making a difference

Annual Review 2010 Table of contents

Introduction...... 10 Exploration...... 18 Oil Operations...... 22 Gas Operations...... 28 Refining & Petrochemicals...... 34 Table of Research & Technology...... 40 Transportation & Distribution...... 48 contents Human Resources...... 54 Safety & Health...... 62 Communities...... 68 Corporate Citizenship...... 72 Awards...... 84 Saudi Aramco by the Numbers...... 88

A Saudi Aramco engineer checks pressure on a propane-transfer pump at a company gas plant.

Making a difference

Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 2 1 Saudi Saudi Aramco Aramco Annual Review The Custodian of the Two Holy Mosques HIS ROYAL HIGHNESS AMIR SULTAN Annual Review 2010 2010 2 King ‘Abd Allah IBN ‘Abd Al-’Aziz Al Sa’ud IBN ‘ABD AL-’AZIZ AL SA’UD 3 The Crown Prince, Deputy Prime Minister, Minister of Defence and Aviation, and Inspector General Seated, from left: H.E. Dr. Khaled S. Al-Sultan, H.E. Dr. Abdul Rahman A. Al-Tuwaijri, H.E. Dr. Ibrahim A. Al-Assaf, H.E. Ali I. Al-Naimi, Khalid A. Al-Falih and H.E. Dr. Mohammed I. Al-Suwaiyel. Standing, from left: Abdulaziz F. Al-Khayyal, Peter Woicke, Sir Mark Moody-Stuart, David J. Key Figures O’Reilly, Salim S. Al-Aydh, Amin H. Al-Nasser

Saudi Saudi Aramco Aramco Annual Review Oil reserves and production Annual Review 2010 Board 2010 4 Recoverable crude oil & condensate reserves...... 260.1 billion barrels 5 Crude oil production (average per day)...... 7.9 million barrels of Directors Crude oil production (annual)...... 2.9 billion barrels Board convenes in China Gas reserves and production for first time Gas reserves...... 279 trillion standard cubic feet For the first time in its history, Saudi Aramco’s Gas production Board of Directors in 2010 met in the People’s (raw gas to gas plants – average per day)...... 9.4 billion standard cubic feet Republic of China. The regular spring semi- Gas production (annual)...... 3.4 trillion standard cubic feet annual meeting in Beijing on May 6-7 was New discoveries a good occasion to celebrate the company’s Oil fields...... Namlan, AsSayd, Qamran, Arsan strong, multifaceted and mutually beneficial Gas field...... Jalamid relationship with Chinese corporations and institutions. Saudi Aramco’s record of success Wells completed and reputation for reliability depends in large Oil exploration...... 27 part on our international partners, customers, Gas exploration...... 17 vendors and other service providers, and Oil development...... 148 the various institutions and organizations Gas development...... 105 with whom we interact in fulfilling our Workovers responsibilities as a major energy provider to Oil wells...... 88 the world. The Saudi Aramco Board’s regular Gas wells...... 13 annual winter meeting is always held at its Water wells...... 10 headquarters in Dhahran, Saudi Arabia. Chairman’s Mesage

Chairman’s Message

In 2010, it was evident in the petroleum industry that the more things changed, the more they stayed the same. Last year, we petroleum will continue to be central to the saw once again that as economies expand and world’s health, happiness and prosperity for contract, demand for energy largely follows suit. the foreseeable future. Therefore, even as we sustain our efforts to find and produce more During 2010, we witnessed a tentative rebound hydrocarbon energy reliably and responsibly, of the global economy, led in particular by we must also strive to use all of our resources the economies of developing Asia, from the more efficiently, both to conserve them for worldwide recession that began in 2008. A future generations and to protect the planet by steady and reliable supply of energy was reducing our environmental footprint. Saudi needed to fuel that growth, in particular the Saudi Aramco Aramco Annual Review petroleum and petroleum products required The Custodian of the Two Holy Mosques, King Annual Review 2010 2010 to build new infrastructure, fuel vehicles, fire ‘Abd Allah ibn ‘Abd Al-’Aziz Al Sa’ud, and Crown 6 7 power plants, boost food production and sustain Prince Sultan ibn ‘Abd Al-’Aziz Al Sa’ud continue the industries that manufacture products — to provide valuable support to Saudi Aramco as often themselves made of hydrocarbons — that it strives to fulfill its mission as the Kingdom’s enhance the quality of life for consumers national petroleum enterprise. Coupled with around the globe. the wise guidance of the nation’s leadership, over the past year the efforts of the men and Looking forward, as the global economic women of Saudi Aramco have solidified the recovery appears to gather speed and gain company’s well-earned reputation for reliability strength, so too will the demand for a greater of supply and prudent stewardship of the supply of petroleum energy. In fact, global nation’s valuable natural resources. I would like energy demand is projected to grow by some to take the opportunity to thank each of them 40 percent within the next two decades, as for their valued contributions and unwavering more people attain higher levels of prosperity dedication throughout 2010. and require more energy to power their more affluent lifestyles. Asia alone is expected to account for 60 percent of that incremental growth, heralding further transformation in the global energy landscape. Ali I. Al-Naimi Minister of Petroleum and Mineral Resources But once again, even as some things change, and Chairman of the Board of Directors, Saudi others will remain the same. For example, Aramco President’s Foreword

A dedicated work force of talented people with a sense of purpose made the year 2010 a signal success for Saudi Aramco, even as the worldwide petroleum industry and has long been a global technology leader, and global economic system faced stressful times. we enhanced our reputation in 2010 with the With hard work, forbearance and a continuing launch of the award-winning GigaPOWERS™ commitment to operational excellence, plus a reservoir simulation technology. far-seeing and patient investment strategy, our company once again made a positive difference While pioneering new ways to protect the in our nation and around the globe. environment, we produced more energy for the world. A prime example is our innovative Manifa We continued our proud legacy of discovery, project’s complex causeway system, completed Saudi finding four new oil fields and one new gas last year, which permits drilling in shallow Saudi Aramco Aramco Annual Review field, and we added six new oil reservoirs and waters while preserving a precious ecosystem. Annual Review 2010 2010 three new gas reservoirs to existing fields. 8 9 In the corporate citizenship realm, Saudi Aramco Honoring our tradition as a reliable and took a giant step last year when construction stabilizing force in world energy markets, Saudi began on the truly transformative King Aramco maintained its globally essential spare- Abdulaziz Center for World Culture. oil production capacity while increasing gas production capacity and output to all-time highs. I am deeply appreciative of our Board of Directors for their prudent guidance and sage Our shipping subsidiary, Vela International counsel throughout the year. Marine Limited, added four new double-hulled tankers during the year, ensuring reliable and And all of Saudi Aramco’s more than 54,000 environmentally responsible delivery of crude men and women, from the youngest oil to world markets. apprentices to the longest-serving veterans of company service, made an enormous difference Refining and petrochemicals investments and in 2010, greatly benefiting our nation and the operations reached new milestones, promising world. a future of beneficial products and profitable returns from affiliated facilities in Saudi Arabia, the United States and Asia. Khalid A. Al-Falih With two of the world’s fastest supercomputers President and Chief Executive Officer, at our company headquarters, Saudi Aramco Saudi Aramco and to Japan, South Korea and Taiwan. Our Introduction international joint and equity ventures in North America and Asia ensure dedicated outlets for our crude oil exports and help provide a reliable supply of refined products and petrochemical feedstock for consumers and industries in these regions.

Our long-term view includes seeking to expand Saudi Aramco was our investments in downstream ventures in the world’s second large and expanding markets where economies largest producer and Introduction of scale and volume growth can be realized, top exporter of crude and where refining operations can be integrated oil in 2010 with petrochemical production.

Building reserves, Despite lingering effects of the global increasing capacity financial crisis that began in 2008, Saudi During the year, the company maintained its Aramco enjoyed continued success in 2010, world-leading conventional crude-oil reserves at making a positive difference in the lives of 260.1 billion barrels, replacing 2010 production the Kingdom’s citizens and consumers around with oil from new field discoveries, expansions Below: A jets’ vapor trail crosses far above Saudi the world. The company’s strategy throughout of existing fields and production optimization. Aramco’s Ju’aymah Gas Plant. Top: A rig in the the economic downturn was to sustain its Four new oil fields and one new gas field remote Shaybah oil field. traditional long-term view of petroleum were discovered during the year, and six new supply and demand, forging ahead with — oil reservoirs and three gas reservoirs were and formally completing — the largest oil- added to existing fields. Two oil increments Saudi production-capacity expansion program in its completed in 2010 — Khurais and Khursaniyah Saudi Aramco Aramco Annual Review history, plus moving resolutely forward with a — added 1.7 million bpd of oil production Annual Review 2010 2010 capacity. We also maintained our maximum 10 variety of other projects designed to maintain 11 the company’s reliability and competitiveness, sustainable production capacity of 12 million to ensure the stability of global oil markets now bpd, reached in 2009, including considerable and in the decades to come. spare capacity to help stabilize international oil markets during any potential crisis. Despite our Ups and downs in the world economy and in top-tier positions in reserves and production, the oil-and-gas industry are traditionally cyclical we continue exploring for new reserves and and largely unavoidable, so the company’s building production capacity because we know longstanding policy is to keep building for the demand for oil will continue to grow in the future as forecast by energy analysts worldwide years ahead. Our actions are predicated on our — a future in which crude oil will continue to be legacy of always delivering to our customers a leading source of energy. and on our commitment to remain the world’s most reliable supplier of petroleum. Saudi Aramco was the world’s second largest producer and top exporter of crude oil in 2010, In 2010, Saudi Aramco kept new and existing and was the only major producer that was customers, both domestically and abroad, well- a leading supplier to all three major market supplied with crude oil and petroleum products, regions — North America, Europe and Asia producing 7.9 million barrels per day (bpd) of — and the leading supplier of crude to Asia. crude oil and 9.4 billion standard cubic feet per We were the top supplier to China, providing day (scfd) of natural gas, and exporting just roughly a million barrels of oil per day (bpd), over 2 billion barrels of oil and 316.4 million a quarter of that country’s total oil imports, barrels of natural gas liquids (NGL). Introduction units in 2009, on the West Coast, work Introduction continued in 2010 on a second-phase addition to this integrated refinery and petrochemical plant, an equity venture with Sumitomo Chemical Co. of Japan, to significantly expand the facility’s petrochemical production capacity and product range.

Because Saudi Aramco is committed to increasing its downstream activities, especially in petrochemicals, we formally established a Chemicals organization in 2010 to oversee our growing petrochemicals portfolio.

A 325,000-bpd expansion of the Motiva refinery at Port Arthur, Texas, in the United States, a joint venture of Shell and our Houston-based affiliate, A Saudi Aramco oil Saudi Refining, Inc., is progressing on schedule rig stands sentry on a We were also successful in 2010 in improving the high-energy-demand summer months, capacity for refining heavy oil, which will to achieve a throughput capacity of 600,000 drilling island in the Manifa oil field in the our ability to meet domestic demand for natural when 300 million scfd of non-associated gas assume a larger proportion of our production as bpd, making it the largest oil refinery in the U.S. Arabian Gulf. gas, mainly for petrochemical feedstock, power (produced independently of oil) was processed the years go by; another driver is the desire to generation, water desalination and industrial to manage peak demand and reduce burning of integrate refineries with petrochemical facilities Development is under way on a 400,000 bpd fuel, and to ramp-up for expected sharp crude oil for power generation. to produce more value from crude oil and create semi-conversion refinery, which can process increases in demand in the next few decades. jobs in associated conversion industry parks. In most crude oil grades, and a marine terminal The company knows that the country’s high Planning ahead the coming years, we will expand and optimize at Jazan in the Kingdom’s southwest to meet economic prosperity and population growth Responding to long-term forecasts of continued our portfolio of international marketing and local requirements for refined products and to Saudi will be challenging drivers of future domestic strong growth in energy consumption refining assets by seeking appropriate new efficiently satisfy utilities demand in the western Saudi Aramco Aramco Annual Review energy demand. worldwide, Saudi Aramco’s preparations for the Saudi investment opportunities in promising markets. region. In addition, it will provide a primary Annual Review 2010 2010 future are serious, substantial and sustained. Aramco 12 foundation industry for the Jazan Economic City 13 Drilling of three previously discovered gas strongly During the year, Saudi Aramco moved forward development, which will encourage further fields, including Karan, the company’s first Most analysts forecast that the share of fossil believes that on the development of two new 400,000 bpd development of the city and region. offshore non-associated gas field (produced fuels in the global energy supply will remain in innovation export-oriented refineries — the integrated independently of oil), proceeded on schedule the range of 80 percent to 84 percent over the will drive Saudi Aramco Total Refining and Petrochemical Fujian Refining & Petrochemical Co. Ltd. (FRPC), in 2010. Development of a fourth field, Midyan, next two decades and that crude oil will retain success in Program (SATORP) refinery in Jubail and the full- the equity venture of Aramco Overseas Co. was completed, and the company also started its primacy in this mix. Oil and gas combined the oil & conversion Red Sea Refining Company facility (AOC) in China, enjoyed a successful year as drilling tight-gas tests for developing relatively are projected to meet more than 50 percent of gas industry in Yanbu‘. SATORP will maximize diesel and jet refining margins increased, producing more nonporous gas reservoirs in the northwest areas worldwide energy needs for at least the next in the 21st fuel output, and produce paraxylene, benzene than 11 million tons of refined projects and of the Kingdom, a challenging but significant quarter century. In addition to robust demand century and polymer-grade polypropylene. The refinery more than 3 million tons of petrochemicals. opportunity for expansion of gas production with in developed countries, energy consumption is at Yanbu‘ will be able to process most grades of applications in many areas of the country. expected to jump exponentially in developing crude oil, including heavy crude oil, to produce In South Korea, AOC equity venture S-Oil made countries, especially in Asia and particularly in an array of valuable products, such as gasoline big strides on its Onsan Refinery Expansion The Upstream Gas Joint Ventures, with four China. and NGL, that meet international standards and Project, slated for completion in 2011, and European and Asian industry partners, continue specifications. established new markets in the to search for new gas reserves in the Rub‘ al- Expanding refining Asia region. Khali desert. & petrochemicals Feasibility studies and front-end engineering In tandem with programs to increase and design (FEED) for Saudi Aramco’s proposed Encouraging innovation Expanded gas-production capabilities allowed hydrocarbon production, the company also joint venture with The Dow Chemical Company Saudi Aramco strongly believes that innovation the company to markedly increase its gas increased investments in 2010 to expand at Jubail Industrial City II continued to progress will drive success in the oil-and-gas industry output in 2010 to an all-time high of about 8 refining and petrochemical production capacities. in 2010. Also, following production start-up of in the 21st century, so we have placed a billion standard cubic feet per day (scfd) during One key driver is the strategy to add domestic Petro Rabigh’s ethane cracker and associated top priority on encouraging innovation and Introduction inventiveness among employees. The goal is to Introduction maintain our competitive edge in the coming years and to maximize recovery rates, increase the efficiency of our operations and reduce the environmental footprint of hydrocarbon energy.

Overall, the company devoted significant funding to innovative technology programs, and the targeted focus is bearing fruit: 34 patents were awarded in 2010 to the company by the U.S. Patent and Trademark Office, and 104 new technologies and inventions were protected through patent applications filed in 2010.

Proof of Saudi Aramco’s growing technological prowess was the demonstration in 2010 of the second generation of our award-winning TM GigaPOWERS (Parallel Oil, Water and Gas Protecting the environment Opposite: The Enhanced Reservoir Simulator) developed by Since 2001, Saudi Aramco has significantly Exploration & Petroleum Engineering (EXPEC) and the Exploration and Petroleum Engineering increased spending on environmental programs, Engineering Center twin Center’s Advanced Research Center. and eight company-sponsored environmental towers in Dhahran. GigaPOWERS is an industry first in allowing programs were completed in 2010, including Top: A company aircraft takes off. simulation of giant fields at extremely high installing smokeless systems on 29 natural-gas resolution, sharply increasing geoscientists’ flares, and upgrading wastewater systems at ability to more clearly discern the critical company facilities across the Kingdom. These properties of reservoirs. projects include: upgrades of various flare

