English Edition (2 MB pdf) - Saudi Aramco

Table of Contents 

4 2011 Highlights 

6 About Saudi Aramco 

9 Citizenship Around the World 

10 Chairman’s Message and President’s Foreword 

12 Citizenship at Saudi Aramco 

14 Economy 

Enabling Entrepreneurship and Innovation 

Developing Local Content 

Building a Competitive Workforce in the Kingdom 

22 Community 

Promoting Community Health 

Building a Culture of Safety 

Targeting our Charitable Giving 

30 Knowledge 

Investing in Education 

Inspiring Saudi Arabia’s Young People 

Spreading Cultural Awareness 

40 Environment 

Enhancing Energy Efficiency 

Protecting the Natural Environment 

Raising Awareness for Environmental Protection 

Developing Cleaner Energy Technologies 

48 Our Outlook 

| Aiming Higher | About this Report 

Saudi Aramco’s 2011 Annual Review and this companion publication, the 

2011 Corporate Citizenship Report, continue our annual practice of reporting 

on our operational, organizational, social, and environmental achievements 

and goals. Our reporting has been informed by internationally-recognized 

guidelines developed by the Global Reporting Initiative (GRI) and the 

International Petroleum Industry Environmental Conservation Association 

(IPIECA). These guidelines help us identify, structure, prioritize, evaluate and 

present key issues that are relevant and meaningful to our stakeholders. For 

past reports, please visit www.saudiaramco.com.

The Custodian of the Two Holy Mosques, 

King ‘Abd Allah ibn ‘Abd Al-’Aziz Al Sa’ud 

His Royal Highness Naif ibn ‘Abd Al-‘Aziz Al Sa’ud 

The Crown Prince, Deputy Prime Minister, 

and Minister of the Interior 

2 Saudi Aramco 2011 Corporate Citizenship Report 

3

2011 

Highlights 

2011 Highlights 

2011 

Highlights 

Economy 

Community 

Knowledge 

Environment 

We support the Kingdom’s growth and 

prosperity by enabling entrepreneurship 

and innovation, developing local content, 

and building a competitive workforce. 

90% of material procurement 

spending awarded to local companies 

75% of service procurement spending 

awarded to local companies 

1,200 suppliers at the launch of the 

Supplier Safety Management System 

274 trainees participated in Wa’ed, our 

entrepreneur development initiative 

5,907 employees participated in the 

Innovation Program 

4,074 Saudi high school graduates and 

vocational college graduates trained in the 

Apprenticeship Program 

We support our local communities 

by promoting health and well-being, 

building a culture of safety, and 

targeting our charitable giving. 

21 workshops conducted by the Nursing 

Department, with more than 1,000 nurses 

from local hospitals attending 

1.5 million visitors to the summer 

Cultural Programs 

17% decrease in the on-the-job motor 

vehicle accident rate 

12,000 high school students and 2,400 

civil defense students trained with the Traffic 

Safety Manual 

32,300 students educated in traffic safety 

by the Saudi Aramco Safety Simulator Trailer 

20,000 school kits provided by the School 

Kit Campaign 

We foster knowledge in the Kingdom 

by investing in education, inspiring 

Saudi Arabia’s young people, and spreading 

cultural awareness. 

200 teachers attended a course on how to 

use MIT’s Blended Learning Open Source 

Science or Math Studies (BLOSSOMS) videos 

in their classrooms 

350 teachers trained in the Teacher In-Service 

Program to promote engineering education 

35 Saudi Aramco-built government 

schools renovated 

25 high school students, including 

13 female students, sponsored to attend 

the Saudi Research Science Institute (SRSI) 

45,000 students hosted as part of the 

School Visitation Program to the Saudi 

Aramco Exhibit, a high-tech science museum 

196 schools visited by the Mobile Library 

We encourage stewardship and innovation 

by focusing on enhancing energy efficiency, 

protecting the natural environment, raising 

awareness for environmental protection, and 

developing cleaner energy technologies. 

>1,800 energy efficiency ideas generated 

by employees and submitted to the Energy 

Conservation Innovation Tournament 

Gas Operations reduced facility energy 

intensity by 5% 

50,000 mangrove trees planted along the 

Arabian Gulf coast 

40% reduction in overall flaring level at NGL 

facilities and 31% at gas plants 

10,000 cubic meters of accumulated 

sludge deposits cleared from the Jiddah 

marine area 

1,346 tons of paper, cartons, plastic, glass 

and aluminum materials and 11,500 toner 

cartridges collected for recycling 

4 

Saudi Aramco 2011 Corporate Citizenship Report 

5

About 

Saudi 

Aramco 

World’s largest proven conventional 

crude oil and condensate reserves of 

259.7 billion barrels 

• 9.1 million barrels of crude oil 

production (average per day) 

About 

Saudi Aramco 

About 



• 3.3 billion barrels of crude oil 

production (annual) 

• 13.3% of the world’s crude oil 

production 

World’s fourth-largest natural gas 

reserves of 282.6 trillion standard 

cubic feet (scf) 

• 9.9 billion scf of gas production 

(average per day) 

• 3.6 trillion scf of gas production 

(annual) 

Downstream Accomplishments 

The Saudi Arabian Oil Company 

(Saudi Aramco) is the state-owned oil 

company of the Kingdom of Saudi Arabia. 

As a fully integrated, global petroleum and 

chemicals enterprise, we are a world leader in 

exploration, production, refining, distribution, 

shipping and marketing. 

• 8th largest refiner in the world with 

worldwide refining capacity of 4.02 

million barrels per day* 

• World’s top exporter of natural gas 

liquids (NGL) 

(* including domestic refineries, and domestic and 

international joint and equity ventures) 

We report to the Supreme Council for Petroleum and 

Minerals Affairs, chaired by the Custodian of the Two 

Holy Mosques, King ‘Abd Allah ibn ‘Abd Al-’Aziz Al Sa’ud. 

The council sets the company’s overall direction. 

To accomplish its mission, Saudi Aramco is organized 

into key business areas, each headed by a member 

of corporate management. 

Headquartered in Dhahran, Saudi Arabia, Saudi Aramco 

and its subsidiaries have offices throughout the Kingdom. 

We also have offices in North America, Europe and Asia. 

Our subsidiaries and affiliates are located in Saudi Arabia, 

China, Japan, India, the Netherlands, the Republic of Korea, 

Singapore, the United Arab Emirates, the United Kingdom 

and the United States. 

Board of Directors 

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. O’Reilly, Salim S. Al-Aydh, Amin H. Nasser 


7

Our Operations 

Citizenship Around the World 

Saudi Aramco understands that our long-term success depends on 

being a good citizen everywhere we or our affiliates do business. 

About 



Upstream: Applying new knowledge and skills to meet future energy needs 

Exploration 

Finding additional oil and gas reserves is one of our highest priorities. Using the latest technology, our 

geoscientists continually seek new sources of oil and gas on land and offshore, throughout the Kingdom. 

About 



Oil Operations 

Gas Operations 

We strive to optimize production from our oil fields, which are among the largest in the world. Most 

production comes from fields in the coastal plains of the Eastern Province, an area extending 300 kilometers 

north and south of Dhahran. 

We are working to increase supplies of gas for domestic energy, powering desalination plants and 

other industries, and as a vital feedstock for our growing petrochemical industry. 

Downstream: Contributing to the nation’s prosperity in ways that are tangible, valuable 

and sustainable 

Refining and 

Petrochemicals 

As we strive to become the world’s leading petrochemical company, we continue to integrate our refineries 

with petrochemical plants, build new facilities and collaborate with leading global chemical companies. 

Our investment in refining and petrochemical production capacity is a key driver of industrialization 

and job creation in the Kingdom. 

Transportation 

and Distribution 

Our extensive network of ships and pipelines delivers our products to bulk plants and terminals throughout 

the Kingdom. From these strategically located distribution points, we and our affiliates safely and 

reliably deliver natural gas and high-quality refined products domestically, and crude oil and natural gas 

liquids (NGL) to customers around the globe. 

Looking ahead, the integration of rail infrastructure into our distribution system will enhance safety on 

the highways while supporting the Kingdom’s economic growth. 

Our People: Working together to support the company, its employees, communities, 

and customers 

Workforce 

Knowledge, 

Training, and 

Development 

Safety and 

Health 

Saudi Aramco 

Communities 

We attract and retain a world-class workforce, provide job opportunities for Saudi nationals, and encourage 

the Saudization of our contractor workforce, in line with applicable laws and regulations. 

We invest in increasing the skills and leadership capabilities of our employees, as well as providing 

educational and vocational opportunities for people throughout the Kingdom. In our quest to develop 

the Kingdom’s knowledge economy, we also invest in research, development and innovation. 

We recognize the safety risks inherent in our business, and we are dedicated to protecting and promoting 

the health and safety of our employees through our industrial safety programs and world-class 

health-care system. 

We manage residential communities, schools and community services for our employees. We 

design communities that are safe, vibrant, and promote a sense of well-being for our employees 

and their families. 

USA 

● Global Reliability Forum — Aramco Services Co. 

hosted the inaugural Saudi Aramco Global 

Reliability Forum to share information on 

innovative technologies and best practices in 

reliability. Attendees represented major oil and 

chemical companies committed to ensuring 

reliable supplies of energy now and in the future. 

● Road to Success — Our Road to Success 

orientation program for Saudi Aramco-sponsored 

students studying at U.S. universities addresses 

issues such as cultural awareness, campus life, 

personal and driver safety, and time management. 

● Women’s Leadership — We have sponsored 

the Women’s Global Leadership in Energy 

& Technology Conference for seven years. 

The 2011 keynote was delivered by Huda 

Al-Ghoson, the General Manager of Saudi 

Aramco’s Training and Development organization. 

● Museum of Fine Arts — Aramco Services Co. 

sponsored the exhibition “Gifts of the Sultan: 

The Art of Giving at the Islamic Courts,” held 

at the Museum of Fine Arts in Houston. More 

than 200 pieces of art comprised a unique 

collection that explored the universal tradition 

of gift-giving and its significance to Arab culture. 

● Houston Half Marathon — For the seventh 

consecutive year, Aramco Services Co. employees 

lent their support to various charities by 

participating in the Aramco Houston Half 

Marathon. The multi-race running event, which 

includes the Chevron Marathon and the El Paso 

5K Run, all under the Run for a Reason program, 

raised a total of $2.1 million for 52 charities. 

Europe 

● The Future is Green — Aramco Overseas Co. 

hosted “The Future of Green” seminar at the 

NEMO Science Center in Amsterdam as part of our 

“Go Green!” environmental awareness campaign. 

● Museon Museum — Aramco Overseas Co. 

sponsored the “Geology and Technology” 

exhibition at the Museon Science and 

Technology museum in The Hague. The exhibit 

opened in June 2011. 

● Oxford Energy Seminar — Aramco Overseas Co. 

sponsored the 33rd Oxford Energy Seminar at 

St. Catherine’s College at the Oxford Energy 

Institute. One hundred of the world’s energy 

leaders attended. 

