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Saudi Aramco: Public
2017Oil Field Chemicals
Saudi Aramco: Public
Disclaimer
The next slides contain forward-looking statements regarding future events based on current
expectations, estimates, forecasts, and projections. The data is subject to updating, revision, further
verification and amendment without notice. No reliance may be placed for any purpose on the
information or opinions contained in this presentation or any other document or statement, or on the
completeness, accuracy or fairness of such information or opinions therein. No representation or
warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or
any other person as to the accuracy or completeness or fairness of the information or opinions
contained in this presentation and no responsibility or liability is accepted by any of them for such
information or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for
any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Your company can benefit from “the KSA advantage”
KSA is the largest Middle East market and one of the top 20 world economies
4World-class
logistics1Funding
incentives
5Government
support
2Affordable
land & utilities
3Skilled labor
The KSA advantage
Source: Saudi Aramco analysis
Saudi Aramco: Public
Table of Content
■Corrosion Inhibitors
■Production chemicals
■Drilling muds
■Well Stimulation Fluids
■Demulsifiers
Saudi Aramco: Public
Several opportunities, across manufacturing and services, exist for corrosion inhibitors
Additional SME opportunities
Testing & Certification Logistics
and transportation
1-2 SMEs (CBM, Testing and
Inspection)
1-2 SMEs (iso containers,
flatbed trailers, trucks)
Manufacturing/investment Opportunities
Raw Materials Finished Products
Potential to develop local
plants for ethoxylates,
copolymers, phosphonates and amidoamines which are key end products for
final formulations
Potential for manufacturers of
input materials such as
ethoxylates to integrate
vertically into blending and
formulation of finished
products
1. Employment and GDP figures are estimations based on NAICS code 212322; calculations based on 2025 demandSource: Saudi Aramco Analysis
Employment1
GDP contribution1
140FTEs
$ 30mn
Saudi Aramco: Public
Corrosion Inhibitors are an important production chemical, constituting ~20% of a large Middle Eastern OFS market
At a global level, demulsifiers and corrosion inhibitors command ~45% market share of an ~2million ton market
In the Middle East demulsifiers and corrosion inhibitors command ~60% of an ~130 ktpa market
24%
20%
10%
8%
7%
9%
7%
5%
9%
Source: Saudi Aramco analysis, IHS Report: Specialty Chemicals Update program
2014 Production chemicals for oil field applications
Global market segmentation (%) Middle East Market segmentation (%)
13%
40%
2%
11%
21%
6%
7%
1%
Demulsifiers
Corrosion Inhibitors
Other
Paraffin inhibitors
Gas well foamers
Water clarifiers
Biocides
Scale inhibitors
H2S ScavengerCorrosion Inhibitors
Demulsifiers
Scale inhibitors
H2S Scavenger
Gas well foamers
Paraffin inhibitors
OtherWater clarifiers
Biocides
Saudi Aramco: Public
Corrosion Inhibitors also have applications beyond oil field chemicals such as water, power generation and processing
In KSA, largest consumers of corrosion inhibitors are oil & gas, metal processing and water treatment
11%
6%
21%
20%30%
12%
Source: Saudi Aramco analysis, Technavio Market Research, RCJY report, Purolite Internacional and SRI reports
By Application By Industry Sector
8%
9%
10%
32%
13%
28%
2014 Global Market Breakdown
Anti-foaming agents
Biocides & Disinfectants
Inhibitors
Others
Coagulants and Flocculants
pH adjusters and Stabilizers
Oil & gas
Pulp & paper
Chemical processing
Others
Metal processingPower generation
Saudi Aramco: Public
Corrosion inhibitor formulations comprise of several key input materials in different proportions
Fatty diamines
Copolymers
Polyoxyalkylatedamines / alcohols (EO/PO based)
Quaternaries
Amidoamines
Betaines
Phosphate esters
Phosphonates
Acetylenic alcohols
Imidazolines
Quaternary ammonium salts
Alkyl pyridine
Corrosion inhibitors
Corrosion inhibitor chemicals covered in this value proposition
1. Formulation will be different based on manufacturer and end application Source: IHS
Saudi Aramco: Public
The KSA Corrosion inhibitors market is expected to grow at 4% annually reaching 23 KTPA in 2025
