You are on page 1of 108

Tab l e of C o n te n ts

R o y a l V i si t s t o Saud i A ramco - I n t he F ounder 's F oot st eps........................6

Kin g Ab d a l - A zi z (R ei gn ed 1 9 0 2 - 1953)............................................. 8
Kin g S a u d ( Rei g n ed 1 9 5 3 - 19 6 4 )........................................................ 10
Kin g F a y sa l ( Rei gn ed 1 9 6 4 - 19 7 5 )....................................................... 12
Kin g K h a l i d ( Rei g n ed 1 9 7 5 - 19 8 2)....................................................... 14
Kin g F a h d ( R ei gn ed 1 9 8 2 - 20 0 5 )......................................................... 16
Kin g Ab d A l l ah (R ei gn 2 0 0 5 - Present )................................................. 18

P io ne e r P ro f i l es - They B u i l t A ramc o......................................................20

Ab d u l l a h Al - Tari ki an d A b d u l A zi z M. Shalf an.........................................20
Fah m i B a sr a wi an d Fl o yd O hl i g er.......................................................... 21
Fre d Da v i e s. . . .....................................................................................22
Fran k J u n g e r s and G eorge R en tz.......................................................... 23
M ax S t e i n e k e and N aj at H u ssei ni .......................................................... 24
Nassi r A l - A j m i an d R i ch ard K err........................................................... 25

Saudi Aramco Through The Decades...............................................................28
1930s - Origins................................................................................................30
1940s - Foundations 34
1950s - Momentum 38
1960s - Development 42
1970s - Growth 46
1980s - Transformation 50
1990s - Global Reach 54
S a ud i A ra mc o 7 5 th Ye a r A n n iversary


2000s - The New Millennium.......................................................................60

Then and Now............................................................................................64

The Shaybah Story: Oil From Deep in the Desert..........................................66

King Helps Celebrate 75th Anniversary..........................................................70


Aramco Sustaining Capability - Mega Projects.............................................76

KAUST: Building Wisdom's New House.......................................................84

Environmental Stewardship..........................................................................86

Reliable energy supplies far into the future..................................................88

Crude Oil.................................................................................................88
Natural Gas............................................................................................. 91

Petroleum: Energys Cornerstone.................................................................93

Baker Hughes.......................................................................................................................96
KFUPM Research Institute......................................................................................................105

Note from Publisher...............................................................................................................106

Roy a l Vi si ts to S au d i A ramco

In the Founder's


Throughout its 75-year history, challenges posed by boom times a for-profit basis solidified the
Saudi Aramco has always relied and lean times alike, and their Companys unique status as a
upon the judicious guidance of shared history is a success story stateowned oil company but one
the rulers of Saudi Arabia. In of progress, development and that operates with a high degree
turn, the Kings have placed their transformation. of autonomy a living symbol
trust in Saudi Aramco to derive of the wisdom of the countrys
the maximum benefit from the Since its inception in 1933, the rulers.
countrys rich natural resources Company has been granted the
for the people of Saudi Arabia. flexibility to manage its own Within these generous bound-
Together, the Kingdom and its affairs. The creation of Saudi aries, Saudi Aramco has trans-
national petroleum enterprise, Aramco in 1988 as a commercial formed itself from an oil pro-
Saudi Aramco, have met the enterprise to be operated on ducing company into a fully

6 Saudi Aramco - 75 years

I n the Fo u n d e r's Fo o tsteps

integrated international petro- by meeting the employees who combination of the blessings of
leum enterprise, with operations have contributed so much to the God for its petroleum reserves,
in exploration, producing, pro- well-being of the people of Saudi the wise stewardship of the rulers
cessing, refining, shipping and Arabia and to the well-being of of Saudi Arabia, and the efforts
marketing of crude oil, natural people around the globe. Many of its employees who understand
gas, refined products and soon, of these visits are described with- that the people of Saudi Arabia
petrochemicals. in this supplement. and billions of people around
the world rely on Saudi Aramco
All six Kings of Saudi Arabia have There is no other petroleum to provide them with the energy
shown their support, in part, by company on the planet quite like they need to live fuller, more pro-
visiting Company operations and Saudi Aramco and its success is a ductive lives.