Saudi systems; upgrades of sanitary wastewater Saudi Aramco Aramco Annual Review Last summer, our award-winning “reservoir treatment facilities in Dhahran, Riyadh, Rabigh Annual Review 2010 robots” (ResbotsTM) concept reached a new and others areas; replacement of a refrigeration 2010 14 15 milestone with the industry’s first live field test system in Riyadh; and addition of a diesel to inject microscopic reservoir nano-agents hydrotreater complex at Ras Tanura Refinery. (1/10,000th the width of a human hair) into an observation well. This successful trial brought Improving the environmental performance us closer to developing game-changing Resbots of transportation fuels was another Saudi — designed to pass through nano-scale pores Aramco priority in 2010. We continued our in reservoir rock to characterize, report and focus on cleaner-burning, more efficient fuel interact with the reservoir environment. formulations for next-generation combustion engines, alongside other environmental efforts, In a promising new technology application, Saudi such as pre-refining desulfurization of crude oils Aramco’s Research and Development Center and carbon capture. Funds were also allocated (R&DC) trial-tested an advanced membrane for a CO2-enhanced oil recovery demonstration separation technology for the first time in 2010, project to boost reservoir production through to study its ability to remove nitrogen and acid carbon injection. gas contaminants from hydrocarbons. Also R&DC made an important step toward improving Saudi Aramco’s Renewable Energy Strategy future gas-oil separation plant (GOSP) design to research, pilot, and locally commercialize and of three-phase flow with the first three- and manufacture renewable energy in the dimensional computer simulation of oil-water- Kingdom made significant progress in 2010. gas mixture flows inside a full-size GOSP vessel, Among new projects, we invested in building using computational fluid dynamics. a 10-megawatt (MW) solar installation at our Introduction new North Park office building and facilitated joint ventures, was 5,442 at year’s end. These Introduction installation of another solar-power facility at programs, and others like them, are designed Farasan Island to replace burning of diesel. to equip the youth of the Kingdom with the Solar Frontier K.K., an affliate of our Showa skills necessary to take on the many challenges Shell equity venture in Japan, built small-scale facing the company and the country in the pilot solar-power facilities in Saudi Arabia with years ahead. capacities of between 1-2 MW and formulated plans to build worldscale manufacturing Employees this year continued to be awarded facilities in the Kingdom. prestigious honors and accolades at regional and international levels, further testament Power Systems, a new company administrative to the effectiveness of our human-resource

organization, was established to oversee and development policies. Saudi Aramco is as execute our energy efficiency efforts, including much “big iron” as drafting the renewable-energy strategy. Diversifying the economy it is state-of-the-art technology. During the year, the company continued its Valuing human resources efforts to diversify the local economy. About 80 To enhance the company’s productivity percent of the goods and services Saudi Aramco and capabilities now and in the future, we needed to operate were purchased from and passengers — through a multi-faceted success for the more than 250,000 people who strengthened our commitment to human- local vendors, local warehousing of inventory program to improve road-safety engineering, attended the various events. resource development in 2010 by increasing was substantially increased, and the roster of education, enforcement and emergency enrollment in already substantial training and approved local suppliers and manufacturers was response. The ultimate goal is to reduce injuries Embracing the future development programs, and building three new expanded. and fatalities and protect property on the Despite the uncertain global business major training and leadership centers. At the Kingdom’s roads. environment throughout 2010, Saudi Aramco end of 2010, there were 54,798 employees in Reaching out continued to meet myriad challenges, honor its the company, including 47,741 Saudis, or 87 The company continued to act responsibly Also in 2010, several initiatives were pursued commitments, build for the future, and touch percent, and 7,057 expatriates. as a caring corporate citizen, making a in the citizenship arena, including a program to the lives of billions of people around the world. Saudi positive difference at home and wherever support the Kingdom’s long-term imperative Saudi Aramco Whether we were successfully managing and Aramco Annual Review In 2010, enrollment in the College Degree we operate. A major focus was our domestic of becoming a knowledge-based economy. Annual Review 2010 2010 Program for Non-Employees rose to 1,781, Traffic Signature Safety Program, which made We continued to develop our flagship cultural developing the Kingdom’s massive crude-oil 16 17 including 1,293 in out-of-Kingdom institutions. significant strides educating and enabling institution: the King Abdulaziz Center for reserves, expanding our natural-gas operations, Apprentice enrollment, including those at citizens to practice traffic safety — as drivers World Culture in Dhahran. We also were exploring new horizons in the downstream proud to assist with the further development segment, enhancing our stewardship of of the King Abdullah Petroleum Studies and the environment, or better harnessing Advanced technology Research Center in Riyadh, and the King technology and talent, the company once is an integral part of the workdays of Saudi Abdullah University of Science and Technology again transformed the notion of “Energy to Aramco employees. on the west coast. We also plan to support the WorldTM” into tangible reality — making a the enhancement of the Kingdom’s general difference in 2010. education institutions by providing extra- curricular activities in areas such as problem solving, math and science. Saudi Aramco continues Employees, dependents and Saudi Aramco to touch the lives community members generously contributed of billions of people their time, effort and money to benefit many around the world others in 2010, as the company sought to demonstrate its corporate values with human action. In addition, hundreds of young volunteers clocked more than 82,000 service hours to make the company’s summer, Ramadan and ‘Id programs a resounding The company increased the pace of its Exploration Kingdom-wide exploration program in 2010 to prepare for future hydrocarbon demand. These efforts yielded success, with the discovery of four new oil fields and one new gas field, increasing the total number of Saudi Aramco discovered fields to 112, plus the addition to existing fields of six new oil reservoirs and three new gas reservoirs. Saudi Aramco uses cutting-edge technology to continuously search for new Exploration petroleum reserves, and its exploration program is becoming more focused on frontier and emerging areas, such as the Red Sea. The company is also exploring potential in conventional and unconventional reservoirs, offshore plays and deep-water targets.

•• Red Sea program — In 2010, Saudi Specialists analyze Aramco stepped up seismic activity in relatively •• Dense seismic data acquisition testing information on a large Below: Company geoscience professionals go far unexplored areas with potential to add — In support of improving the quality of images screen at the company’s afield hunting for clues to potential hydrocarbon significant reserves. One key project was a derived from seismic surveys, a next-generation Geosteering Center site. reservoirs. Top: A cross section of an oil reservoir major expansion of exploration operations in seismic crew was deployed to complete a test model. the Red Sea, with the deployment of a second of dense seismic data acquisition over the seismic crew. The transition zone 2D seismic Marzouk oil field. crew that commenced work in November 2009 Saudi continued acquiring data along the northern •• Mobile geo lab — In 2010, the company Saudi Aramco Aramco Annual Review Red Sea coast that will be integrated with all deployed a trailer-mounted Mobile Geological Annual Review 2010 2010 existing seismic and well data to create an 18 Laboratory for rig-site assessments of the fossil 19 improved understanding of the potential of the record in reservoir rock. Microscopic, organic- basin. A marine 3D crew began operations in walled plant and animal fossils — essential to October 2010 in the northern Red Sea, acquiring identifying subsurface rock formations — are data in deeper offshore waters, as Saudi extracted for study from small quantities Aramco expands its expertise in deep-water of drill cuttings or cores during drilling, to exploration. accommodate timely and optimum drilling decisions. •• Arabian Gulf seismic programs — Work continued on the 3D marine and transition- •• Tight gas initiative — Saudi Aramco has zone seismic acquisition program to support begun a strategic initiative to evaluate “tight” the Manifa Field development, which started gas and shale gas potential in the Kingdom in November 2009, and two additional 3D (“tight” refers to low-flow, low-permeability marine seismic crews started operations in the gas reservoir rock). The initial focus is in the Arabian Gulf. One crew is acquiring data over northwest and in the area of Ghawar, where the Hasbah field to support the planned 2.5 gas infrastructure exists. Initial knowledge- billion scfd gas increment for the new Wasit Gas building from similar plays in North America Plant. The second crew is focused on deeper is being supplemented with internal technical exploration targets, and will also produce studies and research programs to help solve improved seismic images and characterization geological and engineering challenges unique of shallow oil-producing reservoirs. to Saudi Arabia and to locate specific wells Exploration planned for 2011. The company is innovatively ••• Lukoil Saudi Arabia Energy Ltd. (Luksar Exploration combining knowledge and research to — 80 percent Lukoil, 20 percent Saudi Aramco): maximize gas reserves and production from Luksar decided to enter into the appraisal conventional and unconventional resources in phase and not to enter the SEP, retaining the order to meet growing domestic demand. Saudi appraisal area in Tukhman and Mushayib. Luksar Aramco uses drilled its first appraisal well (Tukhman-4) •• Upstream Gas Program — The four cutting-edge and encountered a very tight reservoir in the Upstream Joint Venture (UJV) companies technology to Unayzah zone. Luksar is performing further continued gas exploration programs in the Rub‘ continuously studies, looking to improve well rates via al-Khali. The 2004 ventures resulted from the search fracture stimulations. Natural Gas Initiative (NGI) of the Supreme for new Council for Petroleum and Mineral Affairs. The petroleum ••• South Rub‘ Al-Khali Co. Ltd. (SRAK — 50 objectives are to maximize economic and social reserves percent Shell, 50 percent Saudi Aramco): SRAK benefits to the Kingdom by entering into joint drilled its last FEP well, Kidan-7, in the southern ventures with international energy companies end of the North Kidan field. The well flowed to explore for natural gas fields in specific high gas rates of 44.5 million scfd in the Arab-C areas of the Rub‘ al-Khali desert (also known formation. A test in the Arab-D indicates the as the Empty Quarter). The UJV activities are upper zone is gas-bearing while the lower zone in reserves in the North Kidan Field compared undertaken in parallel with Saudi Aramco’s own is in the gas-water transition zone. The results to those previously booked by Saudi Aramco. Kingdom-wide oil and gas exploration program. of Kidan-6 and -7 wells have led to an increase SRAK has also decided to enter into a SEP. The partnerships include:

••• EniRepSa Gas Limited (EniRepSa — 50 percent ENI, 30 percent Repsol, 20 percent New oil and gas fields •• AsSayd-1 (New Oil Field Discovery) Saudi Aramco): EniRepSa’s First Exploration discovered As Sayd-1, wildcat well (BI-33), located 400 Period (FEP) was extended by the Ministry of kilometers north of Riyadh flowed 500 bpd Saudi Petroleum and Mineral Resources (MinPet) During 2010, Saudi Aramco discovered from the Hith stringers reservoir and 185 Saudi Aramco Aramco Annual Review until June 27, 2011, for the reprocessing of four new oil fields and one new gas field, bpd from the Rimthan reservoir. This well Annual Review 2010 2010 the Anbak 3D seismic data, and then it will increasing the total number of company- confirmed the presence of a significant Hith 20 21 decide whether to drill the fourth remaining discovered hydrocarbon fields to 112. fairway along the flanks of the Gotnia Basin. commitment well. •• Arsan-1 (New Oil Field Discovery) The company also Arsan-1, wildcat well (BI-33), located 120 ••• Sino Saudi Gas Ltd. (SSG — 80 percent discovered six new oil kilometers southeast of Riyadh, flowed 125 Sinopec, 20 percent Saudi Aramco): SSG has reservoirs and three bpd from the Unayzah A and continues the decided to enter into a Second Exploration new gas reservoirs successful drilling in the Duayban Siriyyan Period (SEP), and MinPet has approved its plans. in existing fields, and area of Central Arabia. extended, confirmed •• Qamran-1 (New Oil Field Discovery) and delineated Qamran-1, wildcat well (BI-33), located in the reserves in its Midyan, Rub’ al-Khali 180 kilometers west of Shaybah Jaladi, Rabib, Shiblah, field, flowed 630 bpd from the Mishrif Manifa, Nujayman, Habari, Shaden, Khurais, reservoir. The well is expected to flow at a Jalamid, Hasbah, Karan and Tinat fields. higher rate if stimulated. This is the first oil field discovery in the Rub’ al-Khali since the Newly discovered fields are: start-up of recent exploration efforts in the Right: A Saudi Aramco marine vessel drops •• Namlan-1 (New Oil Field Discovery) area. buoys for an offshore Namlan-1, exploration well (BI-33), located •• Jalamid-3 (New Gas Field Discovery) seismic test. 166 kilometers northwest of Al Jubail, was Jalamid-3 exploration well (BI-33), located 95 Opposite top: A caravan of seismic vehicles tested and flowed 566 barrels of oil per day kilometers south east of Turayf, was tested snakes across the (bpd) and 0.22 million standard cubic feet of and flowed 12.1 million scfd from the Sarah desert. gas per day (scfd) from the Hith Stringers. reservoir. Saudi Aramco, in 2010, put finishing Oil Operations touches on major parts of the biggest capital program in its history that began in 2009, raising maximum sustainable oil production by 1.7 million bpd to 12 million bpd. But we didn’t stop there: Significant progress was made on another giant oil increment — 900,000 bpd Manifa, an Arabian Heavy crude Our efforts to add oil field; we added more than 200,000 bpd in capacity underscore the our maintain potential program; and launched Oil company’s continuous an upgrade of Safaniya, the world’s largest commitment to making offshore oil field. Even though the world was Operations a difference in the lives well-supplied with oil at the end of 2010, of energy consumers global and domestic demand is expected worldwide to increase in the future. Our efforts to add capacity underscore the company’s continuous commitment to making a difference in the lives of energy consumers worldwide, including comprising three major imperatives: adequacy working to bring heavy-oil fields on stream and of supply, affordability and environmental building specially equipped refineries to process acceptability. The CERA conference drew 2,200 Below: Saudi Aramco in 2010 put final touches on that oil. delegates from more than 55 countries, and two historic oil increment projects that added 1.7 encouraged leaders to move from an era of million bpd to the company’s output capacity. In September, Saudi Aramco President and CEO economic challenges to a new phase of energy Top: A company supervisor on the job. Khalid A. Al-Falih addressed the World Energy investment and growth. Congress (WEC) in Montreal, Canada, stressing that the need for safe, abundant and affordable During 2010, the following major Saudi Aramco Saudi energy will continue to grow at a significant oil-operations projects were in various stages of Saudi Aramco Aramco Annual Review rate as global economic prosperity spreads and development and completion: Annual Review 2010 2010 the world’s population adds a projected 2 billion 22 23 more people by 2050. Al-Falih emphasized Projects the need for world leaders to find an optimal •• Completed projects balance of key factors to help meet global demand. The WEC, which meets every three ••• Khurais Increment: The giant Khurais years, drew more than 5,500 delegates from Crude Oil Increment is the largest of several more than 50 countries in 2010, including Saudi Aramco projects intended to boost the chief executives of some of the world’s largest production capacity of Saudi Arabia’s oil fields energy producers, government ministers, to meet current and future world demand. academics and the media. The Khurais facilities are designed to produce 1.2 million bpd of Arabian Light crude oil. Al-Falih also was a keynote speaker at The Khurais project comprises three oil fields: CERAWeek 2010 in Houston, Texas, which Khurais, Abu Jifan and Mazalij. In addition to is a prestigious annual conference attended high-quality Arabian Light crude oil, Khurais by world energy leaders. The Saudi Aramco can produce approximately 450 million scfd President and CEO stressed that energy is of associated gas and 80,000 bpd of produced essential to nearly every economic activity and NGL condensate. Khurais was commissioned in that a strong world economy relies heavily June 2009, and in 2010 it reached its maximum on reliable, affordable energy supplies. In sustainable capacity. Khurais has the most looking to the future, Al-Falih told delegates, advanced intelligent-field applications of any leaders of the energy industry need to focus field in the company’s roster, maximizing oil on what he called “the Triple-A Triangle,” recovery and protecting its reservoirs. Oil ••• Khursaniyah Program: The complex at wells. Onshore facilities include 15 drill sites, Oil Operations Operations Khursaniyah, which includes an oil-processing a Central Oil and Gas Processing Facility, facility and gas plant, reached 500,000 bpd of water supply wells and injection facilities, and crude production capacity after Khursaniyah multiple gathering, water injection, and product Gas Plant, which has a capacity of 1 billion transportation pipelines. This plant will include scfd, was commissioned in April. Khursaniyah all necessary utilities and a 420-megawatt co- blends Arabian Light oil from the Khursaniyah, generation plant. Supporting the local Abu Hadriya and Fadhili fields, and generates economy 300 megawatts (MW) of electricity with its ••• Safaniya Phase I Upgrade: The first on-site co-generation plant, providing power phase of the two-phase program was initiated One of the principal ways that Saudi Aramco to the plant and exporting excess power to the to install Electrical Submersible Pumps (ESPs), supports local economic development national grid to support the Kingdom’s energy upgrade crude-gathering facilities and provide is by preferentially purchasing locally demand. power supply for Central and North Safaniya as manufactured goods and services for use in part of the Safaniya field Master Development company projects. •• Ongoing projects Plan. The upgrade’s strategic objective is to ••• Manifa Increment Development: Below: Huge vessels help maintain Safaniya’s maximum pproduction In 2010, Saudi Aramco purchased $3.6 Significant progress was achieved in 2010 on distinguish a plant that capacity of Arabian Heavy crude. The project processes crude oil from billion in materials, and just over $3 billion, Manifa, the giant Arabian Gulf offshore field the massive Khurais will provide electrical power and upgrade or 85 percent, was awarded to local under development. It is the fifth largest oil field. Top: A company existing wellhead platforms to accommodate suppliers and manufacturers. field in the world, and output will be used as offshore rig stands out top-side electric equipment for ESPs. The in the Arabian Gulf. feedstock for planned refineries in the Kingdom. project will also provide a new tie-in platform The company also and a 42-inch trunk line that will transport awarded 2,157 Project elements completed during the year crude oil from the new tie-in to an onshore service contracts and included all drilling islands, as well as the main amendments during and lateral causeways. Construction of the the year, totaling Manifa Central Processing complex has begun, Saudi $16.4 billion, 77 with the main spine and process area pipe rack Saudi Aramco Aramco Annual Review percent awarded to completed. Manifa is designed to produce in Annual Review 2010 2010 local companies and staged increments — 500,000 bpd of Arabian 24 25 contractors. Heavy crude oil by 2013 and 900,000 bpd by We also shifted $40 million worth 2014. Manifa field is located in shallow and of materials to the local market for environmentally sensitive waters, necessitating warehoused inventory in 2010, bringing the maximizing drilling from onshore sites while cumulative value of our locally warehoused minimizing offshore platforms. (To protect the materials to $240 million. environment, cuttings re-injection [CRI] wells have been drilled on each platform to eliminate In addition, the company qualified and the need to transport drill cuttings by barge. Re- approved an additional 151 local suppliers injection of cuttings disposes of drilling waste in and 32 domestic manufacturers in 2010 an economical, environmentally friendly way.) as potential sources of supply. The total number of registered local manufacturers The Manifa development will accommodate with Saudi Aramco grew from 677 in 2001 a Central Processing Facility with gas-oil to 961 in 2010. separation, wet crude handling, crude stabilization, gas gathering and compression, Saudi Aramco is also engaged in a program produced water disposal, water injection and to establish long-term supply agreements as other related facilities. Field development an incentive for new, competitively priced includes 41 km of causeway and 3 km of manufacturers to establish new facilities in bridges to support 27 drilling islands for the Saudi Arabia for specific oil-industry-related shallow water wells, and 13 offshore platforms goods. for deeper water producing and water injection •• Asia gatherings — ••• Asia Energy Leaders Summit 2010: Oil Operations ••• China Development Forum 2010: Saudi Khalid Al-Buainain, Senior Vice President of Aramco President and CEO Khalid Al-Falih Downstream, attended the Asia Energy Leaders participated in the three-day China Development Summit 2010 in Beijing in early June. Major Forum 2010 on March 20-22, hosted by the topics discussed were sustainable energy Development Research Center of the State policies and strategies, with a focus on nuclear, Council. The annual forum provides a platform coal, oil and gas; ways energy efficiency and for face-to-face dialogue among international renewables can contribute to a low carbon business leaders, heads of international society; and energy poverty and financing. organizations, world-class scholars and senior government officials on topics related to China’s development. The forum theme was “China and the World Economy: Beyond the Crisis.”

