1 MB pdf - Saudi Aramco

sector’s competitive ability toprovide an increasing amount oflocal content in all our projects,big and small. These projectsproduce a multiplier effect onthe domestic economy,stimulating associated industriesand creating jobs.Opportunities abound in fieldssuch as project engineeringand construction, oilfield services,and material and equipmentmanufacturing — not onlyfor the Kingdom’s petroleumindustry but for the whole region.In 2006, we executed 2,000contract actions valued atapproximately $16 billion, mostof which were awarded to fullySaudi-owned or joint-venturecompanies.Two seamless pipe and OCTG(oil country tubular goods)projects, with a total investmentof around $750 million, areexamples of how our recentcapital expansion program — andour long history of fostering thedevelopment of local expertise— are currently benefiting thelocal economy. These projects areanticipated to commenceoperations in 2008 and createabout 1,100 new jobs.On the Kingdom’s west coast,three new steel fabrication plantswith a total capacity of 175,000metric tons per year of processand offshore equipment areunder construction, with startupstargeted in 2007 and 2008.With a total investment of $130million, these plants are expectedto create another 2,000 jobs.We also have concludedthree five-year manufacturingagreements for the localmanufacturing and inventorymanagement of wellheadequipment valued at morethan $500 million. As a result,260 drilling wellhead items thatwere previously imported fromoverseas are now expected to beproduced locally and economically,with the potential to exportthe items to other countries inthe region.At Saudi Aramco, we not onlytake great pride in looking backat our legacy to our Saudi people,we also are proud of the legacywe are building now, for futuregenerations.ANNUAL REVIEW 2006 29