Saudi Aramco - 75 years 7

Roy a l Vi si ts to S au d i A ramco

King Abd al-Aziz

Reigned 1902 - 1953

he story of Saudi Aramco arrangement, Casoc struck
begins with the vision of oil in commercial quanti-
King Abd al-Aziz who, ties on March 3, 1938, at
aware of oil discoveries else- Dammam Well No. 7.
where in the region, sought the
expertise of an international oil Little more than a year
company to explore his kingdom later, King Abd al-Aziz,
for the natural resources that on his first visit to
would allow him to guide the de- Company operations
velopment of his young country. in Dhahran and Ras
On May 29, 1933, after months Tanura, on May
of negotiations, the Kings minis- 1 turned a valve
ter of finance signed the Conces- that sent the
sion Agreement with Standard first tanker load
Oil of California, or Socal, an act of Saudi oil to
that would eventually transform the world. The
Saudi Arabia and the global pe- next year, Ca-
troleum industry. soc discovered
the Abqaiq
King Abd al-Aziz had to wait field, the first
nearly five years for his bold move sign that Saudi
to yield results, as the California Arabia could
Arabian Standard Oil Company, contain vast
or Casoc, as the Company was petroleum re-
now called, endured hardships serves and that
and difficult conditions, suffer- the Company, renamed the Ara- was the start-up of the Ras Ta-
ing setbacks along the way until, bian American Oil Company, or nura Refinery in late 1945.
on the verge of pulling out of the Aramco, in 1944, had the po-
tential to become one of the King Abd al-Aziz paid his last
most important oil companies in visit to Aramco in January 1947,
King Abd al-Aziz, on world history. when, among other activities,
he personally received about
his first visit to Company
Both the Government and 200 American employees, their
operations in Ras Tanura, Aramco endured lean times dur- wives and children. In a sign of
turned a valve that sent the ing World War II, as exploration Aramcos growing significance
was curtailed and production to the global petroleum indus-
first tanker load of Saudi oil cut back, but once the war was try, in 1948 Standard Oil of New
to the world. over, Aramco began expanding Jersey and Socony-Vacuum Oil
rapidly, one example of which (both now ExxonMobil) joined
8 Saudi Aramco - 75 years
I n the Fo u n d e r's Fo o tsteps
ra tulatory cable
ong s, R
in gc as
ad ard the D.G. Scofi
abo , Ra


ing s


93 9

, 19
Dhahran, 19
m ilies, 47

Socal and Texaco (now Chevron) to European markets. The fol-

as owners of Aramco, providing lowing year, Aramco completed
distribution networks and inter- the Saudi Government Railroad the Dammam-Ri
ing yad
a t h
national markets for the enor- from Dammam to Riyadh, link- ur rai
ug l
mous reserves and production ing the capital city to the port of
I na


potential of Aramco. Dammam, which Aramco also


a dh ,

Two important cross-country


projects were completed un- In 1952, the year before the

der the guidance of King Abd death of King Abd al-Aziz, in
al- Aziz in the first years of the a move symbolic of the grow-
next decade. The Trans-Arabian ing importance of Saudi Arabia
Pipeline, or Tapline, completed to the worlds oil business, Com-
in 1951, delivered Saudi crude pany headquarters was moved
oil faster and more economically from New York City to Dhahran.
Saudi Aramco - 75 years 9
Roy a l Vi si ts to S au d i A ramco

King Saud
Reigned 1953 - 1964

s Crown Prince, King the Eastern Province the be- Caravan) at a time when Ara-
Saud visited Company ginning of the Aramco-built bic publications were
operations in December Government Schools few and far be-
of 1937 and again in 1950, visit- Program. The program tween in Saudi
ing a trade school where he wit- was championed by Arabia. Many
nessed young Saudis learning the a young King Fahd, contemporary
skills needed for the petroleum then Education Min- authors in the
trade an early example of the ister. Arab world
transformation taking place in were inspired
Saudi society, as the sons of pearl The first school by Al-Qafilah
fishermen, merchants, farmers opened in Dam- to become
and Bedouin began to climb the mam, in De- writers and
ladder that would take them to cember f o r
the top of Aramco within two