Land Management Previously, to manage land-related System business, the company relied on a variety of fragmented, non-integrated information Saudi Aramco’s corporate land concessions and with multiple interfaces. The earlier system reservations are truly enormous, encompassing was not integrated with Saudi Aramco’s SAP more than a tenth of the Kingdom’s land mass, core business system and required higher primarily in Saudi Arabia’s Eastern and Central maintenance overhead and increased training Saudi Aramco and Chinese partners exchange gifts provinces. Company operations are Kingdom- for staff to master separate databases and and strengthen ties at a company event in China. wide and connected by a wide network of related system administration skills. more than 5,000 km of utility and pipeline The new Land Management System Saudi rights-of-way. Corporate expansion has resulted Saudi Aramco automated and streamlined 17 separate Aramco Annual Review GOSP. The project is currently in detailed design. multiphase flow meters and remote terminal in the company’s land reservations increasing Annual Review 2010 2010 Completion is anticipated in late 2013. units on 60 existing offshore production nearly three-fold since 1980, with considerable land-related business processes and fully 26 27 platforms that support the company’s intelligent- future growth expected from new oil and gas integrated three other business systems •• Maintain Potential Program (MPP): field initiative to enable real-time reservoir discoveries. through a single window. Authorized Two maintain-potential programs provided performance monitoring. Also, the critical users are now able to perform all land- upstream facilities to sustain oil and gas Safaniya crude trunk-line system to support the To better manage this vast land area that is management-related activities through SAP, production from newly developed and existing field master plan was completed. The project not much smaller than including land use permits, well approvals, fields. The scope included connecting new performed the world’s first 5-km shore pull for Great Britain, Saudi land requests and land encroachments. wells, monitoring and testing well systems, dual pipelines, installing the pipelines with more Aramco launched its pipelines to transport crude oil and gas to precise and less environmentally disruptive state-of-the-art Land Another key benefit of the new system is the processing facilities, and drilling support horizontal directional drilling technology rather Management System, ability to remotely monitor lands through a structures. than seafloor dredging. which is an integral part change detection solution that uses satellite of SAP, the company’s imagery to detect changes in land use. In ••• Onshore MPP: Eighty-four new oil and front-end business- addition to physical on-site field inspections, water wells were connected in 2010, increasing enterprise system. The this proactive means of protecting land oil production capacity by nearly 232,000 Saudi Aramco took new system interjects resources offers a valuable tool in the bpd, and 66 new gas wells were completed, part in the “China and geographic intelligence prevention of unauthorized land utilizations. increasing gas production capacity by the World Economy: into thousands of approximately 1.14 million scfd. Beyond the Crisis” corporate land records The SAP Land Management System is an forum in China by fully integrating GIS unprecedented world-class solution to large- ••• Offshore MPP: During 2010, there was (geographic information scale land management that will allow Saudi an increased emphasis on installation and system) information with Aramco to efficiently manage its land needs integration of down-hole instrumentation, SAP data. well into the future. way for processing non-associated Karan gas Gas Operations in Khursaniyah Gas Plant. Development also was started on Wasit Gas Plant, and a site preparation contract was awarded for the Shaybah NGL Project.

•• Gas plant projects ••• Khursaniyah Gas Plant: Built to expand the Kingdom’s petrochemical products portfolio, Gas projects took Khursaniyah Gas Plant (KGP) began operation Gas center stage at Saudi in 2010, north of Dhahran. KGP is designed Aramco in 2010 to process 1 billion scfd of associated gas and Operations 80,000 bpd of condensates from Abu Hadriya, Fadhili, Khursaniyah, Marjan, Safaniyah and Zuluf oil fields. KGP can produce up to 560 million scfd of sales gas for the MGS and

260,000 bpd of ethane plus NGL (C2+NGL), 1,800 metric tons per day of sulfur and 300 MW of power. KGP uses turbo-expander technology to maximize valuable ethane recovery. The Below: Saudi Aramco gas plants provide natural plant is integrated with Khursaniyah Central gas to fuel the Kingdom’s industry and economy. Oil Processing Facilities to minimize required Opposite: Highly trained employees man our gas plants. utilities and capture synergies. KGP will be expanded in 2012 to process non-associated gas from the Karan field. With the Karan expansion, KGP output will increase to 1.8 billion scfd of Saudi sales gas and 280,000 bpd of NGL. Saudi Aramco Aramco Annual Review Gas projects took center stage at Saudi Annual Review 2010 2010 Aramco in 2010, as the company sharply ••• Hawiyah NGL Plant start-up: The 28 29 focused on ensuring a steadily increasing Hawiyah NGL Recovery Plant, which came supply of natural gas and NGL products via the on-stream in 2009 to supply incremental Master Gas System (MGS) for the Kingdom’s ethane and NGL products to the Kingdom’s growing industrial sector, including fuel for petrochemical industry, was commissioned in power generation and water desalination January 2010 to begin providing additional NGL and feedstock for the burgeoning domestic to the MGS. The plant was designed to process petrochemical industry. Ethane and NGL 3.8 billion scfd of sweet gas, with 95 percent products are critical feedstocks for the NGL recovery, from the nearby Hawiyah and Kingdom’s downstream petrochemicals industry Haradh gas plants. The facility produces 290,000 to manufacture value-added consumer products bpd of ethane plus NGL and supplies the MGS and generate jobs. with 3.4 billion scfd of sales gas. This facility uses turbo-expander technology to maximize To help meet these goals, key milestones valuable ethane recovery. were marked in development of three new offshore non-associated gas fields — Karan, ••• Shaybah NGL: The Shaybah NGL Recovery the company’s first in the northern area, to be Program will increase NGL production, helping followed by the Hasbah and Arabiyah fields. meet increasing in-Kingdom demand for The company commissioned and achieved full petrochemical feedstock and ensuring secure capacity at the 1 billion scfd Khursaniyah Gas and sustainable NGL product supply. The Plant and the 3.8 billion scfd Hawiyah NGL program will build a grass-roots NGL facility recovery plant in 2010. Construction is under capable of processing 2.4 billion scfd of gas Gas and yielding 190,000 bpd of ethane plus NGL. ••• Nu‘ayyim Downstream Facilities: Gas Operations Operations It will also increase the gas-handling capacities Completion of the Nu‘ayyim Downstream of the four existing Shaybah GOSPs to allow Facilities in January 2010 provided additional higher gas-oil ratios. Shaybah NGL Plant will crude degassing/gas handling facilities at East- utilize turbo-expander technology to maximize West Crude Pipeline Pump Station No. 3 and for ethane recovery. New fractionation facilities to 138 kilometers of gas pipeline from Nu’ayyim handle the additional NGL from Shaybah will be GOSP to the Ghazal Field Remote Header. The installed at Wasit Gas Plant to capture utilities pipeline extension was built for Nu‘ayyim gas and project execution synergies. To support the bound for processing at Haradh Gas Plant, and early start of the Shaybah NGL Project, a site- the pump station was upgraded to de-gas and preparation contract was awarded in November, stabilize the field’s produced crude oil before and project proposals were completed. The transport to the Kingdom’s West Coast. Nu‘ayyim program is scheduled for completion in 2014. produces 100,000 bpd of Arabian Super Light crude oil and 100 million scfd of natural gas. ••• Wasit Gas Plant Development: To meet The field is 250 km south of Riyadh and about the Kingdom’s energy demand beyond 2014, 50 km northeast of the existing Hawtah Plant, the non-associated gas from the offshore which was the company’s first Central Region oil- Karan Field gas to support the company’s Master Gas Arabiyah and Hasbah fields will be developed producing facility. Saudi Aramco’s first offshore non- System, will be produced from 21 increment for processing in a new stand-alone gas plant associated gas field development wells distributed over five offshore wellhead at Wasit, located 8 kilometers from Khursaniyah ••• CO2-Recovery Pilot Project: As part of platforms. The gas production will be staged Gas Plant. Wasit Gas Plant has been designed to Saudi Aramco’s environmental road map to Discovered by Saudi Aramco in April 2006, with five wells already drilled and completed process 2.5 billion scfd of Arabiyah and Hasbah evaluate means for lowering CO2 emissions Karan gas field is the first non-associated that will be tied-in and commissioned for non-associated gas from 13 offshore gas and in line with the company initiatives to gas field located in Saudi territorial waters 400 million scfd in early production planned platforms in the Arabian Gulf. Once completed enhance oil recovery, a CO2-recovery pilot project of the Arabian Gulf, 160 kilometers north for four months during 2011 summer peak in mid-2014, the plant will produce 1.8 billion was initiated to recover 40 million scfd of CO2 of the company’s headquarters in Dhahran. demand. Three other platforms with 14 scfd of sales gas. This fuel will support electric Saudi Non-associated gas fields do not have an wells will be drilled, completed, tied-in and power generation throughout the Kingdom Saudi Aramco Aramco Annual Review associated oil column and can thus be on stream in June 2012, and the remaining and rapidly expanding petrochemical and other Annual Review 2010 2010 produced without waiting to deplete the 30 two wells and platform will be ready in industries. 31 oil reserves before producing the gas cap April 2013, bringing the field to full-capacity associated with an oil field. production. By January 2011, overall drilling In addition, the plant will include a new facility and completion progress was 78 percent. to fractionate NGL recovered from Shaybah to The Karan field was be used as feedstock for the petrochemical discovered when the Produced gas will be co-mingled at one Tie-In industry. The new NGL fractionation module Karan-6 well drilled Offshore Platform through five 20-inch subsea will process 240,000 bpd of ethane plus NGLs into deeper formations, flowlines. Then, gas will be transported via to satisfy growing local customer demand for finding gas in the Khuff one 38-inch subsea pipeline onshore to the ethane, propane, butane and natural gasoline. carbonate reservoirs Khursaniyah Gas Plant (KGP), where new Site preparation and temporary communications laid down from 200 to gas-processing facilities are being constructed. contracts have been awarded, and work is 299 million years ago This project marks a milestone in the under way at the site. All major purchase orders in the Permian and company’s gas expansion program. have been awarded, and the main automation Triassic periods. With a Khuff gross thickness contractor selected. The project aims to help up to 1,000 feet, Karan’s is the thickest Khuff Additional Khuff offshore gas fields, similar to eliminate burning of crude oil for industry reservoir section ever encountered in Saudi Karan, at Arabiyah (1.2 billion scfd) and Has- and power generation, thus increasing crude Arabia. The Khuff formation ranges in depth bah (1.3 billion scfd) were recently discovered exports. The gas plant will utilize the relatively from 10,500-13,700 feet, and Karan lies in and have been approved for development, new Sulfinol® gas-treatment technology, which medium-depth waters of 40-60 meters. with drilling to start in June 2011. These fields increases the efficiency of the sulfur recovery along with other offshore gas discoveries units from about 95 percent to 99.3 percent. Karan, designed to produce 1.8 billion will provide a vital part of the Kingdom’s gas standard cubic feet per day (scfd) of raw dry production for the foreseeable future. Gas will produce 1.8 billion scfd of raw dry gas to Gas Operations Operations support the company’s MGS. The Karan project’s engineering and procurement are substantially complete, and construction activities neared peak levels in 2010. A total of 18 million The company’s gas contractor man-hours were achieved without a facilities supply an lost-time incident by year’s end. Drilling of the increasing stream of natural gas to the central platform wells was finished, with initial Kingdom’s Master Gas production of 400 million scfd planned during System. Opposite: An peak summer demand starting in 2011; output engineer checks a valve at Ju’aymah Gas Plant. of raw gas is expected to be 1.5 billion scfd by 2012.

••• Midyan Field Development Project: Ten new Midyan wells and workovers were successfully completed as part of the gas- development project in northwest Saudi from Hawiyah NGL Plant acid gas stream for Arabia to replace crude oil and diesel burning injection into the Uthmaniyah Field. Seven in the area (crude is burned to generate wells are planned in the pilot project, with a electricity during peak summer demand). The comprehensive evaluation program including overall outcome from drilling delineation and selective coring and saturation logs for development wells was favorable, and the gas characterizing the reservoir at close spacing and production target was revised higher, from 50

monitoring the water-CO2 flood. million scfd to 75 million scfd for 20 years.

••• Haradh Gas Plant debottlenecking: ••• Hasbah/Arabiyah fields development: Saudi Haradh Gas Plant capacity was debottlenecked Located northeast of Dhahran, the Hasbah and Saudi Aramco Aramco Annual Review to reach 1.8 billion scfd of raw gas, yielding Arabiyah gas fields will have seven and six Annual Review 2010 2010 approximately 1.7 billion scfd of sales gas to the 32 single-well platforms, respectively, with each 33 MGS, thus improving efficiency and output, and well producing an average rate of 200 million increasing gas supply to the gas system. The scfd, all converging to one tie-in platform per Condensate System De-bottlenecking project field. The system is capable of delivering up to was completed in September 2010, increasing 1.2 billion scfd of gas from Arabiyah and 1.3 the plant’s condensate handling capacity 64 billion scdf of gas from Hasbah to Wasit Gas percent, from 140,000 bpd to 230,000 bpd. Plant, part of Saudi Aramco’s strategy to meet in-Kingdom energy demand from 2014 onward. •• Gas field projects Drilling will commence in the first quarter of ••• Karan Field Development Phase 1: 2011 for Arabiyah and in the second quarter for Discovered in 2006, the Karan non-associated Hasbah. gas field is being developed to meet the Kingdom’s increasing demand for sales gas for •• Gas distribution expansion — This project industrial fuel and feedstock, water desalination will expand the MGS’s distribution network, and electric power generation. It is Saudi adding 215 kilometers of 56-inch pipe parallel Aramco’s first offshore non-associated gas field. to existing lines, increasing system sales-gas The field will be produced from 21 increment capacity from 6.5 billion to 7.2 billion scfd wells distributed over five offshore wellhead — to Saudi Aramco customers and company platforms, and the raw gas will be transported facilities in the Eastern Region. The expansion is through a 110-kilometer subsea pipeline to projected to be on-stream in 2011. Khursaniyah Gas Plant (KGP) for processing. When fully operational in 2012, the project completed, the refinery will produce products Refining & Petro- to meet growing domestic and world demand chemicals for environmentally friendly fuels. It will also be among the first refineries in the Middle East to produce petroleum coke.

•••• RSRC grass-roots refinery: In July 2010, Saudi Aramco’s Board of Directors gave final Saudi Aramco approval for construction of a 400,000-bpd is also developing grassroots, full-conversion refinery at Yanbu’ Refining associated industrial Industrial City under the wholly owned parks to create jobs and subsidiary Red Sea Refining Company (RSRC). & Petrochemicals stimulate economic The new refinery will process Arabian Heavy activity crude oil and produce products to supply the Kingdom’s demand for refined products and also export high quality products to the international market. In July, Saudi Aramco signed contracts with local and international contractors for detailed engineering, Saudi Aramco is working to expand its procurement and construction. Saudi Aramco Saudi Aramco refineries and support facilities will be increasingly integrated with petrochemical domestic refining capacity to meet growing is currently finalizing discussion with a foreign production. Below: Saudi Aramco’s Yanbu’ local and global demand for refined products partner to establish RSRC as a joint venture. terminal on the Red Sea. Opposite: Motiva Refinery while taking advantage of the close proximity of expansion project activity in Houston. feedstock by integrating petrochemical facilities ••• Jazan Refinery and Terminal: The with certain refineries. Company refineries 400,000-bpd semi-conversion refinery produce a wide range of petrochemicals, (producing light products and fuel oil) and Saudi including propylene and polypropylene, low- marine terminal will meet local demand for Saudi Aramco Aramco Annual Review and high-density polyethylene, benzene, refined products and efficiently satisfy utilities Annual Review 2010 2010 34 paraxylene and butadiene. demands in the Western Region. In addition, 35 it will provide a primary foundation industry The company also is developing associated for the Jazan Economic City (JEC) development, industrial parks to convert petrochemical which will encourage further development of commodities into consumer goods, to create jobs and stimulate economic activity. The company moved forward on two major refinery projects in 2010 — the Red Sea Refining Co. (RSRC) and Jazan Refinery projects — and also achieved significant success in producing reduced-sulfur fuel.

•• Projects ••• SATORP grass-roots refinery: Saudi Aramco Total Refining and Petrochemical Co. (SATORP), a joint-venture mega-project between Saudi Aramco and France’s Total Oil Co., is building a 400,000-bpd grassroots, full-conversion refinery at Jubail II Industrial City on Saudi Arabia’s east coast. By year- end 2010, the engineering, procurement and construction progress was per plan. When gasoline/diesel flexibility to capture the highest Refining & Petro- margin available. Expansion of the refinery will chemicals enhance the company’s ability to meet growing demand in North America,. Motiva Enterprises LLC is a joint venture between Saudi Aramco’s When complete, the Houston-based affiliate, Saudi Refining Inc., and expansion will make Shell. Port Arthur one of the largest-capacity •• Fujian refinery — Net income improved refineries as refining margins increased in 2010 for in the world Fujian Refining & Petrochemical Co. Ltd. (FRPC), which processed an average of 230,000 bpd of crude oil during the year. FREP produced more than 11 million tons of refined products in 2010, and more than 3 million tons of petrochemicals, exporting 7.1 million tons of products and 2.5 million tons of petrochemicals, including olefins, aromatics, polyethylene and

Above: A component for the city and region. The refinery will be capable polyol to Saudi Advanced Industries Co. and the expansion of the of processing Arabian Medium crude oil or National Manufacturing Co., for manufacturing Motiva refinery in the United States is moved a 50/50 mix of Arabian Heavy and Medium polyurethane material used in producing Clean fuels refineries will be producing CTF gasoline. In to the plant. grades. The facility will be located in JEC and furniture, and in automotive, construction and addition, CTF diesel will be produced at Riyadh ultimately integrated with a power plant and thermal insulation components. Saudi Aramco has implemented a Clean and Ras Tanura Refineries, while Yanbu’ water facility. The grassroots marine terminal Transportation Fuels (CTF) Project that will Refinery will maintain its current production of will have the capability to receive crude oil and •• Motiva expansion — Construction on the install new equipment at the company’s low-sulfur (500 ppm) off-road utility diesel to Saudi refined products and to export refined products. Crude Expansion Project at Motiva’s Port Arthur, domestic refineries by 2015 to meet new meet local diesel-fuel demand. Saudi Aramco Aramco Annual Review Single Point Mooring (SPM) will be provided for Texas, refinery is progressing well in line with gasoline and diesel products requirements. Annual Review 2010 2010 offloading Very Large Crude Carriers; a subsea Motiva’s expectations. Handover to operations Riyadh and Yanbu’ Refineries will produce the 36 37 pipeline will carry oil from the SPM to the is planned to start late 2011 with product- The new equipment new gasoline through the use of conventional tank farm. Two fixed berths will be provided in-tank in the first quarter of 2012. Three will position the refinery processing, while Ras Tanura Refinery for Aframax-rated product carriers. Work on hundred twenty-two processing modules were refineries to produce will go further in transitioning the refinery the project began in 2011, and completion is manufactured in the United States and Mexico, gasoline and diesel fuel into a petrochemical feedstock producer. The projected for the first quarter of 2017. and delivered to the site in 2010. Installation with ultra-low sulfur project at Ras Tanura Refinery will install new for nearly all of the units was completed by (ULS) content, only units that will extract the aromatics from the •• Petro Rabigh — For Petro Rabigh, 2010 year-end, representing the largest module 10 parts per million. gasoline and use them to produce benzene, was a remarkable year, marked by its reaching installation project ever undertaken onshore. These are equivalent toluene and paraxylene. The benzene and full commercial operation and achieving its first Additionally, all disciplines were fully active or better quality grades toluene, which can be used as solvents or full year of profitability, as well as exceeding on site by year’s end, and pre-commissioning than fuels distributed in North America and industrial feedstock, will be used to support the complex’s 2009 operating capacity, plans were in full swing. When complete, the Europe. This improvement will enable the use new petrochemical projects in the Kingdom. production and sales. The integrated refining expansion will add 325,000 bpd of flexible of advance emission-control technologies in Paraxylene production will be exported for and petrochemical complex on the Red Sea complex-crude capacity (the capacity to process light and heavy-duty vehicles that will almost use in the growing worldwide polyester-based produced and marketed more than 112 million almost any type of crude oil), making Port eliminate emissions of nitrogen oxide (NOx), clothing industry. barrels of refined petroleum products in Saudi Arthur the largest-capacity refinery in the United sulfuric oxide (SOx) and particulate matter and international markets during the year, 29 States and one of the largest in the world, with that are linked to health problems. Besides Domestic joint-venture refineries in Jubail percent of which were exported; and nearly a total throughput capacity of 600,000 bpd. The producing ULS gasoline and diesel, the new and Yanbu’, as well as the future Jazan 2 million metric tons of petrochemicals, 94 incremental volume will process heavy sour equipment will also reduce benzene and Refinery, also are installing equipment for the percent of which were exported. Also during and high-acid-content crudes, and improve aromatics content from the current level. production of CTF gasoline and diesel from the year, Petro Rabigh signed an agreement profit margins. The project will also install a these facilities as well. to provide propylene oxide and polyether 75,000 bpd hydrocracker that has 55,000 bpd of All of Saudi Aramco’s wholly owned domestic Refining & S-Oil continued to grow its product sales At left: A safety slogan Refining & Petrochemicals Petrochemicals channels in Asia, including India, Japan and greets an employee at the Ras Tanura Refinery Australia, as part of its diversified marketing terminal complex. strategy. Further, the company’s domestic light- oil market share reached its highest level ever in December 2010.