● Innovation Symposium — Aramco Overseas Co. 

held its first European Technology Quest 

Innovation Symposium in Aberdeen, Scotland, 

bringing together experts in the field to 

investigate solutions to 21 specific challenges 

in several research domains, including 

computational modeling, geophysics, geology, 

production, drilling and reservoir engineering. 

● University Visit — Chemistry students from 

the University of Amsterdam spent a full day 

at Aramco Overseas Co. headquarters in the 

Netherlands learning about the research and 

development of functional materials from the 

Research and Technology unit. 

Asia 

● “An Evening of Saudi Arabia” — Aramco 

Overseas Co. hosted a cultural event titled 

“An Evening of Saudi Arabia” in Shanghai, 

China, to introduce the history and culture of 

the Kingdom, and strengthen the company’s 

relationship with its local associate university, 

Tongji University. 

● Earthquake Relief — On a visit to Tokyo 

on March 22, Khalid Al-Falih, Saudi Aramco 

President and CEO, announced that the Saudi 

Government had instructed Saudi Aramco to 

deliver a $20 million donation on its behalf 

to Japan to provide propane for victims of the 

earthquake and tsunami. The donation provided 

$400 subsidies per household per month to 

cover propane costs. By the end of October, 

about 52,000 families in temporary households 

were receiving the subsidy. 

● Ramadan Gifts — Employees from Saudi 

Aramco’s shipping subsidiary, Vela International 

Marine Limited, participated in the distribution 

of more than 100 gift boxes among the needy 

people of Dubai during the holy month of 

Ramadan. Vela has also donated computers, 

printers, mobile phones and other useable 

devices to the Green Foundation in Dubai for 

recycling and reuse. 


9

Chairman’s Message 

President’s Foreword 

Saudi Aramco has always considered the well-being of its local communities 

and stewardship of the environment as central to its organizational mandate. 

We have always strived to be a catalyst for the development and diversification of 

the domestic economy. 

This commitment was first manifested decades ago when the company helped build some of 

the Kingdom’s first roads, schools, airports, health-care facilities, railways and power stations. 

In 2011, I was proud to see our impact become both broader and deeper. Beyond the initiatives 

that are readily visible — the many valuable educational programs, cultural initiatives, and 

health and environmental awareness campaigns sponsored by the company — Saudi Aramco 

is finding new ways to help improve the economy of the Kingdom. 

This was particularly apparent in our 2011 downstream activities. The continuing transformation 

of our downstream portfolio continues in its overall objective to create jobs. These will be 

generated in the company, its affiliates and service providers, but also in the conversion, 

manufacturing and service clusters built around our integrated refining and chemical facilities. 

Saudi Aramco is the source of most of the Kingdom’s national revenue, as well as the sole 

supplier of petroleum fuels and feedstock to its industries (including petrochemicals, which 

represent about 10 percent of our nation’s gross domestic product). 

Going forward, the petrochemical products created by Saudi Aramco’s joint ventures have 

been selected not just for their potential to generate profit, but also for their ability to develop 

new industries in the Kingdom. 

Beyond creating jobs, I am sure that these activities — which rely not just on energy, but on 

knowledge for their success — will help nurture the growth of a knowledge-based economy 

in the Kingdom. 

In short, I believe that Saudi Aramco’s domestic social and economic contributions do not 

come at the expense of its focus on its global competitiveness and profitability. Instead, 

these factors complement one other, and are essential for long-term business success and 

sustainability. This 2011 Corporate Citizenship Report describes some of the many ways in 

which our contributions to the Kingdom and the communities in which we operate have 

progressed in 2011. 

At Saudi Aramco, we are undergoing a remarkable UPSCALING in how we 

practice corporate citizenship. In addition to our traditional community and outreach 

initiatives, our decision making increasingly incorporates an awareness that the 

broad sustainability and indeed the vibrancy of the communities in which we operate, the 

health of the natural environment, and our own performance as a company go hand-in-hand. 

When viewed in this context, it is clear that citizenship is not a matter of “nice-to-have” charitable 

activities, but rather of initiatives that provide real returns for the enterprise: They are driven not 

just by benevolence, but by good business sense. Good corporate citizenship demands that we 

focus simultaneously on maintaining efficient and cost-effective petroleum operations; targeted, 

strategic investments in local economies and communities; and responsible environmental stewardship. 

In my mind, prosperity and responsibility coexist as central aspects of our business 

model. 

This is true not only for Saudi Aramco, but for our whole industry. The petroleum industry is 

experiencing a renaissance — demand continues to grow, and the applications of our products 

are continually broadening. People around the world will continue to rely on petroleum for 

decades to come. Rather than the supply scarcity that many predicted, the planet has adequate 

oil and gas supplies, due in large part to our industry’s ingenuity in continuously unlocking 

new resources. That also means the world now has even more time for the gradual but 

meaningful development of renewables, and for them to overcome technical, economic, 

environmental and consumer acceptance obstacles. 

But this renaissance must be characterized by more than growing profits. It should be an era in 

which we, as an industry, fulfill our commitments to humanity by helping raise and sustain quality 

of life across the globe while meeting our obligations to the natural environment. I believe 

this is our higher purpose as energy providers. The degree to which we are able to achieve this 

aim will not only shape our industry’s fortunes, but will help to determine the condition of our 

fellow human beings for many decades to come. 

With this in mind, I am very pleased to present our third annual Corporate Citizenship Report. This 

report allows us to share with our valued stakeholders the progress we have made on our journey 

toward fulfilling this higher purpose. 

Ali I. Al-Naimi 

Minister of Petroleum and Mineral Resources 

Chairman of the Board of Directors 

Khalid A. Al-Falih 

President and Chief Executive Officer 


11



Citizenship 

2010 

1 

Citizenship 

at Saudi 


Citizenship at Saudi Aramco 

Citizenship 

at Saudi 


Progress in 2011 

Aiming Higher 

Our Commitment: 

To be an influential 

leader in creating 

sustainable social and 

economic opportunities 

for the welfare of the 

Kingdom and in other 

locations where our 

affiliates do business. 

| Aiming Higher | 

Our Citizenship 

Reporting Journey 

Since before “corporate citizenship” had a name, Saudi Aramco 

has strived to build a national infrastructure and provide wider 

opportunities for a better life among the people of Saudi Arabia. 

This way of thinking about our business and its role in society has always 

been central to our decision making and culture. 

Underlying our approach to citizenship has 

been a recognition of the interdependency 

between business success and social and 

environmental well-being. When we promote 

local manufacturing of goods and procurement 

of services from local suppliers, we 

help local economies grow and diversify, 

supporting the creation of new jobs and vibrant, 

productive and resilient communities. 

When we provide meaningful training to 

local workers, transfer technology, share 

expertise and best practices, and undertake 

research and development programs locally, 

we are rewarded by an increased ability to 

find excellent candidates for key positions 

SAUDI ARAMCO CORPORATE CITIZENSHIP '09 

2009 Corporate Citizenship 

Review: As our first publication 

devoted to citizenship, the 

Review surveyed almost 80 

years of our contributions to 

the Kingdom. 


Report: As our first full-length 

report, this second annual 

publication focused on the 

year’s performance, with a 

detailed selection of performance 

metrics, more specific 

strategic orientation and 

detailed program information. 

within our company. When we invest in 

cleaner energy technologies, we enhance the 

environmental sustainability of our business, 

while expanding into new markets. 

In recent years, Saudi Aramco has brought 

increased focus and dedication to achieving 

excellence in our practice of citizenship and 

its integration into more aspects of our 

business. This has been marked by the 

creation of a formal corporate citizenship 

division and an annual report dedicated to 

this important topic. 


Report: This year’s report 

continues in the tradition of 

the 2010 report by focusing 

on metrics, emphasizing the 

year’s key achievements, 

and reporting progress on key 

long-term initiatives. 

As demonstrated by this Corporate Citizenship 

Report, as well as its companion Annual 

Review, 2011 was a remarkable year at Saudi 

Aramco. The company experienced remarkable 

growth and expansion, coupled with 

high levels of productivity and innovation. 

Our citizenship strategy and activities were 

equally dynamic. Here is a brief glance of 

the activities we describe in this report: 


13 

Economy 

Our impact on the Kingdom’s economy continues 

to grow in breadth and depth. Saudi 

Aramco’s new entrepreneurship center, 

Wa’ed, along with our internal innovation 

program, supported a burgeoning national 

culture of entrepreneurship and innovation. 

Our procurement targets to increase local 

content and manufacturing, as well as our 

other methods of engaging suppliers, had 

enormous impacts on supply chains in the 

Kingdom. Our many training and development 

programs, both for employees and for 

non-employees, supported the creation of a 

more competitive Saudi workforce. 

Community 

Saudi Aramco continues to play its well-established 

role in the communities where we 

do business. Our numerous campaigns and 

events encouraged greater health, well-being 

and safety. We also continued to examine 

the way in which our charitable giving is 

designated, continually looking for ways 

to enhance the social and environmental 

impacts of all company grants and sponsorships. 

We developed an in-Kingdom donation 

strategy that aims to have a portion of our 

charitable giving go toward programs that 

are aligned with Saudi Aramco’s four pillars 

of citizenship. 

Knowledge 

Our activities to promote knowledge, education 

and awareness took increasingly 

ambitious forms in 2011. We invested considerable 

resources and talent in supporting 

better education for students of all ages, 

continued to develop an ambitious new initiative 

to inspire the Kingdom’s youth, and 

continued the construction and development 

of the King Abdulaziz Center for World Culture, 

a landmark facility to be located adjacent 

to our corporate headquarters in Dhahran. 

Environment 

Environmental management and stewardship 

play a central role in the way we conduct 

our core operations and plan for the future. 

In 2011, several new and ongoing initiatives 

supported a focus on enhancing energy 

efficiency, protecting the natural environment, 

and increasing environmental awareness. 

We also continued to leverage our advanced 

research and technological capabilities to develop 

a variety of cleaner energy technologies. 

Our progress as a corporate citizen 

is a continuing journey, and while we 

look back on our achievements with 

pride, we look to the future determined 

to improve and “aim higher.” 

We are guided in this by a strategy 

based on four principles: 

Build on our core business strengths. 

Doing what we do best to maximize 

our positive impact on society. 

Respond to the needs of society. 

Each of our programs is based on clearly 

defined needs within the communities in 

which we operate and on the objectives 

of the Kingdom as a whole. 

Create strategic collaborations. 

Working with others builds scale and 

optimizes outcomes, allowing us to 

leverage shared values and complementary 

strengths of other organizations. 

Evaluate our performance 

on an ongoing basis. 

We continue to review all of our 

corporate citizenship activities against 

a rigorous framework to ensure they 

remain relevant to our core business 

objectives and the communities in 

which we operate.

