After the devastating impact an olive tree seedlings plantation project of Hurricane Harvey on the city, we assisted with relief efforts, with scores of • Helping 50 fishermen with skills training our employees participating in community and new fishing boats in the Red Sea volunteer activities. This included helping coastal area near Yanbu’ organize and pack 300,000 meals for • A sewing center for hearing impaired at-risk families and contributing to a women in Dammam and a women’s Habitat for Humanity project to rebuild sewing center in Qassim, which 176 homes.

Citizenship in our Communities combined, are providing economic For the 13th time, our Houston advancement opportunities for office served as the title sponsor of 2017 170 women the Houston Half Marathon, part of • We renovated and equipped a Braille the Houston Marathon Weekend. printer maintenance center in Madinah Hundreds of our employees participated and trained 100 vision impaired people as runners or volunteers for the event, in the craft which drew 33,000 participants from 42 countries and raised millions of • The “Made in Makkah” program strives dollars for local charities. to boost localization of the Hajj and

Saudi Aramco annual review Umrah souvenirs market. We trained 60 Europe women and conducted a market study to direct production to capture more of the In The Hague, Netherlands, we demand from the 10 million people who launched the first ever Aramco Beach visit the region every year. Run. With over 1,500 participants, the event raised funds for the Juliana Helping to hear Children’s Hospital, one of the country’s leading pediatric hospitals. As part of our commitment to support communities at home, we identify In the U.K., our employees participated in populations in need where we can make a cleanup of London’s canal network and an immediate and positive impact. Our supported one of the city’s food banks. “I Want to Hear” campaign, which completed its second consecutive year in Asia 2017, is one such program. Thousands Through our Aramco Scholarship of employees donated to our program Program, and in partnership with to provide 1,000 hearing aids for people, the charity Community Chest of Korea, including hearing assessments and the we supported 86 disabled university fitting of the hearing aids. students majoring in science and engineering disciplines. 72 73

Supporting the communities in which we operate is fundamental to our success.

Our Singapore office partnered with to estimate carbon sequestration in Habitat for Humanity to support company biodiversity areas. The study

impoverished families in nearby Batam, highlighted that areas such as the Ras review annual Aramco Saudi Indonesia. Through the Batam Build Tanura Mangrove Eco-Park and Abu Ali Project, over 2016 and 2017, we built 33 Island are able to store approximately

houses able to withstand monsoons. 1.7 million tons of CO2 over the lifetime of the mangroves. Promoting biodiversity We reviewed the final report of findings in the Kingdom related to the monitoring of the more

than 700 artificial reef modules we In Saudi Arabia, we are acutely aware 2017 deployed in the Arabian Gulf. Additional that the Kingdom is home to a wide

reefs will be deployed depending on the Communities our in Citizenship variety of unique and ecologically success rate of coral growth. sensitive habitats that require careful stewardship. With our operations Educating the next generation spanning the breadth of the Kingdom’s environmental zones, the protection Launched in 2007, our Environmental and preservation of our natural Education Program gives students the environment for future generations is tools and understanding to protect the of vital importance. Our activities strive environment and helps build a sense of to better understand ecosystems, and accountability for their communities. to promote and protect biodiversity In partnership with the Ministry of through educational programs and Education, this program assists school positive interventions. teachers to develop “Friends of the Environment” clubs. Young people Monitoring and understanding share their newfound skills with their our environment peers in various environmental projects such as flower and tree planting, We continued to monitor marine recycling, conservation, and schoolyard environments in 2017. In partnership with cleaning. Since the program’s inception, KFUPM and KAUST, we sustained our it has grown to include 1,836 schools program to assess the state of the marine and a total of 1,293 Friends of the and coastal environments in the Arabian Environment clubs. Gulf and develop baseline environmental data for the Red Sea. For people of all ages, our Environmental Protection organization developed a new With the same partners, we also field guide highlighting the remarkable completed a blue carbon study (blue biodiversity of Dhahran, the site of carbon is the carbon stored and our corporate head office. The richly sequestered in coastal ecosystems) illustrated guide is designed to inspire

Our people volunteer their skills and time to support their local communities, such as constructing monsoon-proof homes in Bantam, Indonesia, and helping the Houston area in the U.S. recover from Hurricane Harvey. 74 75 Citizenship in our Communities 2017

employees and community residents Sanctuary near our facilities, we are other organizations, we continue to Program: The Foundation seeks to The Shaybah Wildlife Sanctuary to better understand the wealth of helping to preserve this unique ecosystem conduct initiatives that help protect the establish coastal oiled wildlife response protects a unique ecosystem and supports national and international biodiversity in their local area and raise and protect in situ species. In addition, biodiversity of land, sea, and coastal plans and professional response biodiversity research. environmental awareness. in partnership with the Saudi Wildlife ecosystems. These efforts include: capabilities worldwide. With our support, Authority, we have reintroduced three the foundation is organizing wildlife

