SAUDI OFFSHORE SUPPORT SERVICES

&

SHIPBUILDING - Gearing-up for GrowthBy

D. Eng. HASSAN ABOURAYA, Consultant Engineer, B.Sc., C.Eng. FRINA, FIMarEST,

MSNAME, MEES, MSEA, MSME, MSMES, MAIN, MEMS, MEB-IMarEST, IMP Registered Expert, MAGWA, MABSMETAC

Corporate Marine Business Development, International Marketing & Risk Management

Zamil Offshore Services

OPPORTUINTY ARABIA 08London September 22, 2011

Britain Premier Business Forum on Saudi Arabia

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• Over View of the Saudi Offshore Support Services Industry

• Main Saudi Players

• Focus on Zamil Offshore Business

• Zamil’s Expansion Plans

• Business Opportunities

• Conclusion

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o Middle East expansion in oil production is being led by Saudi Arabia.

o As demand moves further offshore into more complex environments, more

large vessels will be required with higher specifications.

o The right strategy is to invest in innovative, high productivity vessels, and to

provide oil producing companies with a full range of vessels.

o Waves of consolidation among offshore services and operating companies

are highly likely. Large companies may have to acquire competitors to

achieve growth.

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Marine Fleets Owners

o Zamil Offshore Services (the largest).

o There are three more small players

Shipbuilding

o Zamil Shipyard (premier and only shipbuilder in the Kingdom)

Ship Repair

o Zamil Shipyard (Only rig repairer in KSA)

o King Fahad Ship repair yard in Jeddah

o King Fahad ship repair yard in Dammam (not currently in operation)

Engineering & Construction Services Incl. Hook-Up Operations

o Zamil Offshore Services (the largest).

o There is one more small operator

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Zamil Group roots can be traced back to 1930 when it was first foundedas a trading house

In early1970s, Zamil Group growth accelerated rapidly, following thepath to industrialization in Saudi Arabia. Several affiliated andsubsidiary companies were established to reflect the diversification andexpansion of its business interests

Today, Zamil Group is one of the leading diversified industrial andcommercial organizations and one of the most respected and trustednames in the world of business in the Kingdom of Saudi Arabia and inthe Gulf states

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ZAMIL GROUP COMPANIES, JOINT VENTURES AND AFFILIATES

Saudi International Petrochemical (SIPChem).

Gulf Advanced Chemical Industries Co.

Saudi Formaldehyde Chemical Co. Ltd.

Al-Tawfiq Plastic Co.

SIGMA Paints.

Yamama Factories for Red Bricks and Clay Products.

Middle East Battery Company.

Zamil Architectural Company.

Saudi German Company (SGN).

Universal Metal Coating Company (UNICOIL).

Moulds Co. Ltd.

Gulf Stabilizers Industries.

Zamil Air conditioning

Zamil Steel

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Zamil Trading Est.

Zamil Offshore Services

Zamil Operations & Maintenance Co. Ltd.

Arabian Gulf Construction

Zamil Plastic Industries Ltd.

Zamil Industrial Coatings

Zamil Food Industries Ltd.

Zamil Ladders

Zamil Partitions

Zamil Coatings.

Technical Seal Ltd.

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Eastern Morris Crane Company Ltd.

Guardian Fencing & Security Systems Co. Ltd.

Dorma Arabia Automatic Doors Ltd.

Saudi Lamina.

Zamil Birla Technical Services Ltd.

Gulf Packaging Industries Ltd.

United Carton Industries Co.

Architectural Metal Works

Zamil Doors

Shade Guard

Zamil Art Glass

Skylight Industries

Zamil Travel

Zamil Commercial Division.

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ZAMIL OFFSHORE SERVICES was founded in 1977 as 100% Saudi

company working in diversified offshore business fields. Its scope of

service covers; offshore fleet operation, engineering & construction

services, shipbuilding, ship & rig repair and ports operation.

Now, it is renowned “the largest specialized offshore services provider in

the Middle east”.