In January 1953, King Saud, then

Crown Prince, issued a royal proc-
lamation granting Saudi workers
substantial increases in benefits,
helping address the disparity 1954, and King Saud presided many others, the magazine was
between Saudis and expatriate over the ceremonies. Three a source of intellectual fermenta-
employees of Aramco. The next days later, he opened the sec- tion. Four years later, Aramco TV
month, he sealed an agreement ond Aramco built Government went on the air, becoming the
with Aramco whereby the Com- School in al-Khobar. Ultimately, first Arabic-language station in
pany would build and pay the 139 boys and girls schools were the Kingdom and the second in
expenses of 10 public schools in built under the program, and the Middle East. Aramco broad-
Saudi Aramco maintains the cast a variety of educational
schools in top shape to this day. programming, including math-
During the reign of ematics, chemistry and language
King Saud, significant During the reign of King Saud, skills.
achievements were made significant achievements were
by Aramco both in the made by Aramco both in the Great strides were made in the
development of the Saudi development of the Saudi work- advancement of Aramcos Saudi
workforce and in Saudi force and in Saudi society. On workforce, including building
the societal front, in 1953 Aram- the first training centers for Sau-
co launched Al-Qafilah (The Oil dis in 1955. In 1959, Aramco

10 Saudi Aramco - 75 years

I n the Fo u n d e r's Fo o tsteps
school, Dhahra
a de
g a tr n, 1
9 50

co, Dhahran, 1950

A ram

irst Aramco-built G
he f
in gt ov

ool, D
ammam, 1

began sending promising young Directors. In the last few years a long and mutually beneficial
Saudi employees to study at of King Sauds reign, two sig- relationship, with the university
U.S. colleges and universities. nificant milestones in the history conducting research vital to the
That same year, in October, King of the petroleum industry were Companys success and many of
Saud announced his support for reached, one on the global stage its graduates enjoying long ca-
the creation of schools for girls and one at home. In 1960, the reers with the Company.
nationwide and in 1961, Aramco Organization of Petroleum Ex- a n , 19 5 7
D hahr
agreed to extend its commit- porting Countries (OPEC) was g
r tin
ment to building schools for sons formed. pa

of Saudi employees to include

daughters as well. Three years later, King Saud is-
sued a Royal Decree creating the
Change was occurring at the top College of Petroleum and Min-
of Aramco as well. In 1959, the erals in Dhahran. The university,
first two Saudis Abdullah H. al- now known as King Fahd Univer-
Tariki and Hafiz Wahbah were sity of Petroleum and Minerals,
appointed to Aramcos Board of and Saudi Aramco have enjoyed

Saudi Aramco - 75 years 11

Roy a l Vi si ts to S au d i A ramco

King Faysal
Reigned 1964 - 1975

he eleven years of King over to the Government in Sep-
Faysals rule were marked tember 1964. Aramco also
by big changes in the world, agreed to support the recruit-
the region, the country and the ment and training of female
Company. Both Saudi Arabia teachers.
and Aramco emerged stronger
from these trying times. Aramco, under the guid-
ance of King Faysal, com-
In 1965, King Faysal inaugu- pleted major explora-
rated the College of Petroleum tion, production and
and Minerals in Dhahran. Aram- distribution
co has been committed to the projects
schools success since its incep- to bol-
tion. In 1969, the first Saudi em- ster the
ployees of Aramco enrolled in Compa-
the college. The following year, nys place
Aramco contributed millions of among
dollars to the schools expansion interna-
program and in 1971, the uni- tional oil
versity issued its first degrees. compa-
nies. The
During King Faysals reign, the Berri field
program to build and maintain was dis-
schools for the daughters of covered in
Saudi employees became real- 1964, followed by a string of on-line in 1972. Two years be-
ity, with the first two schools, in significant finds, including Zuluf fore, Aramcos shipments of oil
al-Khobar and Rahimah, turned in 1965, Marjan, Karan and Jana and petroleum products from
in 1967 and Shaybah in 1968. Ras Tanura surpassed 1 billion
barrels for the year for the first
Aramco, under the That same year, Aramco became time, and in 1971, oil production
guidance of King the first oil company in history increased more than 25 percent
Faysal, completed major to produce 1 billion barrels of oil over the previous year. Another
exploration, production in a year. offshore terminal, Juaymah, be-
and distribution gan operations in 1974, with an
projects to bolster To better deliver vital supplies initial shipping capacity of 1 mil-
of oil to the world, the first two lion bpd.
the Companys place
loading berths at Ras Tanuras Sea
among international oil
Island Terminal opened in 1966, Under King Faysal, the Saudi Gov-
companies. with two more berths coming ernment began negotiations that