•• Low-sulfur diesel — To help enhance the quality of domestic transportation fuels, Saudi Aramco in 2010 completed the construction of a new diesel hydro-treater plant at Ras Tanura Refinery. This project will enable the 60,000 cubic meters of water per day and implementation of the second phase of the about 750 MW of electricity by 2015. Saudi Aramco Fuel Quality Roadmap, which aims by 2016 to supply ultra-low-sulfur (10 •• Ju‘aymah/Petrokemya spent caustic — A parts per million) diesel fuel for transportation total cost avoidance of $1.5 million was realized and 500 ppm for utility fuel Kingdomwide to from an agreement signed by our Ju’aymah NGL polypropylene. Within China, FRPC sold nearly will help improve air quality. The first phase Fractionation and Petrokemya petrochemical 4.2 million tons of products and 2.9 million tons of the Fuel Quality Roadmap was launched plants in Jubail to treat at Petrokemya facilities of petrochemicals. The FRPC board during the in 2007 after commissioning the hydrotreater 400,000 gallons per year of generated spent year approved a study of an ethylene cracker plants at Yanbu’ and Riyadh refineries. With caustic from the Ju’aymah plant. The agreement expansion project. implementation of the second phase, sulfur in localized processing of the spent caustic, saved diesel will be reduced by 95 percent. time and 79.2 percent of processing costs, and •• Showa Shell — Saudi Aramco equity streamlined administrative requirements. venture partner continued to pursue its •• SAMREF, SASREF clean fuels — The expansion in the solar business, forming a Saudi Aramco Shell Refinery Co. (SASREF), Saudi subsidiary, Solar Frontier, to manage its solar a joint venture of Saudi Aramco and Shell, Saudi Aramco Aramco Annual Review activities. As part of its efforts to expand its completed a clean-fuels project in March 2010, Annual Review 2010 2010 38 international presence, Solar Frontier opened producing 100,000 bpd of ultra-low-sulfur 39 two international offices — one in Germany and diesel fuel (10 ppm), while the Saudi Aramco one in California, in the United States. In 2010, Mobil Refinery (SAMREF) in Yanbu’, a joint the company completed all structural work for venture of Saudi Aramco and ExxonMobil, is the 900 MW per year manufacturing plant in continuing to implement its Clean Fuels Project. Miyazaki prefecture, Japan, and started product SAMREF intends to meet the Kingdom’s fuel testing at the facility. When fully operational, specification requirements by reducing sulfur the plant will be one of the world’s largest content in gasoline and diesel fuel to 10 ppm single thin-film solar technology manufacturing by December 2013. plants. •• Marafiq Project — Saudi Aramco equity •• S-Oil — S-Oil, an Aramco Oversees Company venture Marafiq Co., through its subsidiary equity venture in Korea, is expected to Tawreed, launched commercial operations of complete the Onsan Refinery Expansion Project the water desalination and electrical power during the first half of 2011, after three years mega-project in Jubail in 2010. The plant is of planning, engineering, and construction. In designed to produce 800,000 cubic meters of 2010, S-Oil developed its strategic framework, water per day and 2,750 MW of electricity. It is which included three strategic directions — the world’s largest integrated power and water expanding its refining business, integrating desalination project, representing about 10 petrochemicals, and entering into the new percent of current power generation capacity in and renewable energy business to achieve Saudi Arabia. Marafiq is also developing another profitable, sustainable growth. During 2010, project in Yanbu, on the west coast, to produce Saudi Aramco’s research and development Research & Technology efforts paid off handsomely in 2010, with the unveiling of GigaPOWERS™, a second- generation version of its award-winning, state-of-the-art reservoir simulation technology. Company scientists also achieved impressive gains in nanotechnology with the successful injection of nano-agents into an observation well under live field conditions. Saudi Aramco’s Work began upstream research aims to spur recovery rates, Research during the the year on improve long-term management of reservoirs, a new Corporate Data lighten the company’s environmental footprint & Technology Center in Dhahran and increase resource conservation. The company deploys cutting-edge technology to increase production to optimum levels, improve operational efficiencies and enable better stewardship of resources. To provide data support for advanced exploration, producing, distribution and reservoir management, work began during the year on a new Corporate Data Below: Impressive technological advances marked Center in Dhahran. Saudi Aramco’s R&D achievements in 2010. Right: An aerial rendering of the King Abdullah Petroleum Studies And Research Center. •• GigaPOWERS — Saudi Aramco unveiled its unrivaled giga-cell reservoir simulation technology, GigaPOWERS. in January. GigaPOWERS is the second generation of Saudi the company’s leading reservoir simulator, Saudi Aramco Aramco Annual Review POWERS (Parallel Oil, Water and Gas Enhanced Annual Review 2010 2010 Reservoir Simulator), which simulates fluid 40 41 movement in reservoirs to optimize production, injection and management of the reservoirs. GigaPOWERS sets a new industry apex of being able to simulate giant fields at extremely high resolution, enabling far more precise analysis of reservoir properties than was previously possible. GigaPOWERS received two prestigious awards: “The Innovative Thinker Award” by World Oil and “Best Technology of the Year” at the Abu Dhabi International Petroleum Engineering Conference (ADIPEC).

•• Resbots — In 2010, Saudi Aramco achieved the industry’s first field test of reservoir nano-agents — a milestone for its Resbots™ (reservoir robots) program. In June, engineers of the Upstream organization’s Advanced Research Center demonstrated for the first time that specialized nano-agents can be injected and produced under live field conditions in an observation well. Three years ago, company Research technologists originated the concept of friendly fuels, Saudi Aramco in 2010 joined by fully integrating SAP with thousands of capacities have been migrated, reducing backup Research & Technology & Technology sending nano-sized detectors through the the Massachusetts Institute of Technology’s geographic land records. The new system time of critical applications by 30 percent. reservoir to gather in-situ data for enhanced Energy Initiative (MITI) as a sustaining member. allows remote monitoring of reservation lands reservoir mapping and characterization. That The five-year participation will support via satellite imagery and enables the company •• Plants in 3D — In its effort to find state-of- vision earned Saudi Aramco a 2008 World Oil MITEI’s research and development of new to more efficiently and effectively monitor and the-art solutions to serve its corporate clients, Award. Saudi Aramco has been leading the energy technologies and improve processing manage its land holdings, which are an asset the company announced the launch of 3D Plant industry ever since, developing the agents and techniques for cleaner fuels. essential to the Kingdom’s and company’s future. Visualization in July, as part of the Corporate demonstrating that they can be injected into Engineering Drawing Management System and later removed from reservoir carbonate •• Land issues — The Saudi Aramco land •• Data Center — The Corporate Data Center (iPlant). This new iPlant functionality will enable rock. Developers envision that Resbots will be reservation system encompasses over 85,000 is being constructed to meet the fast-growing, corporate users to visualize Saudi Aramco able to measure, report and interact with the km2, primarily in the Eastern and Central state-of-the-art computing requirements plants in three dimensions, with easy, efficient reservoir environment — to monitor and alter provinces. Managing and protecting this vast for advanced information technology (IT), and quick access to information related to reservoir properties to maximize oil recovery. area, which includes over 5,000 km of pipeline and exploration and petroleum engineering engineering drawings through the 3D model of rights-of-way, is a substantial challenge. In solutions. The project will construct the plant. This will enable faster, more effective •• Joining MIT — As part of its strategy to 2010, Saudi Aramco launched a world-class approximately 23,000 square meters (m2) of analysis of operations and safety issues. collaborate with the world’s leading institutions land-management system that leveraged the building structures, including 6,000 m2 of raised- and to develop more environmentally company’s expertise in SAP business systems floor computing area, 4,500 tons of cooling capacity, 12 MW of standby generator power, and 8 MW of uninterrupted power supply. It will also provide a new 115-kilovolt/30-megavolt- GigaPOWERS: Using brain- This type of work traditionally has been done ampheres substation building with associated power to manage precious by major vendors and universities, but the transmission lines. Completion is scheduled for resources CMTT believed it could be achieved in-house. 2011. In 2002, the team successfully simulated the The detailed simulation of the Kingdom’s entire Ghawar reservoir as one model. •• Improved IT efficiencies — The Information oil and gas fields is a critical tool in the Technology organization has adopted a Saudi management of the nation’s most precious The core team hasn’t changed since 1998, new model for building and delivering its Saudi Aramco Aramco Annual Review resources. The complex physical, chemical testament to the opportunities that Saudi applications services and infrastructure within Annual Review 2010 2010 and thermodynamic mathematical Aramco offers in this field and the cohesive Saudi Aramco based on “private cloud” 42 43 equations required to nature of the CMTT. The team has been computing. The new model utilizes technologies accurately describe grown, bringing on younger, less-experienced such as virtualization that enable efficient a hydrocarbon field specialists to ensure that the group’s utilization of computing resources while was previously limited knowledge, experience, motivation and increasing the speed of deploying applications by the processing professionalism are shared and passed on. solutions to business users. Some benefits are: power of the industry The company in 2010 launched an advanced version of GigaPOWERS, its industry-leading reservoir standard reservoir GigaPOWERS is an enormous team effort, ••• Computing capacity increased three-fold, characterization technology. simulators. However, and the work requires specialists with unique coupled with a 26 percent reduction in the Saudi Aramco’s skills. Everyone in the field comes from the number of physical servers. Computational Modeling Technology Team same background — computational math- (CMTT) has changed all that with the ematical modeling for petroleum engineering. ••• After consolidation and migration to the development of GigaPOWERS. It’s a small international community in which new virtualization technology, the average New iPlant functionality everyone knows one another. It makes recruit- response time of computing resources per will allow users to The GigaPOWERS journey began back in 1994 ment fairly straightforward and allows the business transaction has improved by up to 50 visualize company with a team of eight people, of which only team to choose people that will fit well within percent. plants in three three were reservoir simulator developers. the team. dimensions Progress was slow in the first four years, but ••• Data storage capacity has grown more than in 1998 a lean, streamlined team was formed. The team has built a new standard and 20 percent per year. New specialists were recruited, and the new has plenty of scope to go even further to team soon produced the first early version of increase GigaPOWERS already world-leading ••• With storage virtualization techniques, more the POWERS simulator. computational power. than 500 terrabytes (TB) of virtual-tape backup Research executives and technical staff responsible for Research & Technology & Technology the development of High Severity Fluid Catalytic Cracking (HS-FCC) technology. Representatives Hardier roads perform as hoped, research continued, even came from Japan’s Nippon Oil Corp., France’s with sulfur asphalt as interest worldwide declined due to rising Axens, U.S.-based Shaw Group and Saudi sulfur prices. Propylene yields Arabia’s King Fahd University of Petroleum and Saudi Aramco, in collaboration with the four times greater Minerals (KFUPM). With Saudi Aramco, these Ministry of Petroleum and Mineral Resources, In the past decade, international interest than conventional entities form a consortium working on the the Ministry of Transportation (MOT) and King in SEA has resurged. Recent presentations, FCC operations were technology. HS-FCC is a breakthrough in the Fahd University of Petroleum and Minerals made by Saudi Aramco employees and achieved refining and petrochemicals industry thanks to a (KFUPM), is leading an effort in the Kingdom KFUPM to an international sulfur consortium unique downflow FCC. The advanced technology to provide higher-quality and longer-durability group, The Sulfur Institute (TSI), demonstrated allows refineries to produce petrochemicals roads through the implementation of Sulfur encouraging results. TSI is now actively from heavy oils by converting refinery gas- Extended Asphalt (SEA) technology. promoting SEA to the United States Federal oils into products suitable for integrated Highway Administration and other channels. •• ECC environment capacity expansion — petrochemical processes. The configuration This technology will deliver improved Saudi Aramco approached the MOT in the To satisfy growing demand from Saudi Aramco’s produces more gasoline fuel at the same light properties of petroleum binder (asphalt mid-2000s concerning application of SEA in Upstream personnel for more computing olefin yields than a traditional reactor design. roads are typically 5 percent binder, and the Kingdom. At that time, the stockpile of resources, various solutions were implemented Propylene yields four times greater than the remainder is crushed rock). The SEA sulfur in the Kingdom was growing and the in 2010 by the EXPEC Computer Center (ECC). conventional FCC operations were achieved in technology will also increase the volume company was looking for ways to effectively ECC expanded its computer capacity by 47 pilot-plant studies. of asphalt available (due to the additional use sulfur. Following successful testing/ percent and online disk space by 27 percent. volume of sulfur blended into the binder) demonstration of test roads over a four-year ECC also expanded computer capabilities •• New sulfur applications — In 2010, Saudi to meet increasing period (2005-2009), the technology was of the reservoir simulation environment Aramco identified several key applications demand as the promoted more strongly. to accommodate GigaPOWERS users. The for sulfur in construction materials to reduce country’s economy largest single storage installation in Saudi demand for asphalt. The first achievement grows. In 2009, the MOT began considering applying Aramco’s history — 1.5 petabytes (1,500,000 is the development of an asphalt mix made SEA technology and is now pursuing an Saudi gigabytes) of high-performance storage — was with the company’s newly invented sulfur- Saudi Aramco Sulfur is a byproduct execution strategy and evaluating the Aramco Annual Review implemented in 2010 in support of exploration based asphalt modifiers. The new asphalt Annual Review 2010 of the processing or economics on a Kingdomwide basis. 2010 activities. mix, in terms of its resistance to deformation, 44 refining of natural Deployment of the technology will help meet 45 outperformed existing mixes made with gas and crude oil. the Kingdom’s asphalt demand by expanding •• HS-FCC success — Collaborating with internationally marketed modifiers. In Seventy-five percent of the sulfur produced the volume of asphalt by as much as 15,000 industry leaders is a key focus of Saudi addition, to reduce demand for asphalt and in-Kingdom is derived from gas, 25 percent to 20,000 barrels per day due to added sulfur Aramco, including hosting a two-day New prolong the life of asphalt pavements, Saudi from oil. volume. Business Development Forum for international Aramco, in collaboration with the Ministry of Transport, in 2010 concluded a five-year sulfur SEA Technology was first applied Hundreds of roads have been constructed asphalt performance evaluation program, internationally in the 70s when sulfur prices using SEA technology since the 70s in which demonstrated that the performance were relatively low and oil prices were countries such as the U.S., Canada and China, of “elemental sulfur asphalt” is comparable relatively high. Worldwide, a significant including in areas of extreme heat and cold. to “polymer-modified asphalt.” The company number of roads, airports and other The technology exceeds the performance of also developed a sulfur-concrete mix that pavement structures were constructed and conventional asphalt and is more economical. reduces water consumption, CO emissions and 2 sulfur-asphalt technology developments were Saudi Aramco recently mandated that conventional cement demand. When deployed, made during this time. all company-built asphalt roads will be the results of these innovative ideas will reduce constructed using SEA technology. This year, demand on asphalt, defer capital investment In the late 70s, research was begun in- the company will construct and demonstrate and add value to sulfur. Saudi Aramco has Kingdom (KFUPM and Gulf Canada) and its first SEA road — an 8.4-km, four-lane, mandated that all company-built asphalt roads three test-road sections were constructed heavy-load road at Wasea Bulk Plant — and use sulfur applications, and the first such road in the Eastern Province (Kuwait diversion, it has established a multi-departmental team using this material will be constructed and Abu-Hadriyah Expressway, and KFUPM Test that plans to help MOT deploy the technology demonstrated in 2011. Road 3). Although the three sections did not on a Kingdom-wide basis. Research •• Membrane separation technology — As technologies. In areas where water is scarce, Research & Technology & Technology a demonstration of the company’s commitment the system allows for the inexpensive reuse of to investing for the future, 2010 marked the wastewater, thus conserving groundwater and largest funding ever in our Research and reducing dependence on costly desalinated Development Center programs. To upgrade water. In areas where discharges must meet sub-quality natural gas fields, the company strict environmental requirements, the system is conducting, at Shedgum Gas Plant, trials can provide the treatment necessary for of membrane separation technology for compliance. Since it provides the same removal the first time to study cost-effective means capacity as much more energy-intensive to upgrade sales-gas quality by removing technologies, it qualifies as a green technology. nitrogen and acid-gas contaminants using advanced membrane technology. Once the pilot •• Oil fingerprinting: The R&DC has built program has validated the technology, it will a unique instrument designed to identify be deployed, with potential for significant cost oil with lasers, providing instantaneous savings to the company. analysis for crude oil identification, oil product contamination, oil spill identification, •• Oil-gas separation in 3D — A breakthrough deterioration in oils (such as transformer or was made in 2010 when the Research & lube oils) and spot checks on exports to prevent Development Center completed an important illegal cross-border transportation. The laser is step toward improving future GOSP design and used to excite the fluorescence spectra of oil understanding of three-phase flow, when it within extremely short time frames — two to successfully achieved the world’s first three- five nanoseconds. All the fluorescence data dimensional computer simulation of oil-water- is coalesced, and two-dimensional diagrams gas mixture flows inside a full-size GOSP vessel are produced, which serve as oil spectral using Computational Fluid Dynamics. A further fingerprints for identifying types of oil. breakthrough was achieved by the installation Saudi of an online salt-in-crude analyzer — an Saudi Aramco Aramco Annual Review industry first and designed in-house — providing Annual Review 2010 2010 46 continuous and unmanned online analysis. 47 The project, which began in 2009 and was completed in 2010, helps assure that company products meet salt-content specifications. Left: A corridor in our R&D Center. Below: The company is studying wind- and solar-generated power applications. •• EcoRightTM MBR — A new wastewater treatment technology developed by the Environmental Protection Department that inexpensively treats oily or industrial wastewater is being commercialized as EcoRightTM MBR (membrane biological reactor). The innovation uses granular activated carbon in a modified MBR. Saudi Aramco developed the base idea and then teamed with Siemens Water Technologies to synthesize the idea into a commercial product. Five patents have been submitted and are pending on the central idea and associated technologies. The EcoRight process, applicable throughout Saudi Aramco, removes a high concentration of organic materials in wastewater, with lower operating and capital costs compared to existing Venture Coordination. The agreement allows Transportation & Distribution for approximately 3.8 million barrels of Arabian crude oil to be stored initially at the facilities, with the option of expanding storage in the future. The first shipment was delivered on February 23, 2011, and the first export Saudi Aramco’s shipment, 700,000 barrels to a Korean term shipping subsidiary, customer, sailed from Okinawa on March 8. Transportation & Vela, celebrated its 25th anniversary in •• Marketing in China — Formed in tandem Distribution 2010 with FRPC, our refining venture in China, the Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC), has exclusive rights to market all FRPC gasoline and diesel production in the Fujian Province market and additional rights to market excess gasoline and diesel products outside Saudi Aramco subsidiary Vela International the province. Marketing of refined products Marine Limited turned 25 years old in by SSPC commenced before the FRPC project Below: In 2010, Saudi Aramco upgraded its fleet of 2010, celebrating a successful quarter century was completed, and by year-end 2010, SSPC fixed-wing aircraft and helicopters. of reliably distributing the company’s crude oil was marketing up to 110,000 bpd of gasoline Above: An employee tracks distribution of crude oil and products. and products to customers around the world. and diesel in the Fujian market — a 72 percent Saudi Aramco also expanded its global reach market share in region that is home to 36 by officially inaugurating a subsidiary office million people — through its network of 777 that informally opened the year before in New retail stations and 14 product terminals. Delhi, India; modernized its aviation fleet; and increased the length and reliability of its •• Air, land and sea — Saudi massive pipeline network. ••• Vela 25th anniversary: In 2010, Vela Saudi Aramco Aramco Annual Review celebrated 25 years of operation by taking Annual Review 2010 2010 •• Okinawa storage — On December 14, the 48 delivery of the final four of 14 new double- 49 Tank Lease Agreement and the Throughput hulled very large crude carriers (VLCCs) built Agreement between Saudi Aramco and Japan in the past decade to replace its single-hulled Oil, Gas and Metals National Corp. (JOGMEC) fleet. The new tankers are the Antares Star, were signed by both parties in Dhahran, for Virgo Star, Matar Star, and Homam Star. the storage of Arabian crude oil at Japan’s Formed in September 1984 to provide marine Okinawa storage facilities. The signing of transportation for Saudi Aramco crude oil, Vela agreements follows Saudi Aramco’s agreement today operates 19 seagoing vessels worldwide. earlier in June with Japan’s Agency for Natural Vela also disposed of five older single-hull Resources and Energy for a joint project to VLCCs during the year and two more early in use crude oil storage facilities in Okinawa. The 2011, leaving just one single-hull vessel in the project will secure storage for Arabian crude fleet. Domestically, Vela moved approximately oil in Japan and is expected also to further 220 million barrels of product, approximately strengthen the company’s commitment in the 600,000 bpd, via 693 separate voyages on 34 fast-growing Asian market, by having readily different vessels; internationally, the shipper available crude oil supplies for its commercial moved approximately 500 million barrels of customers in the East. “This agreement further crude, or approximately 1.4 million bpd, in 243 underlines our long-standing relationship voyages on 80 vessels. and commitment to be a reliable long-term supplier to our customers in the wider Asia ••• New Heavy Lift Barge-ARB-3: The new region,” said Dawood M. Al-Dawood, vice four-legged, self-elevating, heavy-lift crane president of Marketing, Supply and Joint barge ARB-3, constructed at Jurong Shipyard Transportation in Singapore and rare in the market, was ••• Aviation fleet replacement: The last contractor trucks with Saudi Aramco as well as Transportation & Distribution & Distribution delivered to Saudi Aramco in October. The three of nine new Agusta AW139 helicopters for government regulations mandating strict control The last three barge hull is 110 meters long, 42.5 meters the Phase 2 fleet replacement program arrived over petroleum product transportation. FMS of nine new Agusta wide and 9 meters deep. The heavy-lift crane in May at Ras Tanura airstrip. These replaced devices were installed voluntarily by relevant AW139 helicopters barge was designed for operations in depths Aviation’s Bell Helicopter aircraft. In 2010, the truck drivers in 2010. The company developed arrived in May at Ras from 5 meters to 60 meters in the Arabian Gulf. company also received three Embraer ERJ 170 new FMS technical specifications to help truck Tanura airstrip Climate-controlled offshore accommodation is LR jets to replace Dash-8 aircraft, and two new drivers and customers standardize their new provided for a total complement of 124 persons Beechcraft King Air 350CER aircraft, replacing devices. in a five-tier superstructure on the main deck. Twin Otter (DHC-6) planes. These replacements Some of the barge functions include recovery are part of a program starting in 2010 to ••• Truck standards: As part of our efforts and repair of subsea pipelines and cables, modernize the company aircraft fleet and make to pursue safe tanker-truck operations inside it more efficient, effective and safe. and outside company facilities, Saudi Aramco worked with the Saudi Arabian Standards ••• Fleet Management System: As part of the Organization to revalidate the Tank Truck Design efforts to monitor and control the movement standard as well as to develop and approve of fuel- and product-distribution trucks, Saudi the new Tank Truck Inspection and Periodic Aramco has implemented a strategy to install a Maintenance Standards. These standards will be Fleet Management System (FMS) on each truck enforced through a new truck integrity program to enhance safety. The implementation strategy that is being developed in collaboration with calls initially for compliance of distribution- the Inspection Department.