274 

709 

young entrepreneurs trained through Wa’ed, 

our entrepreneur development initiative 

Saudi employees hired 

Economy 

Overview 

90% 

of material procurement needs 

and 75% of service procurement 

needs met by local suppliers 

Economy 

$23.1 

billion in material and service procurement 

spending awarded to local companies 

Overview 

In recent decades, the Saudi economy has enjoyed a period of 

prosperity and stability. However, there are many economic challenges 

in the Kingdom that must be addressed. Many of these have become 

more urgent because of continuing volatility in the global economy and the 

geopolitical arena. As a global energy supplier, Saudi Aramco’s business has 

a significant macroeconomic impact, which affects the growth and direction 

of the Kingdom’s economy. 

But beyond being a contributor, we are also a 

dependent. Our ability to thrive is intrinsically 

linked to the development of the Kingdom’s 

economy, the creation and nurturing of 

transformative ideas, and our capacity to 

deliver in an unpredictable global economy. 

Some of the most pressing national economic 

issues include high unemployment, 

particularly among young people, unbalanced 

representation of Saudi nationals in the 

workforce, a shortage of people with the 

skills that will help us meet market needs, 

and underutilization of Saudi businesses as 

preferred suppliers and manufacturers. 

To address these challenges, the Kingdom’s 

chief priorities are to stimulate economic 

growth and diversification by promoting local 

production of goods and services, to support 

locally-based manufacturers, to create jobs 

for Saudi nationals, and to ensure the Kingdom’s 

young people are equipped with 

skills that will allow them to participate in 

the growth of the economy. 

In 2011, Saudi Aramco continued to invest 

in the Kingdom’s abundant resources, young 

labor force, and ample infrastructure by 

enabling entrepreneurship and innovation, 

developing local content and building a 

competitive workforce. 

As a global energy supplier, Saudi Aramco’s business 

has a significant macroeconomic impact, which affects 

the growth and direction of the Kingdom’s economy. 


15

Economy 

Enabling 

Entrepreneurship 

and 

Innovation 

1,626 

2,900 

3,587 

4,718 

21 

4,533 

52 

5,041 

4,932 

33 

85 

128 

25 

5,017 

5,771 

5,907 

64 

159 

46 

94 

Economy 

Enabling 


and 

Innovation 

‘02 ‘03 ‘04 ‘05 ‘06 

‘07 

‘08 

‘09 

‘10 

‘11 

‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 

Employee participation in the 

Innovation Program 

Number of patents per year 

(cumulative) 

Enabling 


and Innovation 


Innovating for the Future: 

The Corporate Venturing Program 

To accelerate the development of new technologies 

at start-up firms, we created the 

Corporate Venturing Program to identify and 

invest in cutting-edge technologies. The 

program will invest in early- and growthstage 

technology companies in the areas of 

upstream oil and gas operations, downstream 

operations, alternative energies and 

energy efficiency. The Corporate Venturing 

Program will be fully launched in 2012 as 

Saudi Aramco Energy Ventures (SAEV), a 

wholly owned subsidiary of Saudi Aramco. 

Entrepreneurship and innovation are key contributors to job 

creation and economic diversification, and the Kingdom’s future economic 

success will require creative and ambitious investment strategies in 

both areas. This understanding led to the launch of our entrepreneur development 

initiative last year. Following a successful pilot phase, the Saudi 

Aramco Entrepreneurship Center was officially launched under the Arabic 

name “Wa’ed,” or “Promising” in English. 

Male and female entrepreneurs who are 

not Saudi Aramco employees can present 

their ideas for new ventures by completing 

a form on the company’s website. To be 

accepted, the idea must be creative, innovative 

and have the potential to create 

jobs. Successful applicants undergo intensive 

training with Wa’ed specialists, who 

assist the entrepreneurs with business 

plans, due diligence and financing. In 2011, 

Wa’ed completed its fourth tranche of 

training workshops, bringing the total 

number of prospective entrepreneurs routed 

through the program to 274, including 73 

female entrepreneurs. 

As a result of its early success, Wa’ed’s portfolio 

of services was recently expanded by 

the Board of Directors, which approved the 

creation of Wa’ed Ventures as an equity 

investment arm of Wa’ed. The new entity 

will invest in small- and mid-sized Saudi 

enterprises to promote local economic growth 

and diversification. By 2017, Wa’ed’s goal is 

to fund 20 ventures annually. In addition, it 

aims to attract 850 applicants, train 250 applicants, 

and complete 150 business plans 

annually. It is our hope that Wa’ed will expand 

the Kingdom’s pool of entrepreneurs, 

encourage development of an entrepreneurial 

ecosystem, and provide debt financing 

for small- and mid-sized business ventures 

in Saudi Arabia 

Collaborating with King Fahd University of 

Petroleum and Minerals (KFUPM), Saudi 

Aramco is helping to develop Dhahran 

Techno-Valley (DTV), a major undertaking 

initiated by KFUPM in 2006. DTV provides 

development, production and marketing 

support services for innovation originating 

from academic research, and infrastructure 

that will foster the growth of industrial 

research and development in the Kingdom. 

Its aim is to be a leading research and technology 

nucleus, creating a space where 

both industry and academia can collaborate 

and thrive — an environment that will be a 

catalyst for technical innovation. So far, 20 

companies have dedicated research centers at 

the DTV, including Schlumberger, Halliburton, 

Baker Hughes, General Electric, Honeywell, 

Yokogawa and many others. 

While we value collaboration with others, 

we do not take for granted the wealth of 

inspiration and innovation that exists within 

our company. Since 2002, our Innovation 

Program has captured game-changing ideas 

generated by our own employees. In 2011, 

a total of 5,907 employees submitted 12,978 

ideas through the program, of which 1,240 

were approved and 690 were fully implemented. 

Employee enthusiasm for the program is 

shown by the increasing number of submissions 

and participants. We recently introduced 

a state-of-the-art software program 

to facilitate the submissions and review process. 

Since the program began in 2002, more 

than 100,000 ideas have been submitted. 

To ensure that selected ideas are yielding 

results, Saudi Aramco takes a systematic approach 

to managing the idea and innovation 

pipeline, with a structured process to review 

the ideas’ implementation plans and progress. 

In 2010, we launched an Innovation Tournament 

to capture ideas based on a designated 

theme or challenge. Following the success 

of the first event, we held a second tournament, 

in September with the theme, “Asset 

Reliability: Improvement toward Operational 

Excellence.” The challenge was to explore 

new ways to improve the design, efficiency 

and utilization of stationary equipment, 

leading to reduction in ownership cost. A 

total of 1,327 ideas were received. 

To ensure a continuous flow of high-value 

ideas, three new courses on innovation 

were introduced during 2011. The courses 

covered such topics as methodologies for 

evaluating ideas, improving affordability, 

and inventive problem solving. 


Building intellectual capital and capacity 

In 2011, Saudi Aramco’s corporate patent portfolio grew by 24 percent. Contributing to this 

achievement were the filing of 208 patent applications at international patent offices and 

31 patents granted by the U.S. Patent and Trademark Office. The number of newly filed patent 

applications represents the highest one-year growth since the inception of the company’s intellectual 

assets protection program. Saudi Aramco has been granted 159 patents in total. We aim 

to continue our upward trajectory of innovating for the future, focusing even more intently on 

the value, not quantity, of the inventions being patented. 


17


Encouraging a Responsible Supply Chain 

Economy 

Developing 

Local Content 

A key mandate of corporate citizenship is to lead by example and encourage 

responsible business practices. Saudi Aramco has initiated several actions to reinforce 

best practices in supply chain management to help our local partners. At a series 

of seminars for suppliers and contractors, we launched the new Supplier Code of 

Conduct, which provides mandatory guidelines that promote ethical business 

practices, behaviors and attitudes for all current and prospective suppliers. 

In October, we launched a new safety awareness campaign for contractors and 

suppliers, and introduced a Supplier Safety Management System as the minimum 

standard to which all our suppliers must adhere. The launch event was attended by 

more than 1,200 people, representing owners and executive management of our 

key suppliers and manufacturers. We began on-site inspections of contractor facilities 

to ensure compliance with both safety and health regulations. 

Material procurement 

spending awarded 

(total, in billions) 

$5.0 

$4.5 

$5.2 

$4.8 

$2.5 

$2.2 $2.5 

$3.6 

$3.1 

$4.0 

$3.6 

Service procurement 

spending awarded 

(total, in billions) 

$24.3 

$18.9 

$19.3 

$14.1 

$15.4 

$12.7 

$16.4 

$12.0 

$26.0 

$19.5 

Service contracts 

awarded (total) 

2,086 

1,368 

2,194 

1,366 

2,189 

1,419 

2,157 

1,331 

2,200 

1,225 

Economy 

Developing 

Local Content 

‘07 ‘08 ‘09 ‘10 ‘11 

‘07 ‘08 ‘09 ‘10 ‘11 

‘07 ‘08 ‘09 ‘10 ‘11 

Amount awarded 

to local companies 

(in billions) 

Amount awarded 


(in billions) 

Number awarded 


Developing 

Local Content 

There is tremendous potential yet to be realized in our local 

Saudi businesses, and Saudi Aramco is supporting local suppliers, 

manufacturers, and other local service providers to help them achieve 

that potential. We recognize that a strong local market for goods and services 

benefits our supply chain with the introduction of new products. Having local 

suppliers and manufacturers also offers lower transactional costs. 

To support this objective, we are preparing 

to open in 2012 a local content office for 

Saudi Aramco at the Asharqiyah Chamber of 

Commerce to help develop Saudi businesses. 

In 2011, 75 percent of our service procurement 

needs and 90 percent of material 

procurement needs were met by local suppliers. 

Twenty-two percent of our material 

procurement needs were met through 

goods manufactured within the Kingdom 

and we aim to increase this to 70 percent 

by 2020. 

“We, as a large and successful company with such diverse capabilities, reflect a wide network of 

organizations and departments. Because of this, we should utilize our status as a role model in the 

area of supply chain management within the GCC region.” 

Saudi Aramco is actively encouraging the 

Saudization (an increase in the percentage 

of workforce made up of Saudi nationals) of 

its manufacturers. To that end, we organized 

a Local Manufacturers Forum in June, 

which was attended by more than 900 participants 

from 350 Saudi manufacturing 

companies, the Ministry of Labor and the 

Asharqiyah Chamber of Commerce. We shared 

with the participants our new Saudi Manufacturer 

Premium, designed to increase 

opportunities for Saudi manufacturers to 

— Nabilah Al-Tunisi, Manager of the Material Planning and Systems Department, at the annual 

meeting of the Gulf Cooperation Council (GCC) Supply Chain Committee hosted by Saudi Aramco 

participate in the company’s business. Local 

manufacturers who comply with the required 

Saudization level will be eligible for a 10 

percent premium based on an approved 

Saudization Plan. Manufacturers should have 

a minimum of 20 percent Saudization with 

a plan to increase Saudization by five percent 

every year to reach a minimum of 45 

percent Saudization by 2016. Foreign enterprises 

and investors owning up to 100 percent 

of qualified manufacturing businesses in 

Saudi Arabia also will be eligible for the enhanced 

allowances. The goal of this strategy is 

to promote fuller employment and economic 

and social development in the Kingdom 

while also providing a more transparent and 

reliable environment for new investors in 

Saudi services and industry, including foreign 

direct investment. 