12 Saudi Aramco - 75 years

I n the Fo u n d e r's Fo o tsteps
l headquarters, Sa
Soca nF samples, Rub
ing r an
g rock al-
it inin Kh



i, 1


anura, 1963
R as T

resulted, in 1973, in the acquisi- The release of the Kingdoms

tion of a 25-percent participation Second Five-Year Plan in February
an iya, 1963
interest in Aramco. The next year, 1975 was one of the last official
g Saf
participation increased to 60 per- acts of King Faysal. One of the itin

cent. These were the first steps to cornerstones of the Plan was the
complete ownership of the Com- call for Aramco to design, build
and operate the Master Gas Sys-
pany, which came in 1980. The
tem to provide fuel for a national
negotiated purchase of Aramco
network of diversified industries.
was yet another symbol of the
relationship, based on mutual The Master Gas System, a legacy
respect and trust, between the of both King Faysal and Aramco,
Saudi Government and the U.S. remains the backbone of Saudi
owner-companies of Aramco. industrial development.
Saudi Aramco - 75 years 13
Roy a l Vi si ts to S au d i A ramco

King Khalid
Reigned 1975 - 1982

he time of King Khalid saw Seawater Treatment
tremendous economic and Plant and the Master
industrial growth in the Gas System (MGS).
Kingdom, driven in large part
by the expansion of Aramcos The MGS was de-
oil and, increasingly, natural gas signed to provide
production capacity. This growth fuel or feedstock
was highlighted in 1976 when for electrical power
Aramco became the only Compa- plants, cement and
ny in the world to produce more desalination plants,
than 3 billion barrels of crude oil and for petrochem-
in a single calendar year. ical, fertilizer and
steel-making fa-
The Government and Aramco cilities. In November
together embarked on a capital 1977, King Kha-
program in the mid to late 1970s lid com-
that was unprecedented in indus- mis-
trial history a program that was
unmatched until the current cap-
ital program that was launched
in 2005. In 1977, Aramco had
three of the worlds largest proj- sioned the Berri Gas Plant, the The MGS had a dramatic impact
ects under way at the same time: first plant completed in the on domestic contractors as well as
the Zuluf GOSP-2, the Qurayyah MGS. on industries ranging from earth
moving to construction, steel, ce-
The next year, a major compo- ment and welding, with Aramco
nent of the MGS was complet- awarding hundreds of contracts
The Government and ed when Aramco built an NGL worth billions of dollars to Saudi
Aramco together pipeline across the country from firms.
Shedgum to Yanbu. As part of
embarked on a capital
the overall MGS, two vast indus- Acting upon King Khalids Royal
program in the mid trial cities were constructed at Decree creating the Saudi Con-
to late 1970s that Jubail on the Gulf and at Yanbu solidated Electrical Company, or
on the Red Sea. The latter, which SCECO, in August 1976, Aramco
was unprecedented in
included several major Aramco worked out a plan to combine 26
industrial history. facilities, was formally dedicated local power companies with its
in 1979. own power plants, thus creating a
14 Saudi Aramco - 75 years
I n the Fo u n d e r's Fo o tsteps
Be rri Gas Plant,
ting 197
a 7 980
u r ail, 1
ug g Jub
I na


bu , 19 8 0
g Yan

, 1980

unified electrical grid in the East- ing challenges in the Kingdom. At

ern Province. the end of the decade, in 1980,
King Khalid oversaw the Govern-
The MGS and SCECO projects
ments acquisition of the remain-
demonstrated the supreme trust
ing interest in Aramco, setting
placed in Aramco by the rulers of
Saudi Arabia who recognized the the stage for the Company to
Companys ability to handle the become a fully Saudi-owned and
biggest industrial and engineer- managed enterprise.
Saudi Aramco - 75 years 15
Roy a l Vi si ts to S au d i A ramco