Vela expands fleet with mandating the phase-out by 2015 of single- four new double-hulled hulled tankers, which are more vulnerable to

Saudi tankers oil-spill incidents. Saudi Aramco Aramco Annual Review Annual Review 2010 Saudi Aramco’s shipping affiliate, Vela Measuring more than 300 meters long — 2010 50 51 International Marine Limited, took delivery of about the length of three American football Mechanics repair one maintenance support, plant test and inspection, four new very-large crude carriers (VLCCs) in fields or three soccer pitches — and weighing of Saudi Aramco’s helicopters, which ferry diving support, structural repairs and platform 2010 from South Korean shipbuilder Daewoo approximately 45,000 tons without cargo, a employees to job sites installations. Shipbuilding & Marine Engineering, bringing single VLCC costs more than a $100 million to and handle other key its doubled-hulled VLCC fleet to 14. design and build, and is able to haul precious tasks. ••• Heavy equipment modernization: As Saudi Aramco crude oil from Saudi Arabia to part of Saudi Aramco’s fleet modernization plan The new arrivals countries around theworld, for up to a quarter for aging heavy equipment, the Equipment concluded an ambitious of a century. Services Department received 28 locally rented decade-long program all-terrain cranes procured under a long- to replace 15 single- In addition to shipping Saudi Aramco crude term lease contract instead of owning. These hulled VLCCs, built in oil to international customers, Vela is also state-of-the-art cranes, with increased ground the 1990s, with 14 involved in time- and spot-chartering, clearance for greater mobility on rough terrain double-hulled crude successfully competing in that global surfaces as well as on paved areas, will replace carriers. In addition marketplace, especially in Asia and India. rough-terrain cranes that have been in service to the new tankers for more than 25 years. delivered in 2010, Vela took delivery of four Supplementing its VLCC fleet, Vela also owns VLCCs during 2001-2003, built by Hyundai and operates five product carriers (four Heavy Industries in Ulsan, South Korea; medium-range tankers and one Aframax, a and another six from 2007-2009, built by small tanker with less than 120,000 metric Daewoo. The proactive move was in line tons deadweight capacity). with international environmental regulations Transportation steel pipeline, 24 km of subsea pipeline and Transportation & Distribution & Distribution 57 km of replacement utility-water pipes in company communities, as well as to downhole and in-plant piping and valves. Nonmetallic products have proven to lower lifecycle costs more than 25 percent compared to carbon steel, plus improve corrosion resistance and ease of construction. Saudi Aramco has led development of an international certification/ qualification program for nonmetallic piping installers.

••• Pipeline flow-rate increases: To meet anticipated product demand growth in the Eastern and Central regions and reduce potential hauling costs (and traffic-accident risks) as well as maintain optimum SSSP-1 and SSSP-3 product operation allowed accommodation of more inventories, flow rates of the two pipelines ships. The simultaneous mooring optimized from Ras Tanura to the Dhahran Bulk Plant and operations and helped ensure a continuous from Dhahran to Riyadh were increased by supply of refined products. operating the existing shipper pumps in parallel.

A new Vela supertanker This action increased maximum flow rates to is launched in Seoul, •• Pipelines — Dhahran by nearly 11 percent, to 260,000 bpd, Korea. ••• Nonmetallic program: To better control and to Riyadh by 30 percent, also to 260,000 corrosion, promote conversion of oil to bpd. petrochemicals and improve the supply chain,

Saudi ••• Driver Simulator Program: The ••• New kerosene additive systems: The Saudi Aramco in 2010 launched a strategic ••• Shedgum-Yanbu’ pipeline Phase II: As Saudi Aramco Aramco Annual Review Transportation Department introduced a Driver company completed commissioning of kerosene program to expand the use of nonmetallic part of Saudi Aramco’s continuous efforts to Annual Review 2010 materials in its pipelines, infrastructure and 2010 52 Simulator Program in the first quarter of 2010. chemical additive systems at Medina and Abha meet increasing ethane and NGL demand on 53 The main objective was to evaluate and train bulk plants in 2010 to produce Jet A-1 and other applications in operating facilities. During the west coast, the East-West NGL Pipeline’s drivers of heavy vehicles (tractors and buses) JP8 fuels for commercial and military aircraft, the year, the company applied nonmetallic Shedgum-to-Yanbu’ (SHY-1) line capacity is in defensive driving behaviors, and to enhance respectively. The initiative diversified the jet- products to more than 4 km of hydrocarbon being increased from 425,000 bpd to 585,000 their overall awareness. In 2010, 180 drivers fuel supply network in the Western Region by pipeline, 2.17 km of high-pressure water bpd maximum sustained production capacity. completed this program. The simulator program making use of an existing asset that will also pipeline, 9.49 km of thermoplastic-lined carbon- This will be achieved by installing a fifth NGL features driving scenarios in Arabic, English and support the kerosene inventory turnover of shipper pump and a pipeline loop. Facilities Urdu with different driving conditions; recording Saudi Strategic Storage Project sites SSSP-6 and under construction include stabilized crude, of driving parameters and mistakes; and SSSP-7. It also enhanced logistics and minimized NGL, sour-gas and fuel-gas pipelines to support feedback reports. truck clustering at specific supply nodes, the increased production capacity target. improving traffic control and safety, and will Construction is well underway, and completion •• Bulk Plants — provide a back-up to ease response to demand is forecast in 2011. ••• Bulk Plant benchmarking study: To escalation when needed. measure and improve distribution efficiency and performance, the company collaborated ••• Operating Two SPMs at Jazan Terminal: with an international consultant to conduct a To overcome the high demand at the benchmarking study for all its 21 bulk plants company’s southwestern bulk plants and to At left: The”Big Board” at Saudi Aramco tracks to provide a comparative analysis against avoid depletion of SSSP products, two single- the movement all the 70 similar plants worldwide. The study was point mooring (SPM) berths were operated company’s oil and gas completed in October 2010 and will be used in simultaneously at Jazan Terminal. One berth production. Top: A new pipeline is laid in the a manpower optimization study to streamline was dedicated to offloading gasoline and the desert. operations and reduce costs. other for diesel oil discharge operations. This ••• RT Leadership Center: Instilling the Human Resources company’s values is the core mission of the new three-story Corporate Human Resources Development Center in Ras Tanura, known as the Leadership Center, which was inaugurated on September 29 to meet the company’s future demand for leadership, and supervisory and professional training. As the company faces Saudi Aramco new challenges, it is critical for Saudi Aramco continues to operate to produce and support emerging and enduring Human one of the world’s leaders through succession planning, employee largest industrial training retention, increasing global interconnectedness, Resources and human-resource a highly globalized and mobile employee base, development programs changing workplace demands and continuously evolving skill sets. The Leadership Center was built to respond directly to these needs. The, 7,500-square-meter building contains 22 classrooms, two 100-person multipurpose rooms, two computer labs to support state- Spotlighting the longstanding and critical of-the-art technologies in leadership and

Below: The College Development Program is importance that Saudi Aramco places on professional development, a 400-seat developing young Saudi women for company human-resource development, the company in auditorium and a 250-seat multipurpose room. positions. Top: The new Upstream Professional 2010 inaugurated three major HR complexes: Training at the facility focuses on four main Development Center. the Upstream Professional Development Center areas: learning, behavior and organizational and the Human Resource Service Center, in change, and improved business line Dhahran, and the Leadership Center in Ras performance. Saudi Tanura. In addition, some 3,500 employees Saudi Aramco Aramco Annual Review will be located in the new 13-story North ••• North Park Office Complex: The North Annual Review 2010 2010 54 Park Office Complex when it opens in Dhahran Park Office Complex, named Al-Midra Tower, will 55 in 2011. Saudi Aramco continues to operate contain 3,500 offices and work stations to replace one of the world’s largest industrial training the East and North administration buildings in and human-resource development programs, Dhahran’s Core Area. The project includes a testament to the company’s core belief that 13-story office complex, 500-seat auditorium, employees are its most valuable resource. community center, access roads, utilities and communications. Occupancy is planned for 2011. •• Projects — The company plans to seek “Silver Certification” ••• Upstream Professional Development of the project from Leadership and Environmental Center: The 12,980 m2 Upstream Professional Design, an internationally recognized green- Development Center, completed in November, is building certification organization. The building designed to prepare Saudi Aramco’s exploration will monitor indoor air quality and enable fresh and development work force to succeed in a air intake to be tailored to the building’s needs; changing world and a challenging upstream reflective low-emission window glass, in tandem environment, and to effectively and efficiently with building insulation, will provide thermal close the knowledge gap that exists between control; and sunshades over the complex’s retiring professionals and the large influx of new 4,500 parking spaces will double as solar panels employees. The center can provide training to supplying 10 MW of power to the buildings. In 550 upstream professionals per day. It includes addition, a destination-focused control-dispatcher 18 high-tech lecture theaters and program system will ensure that Al-Midra Tower’s 16 rooms, eight team rooms, two display rooms, a elevators make the fewest stops possible, thus library and other facilities. saving energy. Human •• Intellectual Capital and Development of Human Resources Right: The new Resources a World Class Work Force — Upstream Professional ••• Intellectual Capital: The company is Development Center The company launched in Dhahran. Opposite: focused on capturing expert knowledge a new approach to Female technicians (intellectual capital) from employees before work in a company mentoring professional research lab. employees they leave the company, optimizing use of existing knowledge within the company, and making subject-expert knowledge readily accessible to those personnel who need it to perform their work. These efforts, along with ••• Al-Hasa Training Center: Thousands of others, will contribute to the development of young Saudis will be learning the skills needed competent and effective personnel who will be for careers in the oil, gas and petrochemical empowered with the knowledge they need. industries at a new national training center being developed in the Eastern Province region ••• New mentoring approach: The of al-Hasa, and Saudi Aramco is playing a key company in 2010 launched a new approach to role in its creation and development. The center mentoring professional employees: the Project is scheduled to be fully operational in 2014. Management Mentoring Pilot Program. In the The company recently signed a Memorandum program, mentors and mentees work together of Understanding with the National Industrial to create the necessary goals for the mentees Toastmasters thrives at public speaking and leaderships skills — skills Training Institute (NITI), a joint project between to develop their professional growth in Saudi Saudi Aramco that are equally valuable on the job and off. Saudi Aramco and the Technical and Vocational Aramco, and it will equip mentors and mentees Training Corp. (TVTC). NITI will be a legally with key skills for developing a productive Few human activities provoke as much “This is a big company filled with very smart independent, not-for-profit training entity solely mentoring relationship. primal fear as public speaking, which is people, younger and older, from all sorts of controlled by its own board of trustees and why Toastmasters International (TMI) today backgrounds. They have important ideas, but, chaired by Saudi Aramco. The new private/ ••• Recruitment campaigns: In 2010, the boasts 12,800 clubs and more than 260,000 because of culture and personality they can’t public partnership will address a community Saudi company participated in a number of in- members worldwide. Fifteen of those clubs, always get those ideas across, ”says Abdullah Saudi Aramco need for a world-class industrial training Aramco Annual Review Kingdom and out-of-Kingdom recruitment totaling nearly 500 members, currently A. Harthi, TMI Division F governor and senior Annual Review 2010 program to develop a trained and skilled Saudi 2010 campaigns, including participation in major operate within Saudi supervisor for area maintenance for Saudi 56 57 work force, reduce unemployment and support events to promote the company’s education Aramco, and the Aramco’s Yanbu’ Crude Terminal Maintenance the Kingdom’s Saudization goals. sponsorship programs. company has been a Section. “Toastmasters gives them tools to moving force behind make themselves heard in effective, positive •• Training and development — Saudi development of ways.” Aramco operates a wide array of programs Toastmasters-chartered that train employees from entry-level trainees, clubs all over the The level playing field of Toastmasters to mid-career professionals, to seasoned Kingdom and the meetings allows every member equal specialists. Among the key programs are the Arabian Gulf region. opportunities to progress as far as they want. College Degree Program for Non-Employees Besides improving skill-sets on the job, many (CDPNE), the Apprenticeship Program for The first Toastmasters Club in Saudi Arabia, an Saudi Aramco employees have used the skills Non-Employees (APNE) and the Regular English-speaking group, was founded in 1978 they’ve learned at club meetings to compete Development Program (RDP). In addition to by Aramco employees, and the first Arabic- and win local, regional and international TMI these programs, the company executed a language club — the Okadh Toastmasters Club competitions. number of initiatives in 2010 that improve the — was chartered by a Saudi Aramco group in quality of employee training. 2007. The company’s success in starting and Local Toastmasters clubs also sponsor public maintaining active Toastmasters clubs over speaking education programs for middle and ••• CDPNE: For more than five decades, Saudi many years has been an effective catalyst to high school students during school breaks. Aramco has sponsored selected students the formation of non-Aramco clubs throughout Advanced club members run the programs through the CDPNE to study in more than 500 the region. The clubs make a dramatic to help children get a head start on skills that universities at home and in major industrialized difference in the lives of members by helping will serve them throughout their lives. countries all over the world. This year’s 1,757 them sharply improve their communication, Human participants, with 1,296 studying out-of- Human Resources Resources Kingdom, is the largest CDPNE group in the past five years. The participants studying Employees • Initiated an Open Source Open Day to out of Kingdom are not only developing start national IT club popularize open-source applications utilization their knowledge and skill sets, they are and development (three Saudi universities strengthening our international business In the beginning of 2004, Awadh M. Qufaili hosted the day on their campuses in Dhahran, relations and serving to improve understanding and a few friends from Saudi Aramco began Riyadh and Jiddah). Open-source software is between cultures. doing volunteer information-technology (IT) generally free to anyone, without copyright training in the Dhahran and nearby al-Khobar limitations, allowing users to study, change or ••• RDP: The company contributed to the communities, trying to spread IT knowledge improve it. development of regular professional employees and practical skills to regular people. • Succeeded in having Saudi Arabia officially through advanced degree programs, specialist certified as an expansion initiative of AIESEC, programs and short- and long-term work By the following year, Association Internationale des Étudiants en assignments in and out of Kingdom. By year- the sharply increasing Sciences Économiques et Commerciales. end, 453 employees were enrolled in these demands from the AIESEC is the world’s largest student-driven programs, the highest number in the past five community for the organization whose aim is to encourage years. group’s expertise and young people to discover and develop their hands-on training potential so they can positively impact society. ••• APNE: Saudi Aramco continued to train indicated that the Currently, AIESEC has 50,000 members in more Saudi high school graduates in its APNE organization needed than 1,600 universities. program. In 2010, the year-end level in all a more formal identity and more financial • Conducted more than 120 training sessions, training centers reached approximately 4,460 resources to continue spreading the IT canon, courses and workshops. trainees. The program was restructured to much less expand activities, said Qufaili, produce well-rounded graduates equipped a telecommunications employee in the Qufaili, the club’s founder and chairman, said with the necessary skills to meet future Communications Operations Department. he and the board have ambitious plans: “We job demands. The program now includes a hope to expand in the Kingdom and to have Saudi non-academic co-curricular program of six Saudi Aramco After two years of effort trying to secure more partnerships with more technology The company strongly Aramco Annual Review and consistently modules covering key skills in the areas of life, Annual Review 2010 support, the group in 2007 enlisted the companies and organizations, and to be one 2010 supports self- communication, studying, thinking, community 58 sponsorship of the Prince Mohammad bin Fahd of the most distinctive and professional non- 59 development in its service and lifelong learning. bin Abdulaziz Program for Youth Development profit organizations in the world. Moreover, we quest to develop a (PMPYD), which was impressed by the group’s want to recruit more professional members to knowledge culture. ••• Knowledge Transfer: In 2010, the vision to create a nonprofit organization to support and help fulfill our mission.” company expanded its Knowledge Transfer spread IT information and skills among Saudi (KT) Program, targeting seven critical industrial communities across the Kingdom. IT Club affiliates are now active on both coasts jobs: process control systems technicians, in the Kingdom (Dhahran and Jiddah) and in maintenance electricians, maintenance Since then, the IT Club (www.saudiitc.com), as Riyadh in the interior. machinists, metals mechanics, oil/gas it now calls itself: At year-end 2010, operators, lab technicians and field service • Created a summer youth camp (the “The IT Club idea is new and attractive for about 4,460 trainees operators. At year-end, 122 line organization Technology Generation Program), which was people at different ages who like technology,” were enrolled in all KT specialists were working full time within held for the third year in the summer of 2010. Qufaili said. “The voluntary work environment, Saudi Aramco training their respective organizations, to the benefit • Developed an e-Government Services and the organizational proficiency of the team, centers. of approximately 5,200 employees across 20 Program called Tawwer, using Microsoft helped attract new members to participate in departments. Windows/Office, training 480 Saudi the Club activities.” government workers with Saudi Aramco ••• Saudi Aramco Professional IT employees’ support, and has signed The club’s management structure has different Development Academy (SAPDA): A a memorandum of cooperation with groups, under the board, responsible for new corporate program for students in the Microsoft and General Electric to support IT different activities. Planning is approved by Professional Development Program (PDP) was development in Saudi society using different the chairman, and coordination is handled by launched in 2010. The seven-week SAPDA Microsoft applications. each group as per its needs. program includes workshops, guest speakers, Human granted since the introduction of the Intellectual Resources Our world-class work Assets Management system, indicating that all force represents those ideas needed was harvesting. Patents nearly 70 different nationalities. were awarded in 2010 for a wide variety of innovations, including a system to turn previously unusable wastewater into usable water, technology to analyze oil reservoirs to predict future production, and an improved technology that allows characterization of oil reservoirs at the highest resolution in the More than 1,000 Saudi industry. Aramco employees earned international certifications •• Technical development — More than in 2010 1,000 Saudi Aramco employees in 56 professional categories earned international certifications in 2010. Also during the year, several new engineering professional site visits and other activities designed to certifications were introduced in Saudi Arabia, •• Medical training — Clinical training and develop the potential of academy participants a significant milestone. Approximately 100 technical assignments for Saudi Aramco Medical and inspire them to be part of the continuous company professionals received certification Services Organization (SAMSO) medical and success of Saudi Aramco and the wider under the Fundamentals of Engineering nursing staff with leading medical universities community. The cornerstones of the program Certification exam, formerly known as Engineer- and teaching hospitals in Australia will be are workshops on safety, leadership, business In Training, and another 35 professionals were encouraged under a cluster of agreements communication and volunteerism. In 2010, certified internationally in the American Society and memoranda signed by affiliate Aramco 89 PDPs graduated from the first two SAPDA of Materials, Failure Analysis Certification, Overseas Company B.V. (AOC). AOC signed start-ups. Maintenance Reliability Professional Certification memoranda of understanding with health Saudi and Fire Protection Professional Certification. institutions in Australia and New Zealand, Saudi Aramco Aramco Annual Review ••• Women in Business: Also in 2010, a new building on existing ties. Collaborative programs Annual Review 2010 2010 Women in Business program was successfully are planned at the University of Western 60 •• Asia Business and Culture Program — A 61 launched. This workshop focuses on how Saudi number of Saudi Aramco senior management Sydney, Australia, to train SAMSO nurses women can be successful in the corporate and other executives participated in October recruited from Saudi high schools; Monash workplace, and includes a variety of class in a weeklong tour of Asia as part of the University in Melbourne, Australia, to cooperate discussions, brainstorming and other activities company’s Asia Business and Culture Program. in the development and training of SAMSO to give women the motivation and tools to The program exposes Saudi Aramco leaders doctors, nurses and paramedics; and Eastern excel in the Saudi Aramco workplace. In 2010, to Asian culture and the region’s way of doing Health Group, of Melbourne, to train doctors approximately 50 women completed this business. October’s trip included visits to in emergency medicine to meet anticipated program. four key cities: Seoul, Shanghai, Beijing and SAMSO demand for qualified professionals in Tokyo. Participants attended presentations on the next 10-15 years. ••• 100 Patents: The company on November various cultural and business topics, and met 24 celebrated its 100th patent, which was with customers to learn about their business •• ECC Help Desk certified — Saudi Aramco’s granted in March, although more than 25 portfolios and exchange views. EXPEC Computer Center (ECC) has achieved its additional patents were subsequently granted, fourth Help Desk Institute (HDI) Support Center heralding a period of innovation in the company Certification. According to HDI, the ECC center like none before. Although Saudi Aramco is the first in the world to be recertified by employees have been producing patents since HDI three consecutive times. HDI is a global 1950 — the first was granted to Edward Van association for IT service and technical support Dornick’s oil and gas separator — it wasn’t professionals, and is the premier certification until 2000 that a process was put in place to body for the industry. support that quest. In fact, 110 of the 125 patents granted to Saudi Aramco have been Saferty & A safety culture infuses Health the company, and our medical facilities are second to none.

Safety & Health Health care for employees is better than ever at Saudi Aramco, with improved and expanded services; fire protection services also approved substantially in 2010 for employees and their dependents, and for company facilities; and safety and wellness programs grew.

•• Medical Services — The Saudi Aramco Medical Services Organization (SAMSO) continued to provide world-class health care A comprehensive fire-fighting training for employees and their dependents in 2010, facility helps protect upgrading systems and services. SAMSO’s employees and facilities health-care facilities continue to be fully from fire risks. accredited by the respected Joint Commission International hospital accreditation organization.

Saudi ••• Cancer screenings: In a multi-year effort to Saudi Aramco Aramco Annual Review achieve best-practice standards, we are increas- Annual Review 2010 2010 ing the screening rate for breast and cervical ••• Bariatric surgery increase: Morbid obesity 62 63 cancers to promote earlier detection and more is a serious condition that substantially increases effective treatment of cancer cases; patients the risk of diseases such as cardiovascular who test negative derive significant comfort in disease, diabetes and cancer, among others. the knowledge that they are cancer free. Thus, SAMSO expanded the bariatric surgery program for morbidly obese patients where diet and exercise were not viable alternatives. This lifesaving and life-enhancing surgery was performed on approximately 125 SAMSO patients in 2010.

••• Reduced hospital stays: Our physician The average hospital and nursing teams have made great progress stay at company medical in managing hospital admissions and optimum facilities has been reduced hospital-stay lengths. We have reduced the from 5.7 to 4.9 days, average stay from 5.7 to 4.9 days. This has creating more open beds had the effect of creating more open beds, significantly reducing the number of patients transferred from SAMSO to our network providers, and reducing our expenses, while simultaneously increasing both patient and staff satisfaction. Saferty & ••• Emergency response: Supporting the levels — lost-time incidents, down 16 percent; Saferty & Health Health expansion of the oil-and-gas business by off-job disabling injuries, down 40 percent; improving emergency disaster response is a motor vehicle incidents, down 13 percent; The highest honor and “I used to visit an old blind lady every day to top safety priority; as a result new paramedic total recordable injuries, down 27 percent. a blessing feed her and, at her request, read her passages units have been established at satellite clinics These significant results were accomplished from the Qur’an,” she said. “It was sheer joy in remote Haradh and Hawiyah. by conducting several, wide-ranging training One day in 1980, when Wasimah Nawwab to see her as she raised her hands in prayer workshops throughout the organization that Saudi was visiting the sick daughter of a friend in for me. She always called me, ‘Wasimah, my •• Safety workshops — The company offered enhance safety awareness and knowledge. Aramco’s the children’s ward at Saudi Aramco hospital daughter.’ I felt I was in heaven.” its World-Class Safety Workshop to more Safety awareness also has been raised by fire in Dhahran, she noticed a lot of untouched than 700 operations supervisors in 2010, monthly monitoring of leading and lagging prevention food trays. One of the most rewarding volunteer projects providing them with tools to elevate the safety indicators at the departmental level program is Wasimah recalls is when she worked with safety performance in their operating areas to through the E&P Safety Dashboard. Dashboard accredited “I contacted the nurse in charge and told a 9-year-old girl with third-degree burns, advanced levels. Since it was first introduced information captures 12-month moving by the her that I wanted to visit some of those sick reading her stories and feeding her during her in 2007, a total of 252 sessions have been averages of normalized incident rates. This International children every day before lunch in order to recovery. “Her condition was really tragic,” offered to nearly 2,800 supervisory personnel. approach removes noise effects of real-time Board on feed them and read interesting stories to Wasimah said, noting that the girl was also In addition, a number of specialized safety information and accounts for variations in Fire Service them,” said Wasimah, the wife of a former refusing to take medications. Eventually, with courses were offered to employees through man-hours and population while allowing for Professional Aramco employee. “So, I started doing this. kindness and perseverance, Wasimah was able both classroom training and e-Learning in continuous monitoring. Qualification Later, I also began visiting some of the bed- to achieve what the nurses said they had not, areas such as incident investigation and root (Pro Board) ridden elderly female patients who were in and the little girl began to accept medications. cause analysis, process hazard analysis, and •• Fire/emergency training — Fire and need of service and comforting words.” “And the nurses said the girl’s health had also hazard and operability studies. Sessions of the emergency training at Saudi Aramco reached a improved remarkably,” Safety Leadership Workshop were offered to 20 new level when the Fire Protection Department she said. “A feeling new managers and 42 division heads to help was awarded accreditation by the International of joy and gratitude them properly implement the corporate safety Board on Fire Service Professional Qualifications overwhelmed me management system. (Pro Board). The certified training provided by when I heard this.” FrPD is required to meet international standards Saudi •• Upstream safety — Our Upstream for proficiency and produces a better educated Saudi Aramco Currently, the SAMSO Aramco Annual Review organization continues to make significant and more highly skilled firefighter. This Annual Review 2010 program has more 2010 64 progress with its focus on safety. Incident translates into a safer company and community. 65 than 100 volunteers rates have fallen dramatically from 2009 involved from many of the 70 nationalities represented in the Fire-prevention training begins with Saudi Aramco company, a few of youths. Two years later, the Medical Department the hundreds who have volunteered over (now named the Saudi Aramco Medical the years. “The SAMSO volunteer program Services Organizaton, SAMSO) began a formal has set the gold standard in the Kingdom for but fledgling volunteer program. Wasimah such projects,” Wasimah said. “It pioneered has volunteered in the program since — for this program in 1982 within the company and 30 years — and is the longest continuously then extended it to other Saudi communities serving, still active volunteer in the program. in the Eastern Province and elsewhere in “I don’t plan to ever stop volunteering as Saudi Arabia. Saudi Aramco can be proud of long as my health holds up,” Wasimah said. its achievements in this area.” “The more I serve, the more happy I feel. Program activities include playrooms for My motto for serving all is the saying of the children at hospitals; delivering books, Prophet Muhammad, ‘The best people are newspapers, magazines and gift items to those who benefit others the most,’” though patients; conducting annual breast-cancer it often feels to her as though she receives far awareness campaigns; caring for cancer in- more than she gives. patients; and assisting with outreach programs at Saudi hospitals in local communities. Saferty & Saferty & Health Health In 2010, a new Industrial Security Center was built in Dhahran, opening in May

At left: Fire and emergency-response drills are regularly 55,000 reasons His main message is really two messages: conducted throughout to feel safer “Your life is precious; save it” and “Your family the company. Below: A company firefighter is waiting for you; drive defensively.” pushes his limits in Saudi Aramco employee Mohammad T. a physical fitness Al-Hazazi’s superiors estimate that he has Al-Hazazi said sometimes there are clear competition. “inspired more than 55,000 people Kingdom- victories for safety. About a month after giving wide with an emotional presentation titled a presentation at a Saudi school, he said, one ‘Reckless Driving,’” including 50,000 in the of the students who heard his presentation •• Loss Prevention — In 2010, the Loss evaluation teams successfully prequalified company’s summer program alone. phoned Al-Hazazi. “He said, ‘I’m calling to say Prevention Department (LPD) was involved in more than 140 contractor companies using the hello and thank you for changing me for the a number of safety programs and initiatives to pass/fail methodology in the Contractor Safety Al-Hazazi, a self-described “former reckless better. And one more thing — I started using facilitate the creation of an injury- and incident- Prequalification Guide, as required by the Saudi driver,” volunteered to give safe-driving seat belts.’” free workplace, and to strengthen Saudi Aramco Contracting Manual. In conjunction with presentations, in Aramco’s safety culture. the guide’s publication, hundreds of evaluation English and Arabic, “This means a lot to me,” Al-Hazazi said. “It team members were trained by LPD for as part of his Area makes me even more excited to spread the •• Risk assessments: LPD supported a variety prequalification. Information Technology safety culture in Saudi society.” of state-of-the-art risk assessment studies Saudi Department’s (AITD’s) for the company’s many new and existing •• Plant assessments: To enhance safe Saudi Aramco Aramco Annual Review Vehicle Safety Program. In his former reckless-driving days, Al-Hazazi facilities as well as expansion projects. LPD also operations in exploration and producing Annual Review 2010 2010 At first, it was just to said, he drove from the Eastern Province to coordinated and exchanged risk assessment and facilities, LPD established the Plant Safety 66 67 increase driving safety Riyadh in about two and a half hours. If you management best practices and requirements Assessment Program (PSA). The objective of awareness among AITD follow the speed limit, it takes more than with joint ventures. the PSA is to conduct unannounced site staff but soon expanded to other departments four hours. Since then, he has seen friends surveys and provide feedback on the condition and organizations throughout the Kingdom. and loved ones injured and killed in traffic •• Contractor safety prequalification: of facilities’ key fire prevention and safety accidents, and when he joined Saudi Aramco, To ensure that Saudi Aramco’s contractor systems. A total of 15 departments, from Gas One catalyst of the safe-driving program was he became influenced by its pervasive safety companies meet Saudi Aramco’s safety Operations, Northern Area Oil Operations and a survey of AITD staff, which revealed that culture. performance expectations, proponent Southern Area Oil Operations, were surveyed 54 percent of those surveyed believe that during a seven-month period. they could be described as reckless drivers; Now, he says, “Each of us can do something 85 percent get angry at fast drivers, slow to deliver an effective safety awareness •• Industrial Security — A new Industrial drivers, traffic jams and tailgaters; 40 percent message. It’s a shared responsibility.” Security Training Center was built in Dhahran drive with excessive speed; and 44 percent and opened in May. The center will facilitate drive aggressively and unsafely to discipline Since he joined Saudi Aramco, Al-Hazazi said, critical training requirements for the Industrial reckless drivers. “The company educated me about the dangers Security work force to ensure proper physical and consequences of reckless driving, and security measures at all company facilities, Al-Hazazi has only been with the company convinced me to start driving more safely.” He including community areas. This center about a year, but during that time he has said he is committed to bringing the message consolidates all specific training functions and logged more than 80 reckless-driving of safe driving to all people but especially provides a custom-built, sustainable solution presentations at schools, air bases and other those in the younger generation, who are to teach the knowledge, skills and applicable locales around the country. disproportionately involved in many serious strategies that are essential to Security and fatal vehicular accidents in the Kingdom. Operations. Communities

The company renovated 35 Saudi Aramco Built Communities Government Schools in 2010

Community cultural events are frequent and well- attended, and the company’s schools are first-rate. A lovely atrium graces the Al-Mujamma’ Saudi Aramco employees and their community center in dependents continued to enjoy the many Dhahran. benefits of living in company communities

Saudi across the Kingdom during 2010. Local Saudi Aramco Aramco Annual Review leisure amenities, schools and a wide array Annual Review 2010 2010 of community services, as always, remain 68 69 top-notch. Opting to build homes outside Saudi Aramco communities in the popular Home- Ownership Program in 2010 were 1,103 Saudi employees. Company programs also benefit Saudi communities, including the renovation of 139 Saudi Aramco Built Government Schools.

•• Saudi Aramco Schools and Community Education — Saudi Aramco continues to improve its large school system for expatriate children, grades kindergarten through ninth, offering international standards, small class sizes, excellent facilities and unique educational opportunities. A new K4 (pre-kingergarten for 4-year-olds) program, akin to a preschool, was implemented in Saudi Aramco’s Abqaiq, ‘Udhailiyah and Ras Tanura communities, with a further expansion for Dhahran slated for the 2011-2012 school year. Focusing on language proficiency, literacy and numeracy readiness, and positive social interactions, the children will receive an enriched instructional program that Communities will provide each with the necessary skills to transition successfully into regular kindergarten (KG5) classrooms. Children are eligible to enroll in regular kindergarten at age 5. Currently, there Opposite: Beautiful recreational beaches are located near a number of company communities. Below are 94 students enrolled in the new K4 left: Saudi Aramco students practice playing musical program in company communities. instruments.