We are also creating opportunities through 

our Local Manufacturers Development 

Program, which has secured 10-year procurement 

agreements for valves, flanges and 

other fittings from local sources. We continue 

to pursue additional long-term purchase 

agreements to encourage growth of specific 

manufacturing businesses in the Kingdom 

and the construction of new factories. 

We have also supported an effort to attract 

businesses to the Kingdom by helping secure 

land in industrial cities and in Ras Al-Khair, 

north of Jubail, assisting businesses in finding 

qualified Saudi employment candidates, 

and by pairing relocating businesses with 

local suppliers and manufacturers to build 

relationships and expand the capabilities of 

local enterprises. 

We began an evaluation of the company’s 

drilling work and its costs, with an eye 

toward localizing this industry. We see opportunities 

in the manufacture of drilling 

rigs and platforms, rig parts and materials, 

and the production of downhole chemicals 

and fluids. At the same time, we are evaluating 

opportunities in offshore and marine 

services and dry docks, considering ways to 

make the best use of our seafront access and 

spending in Ras Al-Khair. We envision the 

development of local industrial clusters to 

engage in the manufacture, maintenance and 

operation of offshore boats, barges and accommodation 

platforms. Our aim is to create 

a broader base of revenue-generating activity 

by extending our operations throughout the 

petroleum value chain, and encouraging 

development and scaling up of other in-Kingdom 

industries. 

“Given its unique hydrocarbons 

endowment, the Kingdom in 

general — and Saudi Aramco in 

particular — have an unrivaled 

opportunity to develop a vibrant 

energy-service industry and at 

the same time address part of the 

Kingdom’s employment challenges. 

Allowing businesses to become 

established will provide technical 

and professional jobs, and excellent 

long-term career opportunities for 

Saudis will be created.” 

— Nassir S. Al-Yami, Manager of the 

Competitive Saudi Energy Sector Initiative 


19

“The new workforce is different in many ways. They arrive armed with 

BlackBerrys, iPads, iPhones and other gadgets. They are plugged in 

24 hours a day, seven days a week. They have high expectations of 

their employers, look for new challenges and are not afraid to question 

authority. We need to be ready to assimilate them within our workforce 

by providing challenging tasks, meaningful work and a solid learning curve. 

We should also capitalize on those features and behaviors for the benefit 

of the company.” 

Economy 

Building a 

Competitive 

Workforce 

in the 

Kingdom 

— Nasir K. Naimi, Executive Director of Pipelines Distribution and Terminals 

Economy 

Looking Forward 

Building a 

Competitive 

Workforce in 

the Kingdom 

Increasing the percentage of Saudi nationals in the workforce, 

especially considering the high unemployment levels among young 

Saudis, is a priority for Saudi Aramco given its influence in the Kingdom’s 

economy. We have actively supported the government’s Saudization strategy 

to make certain a stable and productive domestic workforce is available 

to contribute to the Kingdom’s economic growth. We have made progress 

by implementing policies that integrate and enhance our contractors’ 

Saudization processeses. Believing that our greatest reserves are our talented 

young people, our recruitment activities are intended to attract the most 

qualified Saudi nationals. 

In 2011, we were successful in hiring 709 

new Saudi employees. Eighty-seven percent 

of Saudi Aramco’s 56,066 employees are 

Saudi nationals. 

To better align our training program with 

market needs, we worked with the advisory 

committee of the Saudi Petroleum Services 

Polytechnic, a vocational training institute 

in Dammam, to customize a curriculum for 

Polytechnic students that adds a hands-on 

element to the learning environment. To 

enhance the learning experience, we drilled 

an 834-foot well as a training aid. We also 

plan to purchase and install a state-of-theart 

training rig to simulate drilling operations 

for the students. 

A competitive workforce also includes developing 

the skills and competencies of women 

in the workforce. In 2011, 206 women 

participated in Saudi Aramco’s Women in 

Business Program. Saudi Aramco organized 

workshops in Ras Tanura, Riyadh and Jiddah 

designed to enhance the skills of Saudi private 

sector businesswomen. The program, 

“New Approaches to Leadership for Women 

Entrepreneurs, Managers and CEOs,” was 

coordinated by Entrepreneur Ventures Inc. 

and the MIT Sloan School of Management. It 

was designed to help participants to think 

systematically and strategically about leading 

a growing organization and sustaining success 

in a rapidly changing business environment. 

In addition, Saudi Aramco’s Dhahran Women’s 

Group hosted the first Women’s Conference 

in December that brought together 250 Saudi 

and expatriate women, as well as a roster 

of domestic and international speakers. 

In December, Saudi Aramco participated 

in laying the foundation for the National 

Industrial Training Institute (NITI) in Al Hasa 

(pictured above right). A joint project of 

Saudi Aramco and the Technical & Vocational 

Training Corporation, NITI will offer Saudi high 

school graduates a two-year technical training 

program to prepare them for jobs in the 

energy sector, including petrochemicals. NITI 

will contribute to building a skilled Saudi 

workforce, reducing unemployment and 

supporting the Kingdom’s Saudization efforts. 


Young Saudis receive on-the-job-training at Saudi Aramco 

Since we view young people as the Kingdom’s greatest asset in securing our future, 

our Apprenticeship Program aims to prepare ahem for successful careers. In 2011, 

the program trained 4,074 Saudi high school graduates and vocational college 

graduates. As we prepare them, we also prepare the company. Saudi Aramco is 

challenged by an aging workforce — with up to 50 percent of our workforce due to 

retire during the next few years — increased job growth due to new downstream 

activities, and an expanding international presence. 

In these challenges, however, we see the opportunity to harness the energy and 

ambition of our young people, and the experience and knowledge of employees 

who have contributed to the success of Saudi Aramco, to shape a greater future for 

the company and its people. 

Our Apprenticeship Program aims to provide the kind of stimulating work environment, 

mentoring, and meaningful opportunities that inspire and empower. All 

apprentices go through an on-the-job-training program, offering specific training 

for a specific plant and piece of equipment. Apprentices receive a minimum of 

18 months of training and 50 hours of safety training. 

“We have started ambitious programs to sponsor young female students 

in fields that have not been common traditionally. We are also hiring 

more women than ever before to improve diversity in the workplace and 

focus on developing female leaders.” 


Our commitments for 2012 and 

beyond include: 

● Funding 20 entrepreneurial ventures 

that have completed the Wa’ed program 

● Fully launching Saudi Aramco Energy 

Ventures (SAEV), a wholly owned 

subsidiary of Saudi Aramco 

● Establishing a project incubator at 

the King Fahd University of Petroleum 

and Minerals 

● Meeting 82 percent of our services 

procurement needs and 94 percent of 

our materials procurement needs through 

local companies by the end of 2012 

● Meeting 30 percent of our material 

procurement needs through goods 

manufactured within the Kingdom 

by the end of 2012 — and 70 percent 

by 2020 

● Striving for a Saudization rate in our 

contractor workforce of 40 percent 

in the services sector and 18 percent 

in the construction sector by the end 

of 2012 

— Samir A. Al-Tubayyeb, Vice President 

of Employee Relations and Training 


21

1.5 

35% 

million people attended 

the summer Cultural Programs 

decrease in 

community fires 

Community 

Overview 

17% 

decrease in the on-the-job motor 

vehicle accident rate 

Community 

82 

medical facilities received development 

support from SAMSO 

Overview 

The well-being of the communities in which we operate has been 

of paramount importance to us since we began operations almost 80 

years ago. We rely on safe, vibrant and inclusive local communities for 

the future health and prosperity of our society. In our community programs 

and outreach events this past year, we focused our efforts on promoting 

community health and building a culture of safety. 

Our health and safety programs are designed 

to address the communities’ most pressing 

needs and the Kingdom’s social development 

challenges. They deal with community 

health needs such as improved delivery and 

quality of medical care, raising awareness 

of healthy lifestyle choices beginning in 

early childhood, and the dangers of smoking. 

Saudi Aramco hosted a variety of support 

programs and events to engage community 

members of all ages in educational activities 

and family festivals. 

We also continued to reinforce a culture of 

safety in our communities. Road safety 

remains a key priority, as auto accidents 

are a leading cause of death in the Kingdom. 

The hazards and devastating consequence 

of fires, a growing problem in the Kingdom, 

also were featured in our safety awareness 

programs. 

We depend on vibrant, inclusive local communities 

for the future health and prosperity of our society. 

22 


23

Children learn how to stay safe in the 

streets at the Traffic Safety Garden. 

Community 

Promoting 

Community 

Health and 

Well-being 

Community 

Promoting 

Community 

Health and 

Well-being 

“There is something for everyone in our community — from 

the pioneering program iSpark, engaging youth in fun, science, 

videogame design and documentary filmmaking, to children’s 

shows, health and safety awareness, heritage exhibits, and 

theater experiences designed to provide education and entertainment 

at the same time.” 

Promoting 

Community Health 

and Well-being 

The health of our employees, their families and the people in 

our communities is a priority for Saudi Aramco. Since 1933, Saudi 

Aramco has provided medical care to employees and their families. 

As part of our continued commitment to providing quality health care, 

Saudi Aramco is developing a Health Care Business Model to improve the 

delivery and quality of medical care. We aim to set the standard for an 

improved health-care delivery model for the Kingdom. 

To bring quality nursing care to a broader 

group of patients, Saudi Aramco Medical 

Services Organization (SAMSO) created a 

Nursing Outreach Program that helps local 

hospitals implement our best-practice model. 

Our Nursing Department conducted 21 

workshops, attended by more than 1,000 

nurses from local hospitals. SAMSO nurses 

also made consultancy visits to four community 

hospitals. As a testament to our 

quality improvement efforts, our nursing 

program has been recommended by the 

Saudi Arabian Central Board of Accreditation 

and accepted by the Saudi Arabian Ministry 

of Health (MOH) to be implemented in all 

MOH hospitals. 

As part of our continuous improvement 

efforts, SAMSO conducted staff and customer 

surveys again in 2011. SAMSO also 

held extensive workshops with employees 

from all departments to discuss the survey 

results and solicit feedback and recommendations. 

To improve communication with 

customers, SAMSO has held nine Community 

Health Care Forums. These forums have 

opened a dialogue that allows the organization 

to explain the concept of a patient-SAMSO 

partnership, give and receive feedback, and 

hear ideas from customers. 

SAMSO also works outside its health-care 

facilities to promote health and wellness 

in the community. Our school health promotion 

initiative for seventh- to ninth-graders 

in Saudi Aramco-built government schools 

provides information about life skills, physical 

activity, nutrition, tobacco use, safety behavior, 

as well as a screening program for height 

and weight, body fat and blood pressure. 

Now that the program has been successfully 

piloted, it will be rolled out over the 

next five years and then turned over to the 

Ministry of Education. 

Recognizing that smoking is a major health 

issue in our society, a number of Saudi 

Aramco organizations have launched antismoking 

campaigns. Our facility in Tanajib, in 

the Eastern Province of Saudi Arabia, created 

a campaign to coincide with International 

Anti-Smoking Day. In conjunction with SAMSO, 

local government authorities, and the local 

hospital, Saudi Aramco employees and more 

than 120 students from the region campaigned 

to spread awareness of smoking risks. 

—Nasser A. Al-Nafisee, 

General Manager of Public Affairs 


Cultural Programs reach a record 1.5 million attendees 

In summer 2011, a record 1.5 million people attended Saudi Aramco’s Cultural 

Programs throughout the Kingdom. We cooperated with government agencies, 

international organizations and individuals, as well as local clubs and communities, 

to put together engaging activities that appeal to people of all ages. Programs 

included arts, culture, heritage, education, sports and entertainment events, as well 

as safety and health awareness sessions. More than 1,000 Saudi Aramco volunteers 

contributed 100,000 hours to making the event a success. 

In addition, the iSpark program kicked off in 2011 with 1,600 students taking 

courses in multimedia, science, and technology. 

Another highlight of Saudi Aramco’s summer Cultural Program was the International 

Sports Academy. The academy for children ages 7–14 encouraged physical activity 

and gave a glimpse of what it takes to become a major football star. In similar 

programs hosted by six Saudi Aramco-built government schools, students aged 

15–17 also had the opportunity to attend soccer training sessions. In total, Saudi 

Aramco sports programs attracted 1,560 youth. 


25


Saudi Aramco advocates for fire prevention 

Community 

Building a 

Culture of Safety 

112 

‘09 

109 

‘10 

71 

‘11 

Number of 

Community Fires 

Fire safety and prevention is an issue that has become increasingly 

prominent. In our communities and to the public, the Saudi Aramco 

Fire Protection Department (FrPD) advocates fire prevention as the 

best safety measure. Our annual Fire Prevention Week campaign, 

which focused on preventing residential fires, was attended by 

more than 12,500 visitors, including employees and their dependents, 

contractors, new hires, apprentices and domestic helpers. 

We installed 1,000 fire extinguishers in our main communities in 

2011 and trained residents on how to use them. As a result of 

this prevention advocacy, we have seen a marked decrease in 

the number of community fires in the last few years. In addition, 

the FrPD participates in public fire safety awareness campaigns, 

and conducts an outreach program in government schools to 

teach children about fire prevention. 

Community 

Building a 


Building a 


The United Nations General 

Assembly has proclaimed 2011 

to 2020 as the first “Decade of 

Action for Road Safety.” 

Saudi Aramco has a long-standing commitment to promoting 

the safety of our employees, their families and our broader community. 

A culture of safety is supported inside the company and promoted in 

our communities through a variety of initiatives that tackle our society’s 

most critical safety challenges. Traffic safety and fire prevention were the 

two most critical safety threats on which we focused in 2011. 

As part of our approach to instill safety 

principles in the minds of our youth, Saudi 

Aramco coordinated a Comprehensive 

Citizenship Outreach Safety Program for 

40 schools in the Western Province. Another 

Western Province program aimed to raise 

health and safety awareness for children 

with special needs. 


Safety Awareness at Saudi Aramco 

The Eastern Province has the second-highest 

motor vehicle fatality rate in the Kingdom. 

For Saudi Aramco employees, it is ironic that 

men working offshore or high up on drilling 

rigs or in processing facilities are more likely 

to be injured going to or from work than at 

work. For this reason, last year we appointed 

a full-time team dedicated to spearhead the 

effort to reduce motor vehicle fatalities 

through Saudi Aramco’s Traffic Safety Signature 

Program (TSSP). 

In promoting best practices, we believe in leading by example. As a safety-conscious corporate 

citizen, we launched several initiatives that reinforced our culture of safety: 

● The Safety Ambassador Club was launched in 2011 at all employee training centers. 

● Since many of our employees’ workdays involve long hours on the road, we installed Driver 

Monitoring Devices in 100 private cars driven by Saudi Aramco apprentices to monitor their driving 

behavior. This initiative has already shown positive results. 

Over the course of the next year, we will monitor the progress of our employees as they strive to 

maintain the culture of safety at Saudi Aramco. 

In 2011, through TSSP’s focused efforts on 

the four E’s of traffic safety — Engineering, 

Education, Enforcement, and Emergency 

Care — the latest reports by the Traffic Police 

show a reduction of fatalities in the Eastern 

Province by more than five percent in the 

last three years — a hopeful sign that the 

program is making a difference. 

TSSP continued to distribute the Traffic Safety 

Manual to high schools and technical and 

vocational colleges to educate young people 

on traffic safety. In 2011, 12,000 high 

school students and 2,400 civil defense students 

received training with the Traffic Safety 

Manual. Saudi Aramco has also collaborated 

with Naif Arab University for Security Sciences 

to train 45 officers to improve traffic and 

highway security enforcement. 

TSSP, along with Dammam University, conducted 

the first Traffic Forum in December 

under the theme “The Reality, Experience 

and Hope.” Thirty technical papers, four traffic 

safety workshops and eight successful 

practices were introduced in the forum. 

In the area of enforcement, the TSSP contributed 

funding and expertise to the third 

phase of a government project to establish 

command centers in Ras Tanura, Jubail, Nuairiyah, 

Khafji, Hafer Al Baten and Al Hasa. 

With the completion of this phase, the seven 

Traffic Police and Highway Security Forces 

Centers were integrated to manage their 

fleets, improve response time to accidents 

and improve accident data collection. 

TSSP has also been working with the Ministry 

of Transportation to improve traffic safety 

throughout the Kingdom. By augmenting 

the engineering capacity of the Ministry, 

carrying out traffic studies, and making recommendations 

to the Ministry, TSSP continues to 

support the implementation of the Ministry’s 

traffic safety strategies. 

Since 2009, the Saudi Aramco Safety Simulator 

Trailer has helped promote awareness 

of defensive driving among students and 

young people. In 2011, the trailer reached 

23,000 students at schools, universities and 

institutes within the Central Province of Saudi 

Arabia. In December 2011, the trailer was 

visited by 9,329 people at various events in 

the Eastern Province. 

Saudi Aramco has participated in the Gulf 

Cooperation Council (GCC) Traffic Week for 

the last 27 years. The GCC’s annual Traffic 

Week campaign spreads awareness and 

educates people on how to reduce the reckless 

driving behavior that leads to motor 

vehicle accidents. Saudi Aramco organized 

Traffic Week 2011 Coordination Committees 

in all major company operating areas, with 

activities to educate employees and the 

public on how to prevent traffic incidents. 


The TSSP focuses on the 

four E’s of Traffic Safety 

● Engineering: Raising the bar on better 

and safer designs for roads and highways 

● Education: Educating youth and adults 

on the dangers of reckless driving and 

on developing safe driving habits 

● Enforcement: Cracking down on speeders 

and reckless drivers 

● Emergency Care: Teaching first responders 

across the Eastern Province the latest 

techniques of accident triage and life 

support for those critical minutes between 

the crash scene and the hospital 


27

Community 

Targeting 

Our Charitable 

Giving 

In the coming years, we aim to increase the 

percentage of donation funds directed toward 

targeted programs, and decrease the 

percentage of funds distributed in response 

to requests as financial gifts with minimal 

programmatic engagement by Saudi Aramco. 

The School Kit 

Campaign 

14,000 

15,000 

‘09 

‘10 

20,000 

‘11 

on Downstream Petrochemical & Mineral 

Industries Conference at Yanbu’ Industrial 

City and the first Traffic Safety Forum. 

In coordination with the Orphan Social Care 

Center in Turaif, Saudi Aramco held an “Orphan 

Day” where school kits and uniforms were 

distributed among the children. The year 

2011 marked the 10th year Saudi Aramco 

has sponsored the School Kit Campaign. 

By donating a portion of their salaries to the 

purchase of school bags and study kits for 

students in need, our employees have shown 

a commitment to community well-being. 


Community 


Targeting 

Our Charitable 

Giving 

Saudi Aramco has supported charitable causes through 

donations and sponsorships since the establishment of our donation 

fund in 1940. Our giving supports local charities, research and development, 

and access to health care for our communities. In 2011, Saudi Aramco 

began implementing our In-Kingdom Donation Strategy, which aims to 

support charitable causes that are in-line with Saudi Aramco’s four pillars of 

citizenship. The strategy also aims to ensure systematic and effective utilization 

of the donation funds, address pressing community needs, and build 

the capacity of local charities. In 2011, one-third of the donation funds was 

directed toward the following five programs: 

● Expanding “edutainment” halls for people with special needs 

● Renovating houses of needy families 

Number of 

school kits 

In addition to these new targeted charitable 

programs, Saudi Aramco granted 65 requests 

for sponsorship. Among the events we 

sponsored were the Annual Charity Run, the 

Summer Festival of the Eastern Province, 

the Third Volunteering Day Festival and the 

Volunteering Fair of King Fahd University of 

Petroleum and Minerals, the first Saudi Forum 

Our commitments for 2012 

and beyond include: 

● Helping to reduce traffic fatalities 

and serious injuries in the Eastern 

Province by 30 percent within the 

next 10 years through our Traffic Safety 

Signature Program 

● Installing 8,000 fire extinguishers in 

Aramco communities in 2012 

● Designing and implementing a volunteer 

management system to enable more 

accurate tracking of volunteer hours 

and activities 

● Providing life skills courses for orphans with special conditions 

● Educating the community about diabetes, obesity and other common health problems 

through the Early Detection Mobile Clinic 

● Transitioning all SAMSO facilities 

across Saudi Arabia to smoke-free 

environments during 2012 

● Offering rehabilitation and vocational training for juvenile delinquents 

To help us select which charities to support, 

Saudi Aramco commissioned a survey of 

400 philanthropic leaders to assess unmet 

needs in the Kingdom and potential areas 

for contribution. Saudi Aramco then chose 

five programs (listed above) based on the 

survey results and our VISA selection criteria 

(Visible, Impactful, Sustainable and Aligned). 

For those five charities, Saudi Aramco is proactively 

involved in the design, management 

and monitoring of the program activities. In 

addition, payments are phased to reflect 

progress on targets, and Saudi Aramco staff 

members conduct field visits to ensure 

proper implementation. These five programs 

are also selected for their sustainability and 

their Kingdom-wide impact. 


29

175 

teachers trained at the launch of the 

Saudi Aramco Mathletics Initiative 

Knowledge 

Overview 

1,390 

participants in the College Degree 

Program and Associate Degree 

Program for Non-employees 

Knowledge 

338 

1,600 

participants in the College 

Preparatory Program 

students participated in iSpark, 

a series of content-rich programs 

providing creative opportunities to 

learn through active engagement 

Overview 

Saudi Aramco firmly believes that there is nothing more 

pressing in the Kingdom than preparing our young men and women 

for the future. With the accelerating pace of change brought on by 

technology and global competitiveness, transforming Saudi Arabia into a 

knowledge-based society will be key to the Kingdom’s future prosperity. 

Knowledge will drive all industry sectors and must be spread throughout 

the Kingdom. It is through knowledge — education, skills, and building on 

past experience — that the Kingdom will thrive in the global economy. As 

we aim higher and reach across borders with future partners towards new 

markets and horizons, it is important both to invest in the leaders of tomorrow 

and to honor the valuable heritage of our Kingdom. Our most ambitious 

initiative in promoting cultural awareness is the King Abdulaziz Center for 

World Culture, now on its way to becoming a state-of-the-art institution 

that will inspire a passion for learning, creativity, volunteerism and crosscultural 

engagement among its visitors. 

“Maintaining the position of the world’s preeminent energy producer is not 

enough to guarantee future success. The Kingdom must strive to create a 

knowledge-based economy.” 

— Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources and Chairman of Saudi Aramco’s 

Board of Directors, at the inauguration of the King Abdullah Petroleum Studies and Research Center 

30 


31

Knowledge 

Investing in 

Education 

Investing in 

Education 

Knowledge is imparted through education. Saudi Aramco 

remains committed to supporting education programs that focus on 

math, science and engineering education — three critical areas for 

the company and the Kingdom’s future. 

In 2011, we launched the Saudi Aramco 

Mathletics Initiative for the Ministry of Education. 

Mathletics is an online educational 

tool that helps teachers and parents raise the 

math abilities of students from kindergarten 

through 12th grade. Designed to improve 

standards and engagement in math, this 

four-year initiative will bring Mathletics to 

more than 350,000 students in schools across 

the Kingdom. 

To facilitate accessibility and stimulate interest 

in alternative learning methods as part 

of the Mathletics Initiative, Saudi Aramco 

established a Math E-Portal website with 

an Arabic interface, based on Saudi Arabian 

math curricula. Launched in September, the 

program trained 175 teachers in Jiddah, 

Dammam, Riyadh and Al Hasa and 185,000 

accounts were reserved for students’ use. 

Saudi Aramco has created a pilot program to 

foster 30 Math and Science Clubs in 15 

schools in the Eastern Province. In 2011, we 

finalized the curriculum and materials and 

established four clubs in two intermediate 

schools in Dammam and al-Khobar. We 

expect the remaining 26 clubs to be active 

by February 2012. 

In 2010, Saudi Aramco committed to a collaboration 

program with Sultan bin Abdulaziz 

Science and Technology Center (SciTech) and 

the Massachusetts Institute of Technology 

(MIT). The project, called BLOSSOMS, which 

stands for Blended Learning Open Source 

Science or Math Studies, creates videos that 

engage students while teaching math and 

science and sharpening their critical-thinking 

skills. A video library containing over 50 

math and science lessons is freely available 

to teachers as streaming video, Internet 

downloads, DVDs and videotapes through 

MIT’s website. In 2011, 200 teachers participated 

in BLOSSOMS’ one-week course on 

how to use the videos in their classrooms. 

Saudi Aramco has collaborated with the 

Institute of Electric and Electronics Engineers 

(IEEE) to promote engineering education 

through workshops and hands-on engineering 

lessons in Arabic, in classrooms and online. 

The Teacher In-Service Program (TISP) aims 

to spread engineering education through 

train-the-trainer workshops for volunteers 

who in turn hold sessions for school teachers. 

In 2011, 350 teachers were trained 

and the curriculum has already been implemented 

in schools. 

Saudi Aramco also lent its support to a student-targeted 

program called Try Engineering, 

which is a web-based portal about engineering 

topics and engineering careers. 

The portal was developed to help young 

people understand what engineering means 

and its many applications. Saudi Aramco 

supported the design, translation and hosting 

of TryEngineering.org content in Arabic. By 

the end of 2011, 95 percent of the website 

material had been translated into Arabic. 

Saudi Aramco completed the second year of 

its three-year renovation project to provide 

a major uplift to all 139 Saudi Aramco- 

Built Government Schools and two Dhahran 

Ahliyyah Schools. Thirty-five schools 

were renovated in 2010, and another 35 

were renovated in 2011. 

Our long-standing College Degree Program 

for Non-employees gives Saudi students 

the opportunity to receive a college education 

in areas of study required by Saudi 

Aramco, with the intent of offering them 

employment upon graduation. We currently 

sponsor 1,342 students who are majoring in 

engineering and business at King Fahd 

University of Petroleum and Minerals and 

at a number of competitive out-of-Kingdom 

universities. Some of these students are 

graduates of our College Preparatory Program 

(CPP) and College Continuation Program (CCP). 

In 2011, a total of 1,728 students participated 

in the CPP, College Degree Program for Nonemployees, 

and Associate Degree Program 

for Non-employees. 

The inaugural class of the Saudi Research 

Science Institute (SRSI) at King Abdullah 

University of Science & Technology enrolled 

25 Saudi high school students, 13 of whom 

were female. The program provides a mentorship 

model that combines theory courses 

and research in the subjects of science, 

technology, engineering, and math. SRSI is 

based on a four-part partnership initiated by 

Saudi Aramco in coordination with the university, 

King Abdulaziz and His Companions 

Foundation for the Gifted (Mawhiba), Center 

of Excellence in Education (CEE), and the U.S. 

Research Science Institute (RSI). Through a 

three-year sponsorship agreement, Saudi 

Aramco will support talented Saudi students 

as they prepare for careers of excellence and 

leadership in one of the four chosen fields. 

Since supporting education in petroleum 

studies has a clear link to our business, we 

are providing start-up assistance to the 

King Abdullah Petroleum Studies and 

Research Center (KAPSARC). This new international 

research and policy center will 

focus on energy, environmental research 

and policy studies. It will also house a large 

solar power farm and water recycling facilities. 

Research on all facets of the petroleum 

industry will be conducted at the center. 

When fully operational, KAPSARC will employ 

approximately 320 researchers and 

support staff. 

Saudi Aramco sponsors 13 chairs in various 

universities in the Kingdom to promote 

collaboration with institutions of higher 

learning, as well as to encourage academic 

and research excellence in areas of high priority 

for Saudi Aramco and the Kingdom. 

Investing in world-class researchers is crucial 

to creating a knowledge-based economy in 

the Kingdom. 

Knowledge 

Investing in 

Education 


33

Knowledge 

Inspiring 

Saudi Arabia’s 

Young People 

Knowledge 

Inspiring 


Young People 

Inspiring 


Young People 

Throughout its history, Saudi Aramco has emphasized 

inspiring and developing our country’s youth. In 2011, Saudi Aramco 

approved the Youth Master Plan, which outlines our strategy for 

enriching the lives of two million young people in the Kingdom by 2020. 

We have begun developing and piloting programs and scaling up outreach 

efforts to youth throughout the Kingdom. 

The Saudi Aramco Exhibit is a high-tech science 

museum that brings to life petroleum’s 

journey — from its origins in underground 

rock formations and drilling operations, to 

refineries and eventually to marine shipping 

terminals. In 2011, the Exhibit hosted 

approximately 45,000 students as part of 

the School Visitation Program. The Exhibit is 

now closed for renovation. 

To encourage a culture of reading, for many 

years Saudi Aramco has released a series of 

children’s publications. The Amazing Journey: 

Exploring Saudi Arabia and Saudi Aramco 

brings Saudi Aramco’s message to young 

readers aged 6 to 12. In 2011, we also 

released Energize!: How Saudi Aramco 

Powers the Planet, targeted for ages 13–18. 

It gives teenagers basic information about 

the petroleum industry, Saudi Aramco’s role 

in it and the many possible careers the 

company offers. 

We also have a long history of sponsoring 

Mobile Libraries. In 2011, the Mobile 

Libraries visited 196 schools, mainly in remote 

areas of the Kingdom. Nearly 23,000 

students benefitted from the Mobile Libraries 

in the Eastern Province alone. In addition to 

providing access to books, our program includes 

lessons on proper library etiquette, 

how to borrow books, and how to find books 

using the library classification systems. In the 

Western Province, the Mobile Library also participated 

in a Reading Festival and a Reading 

Skills Day to encourage students to read. 


35

Knowledge 

Spreading Cultural 

Awareness 

“It is clear to all of us that we have the most exciting job in the world. We feel 

that there is something uniquely magical and stimulating about establishing an 

intellectual monument that shall be seen by millions.” 

— Khalid S. Al-Yahya, Director of the Knowledge and Research Division at the Center 

Knowledge 


Awareness 

Spreading 

Cultural 

Awareness 

A 

key element of knowledge is an understanding of the 

cultural context of our world. The King Abdulaziz Center for World 

Culture (“the Center”) embodies Saudi Aramco’s commitment to 

cultural awareness and understanding. Since its groundbreaking in 2010, 

the complex has begun to take shape. Once completed, the Center will be 

a fully integrated institution for lifelong learning, creative inspiration and 

cross-cultural connections. It will include a modern multi-level public library, 

a four-gallery museum, an historical archive, the Kingdom’s first children’s 

center, a lifelong learning knowledge center, cafes, and shops. 

While the buildings of the Center are still 

under construction, programming is already 

under way, particularly youth programs. 

One of the year’s highlights was the launch 

of iSpark, a series of content-rich programs 

providing creative opportunities for young 

people to learn through active engagement. 

The iSpark program had many associations, 

including the California Science Center, iD 

Tech Camps and the School of Cinematic 

Arts at the University of Southern California. 

It comprised 100 certificate-based workshops 

throughout the summer months with 

three areas of focus: 

● Science: human identity, robots, 

physics and rockets 

● Technology: computer game 

design and web design 

● Multimedia: photography, 

animation, sand animation, 

video production, video editing 

and documentary filmmaking 

Participants spent an average of 20 hours 

over five days working with their group 

on interesting and challenging projects 

designed to inspire and expose them to a 

variety of disciplines. More than 10,000 

applications were received for the 1,600 

student spots available in 2011. Fifty 

teachers participated. Given the high initial 

demand and the fact that survey results 

indicated 98 percent of participants would 

be interested in returning, iSpark will be 

expanded in 2012 to reach 10,000 students. 

Another one of the Center’s pilot programs 

is the Keystone Program, which is a youth 

innovation center that encourages interdisciplinary 

investigation, experimentation 

and actionable innovation in the areas of 

art, science, and social development. Here 

ideas are brought to life through an “idea 

translation” process that results in potentially 

patentable, commercial products with 

vibrant exhibits. 

The Keystone Program was piloted in 2011 

with the theme of “The Future of Water.” 

Through the program, seven competitively 

selected young Saudi professionals learned 

how to conceptualize, create, market, and 

sell their innovative products. These young 

participants now have two commercial patents 

pending. The Center plans to have 50 

such talented individuals pass through the 

Keystone Program each year. 

Another aspect of the Keystone Program is 

the Keystone Think Tank, which is a program 

of events that will nurture creativity 

and help program participants to become 

social innovators and cultural entrepreneurs. 