Saudi Aramco annual review Protecting ecosystems iconic species that had disappeared from North America training and exercise programs for the Our mangrove plantation initiative to the area: The Arabian oryx, the Arabian Smithsonian Institution, SI Move: A Mediterranean, Atlantic/North Sea, and restore lost mangrove habitats in the sand gazelle, and the ostrich. We are also groundbreaking initiative, SI Move follows Baltic regions. Kingdom’s Eastern Province coastal areas developing a research station to support various species of terrestrial, avian, and Asia is on track to plant two million mangrove national and international researchers to marine animals with satellite tracking seedlings by the end of 2018. In addition, study biodiversity in the Rub’ al-Khali to devices to improve the understanding The Collaborative Innovation Center of the Mangrove Eco-Park project, help us better understand and manage of migration patterns and ecosystems. Chemistry for Energy Materials (iChEM): currently in the construction stage, this vast landscape, along with a visitor’s With our support, the Smithsonian has We have partnered with iChEM, which intends to preserve ecologically sensitive center to help inspire and inform. attached satellite devices to more than 75 was established jointly by three Chinese habitats and raise public awareness of animals, representing 10 species around universities, to launch the Energy the role mangroves play in providing a Protecting biodiversity the world. As part of our collaboration Environmental Innovation Challenge to habitat for bird and animal species, and as internationally with SI Move in Saudi Arabia, Arabian support teams of students interested significant carbon sinks. oryx, great cormorants, and black-tipped in clean energy, entrepreneurship, and Although we are headquartered in reef sharks will be tracked. sustainable development. One of the world’s true wildernesses, Saudi Arabia, our commitment to the Rub’ al-Khali hosts numerous native biodiversity extends to the communities Europe reptile and mammal species, along that are home to our global offices Sea Alarm Foundation, the European with an estimated 180 bird species. and operations. In collaboration with Regional Seas Oiled Wildlife Preparedness By establishing the Shaybah Wildlife academic and research institutions and 76 77

our performance in 2017

Daily crude Estimates of proved reserves of crude Crude oil production Refined products production oil production (millions of bpd) oil, condensate, natural gas, and NGLs and exports and exports

2013: 9.7 2017 2016 2017 2016 2017 2014: 9.7 Crude oil 256,737 Crude oil production, millions of barrels Refined products production, millions 664.6 657.4 2015: 10.2 millions of barrels of barrels Includes condensate and Bahrain’s share of 3,921 3,735 2016: 10.7 Condensate 4,124 the Abu Safah field Includes production from wholly owned millions of barrels refineries and Saudi Aramco’s share of 2017: 10.2 Seaborne crude oil exports, thousands production from domestic joint ventures of bpd Includes blended condensate and Natural gas 36,939 7,253 6,879 Refined products exports, thousands 809 818 Bahrain’s share of the Abu Safah field millions of barrels of oil equivalent Includes blended condensate of bpd

NGLs 35,097 Includes exports from wholly owned millions of barrels refineries and Saudi Aramco’s share of exports from domestic joint ventures Total 332,897 review annual Aramco Saudi Raw gas processed (millions of scfd) millions of barrels of oil equivalent NGL: production from 2013: 11,013 Reserve figures represent the Kingdom's reserves in the fields operated by hydrocarbon gases (thousands of bpd) 2014: 11,277 the company 2016 2017 NGL: sales (thousands of bpd) 2015: 11,434 Propane 535 524 2016: 12,033 2016 2017

Butane 347 349 2017: 12,442 Propane 501 491 2017 Condensate 228 216 Butane 295 291 Our Performance Our Natural gasoline 250 248 Condensate 8 20 Total NGL production 1,359 1,337 Natural gas Natural gasoline 195 192 (millions of scfd) supplied Total NGL sales 999 993

2013: 7,488 Excludes sales on behalf of SASREF & SAMREF 2014: 7,783 Ethane produced (millions of scfd) 2015: 7,979

2016: 8,280 2013 796 Sulfur recovery (metric tons per day) 2017: 8,733 2014 809

2015 794 2016 16,356

2016 920 2017 17,984

2017 936 Includes sulfur from joint ventures

Sulfur exports (metric tons per day) bpd = barrels per day scf = standard cubic feet scfd = standard cubic feet per day 2016 9,728 NGL = natural gas liquids 2017 8,175 The company has adjusted its methodology for calculating its performance metrics in 2017 to better align with management of its business. These Excludes sales on behalf of SASREF & SAMREF adjustments have been applied retroactively for all years presented. 78 79

Refining capacity (thousands of bpd) Principal products manufactured at in-Kingdom refineries (thousands of bpd)

Gross capacity Saudi Aramco Saudi Aramco 2017 LPG Naphtha Gasoline Jet fuel/ Diesel Fuel oil Asphalt Total or affiliate net capacity kerosene & misc. ownership Ras Tanura 10 42 117 27 175 87 17 475 Saudi Arabia Yanbu’ 10 9 33 (1) 96 100 — 247 Ras Tanura 550 100% 550 Riyadh 4 — 26 10 44 — 16 99 Riyadh 126 100% 126 Jiddah 1 5 7 — 5 20 12 49 Yanbu’ 245 100% 245 Total in-Kingdom 24 55 183 36 319 206 45 870 Petro Rabigh 400 37.5% 150 SAMREF — Yanbu’ 400 50% 200 Saudi Aramco share (thousands of bpd) YASREF — Yanbu’ 400 62.5% 250 2017 LPG Naphtha Gasoline Jet fuel/ Diesel Fuel oil Asphalt Total kerosene & misc. SASREF — Jubail 305 50% 153 SAMREF (2) — 70 29 58 39 — 195 SATORP — Jubail 400 62.5% 250 SASREF 4 34 6 28 46 38 — 156 Total Saudi Arabia 2,826 1,924 Petro Rabigh 3 24 16 13 31 38 — 126 International SATORP 4 10 47 37 121 1 — 221

Motiva — USA 635 100% 635 review annual Aramco Saudi YASREF — — 66 — 168 — — 234 S-OIL — South Korea 669 63.4% 424 Total share 9 68 204 108 426 116 — 931 Showa Shell — Japan 445 14.9% 67 Grand total 33 123 387 145 745 323 45 1,801 FREP — China 280 25% 70 Negative figures primarily indicate products that were reprocessed into other refined products. Total international 2,029 1,196 Total Saudi Arabia and international 4,855 3,120

2017

(thousands of bpd)

Principal products manufactured at in-Kingdom refineries Performance Our

2016 LPG Naphtha Gasoline Jet fuel/ Diesel Fuel oil Asphalt Total Chemicals production capacity at Saudi Aramco sites and joint ventures (kilotons per annum) kerosene & misc.

Product groupings In-Kingdom Out-of- Total Saudi Aramco Ras Tanura 13 48 126 32 180 85 15 499 Kingdom capacity share* Yanbu’ 10 9 30 (1) 96 101 — 245 Ethylene 2,998 1,101 4,099 1,788 Riyadh 7 — 34 13 58 — 20 132 Propylene 1,766 1,521 3,287 1,561 Jiddah 2 6 11 — 7 19 15 61 Paraxylene (including xylenes) 2,040 3,910 5,950 2,713 Total in-Kingdom 32 64 202 45 340 205 50 937 Benzene 1,176 1,150 2,326 1,091 Polyolefins 2,800 1,553 4,353 1,741 Saudi Aramco share (thousands of bpd) Synthetic rubber and elastomers 295 1,744 2,039 1,043 2016 LPG Naphtha Gasoline Jet fuel/ Diesel Fuel oil Asphalt Total kerosene & misc. Intermediates, derivatives, and others 7,435 1,675 9,110 4,646 SAMREF (2) — 66 29 54 39 — 186 Total 18,510 12,654 31,164 14,583 SASREF 4 32 6 30 45 34 — 151 *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. Petro Rabigh 2 23 15 14 30 38 — 121 Production capacity figures for 2017 reflect the start up of Petro Rabigh Phase II and the ownership restructuring of the former Motiva joint venture. SATORP 1 11 45 29 126 5 — 216 YASREF — — 60 — 145 — — 205 Total share 5 66 192 101 400 116 — 879 Grand total 37 130 393 146 740 321 50 1,816

Negative figures primarily indicate products that were reprocessed into other refined products. 80 81

In-Kingdom product sales by region (thousands of bpd) Human resources

Employees, Saudi Aramco and 2017 Central Eastern Western Total 2016 Central Eastern Western Total wholly owned subsidiaries LPG 4 21 20 45 LPG 7 22 16 45 Gasoline 208 111 280 599 Gasoline 200 111 256 567 70,762 Jet fuel/kerosene 29 9 61 99 Jet fuel/kerosene 28 10 55 93

Diesel 185 140 244 570 Diesel 188 162 331 681 Saudi development Fuel oil 3 6 469 478 Fuel oil 5 5 415 424 programs participants enrolled at year-end 2017 Asphalt 15 19 22 56 Asphalt 19 18 24 61 Apprentice Program Naphtha — 31 — 31 Naphtha — 5 — 5 Total 444 337 1,096 1,877 Total 446 333 1,097 1,876 3,617 College Degree Programs

Crude oil exports by market (percent)

1,945 review annual Aramco Saudi College Degree Program for Crude oil Non-Employees (CDPNE) .5 14 .5 14 5 5 4 4 6 3 6 3 5. 1 5. 1 1,493 1 1 . . 4 4

1 1

3 3

6 6

0 0

6 6

Asia Asia 2017

6 6

3 3

3 3 . . Northwest Europe Northwest Europe 8 8

6 6 6 6

. .

5 5

Mediterranean Mediterranean Performance Our 7 7 3

U.S.3 U.S. Other Other

Crude oil exports include seaborne crude oil exports (including blended condensate), and exports to the Bahrain Petroleum Company (BAPCO).

Ship calls at Saudi Aramco terminals

Ship calls by product type 2017 2016 2015 2014 2013

Crude oil 2,023 2,013 2,210 1,936 2,018

Products 489 1,007 649 1,028 824

LPG 309 259 250 200 198

Total ship calls 2,821 3,279 3,109 3,164 3,040

Exports from Ras Tanura, Ju’aymah and Yanbu’ and transfers at Jiddah, Rabigh, Yanbu’ and coastal bulk plants. 82

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