KSA corrosion inhibitors demand market size
6 7 8 8 9 9 10 11 1113
66
67
7 77 7 7
8
+4%
+7%
2025202020192018201720162015201420132012
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program, GWI
Volume(‘000 MT)
Water Oil & gas
$30 $31 $32 $33 $34 $35 $36 $37 $38 $45
$31 $31 $36 $39 $41 $45 $47 $54 $57 $75O&G Value($ MM)
Water value($ MM)
Saudi Aramco: Public
Corrosion inhibitor market in ME for oil field applications is expected to grow up to 41 Ktpa by 2025, at 4% CAGR
20 19 20 20
28
28
9(32%)
8(30%)
20172016
28
41
2018
3029
4%
13(32%)
10(34%)
2019
9(32%)
2025
Rest of Middle East
KSA
ME corrosion inhibitors expected market size evolution (‘000 Tons)
Both the ME
and KSA
markets are
expected to
grow at roughly
the same pace,
with KSA
commanding
~30% of the ME
market
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
Oil field applications only
143 146 155 162 245
$45 $47 $54 $57 $75
Rest of ME Value($ MM)
KSA Value($ MM)
Volume(KTPA)
Saudi Aramco: Public
Gaps across the value chain for corrosion inhibitors present opportunities for SMEs
Gaps
• Raw materials of EO already localized at Sadara value park
• Petroleum products e.g. heavy naphtha already available locally
• Limited potential for additional raw materials as several other products are proprietary
• Potential for local facilities to produce key synthesis products such as ethoxylates , copolymers, phosphonates and amidoamines
• 8 players in KSA already approved for formulation- limited potential for new pure play blenders
• Potential for new blending facilities to cater to market growthand potential for manufacturers of key chemicals to integrate vertically
• Limited presence of toll blenders
• Limited presence of advanced maintenance and testing/inspection facilities
• Potential exists to further develop logistics and supply chain capabilities such as
- Long haul trucking
- Iso containers
- Loading and warehousing
• Technical assistance is part of contract with tier1’s
• Potential exists for Tier 1’s further develop additional local capabilities to handle after sales requests (e.g. set up a vocational institute)
Tiering
Step
Source: Saudi Aramco analysis
Tier-1/2/3
Corrosion inhibitors manufacturing value chain
Technical assistance
Raw materialsSolution packaging & formulation
Chemical synthesis
Transportation and logistics
Localization potential
Low High
Saudi Aramco: Public
No synthesis products are currently produced in Kingdom, however raw material such as EO/PO are readily available
Source: Saudi Aramco
Chemical(s) Current KSA production
Fatty diamines
Copolymers
Polyoxyalkylated and ethoxylated amines / alcohols
Quaternaries
Amidoamines
Betaines
Phosphate and polymeric esters
Phosphonates
Acetylenic alcohols
Imidazolines
Quaternary ammonium salts
Alkyl pyridine
Raw materials used in the synthesis of corrosion inhibitors
EO/PO
EO and PO are key raw materials for several synthesis products
necessary for corrosion inhibitors- these are
readily available from Sadara
✓Available
Not Exhaustive
Saudi Aramco: Public
SMEs have an opportunity to enhance logistics across the value chain
Source: Saudi Aramco
Loading
Transporting
Terminal operations &
storage
Supplier
Saudi Aramco currently manages its own corrosion inhibitor logistics and transport and is willing to consider credible 3PL to provide additional services
SME opportunities Key features
• Offer customized on-site logistics
• Supplying iso-containers, conveyer belts, and drums
• Drive loading operations
• Offer state of the art monitoring and measuring
systems
• Supplying advanced storage facilities such as tanks
and drums
• Enhance value offering via reduced turnaround times
• Transport corrosion inhibitors via tank, drums, or iso-tanks
• Provide trucking for the transportation of corrosion inhibitors
• Corrosion inhibitors can be stored in drums, with a capacity of ~13,000L, or in iso-tanks, with a capacity of ~24,000L
• Pumping, monitoring, and measuring equipment required to ensure smooth operations
• To control liquid flow and output to the storage tanks or the well site, different pressure pumps are used
• To manage high volume of corrosion inhibitor transfer, manifold trailers are used
• Corrosion inhibitors can be transported in one of two ways:
– Tank, drum, or iso-tank storage and transported on cargo trailers, van trailers or flatbed trailers
– Pumping stations along a pipeline
Corrosion inhibitors and logistics value chain
Saudi Aramco: Public
Gaps across the value chain for corrosion inhibitors present opportunities for SMEs
Opportunities
1. Potential for SMEs to liaise with leading producers and make niche raw materials required for synthesis (beyond EO/PO)
2. Potential for players to set up 1-2 facilities to produce key synthesis products from EO/PO raw material such as ethoxylates
3. Potential for 1-2 additional formulation facilities for corrosion inhibitors to cater to existing demand as well as future growth in demand
4. Potential for additional local toll blending facilities
5. Offer customized on-site logistics
6. Provide enhanced value offering via reduced turnaround times
7. Offer state of the art monitoring and managing systems
8. Partner with leading players to establish vocational and training facilities to train local staff in technical assistance
Tiering
Step
Source: Saudi Aramco analysis
Tier-1/2/3
Corrosion inhibitors manufacturing value chain
Technical assistance
Raw materialsSolution packaging & formulation
Chemical synthesis
Transportation and logistics
Saudi Aramco: Public
Next steps: Please direct all inquiries to
Khazisyed Ahmedjeelani
Industrial development department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
We invite you to engage with the iktva program and grow your business in Saudi Arabia
Saudi Aramco: Public
Table of Content
■Corrosion Inhibitors
■Production chemicals
■Drilling muds
■Well Stimulation Fluids
■Demulsifiers
Saudi Aramco: Public
Key opportunities for localization – Other production chemicals
1. Composition and demand to be determined after discussion with leading playersSource: Saudi Aramco analysis
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Input chemicals and materials
Blending and formulation
Logistics and supply chain
• Establish local production of key input materials1
e.g. polyacrylamide, polyacrylates and non ionic surfactants
• No local production of these raw materials in KSA
• Diverse applications beyond oil field chemicals (e.g. surfactants)
• Vertically integrate production of input materials and develop blending facilities
• Establish local toll blending facilities
• Additional demand of ~8 ktpa in KSA and ~42 ktpa in Middle east by 2025
• Opportunity for raw material manufacturers to integrate and capture market share
• Limited presence of local toll blenders
• Provide handling services e.g. drums and iso containers
• Provide transportation and loading e.g. flatbed trailers and manifold trailers
• Demand for 40-60 additional iso tanks and drums by 2025
• Demand for ~2-4 additional flatbed and manifold trailers by 2025
Saudi Aramco: Public
Other production chemicals compose of several products, each composed of different formulations of input materials
Production chemicals
Typical production chemicals (excl. demulsifiers and corrosion inhibitors)
1. Formulation will be different based on manufacturer and end application Source: IHS
Water clarifiers
Formaldehyde free biocides
Scale inhibitors
H2S Scavenger
Paraffin inhibitors
Gas Well Foamers
Other (excl. demulsiifer and corrosion inhibitor)
4%
16%
27%
2%33%
18%
H2S Scavenger Other
Paraffin InhibitorsWater Clarifiers
Biocides (organic)
Scale Inhibitors
Middle East breakdown (2016)
Biocides is the
dominant segment
in the Middle East,
with a volume of 17
Ktpa over the total
market volume of
51 Ktpa
Saudi Aramco: Public
Other production chemicals is expected to grow at 5% annually until 2030, reaching 103 Ktpa in Middle East
17 18 20
37
53
70
3325
3738
2030
103
2025
5%78
57
201820172016
55 54
Rest of Middle East
KSA
ME Other production chemicals expected market size evolution (‘000 Tons)
Production chemicals category is expected to grow hand in hand with drilling fluids consumption in Middle East
Expected market size
in 2030 will be ~2X the current market
size
Source: Saudi Aramco analysis, CDSI, I..S report: specialty chemicals program
Saudi Aramco: Public
While some raw materials are available, potential exists to manufacture several others locally
Source: Saudi Aramco
(Jubail)Water clarifiers
Formaldehyde free biocides
Scale inhibitors
H2S Scavenger
Paraffin inhibitors
Gas Well Foamers
Other
Polyamines
Polyacrylamides
✓
Quaternary phosphonium
Glutaraldehyde
Phosphonates
Phosphate esters
Polyacrylates
Polyvinyl sulfonates
Co-polymers
✓
✓
Triazines
Amines
Ethanolamine
Aminealkylaryl sulfonates
Ammonium ether sulfates
Alphaolefin sulfonatesAlkyl naphthalene
sulfonates
MEG/TEG
Phosodium nitrite
Anionic surfactants
Nonionic surfactants
✓
✓
✓
✓
(Yanbu)
(Jubail)
(Ras Al-Khair)
(Jubail)
(Jubail) (Jubail)
Raw materials such as polyacrylamide, anionic surfactants and sulfonates have several other applications and have potential for local production
Not Exhaustive
Saudi Aramco: Public
Several opportunities exist for local players to enhance logistics and transportation for production chemicals
Loading
Requirements and gaps Opportunities
Transportation
Terminal ops
1. Assuming iso containers are replaced every 2 weeksSource: Saudi Aramco analysis
40-60 additional iso containers (24,000 liter capacity)1 and/or drums (13,000 liter) by 2025
• Offer customized on-site logistics
• Be a supplier of iso containers and drums
• Drive loading operations (Aramco currently manages its own operations)
2-4 additional flatbed trailers (TEU) by 2025
• Enhance value offering via reduced turnaround times
• Be a supplier of transportation equipment (e.g. flatbed trucks)
• Drive transportation operations (Aramco currently manages its own operations)
Limited monitoring in place
• Offer state of the art monitoring and measuring systems
• Supply manifold trailers as a part of a larger portfolio
2-4 additional manifold trailers (TEU) by 2025
Saudi Aramco: Public
Key conclusions and next steps
Khazisyed Ahmedjeelani
Industrial Development Department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
In case you are interested in discussing this opportunity further, please contact✓ Consumption of other production chemicals
in KSA nd ME is expected to increase by ~8 ktpa and 23 in 2025 respectively driving opportunities for additional local blending
✓ Limited presence of toll blenders in KSA presents an opportunity for local players
✓ Several chemicals essential to other production chemicals can be localized in KSA e.g. polyacrylamide, polyacrylates and non ionic surfactants
✓ Local players can also supply key equipment and services to enhance logistics and supply chain, for instance players can offer flatbed trucking, iso containers, drums and manifold trailers
Key conclusions
Source: Saudi Aramco analysis
Saudi Aramco: Public
Table of Content
■Corrosion Inhibitors
■Production chemicals
■Drilling muds
■Well Stimulation Fluids
■Demulsifiers
Saudi Aramco: Public
Key opportunities for localization – Drilling muds
1. Composition and demand to be determined after discussion with OFS playersSource: Saudi Aramco analysis
Input chemicals and materials
Blending and formulation
Logistics and supply chain
Disposal and after sales
• Establish local production of key input materials e.g. PAC, guar gum, premium lubricants and cross linking agents
• Growth of ~6% CAGR in drilling muds will drive growth in raw materials
• Diverse applications beyond oil field chemicals (e.g. binders, food industry)
• Establish additional blending facilities
• Establish local toll blending facilities
• Additional demand of ~50 ktpa in KSA and ~130 ktpa in Middle east by 2025
• Limited presence of local toll blenders
• Provide trucking services especially flatbed trucks
• Provide storage and loading equipment (conveyor units, jumbo bags etc.)
• Demand for ~10 additional flatbed trailers till 2025
• Demand for ~14 additional mobile conveyor units and 30,000 jumbo bags by 2025
• Provide disposal services for stimulation chemicals
• Provide inspection, maintenance and after sales
• More stringent environmental regulations (GAMEP)
• ~50 ktpa additional consumption in KSA by 2025 will require additional disposal
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Saudi Aramco: Public
Going forward, we expect a growth of 6% CAGR in drilling muds, with KSA accounting for ~30% of Middle East demand
920 902 912 945
1,591
6%
2025
2,208
618(28%)
2019
1,392
447(32%)
2018
1,334
423(32%)
2017
1,272
370(29%)
2016
1,266
345(27%)
Rest of Middle East KSA
ME drilling muds expected market size evolution1 (KTPA, $MM)
• Growth in drilling fluids will be driven by both increased production (~20% increase expected across Middle East) and increased well activity.
• Increase in drilling activity expected to take off post 2019
1. Excludes minerals such as barite, bentonite, hematite, l ignite and calcium carbonateSource: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
277 267 264 269 401Rest of ME Volume(KTPA)
104 110 123 127 156KSA Volume(KTPA)
Value($ MM)
Saudi Aramco: Public
Several raw materials required for formulations are not available in KSA- opportunity exists for new players
Drilling muds raw material availability
Chemical synthesis compounds like guar gum and emulsifiers have diverse applications beyond drilling muds
1. Actual volumes to be determined based on discussion with OFS players. Demand for PAM ~50 ktpa across water treatment appli cationsSource: Press research, Saudi Aramco analysis
Chemicals limited/not available in KSAChemicals available in KSA
Primary and secondary emulsifiers
Xanthanum gum
Polyionic cellulose (PAC)
HT thinner
Premium lubricants for drilling
Cross linking agents
Guar gum
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1
Not Exhaustive
Sodium and calciumchloride
Processedbarite
Anionicpolyelectrolytes
Diesel/LAO/Lubricants
Calciumcarbonate
Saudi Aramco: Public
Several opportunities exist for local players to enhance logistics and transportation for drilling muds
Loading
Requirements and gaps Opportunities
Transportation
Terminal ops
Source: Saudi Aramco analysis
14 additional mobile conveyor units and sand kings (25 MT) by 2025
• Offer customized on-site logistics
• Be a supplier of loading equipment (e.g. mobile conveyor units)
• Drive loading operations (Aramco currently manages its own operations)
10 additional flatbed trailers (TEU) by 2025
Long existing lead times making planning difficult
• Enhance value offering via reduced turnaround times
• Be a supplier of transportation equipment (e.g. flatbed trucks)
• Drive transportation operations (Aramco currently manages its own operations)
30,000 additional jumbo bags (1.5 MT) in 2025
Limited monitoring in place
Limited use of advanced eqpt. like mobile silos
• Offer state of the art monitoring and measuring systems
• Supply advanced storage facilities such as mobile silos
• Offer palletized package well stimulation fluids (jumbo bags)
Saudi Aramco: Public
Key conclusions and next steps
Khazisyed Ahmedjeelani
Industrial Development Department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
In case you are interested in discussing this opportunity further, please contact
✓ Consumption of drilling fluids in KSA is expected to increase by ~50 ktpa in 2025 driving opportunities for additional local blending and additional players for disposal
✓ Limited presence of toll blenders in KSA presents an opportunity for local players
✓ Several chemicals essential to drilling muds can be localized in KSA e.g. PAC, guar gum, premium lubricants and cross linking agents
✓ Local players can also supply key equipment and services to enhance logistics and supply chain, for instance players can offer flatbed trucking, mobile conveyor units and jumbo sacks
Key conclusions
Source: Saudi Aramco analysis
Saudi Aramco: Public
Table of Content
■Corrosion Inhibitors
■Production chemicals
■Drilling muds
■Well Stimulation Fluids
■Demulsifiers
Saudi Aramco: Public
Key opportunities for localization - Well Stimulation Fluids
1. Composition and demand to be determined after discussion with OFS playersSource: Saudi Aramco analysis
Input chemicals and materials
Blending and formulation
Logistics and supply chain
Disposal and after sales
• Establish local production of key input materials e.g. PAM, HF and borates1
• Growth of ~8% CAGR in well stimulation fluids
• Diverse applications beyond oil field chemicals (e.g. water treatment)
• Establish additional blending facilities
• Establish local toll blending facilities
• Additional demand of ~160 ktpa in KSA and ~400 ktpa in Middle east by 2025
• Limited presence of local toll blenders
• Provide trucking services especially flatbed trucks
• Provide storage and loading equipment (conveyor units, jumbo bags etc.)