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Saudi's largest and longest established offshore services business.

34 years of continuous operating experience.

Only Saudi company operating across almost all segments of the offshore business.

Offshore vessels owners/ operators, shipbuilders/ ship & rig repairers and sea ports

operators

Fleet of 52 offshore vessels, largest in the Middle East .

Excellent track record in diversemarine engineering and offshore constructionprojects.

Anentirely ‘in-house’managed end-to-end operations structure

2,700 + staff ashore and at sea

Class leading safety and reliabilityacrossall operations

ZAMIL OFFSHORE

Marine Operations

Engineering & Construction Services

Shipbuilding & Ship Repair

Sea Ports Operations

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ZAMIL OFFSHORE

Business units

Marine Operations

Marine Operations

Zamil Offshore Services is renowned as the largest offshore services

provider in the Middle East.

Zamil’s Marine Operations Division has good reputation and track record in

meeting SAUDI ARAMCOs qualification criteria in all its business areas for more

than 34 years.

Zamil’s fleet is very diversified and includes; Conventional AHTSS

vessels, Diesel Electric and Rolls Royce UT AHTS Vessels, Supply

Vessels, Work Boats, Utility Boats, Crew Boats, DP2-Diesel Electric

Diving Support Vessel/ AHTSS vessel and DP-2 Offshore Multi-Purpose

Vessels.

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ZAMIL’S FLEET VESSELS

Zamil’s owns the youngest fleet in the Middle East, its fleet vessels

average age is 4 years.

Owned Fleet (48 Offshore Suport Vessels)30 Anchor Handling Tug / Supply Vessels

6 Work Boats,

6 Utility boats

2 Supply Vessels

2 DP-2 Multi-Purpose Vessels

2 Crew Boats

Chartered Fleet (4 Vessels)4 Anchor Handling Tug / Supply Vessels

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Rolls Royce UT 733-2 AHTS Vessels

Engineering & Construction

Services

Zamil’s Engineering and construction services is its arm in executing and

completing several offshore and onshore services for Saudi Aramco;

The Hook Up, upgrade Modification and commissioning Support

Shore piling

Maintenance of piers and offshore structures

H2S evacuation

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Shipbuilding21

Shipbuilding

Zamil’s dedicated shipyard in Dammam is the premier Saudi shipbuilder

and the only specialized offshore vessels and rigs repairer in the Middle

East.

So far it has built and delivered 30 vessels;

21 for our own offshore fleet,

5 for the Saudi Sea Ports Authority,

2 for the Saudi Royal Navy, and

One for a private sector offshore company.

Its order book is full to mid 2012. It includes 9 vessels;

6 harbor tugs for the Saudi Sea Ports Authority, and

3 port service units for the Saudi Sea Ports Authority

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Existing Shipyard Layout

Total Shipyard area 121,000. M. Sq.

Range Of Services

Shipbuilding

Ship and Rig Repair

Reconditioning

Conversion

Diving and underwater works

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Building Line

Anchor Handling Tugs

Offshore Multipurpose Vessels

Utility Boats

Diving Support Vessels

Port Service & Navy Tugs

Pilot Boats

Buoy Handling Vessels

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Saudi Shipbuilding

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The first Diesel Electric AHTSS in the World

10 vessels built; Zamil 10, 11, 12, 13, 16, 17,18,19, 50 & 51

Designed by:

Seatech & Rolls Royce Marine

Especially for

Zamil Offshore

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The Rolls Royce UT 733-2 AHTS

