1. Towards a Global O&G Services Hub Local Content Forum Mar 23, 2009 Presented by: Mr. Rashid Al Suwaiket

2. Towards a Global O&G Services Hub Key Challenges Where do we rank in terms of Local Content? One Step Forward: Energy Industrial Park Recommendation

3. Oil & Gas Services- Key Challenges Access to technology Strategy for oil and gas services industry Market demand to compete and grow (economy of scale) Vocational training Capital allocation vs. product approval and purchasing commitment Local content policies and legislations Procrastination (time is money!)

4. 4 Most Moslem Countries GCC Korea Advanced Countries Innovation enablers Followers Innovators Malaysia Adapters Chile Source: Islamic Development Bank We need to jump start economic development strategies

5. 5 Source: Norwegian Min. of Pet. & Energy, Norwegian School of Management 22% 35% 55% 62.5% 65% 70% 75% 85% Percent Local Content O&G Services Local Content: Where do we rank? USA Mexico Iran Norway UK Brazil Malaysia KSA Venezuela 0 10 20 30 40 50 60 70 80 90

6. One Step Forward Al-Khobar Enterprises Development (AKED) was formed in 2006: – Joint Stock Company – Mission: Business Development – Focus: Oil and Gas - Downstream and Upstream – Platform for establishing energy manufacturing and support services 1 st project is “Energy Industrial Park”

7. Energy Industrial Park

8. World-Class Energy Industrial Park 1.5 million m² land area within Dammam 2 nd Industrial City 120 Manufacturing and services companies Self-Contained: Manufacturing, Vocational and Technical Educational Centers, Residential and Other Community Services State-of-the-Art Infrastructure

9. Energy Industrial Park- will be in operation by middle of 2011 Signed the land lease agreement with MODON Signed the Engineering Design & Supervision Agreement Signed the Technical Service Agreement Award the Construction Contract in December 2009 Project Completion in mid 2011 International corporations have expressed strong interest

10. Value Proposition Common User Supply Base Concept (CUSB) – Full-Service Logistics Capabilities to support and assist associated companies – Shared services – Associated companies can focus on their core business competencies & enhance efficiency levels – HSEQ rigorous standards – Common Vocational and Technical Training Center – Inventory management

11. Energy Industrial Park

12. Company Structure AKED (51%) OSC Limited (49%) Rashid Al Suwaiket (Chairman)

13. Energy Industrial Park Vocational and Technical Training Center Vocational & Technical Training Centers OSCC Participating Companies Long Term Indigenous Skills Specialized Training Firms

14. Recommendation Establish Oil and Gas Services Indigenization Task Force: 1.Ministry of Petroleum & Mineral Resources, 2.Saudi Aramco (New Business Development and Materials Supply) 3.Private Sector Objective: Develop local content incentives and policies for Oil &Gas services industry to grow and compete globally – Achieving economies of scale – R&D Cooperation and Technology Indigenization – Long Term Indigenous Human Resources & Entrepreneurship Development – Supply chain management

15. THANK YOU