King Fahd
Reigned 1982 - 2005

he reign of King Fahd in- The following year saw the cre-
cluded both boom times ation of the Companys interna-
and lean times for Aram- tional shipping subsid-
co, which weathered its gravest iary, Vela International
challenge and emerged as the Marine Limited. By
worlds leading petroleum enter- 1995, a program to
prise, a position it retains to this build 15 advanced
day. Early in his rule, King Fahd supertankers was
oversaw the appointment in No- completed. To-
vember 1983 of Ali I. Al-Naimi day, Vela is rec-
as the first Saudi president of ognized as one
Aramco, effective January 1984. of the premier
The rise of His Excellency Al-Nai- tanker fleets in
mi through the ranks of Aramco the world,
was a testament to the potential trans-
of the Saudi people, nurtured by porting
the Companys world-class train- m i l -
ing programs. lions
of bar-
King Fahd visited Dhahran on rels of
the occasion of the Companys crude
50th anniversary, in May 1983, oil and
and inaugurated the Exploration petro-
and Petroleum Engineering Cen- leum products safely around the 8th November 1988, when King
ter, or EXPEC, a facility which al- globe. Fahd issued a Royal Decree that
lowed Aramco to perform many established the Saudi Arabian Oil
of the geoscience and petroleum During a December 1986 visit Company, or Saudi Aramco. Ali
engineering tasks previously per- by King Fahd, the University of I. Al-Naimi became CEO at this
formed by outside companies. Petroleum and Minerals was time. Seven years later, in 1995,
renamed King Fahd University Abdallah S. Jumah was named
of Petroleum and Minerals, or President and CEO and Al-Naimi
The final act in the
KFUPM. The following year, the was appointed Minister of Petro-
transformation of new Aramco Exhibit opened leum and Mineral Resources, po-
Aramco took place on 8th to the public, and through the sitions they retain today.
years, it has hosted thousands of
November 1988, when school children who learn about Also in 1988, under the guid-
King Fahd issued a Royal the petroleum industry and the ance of King Fahd, Saudi Aramco
legacy of Arabic science. took its first steps on the path to
Decree that established becoming a truly integrated in-
Saudi Aramco. The final act in the transforma- ternational petroleum enterprise
tion of Aramco took place on when a Company subsidiary and

16 Saudi Aramco - 75 years

I n the Fo u n d e r's Fo o tsteps
EX PEC, 1983 u , 19 8 u , 19 8
a ting Yanb Yanb
u r g g
ug itin itin


I na

amco Training
ting Ar Ce
ra nte
u r,

I na


Texaco established Star Enter- mandate to expand exploration The trust placed in Saudi Aramco
prise, the Companys first joint beyond the limits set in the origi- by the rulers of the country was
refining and marketing venture nal Concession Agreement. again demonstrated in July 1993
in the United States. Star Enter- when King Fahd issued a Royal
prise later evolved into Motiva Confronted with its severest test
Decree merging all of the King-
Enterprises, LLC, a joint venture in 1991, Saudi Aramco success-
fully contained and then cleaned doms oil refineries, product dis-
between Saudi Refining Inc. and
up one of the largest oil spills in tribution facilities and interests
Shell. The Star Enterprise venture
was followed in 1991 by an eq- history, a tragic result of the Gulf in three joint-venture refineries
uity venture with SsangYong Oil War. During the crisis, the Com- into Saudi Aramco. With this act,
Refining Co. Ltd. (todays S-Oil) pany did not falter in its pro- King Fahd had transformed Sau-
in the Republic of Korea and in duction of petroleum, helping di Aramco into the worlds third
1994 by an equity venture with stabilize world energy markets. largest refiner. Under the leader-
Petron in the Philippines. No Company production facili- ship of King Fahd, Ali I. Al-Naimi
ties or Government installations and an expanding Saudi manage-
In 1989, Saudi Aramco made such as desalination plants were
ment, Saudi Aramco was trans-
the first oil discoveries in central shut down as a result of the spill
formed from an oil producing
Saudi Arabia, followed in 1992 a proud testament to Saudi
Aramcos ability to perform at company into a fully integrated
by discoveries on the Red Sea
coastal plain. These discoveries the highest levels under any cir- petroleum enterprise, with op-
were a result of a Government cumstance. erations spanning the globe.
Saudi Aramco - 75 years 17
Roy a l Vi si ts to S au d i A ramco

King Abd Allah

Reign 2005 - Present

s Crown Prince and then Qatif-Abu Safah project,
as King, Abd Allah guid- inaugurated by Crown
ed Saudi Aramco into a Prince Abd Allah in
higher profile in the global pe- December 2004. The
troleum industry, expanding the following year, the
Companys international ventures Saudi Government
and extending the Companys and Saudi Aramco
reach into downstream activities, unveiled the most
including petrochemicals and ambitious capital
associated industries. Under his project in the
leadership, Saudi Aramco forged Companys his-
in-Kingdom joint ventures in nat- tory: a slate of
ural gas, embarked on the largest crude oil produc-
capital program in its history and tion expansion
took the lead on the creation of projects that,
a world-class graduate research by 2009,
university. will
raise the
In a stunning display of technol- King-
ogy and human ingenuity, Saudi doms
Aramco brought the Shaybah maxi-
project on-line and in March mum
1999, