1. February 28 th, 2010 Declaimer The information contained herein is made available to the public by Saudi Aramco, and is provided as is. Saudi Aramco makes no representations or warranties, express or implied, as to the correctness, completeness, or use of this document or the information therein by any party for any purpose whatsoever. Neither Saudi Aramco nor any of its affiliates shall be liable for any direct, indirect, incidental, consequential, or punitive damages arising out of or in any way connected with the information herein. Use of, or reliance on, this document or the information therein does not create any binding legal or other obligations on Saudi Aramco towards any other party. Reference herein to any specific organization or company does not constitute or imply Saudi Aramcos endorsement or recommendation of, or preference towards, such entity. © 2010 Saudi Arabian Oil Co. All rights reserved.

2. Outline Background Background Functions…Methodology Functions…Methodology Investment Opportunities Investment Opportunities SA new initiative SA new initiative Background Functions Methodology Functions Methodology Investment Opportunities SA new initiative © 2010 Saudi Arabian Oil Co. All rights reserved.

3. Economic Decisions Economic Decisions Best In Class Best In Class Commercial Support Kingdoms Goals Support Kingdoms Goals Promote Local Economy Promote Local Economy Community Out-Reach Community Out-Reach Support Kingdoms Goals Support Kingdoms Goals Promote Local Economy Promote Local Economy Community Out-Reach Community Out-Reach National Reliable Long Term Supply Reliable Long Term Supply Spare Capacity & Flexibility Spare Capacity & Flexibility International Saudi Aramco Strategic Dimensions Functions Methodology Functions Methodology Investment Opportunities SA new initiative Background © 2010 Saudi Arabian Oil Co. All rights reserved.

4. Population & Employment Challenge Population Doubled in 15 years Doubled in 15 years Will grow to 40 millions by 2020 Will grow to 40 millions by 2020 Population growth Millio n From 0 to 18 years More than 30 years 19 to 30 years Population distribution 50% under the age of 18 years 50% under the age of 18 years 70% under the age of 30 years 70% under the age of 30 yearsEmployment The need to create 5 millions jobs by 2020 The need to create 5 millions jobs by 2020 The need for the development of human resources The need for the development of human resources Functions Methodology Functions Methodology Investment Opportunities SA new initiative Background © 2010 Saudi Arabian Oil Co. All rights reserved.

5. Upstream Refined Products Petro- chemicals Heavy Manufacturing Light Manufacturing 0.7 0.5 5 15 Added Jobs $ Millions 0 20 40 60 80 100 SMEs Value Addition Functions Methodology Functions Methodology Investment Opportunities SA new initiative Background © 2010 Saudi Arabian Oil Co. All rights reserved.

6. SMEs Value Addition Enhance local supply chain and reduce costs to local consumers Enhance local supply chain and reduce costs to local consumers Expand and diversify national economy Expand and diversify national economy Increase Gross Domestic Product Increase Gross Domestic Product Transfer of technology and best practices Transfer of technology and best practices Maximize Private Sector participation Maximize Private Sector participation Reduce reliance on imports Reduce reliance on imports Functions Methodology Functions Methodology Investment Opportunities SA new initiative Background © 2010 Saudi Arabian Oil Co. All rights reserved.

7. Promote Investment Opportunities Expand Existing and bring new Capabilities Focus on Locally Made Products Business Development Provide Related Available Data Explore New Markets Building Database about Local Market Manufacturing Capability Market Intelligence Coordinate Initiatives with other SA Organizations Facilitate New Manufacturing Approvals Explore New Opportunities Internal Relation External Relation Support Investors to Utilize Available Resources Coordinate Government & Semi-government Agencies Function Background Investment Opportunities SA new initiative Functions Methodology Functions Methodology © 2010 Saudi Arabian Oil Co. All rights reserved.

8. Local Investments Success Ingredients Public and Private Sectors Public Sector Provide Loans through Public Funds Secure Industrial Lands Develop Technical Skills Improve Regulations and Procedures Private Sector Targets Technical & Financial Investments to Increase Competitiveness of the Region Saudizes Workforce Plans with Long Term Investment Vision Adopts Local Innovation and Development Strategy Saudi Aramco Support Qualified Local Goods and Services through Purchasing Provide Information for Feasibility Studies Coordinate Expediting the Process for Registration and Approval Facilitate Investor needs with Government and Semi-government Agencies Background Investment Opportunities SA new initiative Functions Methodology Functions Methodology © 2010 Saudi Arabian Oil Co. All rights reserved.

