KSA fo­cus

King Sal­man En­ergy Park pro­vides a cen­tralised area for the coun­try’s lo­cal­i­sa­tion ef­forts to boost its en­ergy in­fra­struc­ture and sup­ply chain

Oil & Gas Middle East - - CONTENTS -

A look at King Sal­man En­ergy Park and lo­cal­i­sa­tion in the King­dom.

King Sal­man En­ergy Park (SPARK), a 50sqkm “en­ergy city megapro­ject” in Saudi Ara­bia, was in­au­gu­rated in De­cem­ber 2018 and is one of the King­dom’s most im­pres­sive en­deav­ours into lo­cal­i­sa­tion so far.

Once op­er­a­tional, it is ex­pected to gen­er­ate 100,000 di­rect and in­di­rect jobs and should con­trib­ute $6bn to Saudi Ara­bia’s GDP an­nu­ally.

The first phase of devel­op­ment is slated for com­ple­tion by 2021, and will re­quire an in­vest­ment of around $1.6bn. One of the project’s ini­tial part­ners is Baker Hughes, a GE com­pany (BHGE), which will build an oil­field ser­vices fa­cil­ity in SPARK.

BHGE will build a state-of-the-art oil­field ser­vices fa­cil­ity in King Sal­man En­ergy Park. The fa­cil­ity will sup­port on­go­ing cus­tomer ac­tiv­i­ties for drilling ser­vices, wire­line ser­vices and pres­sure pump­ing.

“This new fa­cil­ity will help build a new ecosys­tem for oil­field ser­vices within SPARK and sup­port our com­mit­ments to in­vest in in­no­va­tion, sup­ply chain growth and train­ing of new tal­ent,” said Lorenzo Si­monelli, chair­man and CEO of BHGE.

BHGE plans to open the first phase of the fa­cil­ity at the end of 2019, and will reach full ca­pac­ity by 2021 or 2022.

It will be an op­er­a­tional and ser­vice sup­port fa­cil­ity and distri­bu­tion cen­tre with train­ing ca­pa­bil­i­ties. The com­pany noted in a press re­lease that this fa­cil­ity would con­trib­ute to the In-king­dom To­tal Value Add (IKTVA) lo­cal­i­sa­tion pro­gram “through part­ner­ships with lo­cal sup­pli­ers and other busi­nesses.”

“De­vel­op­ing in-king­dom com­pe­ten­cies that will strengthen the pil­lars of Saudi Vi­sion 2030 and sup­port a ro­bust oil and en­ergy sup­ply chain is a top pri­or­ity for Saudi

“WE ARE BUILD­ING A WORLD­CLASS EN­ERGY HUB THAT WILL AC­CEL­ER­ATE SOLUTIONS ACROSS THE VALUE CHAIN FOR GEN­ER­A­TIONS.”

Aramco,” said Mo­hammed Y. Al Qah­tani, se­nior vice pres­i­dent of up­stream at Saudi Aramco. “We en­cour­age in­vest­ments in lo­calised in­fra­struc­ture that will sup­port our op­er­a­tional pro­cesses and also con­trib­ute to in-king­dom to­tal value cre­ation.

“BHGE’S new oil­field ser­vices fa­cil­ity is a sig­nif­i­cant step in this di­rec­tion, which not only meets our op­er­a­tional needs but will also con­trib­ute to the larger Saudi econ­omy through ex­ports and job cre­ation,” he added.

SPARK will have a com­pre­hen­sive ecosys­tem with world-class in­fra­struc­ture, lo­gis­tics and a dry port, shared ser­vices, a com­mer­cial and res­i­den­tial area and highly spe­cialised train­ing cen­ters.

The park es­sen­tially cen­tralises lo­cal­i­sa­tion, and aims to build up the coun­try’s en­ergy in­fra­struc­ture and sup­ply chain. Saudi Aramco is key, and the com­pany’s CEO Amin Nasser noted in a press re­lease an­nounc­ing the ground­break­ing of the project that “Saudi Aramco con­tinue[s] to be at the heart of the global oil and gas in­dus­try.”

Nasser also said that with SPARK’S an­chor part­ners, “we are build­ing a world-class en­ergy hub that will ac­cel­er­ate solutions across the value-chain for gen­er­a­tions.”

In­deed, the en­ergy ti­tan is a key mo­ti­va­tion for sup­pli­ers to man­u­fac­ture their prod­ucts in Saudi Ara­bia; if sup­pli­ers and ser­vice providers want to do busi­ness with Saudi Aramco, they must abide by the In-king­dom To­tal Value Add (IKTVA) lo­cal­i­sa­tion pro­gram.

“SPARK is one of the coun­try’s most am­bi­tious projects, af­firm­ing the King­dom’s com­mit­ment to Vi­sion 2030 by cre­at­ing thou­sands of high­skilled jobs, serv­ing as an eco­nomic cat­a­lyst and ad­vanc­ing Saudi Ara­bia’s strong po­si­tion in the global en­ergy sec­tor,” said Khalid Al-falih, Saudi Ara­bia’s min­is­ter of en­ergy, in­dus­try and min­eral re­sources. “The en­ergy park’s unique value propo­si­tion makes it an ideal des­ti­na­tion for com­pa­nies look­ing to in­vest in the thriv­ing Saudi Ara­bian en­ergy ser­vices mar­ket.”

SPARK was in­au­gu­rated in De­cem­ber

Saudi Crown Prince Mo­hammed bin Sal­man at­tended the in­au­gu­ra­tion

Saudi En­ergy Min­is­ter Khalid Al-falih is a key fig­ure be­hind the lo­cal­i­sa­tion push

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