7 Vessels built under license;

Zamil 52,53,54,55,56,57&58

Vessels Built & Under Construction

30 Vessels has been built & delivered 2 Utility boats, 3150 BHP 3 Harbor tugs, 25, 35 & 45 TBP 1 Pilot Boat. 9 Diesel Electric AHTSS, 5500 BHP 1 DP-2, Diesel Electric AHTSS/ Diving Support vessel 1 Buoy Handling vessel for Jubail 7 Rolls Royce UT733-2 AHTS Vessels, 7200 BHP 1 Diving Support Vessel for Al Gosaibi 1 Harbor Tug for Duba port 2 Tugs for the Saudi Royal Navy 2 Multi Purpose Offshore Vessels for Zamil Marine9 Vessels under construction (4 launched) 3 Harbor tugs for Dammam port 3 Harbor tugs for Ras Al Zur port 2 Pilot boats for Ras Al Zur port 1 Mooring boat for Ras Al Zur port

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Ship Repair

Rig Repair

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In Nov. 1999 ZOSCO won a lease contract to operate the navigation &pilotage as well as the port marine yard at king Abdul Aziz Port in Dammam for10 years and in November 2009, the lease contract was renewed withoutbidding for another 10 years to 2019.

According to the contractual terms ZOSCO has to manage the shipsmovements and render navigation services for almost 2400 merchant vesselscalling at the port annually.

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GROWTH PATHS

More of the same

Extensions to the services / activities

New Services/ activities

Territorial

Other geographies

Aggressive Expansion Plans

Zamil Offshore has started implementing an aggressive expansion

strategy.

Now, Zamil is capitalizing on the growth in the global market from

expansion in marine fleet to expansion in shipbuilding and offshore

engineering and construction services.

Expansion- Marine Operations

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Shifting geographies of opportunity, identifying chartering opportunities with

regional / international offshore companies;

re-opening of Zamil Offshore PTE LTD in Singapore

targeting the promising markets of South East Asia, Red Sea and

West Africa

EXPANSION- Engineering & Construction

Services

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Partnering agreement already signed with the Norwegian Master Marine AS

to work together in the new emerging marine business trend of using self

propelled jack-up lift boats.

Zamil’s success in establishing shipbuilding in Saudi Arabia wetted its

appetite for expanding its shipbuilding. Zamil acquired 200,000 sq. m., A new

shipyard was designed to build and repair all kinds of Offshore and naval

vessels. Construction will commence during the fourth quarter this year.

.

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Zamil is considering another project for building a new state of the art

shipyard on the Red Sea.

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Offshore Support Business Areas :

• Marine & Offshore Engineering

• Offshore vessels chartering & operation

• Lift barges chartering & operation

• Offshore & naval vessels shipbuilding/ ship repair

• Marine equipment supply and repair services

• Marine Apprentice Training

Forms of cooperation:

• Strategic partnerships

• JVs

• Teaming agreements

• Management contracts

• Representations

• License agreements

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Shipbuilding (offshore & naval vessels), steel, aluminum & GRP.

Ship maintenance and repair.

Ship conversion.

Flying and floating repair.

Under water repairs.

Establishing marine equipment licensed repair centers (different

international makers and repairers of; power plants, electronics &

navigation, HVAC, blasting and painting)

Establishing marine spares consignment stocks

Establishing apprentice training center.

Establishing NDT and Radiography labs.

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Brown Fields services.

Offshore structures fabrication and, installation,

Pipe and cable laying.

Offshore Sub Sea Services .

Well Services

Drilling Companies.

Well test and well simulation.

Management of oil spill response centers

Jack Up lift barges services.

Plus identifying opportunities for more expansion via acquisitions or

partnerships with international players

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Rolls Royce Marine: Building Offshore vessels under license

Seatech: Ship design services

Sener Systems: CAD/CAM/ CAE/CIM Integrated Shipyard software license

Wartsila, Rolls Royce, Caterpillar, Yanmar, Daihatsu, MAK, Duetz, Cummins: propulsion machinery , bow thrusters & auxiliary generators suppliers.

JRC, Skipper, Sailor, Guruno, Simard, C Plath Reflecta, Zenitel.Kongsberg: Electronic equipment

Plimsol, Ator, Satco: Deck machinery

Hemple, Sigma: Marine paints

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Thank you for listening

For more information

Please visit our website

www.zamiloffshore.com