•• Community Services — Community Services (CS) sustained efforts in 2010 to make a difference in managing community and Home Ownership Program office services in a reliable, innovative, quality and cost-effective manner. CS has completed The large majority of Saudi Aramco a number of renovation and maintenance employees are Saudi citizens who live outside projects to improve residential, recreation and of company communities, and for more than office facilities’ conditions, repair and preserve five decades, we have made it easier for integrity of company facilities, and ensure the them to afford their safety of employees and community residents. own homes through Major accomplishments include renovation of the Home Ownership 1,240 housing units and construction of a new Program. During the office building in ’Udhailiyah. year 2010, 1,299 new home loans were granted and 245 free Saudi Aramco Built have schools for the children of its employees. lots were distributed Government Schools to eligible employees. In 1959, a second agreement committed Over the life of the program, more than Saudi In 2010, 35 Saudi Aramco Built Government Aramco to building and maintaining 59,000 new homes have been financed. In Saudi Aramco Aramco Annual Review Schools received facelifts, including complete intermediate government schools for boys, addition, the company has also started a pilot Annual Review 2010 2010 repainting, landscaping, carpet and acoustic grades 7 to 9, and, in 1961, Aramco agreed to project involving a real estate developer to 70 71 tile replacements, and comprehensive general build elementary and intermediate schools for build houses for eligible employees. maintenance as part of a program to uplift the girls, after the government approved public structural and operational integrity of all 139 education for females. Saudi Aramco and the Through the program, Saudi Aramco has schools built in the program. Directors General for Boys and Girls Education helped create vibrant local communities near in the Eastern Province in 1981 agreed on a important Saudi Aramco operating areas The renovations are a continuation of a comprehensive construction plan that added around the Kingdom, and made the members program launched on Feb. 7, 1953, with secondary schools to Aramco’s government of its work force stakeholders in continued the signing of an agreement between schools portfolio. local and national development. Strong Aramco and the Saudi local communities provide a safe and secure government, and Over the years in the program, the company environment in which to raise families, and its amendments, in built 139 schools, consisting of 74 boys’ provide vital connections between individuals which the company schools (42 elementary, 28 intermediate, and the larger society. Home Ownership committed itself to four secondary) and 69 girls’ schools Program communities include landscaping, construct, maintain and (37 elementary, 23 intermediate, five recreational facilities and children’s support government secondary), with a combined capacity of playgrounds, in addition to necessary roads elementary schools 2,895 classrooms sufficient to accommodate and utility infrastructure. for boys under the 85,852 students. These schools are located direction of the Ministry of Education. The in a wide geographical area of the Eastern The program has developed communities in agreement related to Saudi Labor law at that Province. Also Saudi Aramco operates schools Dhahran, Rahimah, Abqaiq, al-Khobar, Safwa time, which stipulated that any company in its company communities for children of and al-Hasa in the Eastern Province, and having more than 500 employees should expatriate employees. Yanbu‘ on the West Coast. We consider corporate citizenship to be Corporate Citizenship both a responsibility and a business imperative. The breadth of Saudi Aramco’s operational presence across the Kingdom, our position as the chief driver of national economic growth, and our strong working relationships with a variety of stakeholder groups have allowed us to assume a level of societal responsibility well beyond the scope of most Saudi Aramco’s citizenship other companies. program has four Corporate focus areas: economy, Saudi Aramco has established four focus areas community, knowledge Citizenship that summarize our citizenship activities and and environment future goals: Economy, Community, Knowledge and Environment. These four broad pillars are described briefly below. For more in-depth descriptions of these activities, please refer to the Saudi Aramco 2010 Corporate Citizenship ••• Through research and development, we Report. strive to ensure our continued position as a global leader in energy technology and

Below: When completed, the King Abdulaziz Center The principles of corporate citizenship underpin encourage the further diversification of the for World Culture will be a regional cultural and our strategic approach across the full range of national economy. intellectual hub. Above right: A Saudi Aramco our business functions, for instance: dependent student on a field trip in Africa. There were many highlights in 2010. Detailed ••• Through a targeted and partnership- engineering was completed and main- oriented approach to procurement, we aim to building construction started in 2010 on Saudi bolster the local economy and to create jobs. the King Abdulaziz Center for World Culture, Saudi Aramco Aramco Annual Review whose mission is to inspire among Saudi Annual Review 2010 2010 ••• Through education and training for our citizens, particularly children, a passion for 72 73 employees and the community at large, we and focus on learning, creativity and cross- work to increase the skills and employability of cultural engagement. Work also began on the Saudi work force. the Saudi Aramco-directed project to develop the futuristic King Abdullah Petroleum Studies and Research Center in Riyadh, the Kingdom’s first future-oriented global center for energy, environmental research and policy studies. In addition, the company implemented a wide variety of outreach programs domestically and around the world in 2010, including aiding Saudi industry by increasing local content in Saudi Aramco capital projects, inviting hundreds of orphans to annual Eid celebrations hosted by the company, and conducting a long list of charitable activities.

Corporate Citizenship: Economy We believe that an innovative, competitive and diversified economy is essential to the livelihoods of local communities, effective Corporate management of the natural environment, This support extends outside of the company Corporate Citizenship Citizenship availability of world-class educational as well: the newly founded Saudi Aramco opportunities, and our own business success. Entrepreneurship Center (SAEC) aims to be a We aim to create progress by encouraging game-changing source of funding and incubator entrepreneurship and innovation, developing for new businesses in the Kingdom. The SAEC local supply chains and employment, and funded three entrepreneurs in its pilot phase delivering quality products safely and and aspires to fund more than 150 ventures in Saudi consistently. the next 10 years. Aramco awarded •• Encouraging Entrepreneurship and 77% of Innovation — Saudi Aramco strongly believes •• Developing Local Supply Chains and $16.4 billion that economic success requires creativity, Employment — One of the principal means to in service innovative thinking and entrepreneurial support development of the domestic economy contracts ambition: and create new jobs is to purchase locally to local manufactured goods and obtain local services. companies ••• Our Idea Management System, which In 2010, Saudi Aramco: allows employees to submit ideas to any organization within the company, captured ••• Awarded 2,157 service contracts valued at approximately 13,118 employee ideas. a total of $16.4 billion, 77 percent of which was awarded to local companies and contractors. ••• Our internal Innovation Tournament generated more than 1,800 innovative energy ••• Awarded $3.1 billion of the total $3.6 billion conservation ideas, representing representing in material procurement, or 85 percent, to the significant potential savings to the company. local market.

••• 30 patents were awarded to Saudi Aramco ••• Locally warehoused $240 million worth of Saudi by the U.S. Patent and Trademark Office, and an materials, including $40 million added during Saudi Aramco Aramco Annual Review additional 104 patent applications were filed. the year. Annual Review 2010 2010 74 75 ••• Top inventions from throughout Saudi ••• Approved an additional 151 local suppliers Arabia, including 11 by Saudi Aramco and 32 manufacturers as potential sources of employees, were showcased in late May at supply. The total number of registered local Ibtikar 2010, the Saudi Innovation Exhibition, in manufacturers within Saudi Aramco grew from Jiddah, on the Kingdom’s West Coast. 677 in 2001 to 961 in 2010.

••• Through collaboration with our New Business Development organization, foreign investors and local manufacturers will continue to enhance local manufacturing and supplier An abiding goal capabilities. of Saudi Aramco’s citizenship programs •• Delivering Quality Products Safely and is the education and development of Consistently — Ensuring that our skilled work children. force delivers globally competitive products and services is essential to the Kingdom’s economic goals as well as to our own commercial success. We carefully track where and why injuries occur to inform future prevention programs and drive performance improvements to minimize the possibility of accidents. Saudi Corporate the 2010 Summer Program, many of them Corporate Citizenship: Corporate Citizenship Citizenship taking part in a pilot Web-based volunteer Knowledge management system. The Saudi Aramco Cultivating a knowledge economy is Medical Services Organization, which has had important both in terms of our commercial a volunteer program since 1982, places over competitiveness as well as the broader 100 volunteers in important operational roles. educational attainment and development of Similarly, the King Abdulaziz Center for World citizens throughout the Kingdom. We encourage Culture has enlisted part-time and full-time our company’s continued evolution as an volunteers — with many more to come in the innovator, and we support the Kingdom’s future — to help design the center’s programs knowledge hub by empowering individuals and contribute to the development of the through world-class educational opportunities. organization as it approaches its opening. •• Investing in Education and Training — •• Targeting our Charitable Giving — Saudi In 2010, we strengthened our commitment Aramco targets charitable giving to maximize to educational development. We established impact for people in need. In 2010, our School the Saudi Aramco Professional Development Kit for Needy Families Campaign generated Academy to train participants on safety, more than $346,000 in donations that paid leadership, business communication and for 15,400 school kits distributed to 65 charity volunteerism. Our Regular Development Saudi Aramco mobile Aramco also promotes the company’s centers. Saudi Aramco matched $1.3 million Program placed 450 employees in advanced and community standards, which are considered the hub libraries, and in donations from approximately 10,000 degree programs, specialist programs and short- international outreach of our engineering intellectual assets. For the past 77 years, employees for the Pakistan flood relief efforts. and long-term work assignments, and 1,750 programs encourage These efforts are designed to boost the Saudi Aramco also sponsors a variety of events students were enrolled in the College Degree children to learn to love Saudi Aramco has actively region’s economy, as well as attract and initiatives around the world. For example, Program for Non-Employees, which provides reading. supported vibrant, healthy, foreign investment. Over time, this will productive communities in the company sponsored the 2010 British Saudi students the opportunity to receive a paid back the Kingdom’s goal of diversification Saudi Arabia Science Festival, the largest public science college education in areas of study required by Saudi and create more jobs. In 2010, Saudi festival in Europe, which attracted more than Saudi Aramco with the intent of offering them Saudi Aramco Aramco Annual Review Aramco promoted one standard to the 80,000 visitors. Currently we are developing a employment upon graduation. We sponsor 10 Annual Review 2010 2010 International Organization for Standards strategy that will guide our selection process of university chairs and actively collaborate with 76 77 (ISO), and we have proposed 55 related deaths and injuries on a sustained basis. programs and grants more effectively and track many universities in Saudi Arabia and around standards to the Gulf Cooperation Council Saudi Aramco also sponsors the Safety Driving their progress and impacts over time. the world: Standardization Organization (GSO). Simulator Trailer to educate young people on defensive driving — in 2010, 43,874 young ••• King Abdullah University of Science Corporate Citizenship: people over age 15 visited the Simulator Trailer and Technology: The company is currently Community as it traveled through the Eastern Province. Our working with the institution on a number For the past 77 years, Saudi Aramco community work also extends into the areas of research projects of mutual benefit. One has played a unique role in supporting of general health and well-being — the Saudi example is the “Novel Seismic Attributes via vibrant, healthy, productive communities Aramco Wellness Program focuses on creating a Integral Invariants“ project, which will develop in Saudi Arabia. We carry forward this culture of health through preventing injury and new seismic attributes that are less sensitive tradition by promoting community health sickness, and the Smoking Cessation Program to extraneous data flaws known as seismic and safety, encouraging volunteerism, assists employees in quitting smoking through “noise.” Results should improve interpretation and targeting charitable contributions. peer-led intervention by employees trained as accuracy in exploration and development smoking cessation facilitators. Since 2007, 1,899 settings, particularly in more complex geological •• Promoting Community Health employees enrolled in the program’s clinics in A float at a Saudi prospects, reducing risk and uncertainty. Aramco-sponsored and Safety — Reducing the incidence 29 locations. community of road accidents in the Kingdom is a environmental ••• King Fahd University of Petroleum company priority. Saudi Aramco’s Traffic •• Building a Culture of Volunteerism awareness day in Ras and Minerals (KFUPM): Saudi Aramco Tanura. Safety Signature Program aims to partner — In 2010, volunteers clocked more than continued its support of the Geoscience and with other stakeholders to promote safe 82,000 service hours in our various programs. Petroleum Engineering Fundamental Programs driving to significantly reduce traffic- More than 600 volunteers participated in administered by KFUPM. This collaborative effort Corporate with the university equips young professionals ••• University-level research: Saudi Aramco ••• Developing a Youth Master Plan that will Corporate Citizenship Citizenship with required business skills, speeding up their actively participated in collaborative research provide access to a wide range of intellectual Renewable energy learning curve. Consistent with Saudi Aramco Nearly 40 spanning all engineering disciplines with and cultural resources designed to boost young initiatives Upstream’s long-standing strategic research percent leading universities around the world during Saudis’ cultural literacy and foster a new partnership with KFUPM, several long-term of the 2010, including the Massachusetts Institute generation of active and aware citizens. The research programs were started in 2010 to of Technology, Stanford (California) University, plan aims to enrich the lives of 2 million young Saudi Aramco achieved remarkable Kingdom’s investigate oil recovery, near-surface seismic Cornell University (New York), Colorado School people in the Kingdom by 2020. milestones during 2010 in the field of population and reservoir quality predictions. of Mines, Texas A&M University and University renewable-energy development and is under the of Texas, all in the United States; Delft ••• Continuing to support and maintain the implementation. age of 15 ••• Education partnerships: The company University of Technology in the Netherlands; Saudi Aramco/Siemens Discovery Initiative, extended its assistance to higher education and others. which aims to awaken children’s passion for The efforts were institutions through collaboration with KAUST, learning. The initiative provided training for aimed at helping the KFUPM, King Faisal University and Prince •• Inspiring Saudi Arabia’s Young People 190 teachers in the Eastern Province, who will Kingdom become an Mohammed University and other organizations — With nearly 40 percent of the Kingdom’s impact 5,700 students. international leader in to aid in teacher training, and increase student The unique design of population under age 15, it is essential to our renewable energy and awareness and interest in math and science. the King Abdulaziz future success to educate, guide and inspire our ••• Supporting the 9th annual Summer to conserve natural Center for World Culture next generation of leaders. Some of our efforts Program for Gifted Students, with particular resources for future complex is unlike anything in the world. in 2010 included: focus on development of program details and generations. To achieve that, initiatives were launched to research, pilot and manufacture renewable-energy technologies and qualify system integrators.

As the solar photovoltaic (PV) industry is now a fast-moving and complex industry, the company established collaborative Saudi Saudi Aramco projects with pioneering solar manufacturers, Aramco Annual Review Annual Review 2010 training centers and universities to support 2010 78 key activities in this arena. Several test fields 79 were installed to assess the performances of different types of solar technologies under various climate conditions to determine the best technological match for optimum performance and investment. Moreover, the company is investing in building the world’s largest solar-PV car park, with solar shades to supply 10 megawatts of electrical power to an adjacent office complex in Dhahran.

In addition, solar energy is used as an alternative to displace diesel-fuel burning for power generation in remote areas. As an example, offshore Farasan Island was identified as a potential area for diesel displacement, and a 500-kilowatt power generation project is currently under construction. In addition to solar, further studies are under way to study wind and geothermal energies at different locations. Corporate Corporate Citizenship Corporate Citizenship: Citizenship Environment Proper environmental stewardship is Environmental New projects are added to the EMP as part integral to our work, in terms of the Master Plan of our regular business-plan cycles and are impacts of our products and the way in being administered as part of the capital which we produce them. Safeguarding Although Saudi Aramco’s environmental program work process, and the company has the Earth’s natural resources is a job for all protection initiatives go back many years, the also committed funding to our joint-venture of our employees, and this philosophy is company launched a formal Environmental partners for environmental programs. embedded into our operations and research Master Plan (EMP) in May 2001. The purpose programs. Our environmental efforts focus of establishing the EMP was to bring all of Seventy-nine percent of the EMP projects will on enhancing energy efficiency, protecting the environmental projects under a single be completed by 2013, and all of them by the natural environment and developing stewardship umbrella to emphasize the 2015. Once the slate is completed, 37 million cleaner energy technologies. importance of environmental programs and gallons per day (gpd) of sanitary wastewater provide additional focus. It was endorsed and 29 million gpd of industrial wastewater •• Enhancing Energy Efficiency — by the Board of Directors in May 2001 with will have been brought into compliance, Saudi Aramco’s energy efficiency efforts a slate of 38 projects. As of 2010, the EMP representing nearly 100 percent of Saudi are steered by the company’s Energy included a total of 52 projects. Aramco water use. In that same time-frame, Management Program (EMP), which was Saudi Aramco will also have reduced volatile initiated in 2000 following the creation of The EMP projects were initially ranked organic compound (VOC) air emissions a company-wide policy to commit to “the according to potential impact on human 80 percent from the 2001 levels (these efficient production and use of energy” health and the compounds are basically light hydrocarbons and to “reduce overall energy costs and environment. The that pollute the air and also contribute to the conserve resources used in producing ranking called for the formation of low-level ozone, creating a haze energy.” The EMP’s overall strategic first projects to be in the atmosphere) and sulfur oxide (SOx) air elements: funded in the area of emissions 80 percent from the 2001 levels reducing sulfur dioxide (at high levels, these compounds create an Saudi ••• Reduce energy consumption of existing Saudi Aramco Aramco (SO2) and volatile unpleasant odor and may cause irritation of Annual Review Above: President and supervising student activities as mentors during facilities by 2 percent annually. Annual Review 2010 organic compound the eyes, nose, throat, and lungs). 2010 CEO Khalid Al-Falih 80 the one-month program. 81 (VOC) emissions. As plants a mangrove ••• Design Saudi Aramco facilities to be these projects were completed, areas of EMP projects completed in 2010 include: during a company- sponsored project. ••• Initiating a three-year renovation project to energy efficient. lower risk or projects required to bring the conversion of 29 conventional gas flares to provide a major uplift to all 139 Saudi Aramco company into compliance with Government High-Pressure Air-Assisted Smokeless systems Built Government Schools. ••• Influence and promote energy regulations were funded. An update on the to comply with Presidency of Meteorology and efficiency at Kingdom level. Master Plan presented to the board in 2007 Environmental criteria, upgrade of sanitary •• Promoting Cultural Understanding expanded the focus with the introduction of a wastewater system capacity of Dhahran’s — Construction started in 2010 on the King In 2010, Saudi Aramco finalized utility fuel clean transportation fuels program that sought sewage and wastewater treatment plants Abdulaziz Center for World Culture, “The allocation guidelines to help cut rising to reduce automotive emissions by lowering from 10 million gpd to 14 million gpd, Center.” This iconic facility will be an 80,000 domestic fuel demand, and improve sulfur levels in fuels to 10 parts per million installation of 13,800 meters of sewer lines m2 multi-story complex in Dhahran, near the the overall power and water production (ppm), as well as reducing benzene and and four lift stations at South Riyadh Bulk Saudi Saudi Aramco Exhibit, consisting of a public efficiency in the Kingdom. Implementation aromatic levels in gasoline. Plant, updating oily-water collection and Aramco library, a lifelong learning center, children’s is expected to achieve a 20 percent disposal systems at nine Western Region invested discovery center, exhibition halls, auditorium, reduction in utility demand by 2030, and The Master Plan has a current focus to bring bulk plants, and installation of a wastewater in building museum and archives. The Center is scheduled more thereafter. existing company facilities into compliance treatment plant in Rabigh. The projects also the world’s for opening in 2012. Also in 2010, Saudi with current environmental regulations in the include construction of a diesel hydrotreater largest Aramco World, the company’s flagship English- Saudi Aramco is supporting the King Kingdom, and to enhance stewardship of the complex in Ras Tanura to reduce the sulfur solar-PV language magazine, kicked off its sixth decade Abdullah Petroleum Studies and Research Kingdom’s environment in areas where we levels of diesel fuel sold into the marketplace. car park in of publication, fostering cultural understanding Center (KAPSARC), a new future-oriented operate. We also strive, through the EMP, to Dhahran around the globe. research and policy center committed to support our communities by protecting their energy and environmental exploration and environments and to serve as a role model. analysis. The centerpiece of this facility will Corporate be the 69,000 m2 research and office complex. Corporate Citizenship Right: Summer Citizenship Completion is forecast in 2012. students at a 3D demonstration at Saudi Aramco. •• Protecting the Natural Environment Opposite: The — The company has had an Environmental daughter of a Protection Policy since 1963 and was the first company employee embraces recycling. in the region to use environmental impact assessments to help determine the viability of capital projects. In 2010, Saudi Aramco continued exerting its utmost efforts to ensure that all measures are taken to prevent oil spills, and that all resources are constantly maintained in a state of readiness to effectively respond to any potential accidental spill. Additionally, as Using electricity wisely Dhahran, 120,000 photovoltaic (PV) solar part of Saudi Aramco’s environmental road map panels from a subsidiary of Saudi Aramco’s