• Demand for ~25 additional flatbed trailers till 2025
• Demand for ~40 additional mobile conveyor units and 100,000 jumbo bags by 2025
• Provide disposal services for stimulation chemicals
• Provide inspection, maintenance and after sales
• More stringent environmental regulations (GAMEP)
• ~160 ktpa additional consumption in KSA by 2025 will require additional disposal
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Saudi Aramco: Public
The market in the Middle East is expected to grow at ~8% CAGR, with KSA commanding ~30% market share
237 234 242 248
462
2025
652
190(29%)
2019
377
129(34%)
2018
363
121(33%)
8%
2017
340
107(31%)
2016
337
100(30%)
KSARest of Middle East
ME well stimulation agents expected market size evolution (‘000 Tons)
• KSA expected to grow in line with the rest of the ME, and is expected to account for ~30% of the market
• Strong market growth expected after 2019
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program, Rystad
Value($mm)
Rest of ME volume(KTPA)
670 648 656 660 1093
282 295 330 344 449KSA volume(KTPA)
Saudi Aramco: Public
Several raw materials required for formulations are not available in KSA- opportunity exists for new players
Hydrochloric acid
Formic acid
Acetic acid
Aluminum
Well stimulation fluids raw material supplier companies
Chemical synthesis compounds like PAM and hydrofluoric acid acid have diverse applications beyond well stimulation fluids
1. Actual volumes to be determined based on discussion with OFS players. Demand for PAM ~50 ktpa across water treatment appli cationsSource: Press research, Saudi Aramco analysis
Chemicals limited/not available in KSAChemicals available in KSA
Hydrofluoric acid
Ammonium bio fluoride/ methyl formate
Enzymes
Polyacrylamide (PAM)
Triethanolamine titanite
Organoborates
Chromium and Zirconium processing
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Saudi Aramco: Public
Several opportunities exist for local players to enhance logistics and transportation for well stimulation fluids
Loading
Requirements and gaps Opportunities
Transportation
Terminal ops
Source: Saudi Aramco analysis
40 additional mobile conveyor units and sand kings (25 MT) by 2025
• Offer customized on-site logistics
• Be a supplier of loading equipment (e.g. mobile conveyor units)
• Drive loading operations (Aramco currently manages its own operations)
25 additional flatbed trailers (TEU) by 2025
Long existing lead times making planning difficult
• Enhance value offering via reduced turnaround times
• Be a supplier of transportation equipment (e.g. flatbed trucks)
• Drive transportation operations (Aramco currently manages its own operations)
100,000 additional jumbo bags (1.5 MT) by 2025
Limited monitoring in place
Limited use of advanced eqpt. like mobile silos
• Offer state of the art monitoring and measuring systems
• Supply advanced storage facilities such as mobile silos
• Offer palletized package well stimulation fluids (jumbo bags)
Saudi Aramco: Public
Key conclusions and next steps
Khazisyed Ahmedjeelani
Industrial Development Department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
In case you are interested in discussing this opportunity further, please contact
✓ Consumption of well stimulation fluids in KSA is expected to increase by ~160 ktpa in 2025 driving opportunities for additional local blending and additional players for disposal
✓ Limited presence of toll blenders in KSA presents an opportunity for local players
✓ Several chemicals essential to well stimulation fluids can be localized in KSA e.g. PAM, Organoborates, Hydrogen fluoride
✓ Local players can also supply key equipment and services to enhance logistics and supply chain, for instance players can offer flatbed trucking, mobile conveyor units and jumbo sacks
Key conclusions
Source: Saudi Aramco analysis
Saudi Aramco: Public
Table of Content
■Corrosion Inhibitors
■Production chemicals
■Drilling muds
■Well Stimulation Fluids
■Demulsifiers
Saudi Aramco: Public
Key opportunities for localization – Demulsifiers
1. Composition and demand to be determined after discussion with leading playersSource: Saudi Aramco analysis
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Input chemicals and materials Blending and formulation
Logistics and supply chain
• Establish local production of key input materials1 e.g. ethoxylates, alkylated phenols, alkoxylated resins and block copolymers
• No local production of these raw materials in KSA
• Diverse applications beyond oil field chemicals (e.g. surfactants)
• Vertically integrate production of input materials and develop blending facilities
• Establish local toll blendingfacilities
• Additional demand of ~8 ktpa in KSA and ~23 ktpa in Middle east by 2025
• Opportunity for raw material manufacturers to integrate and capture market share
• Limited presence of local toll blenders
• Provide handling services e.g. drums and iso containers
• Provide transportation and loading e.g. flatbed trailers and manifold trailers
• Demand for 20-30 additional iso tanks and drums by 2025
• Demand for ~1 additional flatbed and manifold trailers by 2025
Saudi Aramco: Public
The demulsifiers market in ME is expected to grow at ~7% CAGR, with KSA commanding ~35% market share
88 88 92 97
162
7%
2025
238
76(32%)
2019
149
52(35%)
2018
141
49(35%)
2017
131
43(33%)
2016
128
40(31%)
Rest of Middle East KSA
ME demulsifiers expected market size evolution (KTPA, $mm)
KSA and ME are
expected to grow at
roughly the same
growth rate going
forward to 2025; with
KSA’s market share
remaining roughly
constant at ~35%
Source: Saudi Aramco analysis, IHS Chemicals: specialty chemicals update program
$xxx$896.
4$965.
3$1,04
2$1,22
355 55 57 59 78
$xxx$896.
4$965.
3$1,04
2$1,22
317 18 20 21 25
Value($ MM)
Rest of ME Volume(KTPA)
KSA Volume(KTPA)
Saudi Aramco: Public
Several raw materials required for formulations are not available in KSA- opportunity exists for new players
Demulsifiers raw material availability
EO/PO, which is key to several products is readily available in Sadara; select products like alkoxylates and copolymers also have application in surfactants
1. Actual volumes to be determined based on discussion with OFS players. Demand for PAM ~50 ktpa across water treatment appli cationsSource: Press research, Saudi Aramco analysis
Chemicals limited/not available in KSAChemicals available in KSA
Alkoxyalkylated resins with low-or high oxide content
Oxyalkylated phenols
Oxyalkylated polyamines
Alkanolamine condensation products
Oxyalkylated polyglycols
Block copolymers (EO/PO ; polyol block etc.)
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Not Exhaustive
Polyglycol esters and ethers
Sulfonates
Polymerized oils and esters
Polymerized polyglycols
Saudi Aramco: Public
Several opportunities exist for local players to enhance logistics and transportation for demulsifiers
Loading
Requirements and gaps Opportunities
Transportation
Terminal ops
1. Assuming iso containers are replaced every 2 weeksSource: Saudi Aramco analysis
20-30 additional iso containers (24,000 liter capacity)1 and/or drums (13,000 liter) by 2025
• Offer customized on-site logistics
• Be a supplier of iso containers and drums
• Drive loading operations (Aramco currently manages its own operations)
1-2 additional flatbed trailers (TEU) by 2025
• Enhance value offering via reduced turnaround times
• Be a supplier of transportation equipment (e.g. flatbed trucks)
• Drive transportation operations (Aramco currently manages its own operations)
Limited monitoring in place
• Offer state of the art monitoring and measuring systems
• Supply manifold trailers as a part of a larger portfolio
1-2 additional manifold trailers (TEU) by 2025
Saudi Aramco: Public
Key conclusions and next steps
Khazisyed Ahmedjeelani
Industrial Development Department
Saudi Aramco
Khazisyed.ahmedjeelani@aramco.com
In case you are interested in discussing this opportunity further, please contact✓ Consumption of demulsifiers in KSA nd ME is
expected to increase by ~8 ktpa and 23 in 2025 respectively driving opportunities for additional local blending
✓ Limited presence of toll blenders in KSA presents an opportunity for local players
✓ Several chemicals essential to demulsifiers can be localized in KSA e.g. ethoxylates , alkylated phenols, alkoxylated resins and block copolymers
✓ Local players can also supply key equipment and services to enhance logistics and supply chain, for instance players can offer flatbed trucking, iso containers, drums and manifold trailers
Key conclusions
Source: Saudi Aramco analysis
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