Saudi Aramco worked with the Prince Sultan 

Cultural Center to support the Tabuk Awareness 

Campaign. We participated with booths 

that described our business and presented 

the Saudi Aramco Traveling Experience 

Exhibit, which teaches visitors about the 

history of the Kingdom’s petroleum industry 

and our role in it. Saudi Aramco also collaborated 

with the Prince Sultan Cultural 

Center at a three-day event called “Together 

toward a Better Life” in an effort to raise 

awareness of our company through educational 

presentations and brochures. 

“There are other good libraries 

here and there in the Arab 

world, but you don’t have this 

consolidation of a library, 

archives and museums. It’s a 

whole vision, one package for 

developing the society toward 

a knowledge society. I believe 

personally it’s a great vision 

and it will have an impact not 

only in Saudi Arabia, and the 

region, but also worldwide.” 

— Ahmed Abu Zayed, 

Chief Archivist, Knowledge and Research 

Division at the Center 


37


King Abdulaziz Center for World Culture 

Knowledge 


Awareness 

“I think the Center will be a very important place. It will reflect society in the Kingdom, 

but it will also introduce people to new experiences in a safe and creative environment. 

It will engage people young and old, and I think it will be a place that people 

feel that they want to come to again and again.” 

Last year, we began laying the foundation for what is to become a beacon of 

knowledge, creativity and cross-cultural engagement in the Kingdom. This foundation 

comprises the people, building, and programs that will bring this vision to life. 

In 2011, we achieved significant growth in these three areas. 

People 

The Center’s staff grew significantly in 2011. In 2008, the staff numbered fewer 

than 10. By the end of 2011, there were 85 team members, and we have plans for 

hiring more. The new hires came with a strong technical IT expertise, as well as 

specialties in different levels of education, from early childhood to e-learning. Others 

brought expertise in designing community programs, digital archival collections, 

and interior architectural design. 

Every opportunity for knowledge transfer from Center subject matter experts to 

local Saudi professionals is being taken in order to advance the development of the 

Kingdom’s creative industry sector. 

Knowledge 


— Lorraine Cornish, Museum Collections Specialist, Culture and Creativity Division at the Center 

Building 

Construction of the Center is well under way, and the various building foundations 

are being placed for the multilevel concrete structures, which extend four levels 

below ground. Ten of the Center’s 18 levels are already visible amid a forest of 

steel reinforcing bars, walls and towers of concrete. 

Designers, architects, engineers and construction workers were hard at work in 2011 

to construct the gleaming, iconic, 300-foot tall structure. Almost 1.1 million cubic feet 

of structural concrete have been poured, and 1,300 construction workers are on 

site. The façade, one of the Center’s most striking and original features, is currently 

being fabricated by a leading German manufacturer in six different countries. 

Programs 

Hundreds of programs and workshops are under development, and the Center is 

taking special care to design an interactive visitor experience of its art, culture, and 

learning offerings by using the latest technological innovations. In 2011, the Center 

successfully launched six major pilot programs; registered 400 volunteers; developed 

300 student projects; held more than 100 workshops; trained and certified 

more than 50 Saudi teachers; mentored 50 youth leaders; and delivered 50 hours 

of performing arts. 




● Expand iSpark in 2012 to reach 

10,000 youth 

● Develop key performance indicators 

to capture the impact of the King 

Abdulaziz Center for World Culture 

● Launch the iRead program in 2012 

to encourage approximately 15,000 

students to read 

● Continue implementation of the 

online Arabic Math E-Portal 

● Launch 26 Math and Science Clubs 

in the Eastern Province in 2012 

● Train an additional 200 teachers 

as part of the project Blended Learning 

Open Source Science or Math Studies 

(BLOSSOMS) 

● Renovate 35 Saudi Aramco-built 

Government Schools 


39

10.08 

1.1 

50,000 

day in annual fuel savings, representing 

thousand barrels of oil equivalent per 

3.44% of total energy consumption 

million tons of carbon dioxide 

emissions avoided through the 

implementation of operational and 

mangrove trees planted along 

the Arabian Gulf coast 

1 st Mobile Carbon Capture vehicle in 

the world built by Saudi Aramco 

retrofit energy conservation initiatives 

Overview 

“The world has changed, and Saudi Aramco is leading the way 

in making environmental stewardship central to our practices.” 

Environment 

For a global oil company with a major influence in Saudi 

Arabia, simple environmental compliance is no longer adequate to 

protect our natural resources. Today, we’re setting the bar much higher 

as we aim to go beyond compliance and achieve best-in-class performance. 

Saudi Aramco’s Environmental Protection 

Department (EPD) currently measures the 

environmental performance of more than 

40 different facilities, tracking compliance, 

awareness and training, and initiatives, 

against 21 specific environmental indicators. 

— AbdulHameed Al-Rushaid, General Manager of Drilling, 

at an environmental awareness campaign and exhibition 

We remain committed to the multi-billion dollar 

Environment Master Plan we launched in 

2001. Capital projects included in the plan are 

expected to reduce volatile organic compound 

emissions from loading operations in terminals 

and bulk plants by more than 80 percent. 

Environment 

Overview 

“Saudi Aramco was a leader when in 1963 we adopted our first 

explicit environmental protection policy. We did that before it 

was fashionable to talk about the environment. … No more are 

we just looking at the economics. We are willing to assign a 

value for environmental protection.” 

— Khalid A. Al-Falih, 

President and CEO at the President’s Environmental Stewardship Awards 


41

Environment 

Enhancing 

Energy Efficiency 

Our recently completed Al-Midra Complex in Dhahran, designed to be “environmentally 

aware,” uses solar panels that double as sunshades over its 4,500 

parking spaces. Covering an area of 198,350 square meters and using over 

126,000 solar panels, it stands as the world’s biggest car-park shade and generates 

10 megawatts of energy for the Al-Midra Complex. This effort complements 

other green design elements of the complex as part of our initiative to 

receive LEED (Leadership in Energy and Environmental Design) certification. 

Environment 

Enhancing 


Enhancing 


Improving our energy efficiency is one way we are working 

to reduce our environmental impact. Our Energy Management Program 

(EMP) has directed our energy efficiency efforts since 2000, following the 

creation of a company-wide policy committing us to the efficient production 

and use of energy and to reducing overall energy costs and conserving 

resources used in producing energy. The EMP’s overall strategy consists of 

four principal elements: 

1. Reduce the energy consumption of existing facilities by 

two percent annually. 

2. Design new Saudi Aramco facilities to be energy efficient. 

3. Influence and promote energy efficiency at the national level. 

4. Reduce overall energy costs and conserve resources used 

in producing energy. 

In 2011, we implemented 59 energy saving 

initiatives and achieved energy savings of 

10.08 thousand barrels of oil equivalent per 

day (MBDoe), which represents 3.44 percent 

of our total energy consumption for the 

year. Increased petroleum production meant 

that our 2011 consumption total of 293 MB- 

Doe was slightly higher than our 2010 total 

of 285 MBDoe. Without our energy saving 

initiatives, however, we would have consumed 

303 MBDoe. Our cumulative reduction in energy 

consumption since the inception of the 

EMP in 2000 has now reached 122 MBDoe. 

In 2011, we also avoided 1.1 million tons of 

CO2 emissions through implementation of 

both operational and retrofit energy conservation 

initiatives, bringing the cumulative 

avoidance of CO2 emissions to 14.1 million 

tons since 2000. 

Because Saudi Arabia has one of the world’s 

highest energy intensity ratings (amount of 

energy required to produce one unit of 

gross domestic product), efforts to conserve 

energy are important for the Kingdom’s economic 

future. Saudi Aramco is supporting 

the National Energy Strategy (NES) team 

to develop strategies to address the energy 

efficiency challenges at the national level. 

The NES team studies hydrocarbons supply, 

power supply, energy efficiency, and demand 

forecasting and management. 

Saudi Aramco’s Gas Operations organization 

has introduced a unique energy efficiency 

program to reduce facility energy use by 26 

percent by 2015. We aim to achieve a 10 

percent reduction through plant optimizations 

and process improvements within the 

operating facilities. The remaining 16 percent 

reduction in energy intensity will be 

achieved through capital projects in new or 

expanded facilities. In 2011, energy intensity 

was significantly reduced by more than 

five percent — surpassing our two percent 

target — through effective implementation 

of the efficiency program elements. This included 

a part-time energy team, a full-time 

energy engineer, installation of monitoring 

tools, and energy assessment studies. 

Saudi Aramco established new energy conservation 

guidelines for industrial facilities 

and non-industrial buildings within the Kingdom. 

The new energy efficiency guidelines 

are being applied by the Kingdom’s fuel allocation 

committee to industries including 

cement, steel and petrochemicals. The 

guidelines establish minimum requirements 

for various aspects of all buildings, including 

heating, ventilation, air conditioning 

and lighting equipment. Full implementation 

of the non-industrial building guidelines 

is forecast to improve the energy efficiency 

of a typical building by 60 to 80 percent. 

To encourage innovation around energy 

conservation, Saudi Aramco organized the 

Energy Conservation Innovation Tournament 

for employees. The tournament has generated 

more than 1,800 energy efficiency 

ideas, 80 of which have the potential to be 

patented and 180 ideas that may be implemented. 

We estimate that up to 20 MBDoe 

will be saved by implementing these ideas. 


43

Environment 

Protecting 

the Natural 

Environment 

“Mangroves are only one part of the overall marine environment, but they are an important 

part. Mangroves provide habitats where fish and shrimp spawn. They also help control 

coastal erosion and provide sanctuary for migratory and other birds. We want to help 

people understand the value of mangroves — not only to our environment but to our 

economy and communities.” 

— Ali Qasem, Environmental Specialist, Environmental Protection Department 

Environment 

Protecting 

the Natural 

Environment 

Protecting 

the Natural 

Environment 

Under the leadership of our Environmental Protection 

Department (EPD), Saudi Aramco remains committed to the Environmental 

Protection Policy established in 1963. 

In 2011, EPD introduced the Saudi Aramco 

Environmental Management System (EMS) 

for implementation by our operating facilities. 

The EMS is based on ISO 14001:2004 

specifications, an internationally regarded 

standard designed to facilitate development 

of internal processes for identifying and 

mitigating environmental impacts. EPD customized 

the EMS for Saudi Aramco operating 

facilities to monitor, measure and improve 

our environmental performance to reduce our 

environmental footprint. 

Saudi Aramco’s environmental stewardship 

efforts expanded with the launch of our Corporate 

Biodiversity Initiative. Key projects 

of the initiative include: 

● Establishment of a wildlife 

sanctuary in Shaybah 

● Creation of artificial reefs 

in the Arabian Gulf 

● Construction of hatcheries 

to restock fisheries 

● Implementation of stewardship 

measures for ecologically sensitive 

habitats within the company’s 

areas of operation 

● Studies to develop a National 

Framework for Fisheries Management 

● Development of a Mangrove 

Eco-Park in Tarut Bay 

During 2011, 50,000 mangrove trees were 

planted along the Arabian Gulf coast, which 

represents the first phase of our plan to 

plant one million mangrove trees over the 

next five years in various coastal areas. This 

commitment builds on a company mangrove 

transplantation program that dates back 

nearly 20 years. Mangroves are essential 

not only because they protect the shoreline 

against the constant onslaught of wind and 

waves; they also are an essential part of the 

marine food chain. This will hopefully revive 

this vital natural habitat that has declined 

over the past few decades. 

As we expand our operations, we work to 

minimize our impact on the natural environment. 

For example, during the development 

of the Manifa Field, located offshore in the 

Arabian Gulf, extensive engineering and ecological 

studies were completed to ensure that 

the marine ecosystem will not be compromised. 

As a result, bridges were constructed 

to span the migration pathways of various 

marine species. 

Saudi Aramco’s Flare Minimization Program 

is a structured program to reduce flaring by 

deploying Flare Monitoring Systems for the 

measurement, recording and reporting of 

flare losses. Site-specific Flare Monitoring 

Systems were completed for all refineries, 

natural gas liquids (NGL) facilities and gas 

plants in 2011, enabling facilities to record 

and classify real-time flare losses. This program 

contributed to total reductions in the 

flaring level of 58 percent at the NGL facilities 

and 30 percent at gas plants since 2010. 

As part of our Waste Management Program, 

our Jiddah Refinery launched an initiative 

that resulted in 10,000 cubic meters of accumulated 

sludge deposits being cleared 

from the marine area. We also took the lead 

in developing advanced treatment technology 

for oily wastewater. This technology was 

piloted in our Ras Tanura Refinery where it 

proved to be a cost-effective way to treat 

oily wastewater effluents. We licensed the 

membrane bioreactor technology to 

Siemens to be commercialized under the 

trademark name Eco-Right. 

Saudi Aramco has employed a zero discharge 

technology, utilizing chemical neutralization 

followed by multiphase separation 

processes, to recover hydrocarbons from 

well-testing operations. We have implemented 

this technology at several onshore 

oil and gas wells in 2011 to eliminate gas 

flaring and open discharge of liquid hydrocarbons. 

This resulted in conservation of 

valuable hydrocarbon resources, reduction of 

in-rig time, enhanced process safety and a 

significant reduction of environmental impact. 

The zero discharge technology is now the 

default practice for onshore wells and was 

also successfully piloted in three offshore 

wells in Safaniya oil field in the Arabian Gulf. 

We have sponsored a recycling program 

in the Eastern Province for many years. In 

2011, we extended the program to communities 

in the Central and Western Regions. 

In 2011, we collected 1,346 tons of paper, 

cartons, plastic, glass and aluminum materials 

and 11,500 toner cartridges for recycling. 

Our recently launched Office Expansion 

Program will conduct workshops for custodial 

staff on collection procedures for recyclables 

to ensure participation of all company 

office facilities. 

To increase the practice of recycling in the 

wider community, Saudi Aramco holds recycling 

awareness sessions in the Eastern 

Province targeting employees, their families, 

local schools, communities and government 

facilities. In 2011, more than 14,000 people 

attended our recycling campaigns. 

Saudi Aramco established a water conservation 

policy, and formulated a comprehensive 

strategy with a goal of promoting water conservation 

company-wide to conserve the 

Kingdom’s groundwater resources. Our goal 

is to reduce fresh water consumption by 70 

percent over the coming 10 years through 

leveraging technologies and best industry 

practices. 

Additional efforts related to water preservation 

included our sponsorship of the Water 

Arabia 2011 Conference in Bahrain. The 

conference, “Water and Wastewater Technologies 

for a Sustainable Environment,” 

was attended by more than 850 water and 

wastewater specialists from 10 countries. 


45

Environment 

Raising Awareness 

for Environmental 

Protection 

Environment 

Developing 

Cleaner Energy 

Technologies 



Saudi Aramco sponsors “Desert Seas” with National Geographic and 

“Seas of Change” 

Saudi Aramco teamed up with award-winning 

filmmakers to bring the underwater world of the 

Red Sea and the Arabian Gulf into the homes of 

people around the world. The one-hour production 

of “Desert Seas” premiered in North America 

in April 2011 and is currently aired on the worldrenowned 

National Geographic WILD Channel. 

The second, shorter production, “Seas of Change,” 

which documents Saudi Aramco’s environmental 

stewardship, is viewable on the company website 

and is shown at various exhibits and trade shows 

around the world. 

Saudi Aramco’s marine scientists imparted their 

extensive knowledge of the local marine and 

coastal environment to the filmmakers, and our 

helicopter fleet was deployed to capture aerial 

shots for the film. Filming for the two productions 

lasted for 133 days. 


Saudi Aramco builds the world’s first Mobile Carbon Capture vehicle 

In just over 17 months, Saudi Aramco’s Research 

and Development Center developed a prototype 

vehicle to demonstrate the viability of capturing 

and temporarily storing carbon dioxide onboard 

a passenger vehicle. To reduce emissions, this 

technology separates carbon dioxide from the 

exhaust stream by utilizing the waste heat produced 

by the combustion engine. We anticipate 

that the technology could be adapted to other 

mobile sources such as ships and trains. In the 

first prototype, we achieved a 10 percent reduction 

in carbon dioxide emissions. As we continue 

to develop this technology, we hope to achieve a 

60 percent reduction in emissions. This groundbreaking 

technology has the potential to reduce 

the environmental impact of the world’s transportation 

system. 




● Reducing total energy consumption 

of our existing facilities by 2 percent 

annually for the coming three years 

● Conducting energy conservation studies 

of three facilities in 2012 

Raising 

Awareness for 

Environmental 

Protection 

In addition to working to improve our environmental performance, 

we also worked to raise awareness for environmental protection. 

We held a Mangrove Transplantation Campaign at Tarut Bay near our Ras 

Tanura Refinery to educate the public on the importance of mangroves to the 

marine environment and to inspire them to get involved in the conservation 

and rehabilitation of mangrove habitats. 

In another effort to increase awareness 

about the value of our natural environment, 

we published the Marine Atlas of the Western 

Arabian Gulf. The atlas was produced in 

partnership with the Center for Environment 

and Water at the Research Institute of King 

Fahd University for Petroleum and Minerals. 

It documents the diverse marine and coastal 

environments of the Arabian Gulf. Its 383 

pages include images and detailed information 

that showcase one of the region’s most 

diverse ecosystems. 

Saudi Aramco’s Environmental Education 

Initiative works to enhance environmental 

knowledge, awareness and appreciation 

among young people and school children. 

This is achieved through a series of workshops 

for school teachers, who are charged 

with forming “Friends of the Environment” 

groups to promote environmentally friendly 

attitudes among students, families and the 

community at large. This initiative is being 

undertaken in partnership with the Ministry 

of Education and has been introduced to 

more than 500 schools and more than 400 

Friends of the Environment groups have 

been established. 

Developing Cleaner Energy Technologies 

Saudi Aramco is piloting a number of exciting 

solar power projects. In collaboration with 

the Saudi Electricity Company and Solar 

Frontier, our equity partner with Showa Shell 

of Japan, we installed a 500-kilowatt solar 

farm on Farasan Island in the Red Sea. This is 

part of our efforts to meet the Kingdom’s 

ever-increasing demand for electricity 

through clean energy solutions. 

In addition, Saudi Aramco’s construction of 

the King Abdullah Petroleum Studies and 

Research Center will include solar panels 

that will generate 3.5 megawatts of energy. 

A new Saudi Aramco-built solar facility at 

the King Abdullah University of Science & 

Technology will generate two megawatts 

of energy. 

In order to stay at the forefront of solar energy 

developments, we have set up a solar 

technology park in Dhahran which hosts 

more than 30 different technology vendors. 

The objective of this solar park is to 

monitor and assess the development of 

emerging technologies and their application 

in the Kingdom. 

A new technology we are exploring is carbon 

dioxide capture and injection to reduce 

emissions while also enhancing oil recovery. 

We started a project in 2011 to compress and 

dry carbon dioxide from the Hawiyah NGL 

recovery plant, and transport and inject the gas 

in Ghawar Field. When completed in 2013, the 

project will demonstrate the viability of this 

technology for enhanced oil recovery. 

● 

Reducing fresh water consumption 

by 70 percent over the next decade 

through leveraging technologies and 

best industry practices 

● Implementing the Flare Minimization 

Program for all remaining plants, 

including oil producing facilities 

● Creating our first annual reports on 

site-specific Flare Minimization Plans, 

which will identify flaring sources in each 

facility, and provide classification, analysis 

and short- and long-term mitigation 

measures to minimize flaring in refineries, 

natural gas liquids facilities and gas plants 

● Engaging 85 percent of the Dhahranbased 

workforce and 55 percent of other 

operations in the recycling program 

● Meeting 46 percent of landscape 

irrigation water needs through sanitary 

“tertiary” wastewater 

● Planting 200,000 mangrove trees each 

year as part of our plan to plant 1 million 

mangrove trees over the next five years 


47

Our 

Outlook 

Our Outlook 

Just as we are undergoing a transformation in our core 

business — “Aiming Higher” to unlock the full potential of our operational 

infrastructure and talented people — we are constantly seeking to 

enhance our positive impacts on people and the natural environment. Looking 

forward to 2012, we anticipate progress in a variety of key strategic areas. 

Creating Platforms for 

Collaboration and Dialogue 

Key to the development of our citizenship 

strategy in 2012 will be fostering collaboration 

in corporate social responsibility among 

a variety of organizations in the Kingdom, 

including private companies, nonprofit organizations 

and government ministries. This 

builds on the company’s strengths as a convener 

and as a partner, which we exercise in 

all aspects of our business. We feel the time is 

right in the Kingdom for enhanced exchange 

of ideas and higher levels of collaboration 

and partnership, and look forward to lending 

our energy to this cause. 

Measuring and 

Reporting Our Impacts 

As mentioned for the first time in our 2010 

Corporate Citizenship Report, a key area of 

development in our citizenship strategy and 

reporting process will be a shift toward 

establishing key performance indicators to 

track our progress and performance toward 

delivering sustained impact. This requires us 

to ensure that we are measuring the right 

things and building the processes, protocols 

and controls necessary to collect, verify and 

report on this data. This is an ongoing process, 

and our progress in this area will become 

apparent through increased detail and transparency 

in our citizenship reporting. 

Enhancing our Organizational 

Structure for Citizenship 

The establishment of the Corporate Social 

Responsibility Division in 2009 was the first 

step in a process to create an “organization 

within an organization” to support the 

effective design, implementation, measurement 

and reporting of citizenship activities. 

Moving forward, this process will continue 

through continual assessment of staffing 

and budget allocation, and the implementation 

of a governance framework to preside 

over key decision making related to citizenship 

programs. 

48 Saudi Aramco 2011 Corporate Citizenship Report

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