to evaluate means for lowering CO2 emissions in As a major stakeholder in the Kingdom’s Japanese venture partner Showa Shell will

line with enhanced oil recovery, a CO2-recovery electrical power sector, Saudi Aramco generate 10 megawatts (MW) of electricity pilot project was initiated to recover 40 million shoulders a major responsibility. The company for the complex. The panels will be atop

scfd of CO2 from Hawiyah NGL Plant’s acid gas is the sole supplier of fuel for electricity shades covering the car park, which will be stream for injection into the Uthmaniyah field. generation in Saudi Arabia, and it is itself a the largest solar car park in the region and major producer and consumer of electricity. one of the largest in the world. The company •• Developing Cleaner Energy Technologies Saudi Aramco has created a new Power also will be testing different solar technologies — Saudi Aramco is positioned to make Systems organization to help mitigate a from 25 different PV suppliers and developing substantial impacts in the development of number of significant challenges in the sector, commercial pilot projects. future technologies. These include refinements including high demand growth, inefficient • Wind: The company will also complete the to the extraction and use of fossil fuels as well energy use, and the need for large capital assessment of its ongoing feasibility study of Saudi as renewable energies. In 2010, we created investments to meet current and future wind-generated electrical power at different Saudi Aramco Aramco Annual Review a new Power Systems organization within expansion. sites in the Kingdom. This initiative will Annual Review 2010 2010 the company to plan and execute renewable include development of technical standards, 82 83 energy projects. In addition, collaborative The goal of the new organization is to ensure engineering evaluation, economical studies projects were initiated with solar photovoltaic that the company and material specifications for different (PV) pioneers, and several solar test fields were takes full advantage applications, in addition to hosting and installed to assess the performances of different of available power-use attending technical forums and visiting project types of solar technologies under various mitigation measures sites to exchange knowledge and deploy the climate conditions. The company invested in and opportunities to latest technologies. building the world’s largest solar-PV car park reduce demand on • Co-generation Expansion Program: The in Dhahran, to supply 10 MW of electricity to high-value hydrocarbon company is in the process of expanding to the new North Park 4 office complex. Saudi fuels and reduce 2,000 MW in the next five years the capacity Aramco also continued its focus on cleaner- carbon emissions, of its energy-efficient co-generation facilities, burning, more efficient fuel formulations for minimizing overall utility costs and conserve which reuse steam and electricity for various next-generation combustion engines in 2010. fuel and power now and in the future. work at its industrial plants. We are working on this in-house as well as • Peak Power Demand Management: A in conjunction with other companies and Subsequently, Saudi Aramco has initiated cross-functional team from various stakeholder institutions in the Kingdom and internationally. a number of in-house initiatives that can organizations will be established to identify demonstrate a national model toward intermittent power loads so that operating power generation efficiency and optimum hours of various facilities can be shifted from utilization of electricity. These initiatives can peak, high-demand hours to off-peak times. be summarized as below: Policies and tariffs will be implemented to encourage more off-peak power use, • Solar: At North Park-4 office complex in enhancing average power-reserve margins. Awards Dawood M. Al-Dawood, left, vice president of Marketing, Supply and Joint Venture Coordination, receives the International Energy Company of the Year award from Frederick Potter of Hart Energy.

Awards •• No. 1 oil company — Respected industry journal Petroleum Intelligence Weekly, for the 22nd straight year in 2010, ranked Saudi Aramco No. 1 among the world’s top 50 oil companies. PIW ranked the company first in oil reserves and production of liquids, two of six criteria in the rankings; others include gas output and reserves, product sales and distillation capacity. Rounding out the overall top 10 companies were, in order, National Below: Vela International Marine Limited., Saudi Aramco’s shipping subsidary, Iranian Oil Co., ExxonMobil, Venezuela’s PDV, received the international Tanker Operator Award in 2010. Inset: Model of an oil China’s CNPC, the United Kingdom’s BP, Royal reservoir using the award-winning GigaPOWERS technology. Dutch Shell of the Netherlands, Chevron and ConocoPhillips of the United States, and Total of France. The top 100 on the PIW list control

Saudi 87 percent of the world’s oil reserves and 72 Saudi Aramco Aramco Annual Review percent of the gas reserves. Annual Review 2010 2010 84 85 •• S-Oil honored — Aramco Overseas Saudi Aramco ranked Company’s Republic of Korea equity venture world’s No. 1 oil S-Oil was selected as one of the Top 250 Global company for 22nd Energy Companies by Platts (No. 11 in refining consecutive year and marketing in Asia, and No. 15 globally), the world’s largest energy information provider, and was selected by the Dow Jones Sustainability •• Hart Energy award — In recognition of Index’s World Index among the top 10 percent its excellence in global energy, Saudi Aramco of 2,500 leading global companies. It was the was honored as the 2010 “International first time a Korean refiner was included in the Energy Company of the Year” by Hart Energy list, and S-Oil is the only refiner in the Asia- Publishing, one of the world’s largest energy Pacific region that is currently listed in the industry publishers. The award was presented World Class Index. S-Oil was also named World March 24 in Phoenix, Arizona, in the U.S. Now Class of the Year for the second consecutive in its 23rd year, the annual award presentation year by the Korea CEO Association, and also recognizes companies that have demonstrated was selected among outstanding companies in operational excellence and leadership in the terms of sustainability management by leading industry. domestic organizations such as the Korea Standards Association and Hankyoreh Economic •• Tanker operator award — Vela Research Institute. International Marine Limited was presented the Tanker Operator Award at the Oct. 26

Awards communities, countries and regions through Awards their leadership and achievements, including environmental stewardship and sustainability.

•• ADIPEC award — Saudi Aramco won the 2010 Energy Company of the Year Award, and president and CEO Khalid A. Al-Falih received the Executive of the Year Award during the 14th Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2010) in November. Also, GigaPOWERS was named the Best Innovation or Technology of the Year at the event.

•• 3 Star Award — The Research and Development Center (R&DC) recently earned a 3 Star Recognition Award for Excellence from the European Foundation for Quality contributions to the economic development Management (EFQM), marking the first of the Fujian province as well as his utmost organization in Saudi Arabia to attain the status. professionalism towards the FRPC venture were R&DC adopted EFQM’s Excellence Model as part achievements listed for the Fujian Friendship of its commitment to excellence. The model Award. Al-Subaiyyal has been the key driver is a nonprescriptive framework based on nine of friendship between Saudi Arabia and China, criteria for assessing management and business particularly in Fujian Province, ever since the practices in leading-edge organizations. venture was formed in 2007.

Saudi •• Gas processors’ award — In May, Aramco •• Bulloch Award — In recognition of the Saudi Aramco Aramco Annual Review Services Company in Houston coordinated Saudi company’s achievements promoting the Annual Review 2010 2010 86 Aramco’s acceptance of the Gas Processors professional certification of its Finance staff, the 87 Association President’s Award for Safety James Bulloch Award was presented to Saudi Improvement in the United States, as well Aramco at the 2010 annual meeting of the The China Friendship Seatrade Middle East Maritime Awards in Awards, given to vessels that have no reported as nine Facility Safety Awards to recognize Institute of Management Accountants (IMA). Award, one of China’s Dubai. The award recognizes Vela’s outstanding oil spills in the previous two years. highest honors, was individual gas processing plants that achieved Saudi Aramco is the first company outside the presented to Abdullah management of significant changes in the the milestone of 500,000 work-hour increments United States to receive the Bulloch award, Al-Subaiyel of Saudi company in 2010 while continuing to deliver •• Environmental Stewardship Excellence without a lost-time incident. which recognizes organizations that provide Aramco in 2010. more than 1.5 million barrels of crude oil and Award — Saudi Aramco was honored with “outstanding sponsorship, encouragement and products per day to customers worldwide in a the “Environmental Stewardship Excellence •• Fujian Friendship Award — Abdallah Al- support of the CMA Certification Program.” safe and environmentally sound manner. Vela Award” in June 2010 in Dubai. The award lauds Subaiyyal, Vice President of Fujian Refining and Currently, 24 percent of Finance staff members also was a sponsor of the Technical Innovations Saudi Aramco’s achievements, leadership and Petrochemical Co. Ltd. (FRPC), was conferred the hold one or more professional certifications. Award, which went to Wartsila company, contributions toward protecting the Kingdom’s Fujian Friendship Award by the Fujian Provincial Finance’s goal over the next five years is to recognizing a project or product with the and the region’s natural environment. Saudi Government on February 6, 2010. This is the increase this certification rate to 36 percent. potential to significantly improve efficiency of Aramco’s corporate environmental protection second Friendship Award presented to Abdallah Controller’s is the champion of two key any aspect of ship operations and/or cargo. policy, supported by numerous engineering Al-Subaiyyal; he received his first award — the professional certifications, the CPA (Certified •• Devlin Award — In June, Vela won the standards, procedures, general instructions and China Friendship Award — from the hands of Public Accountant) and the CMA (Certified Jones F. Devlin Award for the third year in a row. environmental programs, ensures the protection Chinese Premier Zhang Dejiang at the Great Management Accountant). Issued by the Chamber of Shipping of America, of air, food and water quality, the marine Hall of the People in Beijing last year. The China the award is for operating two full years or environment, groundwater resources and public Friendship Award is the highest prize awarded more without occupational injury. In addition, health. The event was organized to honor to expatriate experts working in China by the all qualifying Vela vessels were awarded the organizations that have brought exceptional state government, and Al-Subaiyyal is the first American Chamber of Shipping Environmental recognition to their respective constituencies, Arab to receive the award. Subaiyyal’s excellent Saudi Aramco by the Numbers

Saudi Aramco by the numbers

Below: Saudi Aramco’s Operations Coordination Center tracks distribution of all the company’s crude oil, gas, NGL and refined products.

Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 88 89 Saudi Saudi Aramco by Aramco by the Numbers the Numbers

Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 90 91 Saudi Saudi Aramco by Aramco by the Numbers the Numbers Exports by region

Classification of Saudi Crude Oil Arabian Super Light (ASL) ...... API>40° Arabian Extra Light (AXL) ...... API 36-40° Arabian Light (AL) ...... API 32-36° Arabian Medium (AM) ...... API 29-32° Arabian Heavy (AH) ...... API<29°

Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 92 93 Saudi Saudi Aramco by Saudi Development Programs Aramco by the Numbers the Numbers

Number enrolled at year-end 2010

Apprentice Programs (enrollments) Apprenticeship program (Saudi Aramco)...... 2,258 Apprenticeship program (joint and equity ventures)...... 521 Total Apprentices...... 2,779

College Degree Program Non-employees (CDPNE) & Associate Degree Program Non-Employees (ADPNE) (enrollments) College Continuation Program...... 112 College Preparatory Program...... 321 (Includes 19 for Associate Degree Program Non-employees (ADPNE) Total CDPNE/ADPNE...... 433

Cooperative Program (enrollments) Co-op Program students...... 420

Regular Development Programs (enrollments) Advanced degree...... 143 Advanced medical/dental...... 7 Two-year technical degree...... 32 Short-term technical training program...... 25 U.S.A. company assignment...... 4 Total Regular Development Program participants...... 210

Saudi Saudi Aramco Year-end level 2010 Aramco Annual Review Annual Review 2010 2010 Apprentice Programs 94 95 Apprenticeship program (Saudi Aramco)...... 4,460 Apprenticeship program (joint and equity ventures)...... 573 Total Apprentices...... 5,033

College Degree Programs & Associate Degree Program Non- Employees College Degree Program Non-employees (CDPNE)...... 1,419 College Preparatory Program...... 316 Associate Degree Program Non-employees (ADPNE)...... 45 Total College Degree program participants and ADPNE...... 1,780

Cooperative Program Co-op Program students...... 104

Regular Development Programs Advanced degree...... 330 Advanced medical/dental...... 15 Two-year technical degree...... 71 Short-term technical training program...... 19 U.S.A. company assignment...... 4 Total Regular Development Program participants...... 439 Saudi Saudi Aramco by Aramco by the Numbers the Numbers

Crude Oil, Natural Gas & Refined Products Principal Products Manufactured at In-Kingdom Refineries (barrels) Crude Oil & Refined Products (barrels) 2009 2010 2010 LPg naphtha gasoline Jet Fuel diesel Fuel Oil Asphalt Total Kerosene & Misc. Crude Oil Production, excluding NG blended...... 2,888,082,578.2,887,223,698 Ras Tanura 3,345,757 16,994,770 41,408,333 4,743,839 75,092,484 29,202,323 7,702,833 178,490,339 Crude Oil Exports...... 2,060,741,025.2,020,345,893 Yanbu’ 2,857,515 (1,480,268) 16,317,699 (1,017,258) 32,774,339 33,627,814 - 83,079,841 Crude Oil Transported Using company or Chartered Vessels...... 487,631,000.471,324,000 Riyadh 2,073,772 - 13,404,769 3,444,229 22,509,231 18,797 6,899,455 48,350,253 Refined Products Production...... 496,197,789.499,777,459 Jiddah 973,397 4,963,888 5,432,264 (630,798) 8,714,680 7,397,927 3,610,168 30,461,526 Refined Products Exports...... 149,367,259.133,423,868 Total Domestic 9,250,441 20,478,390 76,563,065 6,540,012 139,090,734 70,246,861 18,212,456 340,381,959 Natural Gas 2009 2010 *Negative figures primarily indicate products that were reprocessed into other refined products. Feed to Gas Plants (billions SCF/day)...... 8.556 9.388 Sales Gas (methane) (trillions BTUs/day)...... 6.313 7.236 Saudi Aramco Share 2010 LPg naphtha gasoline Jet Fuel diesel Fuel Oil Asphalt Total Ethane (trillions BTUs/day)...... 1.114 1.334 Kerosene & Misc. Total Delivered Gas...... 7.427 8.319 SAMREF (309,000) - 19,571,000 9,118,500 16,494,000 12,669,000 - 57,543,500 Liquids in-lieu of methane (trillions BTUs daily)...... 0 0.251 SASREF 1,798,000 13,450,000 2,362,000 10,590,000 12,187,000 13,560,000 - 53,947,000 Total JV 1,489,000 13,450,000 21,933,000 19,708,500 28,681,000 26,229,000 - 111,490,500 Natural Gas Liquids – Production 2009 2010 Grand total** 10,739,441 33,928,390 98,496,065 26,248,512 167,771,734 96,475,861 18,212,456 451,872,459 NGL Production from Hydrocarbon Gases (barrels) **Petro Rabigh share not included in totals. Propane...... 152,261,722.168,512,868 Butane...... 100,679,040.106,639,505 Domestic Product Sales by Region (barrels) Saudi Saudi Aramco Condensate...... 82,839,545.93,969,126 2010 Central Eastern Western Total Aramco Annual Review Annual Review 2010 Natural Gasoline...... 74,467,706.75,924,401 LPG...... 2,371,515.5,336,401.5,891,548.13,599,464 2010 96 97 Total NGL Production...... 410,248,013.445,045,900 Gasoline...... 57,157,522.30,548,103.67,146,511.154,852,136 Jet Fuel/Kerosene...... 7,439,515. 2,776,572.13,422,290.23,638,377 Natural Gas Liquids – Produced for Sale 2009 2010 Diesel...... 70,226,358. 49,922,704.104,086,103.224,235,165 NGL Sales from Hydrocarbon Gases (barrels) Fuel Oil...... (424,309). 3,509,012.80,177,681.83,262,384 Propane...... 137,503,460.157,086,648 Asphalt & Misc...... 7,425,997.8,418,610.6,919,849.22,764,456 Butane...... 79,748,080.90,267,407 Total...... 144,196,598.100,511,402.277,643,982.522,351,982 Condensate...... 8,881,499.11,454,420 Natural Gasoline...... 51,438,402.57,611,673 2009 Central Eastern Western Total Total NGL Exports (excludes sales on behalf of LPG...... 1,670,694.5,915,059.5,622,197.13,207,950 SAMREF and SASREF)...... 277,571,441.316,420,148 Gasoline...... 53,193,402.29,079,722.62,849,932.145,123,056 Jet Fuel/Kerosene...... 7,522,249. 2,801,279.11,917,907.22,241,435 Sulfur Diesel...... 62,963,488. 47,171,946.104,712,051.214,847,485 Sulfur 2009 2010 Fuel Oil...... 598,344. 7,878,260.74,540,643.83,017,247 Sulfur Recovery (metric tons)...... 3,213,678.3,200,012 Asphalt & Misc...... 6,878,708.8,021,318.6,780,043.21,680,069 Sulfur Exports (excludes sales on behalf of Total**...... 132,826,885.100,867,584.266,422,773.500,117,242 SAMREF and SASREF) (metric tons)...... 2,809,711.3,040,964 **Totals include Petro Rabigh product Domestic International Operations Operations

Domestic International Operations Operations

Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 98 99 Saudi Saudi Aramco Aramco Annual Review Annual Review 2010 2010 100 101 Al Jazeera Printing Co. Printing Al Jazeera Saudi Aramco Annual Review 2010 102

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