9. Saudi Aramco Investor Execution Plan Execution Plan Partnership Details Partnership Details Shape the Business Shape the Business Develop & Promote Develop & Promote Identify Opportunity Identify Opportunity Operate & Scale Operate & Scale Constr- uction Constr- uction Provide the information necessary to make an initial feasibility study Provide technical assistance required for qualification Following up with the established execution plan Investment Development Methodology Background Investment Opportunities SA new initiative Functions Methodology Functions Methodology © 2010 Saudi Arabian Oil Co. All rights reserved.

10. Current Activities Activities# Ventures $ MMJob Creation Chemicals18649986 Drilling Equipment8191742 Electrical & Instrumentation191491,211 Fabricated/Structural Steel156405,157 Services35290 OCTG & & Seamless Pipes61,8572,170 Pipes & Pipe fittings135531,093 Rotating Equipment9111755 Valves1377520 Forging & casting345182 Total1074,32212,906 Background Investment Opportunities SA new initiative Functions Methodology Functions Methodology © 2010 Saudi Arabian Oil Co. All rights reserved.

11. Current 70% 30% 70% 30% Desired Local Manufacturing Development Out Of Kingdom In Kingdom Background Functions Methodology Functions Methodology SA new initiative Investment Opportunities © 2010 Saudi Arabian Oil Co. All rights reserved.

12. Source: Saudi Aramcos Material Supply Survey, May 2007 Access to Utilities Access to Land Access to Labor Governance Customs & Trade Regulation Access to Transportation Access to Technology Access to Finance Severe Obstacle Major Obstacle Moderate Obstacle 0% 20%40%60% 80%100% Investment Impediments… Saudi Aramcos Material Supplys Survey identified local investors view of impediments to expanding the Kingdoms manufacturing sector … Background Functions Methodology Functions Methodology SA new initiative Investment Opportunities © 2010 Saudi Arabian Oil Co. All rights reserved.

13. SR Million 0400800120016002000 Ball Gate Globe Targeted Commodities Flow Instrumentation DCS, ESD&PCS RTU Targeted Commodities Motors Batteries Lighting Fixtures Targeted Commodities Xanthan Gum Calcium Bromide Potassium Chloride Potato Starch Targeted Commodities Shell & Tube HE Air Coolers Targeted Commodities Tee Elbow Flanges Targeted Commodities Specialized Pressure Vessels (desanding, gravity separation, etc.) Targeted Commodities Pumps ESP Targeted Commodities Gas & Steam Turbines Process Compressors Targeted Commodities FCC Molecular Sieve Targeted Commodities Valves Instrumentations Electrical Drilling Chemicals Heat Transfer Equipment Pipe Fittings Vessels Pumps Turbines & Compressors Catalysts 90% 81% 38% 90% 54% 93% 95% 90 % 95% 61% Average Annual Purchases of Saudi Aramco Out Of Kingdom In Kingdom Local Manufacturing Development Background Functions Methodology Functions Methodology SA new initiative Investment Opportunities © 2010 Saudi Arabian Oil Co. All rights reserved.

14. Targets approved manufacturers Targets approved manufacturers The local facility must meet minimum requirements set by Saudi Aramco The local facility must meet minimum requirements set by Saudi Aramco Manufacturing Process Manufacturing Process Final Product Final Product Saudi Aramco will provide commitment to buy for a period of time Saudi Aramco will provide commitment to buy for a period of time Saudi Aramco will facilitate: Saudi Aramco will facilitate: Investment License Investment License Industrial Land Industrial Land Industrial Loans Industrial Loans Local Manufacturing Development Program Background Functions Methodology Functions Methodology Investment Opportunities SA new initiative © 2010 Saudi Arabian Oil Co. All rights reserved.

15. Thank you © 2010 Saudi Arabian Oil Co. All rights reserved.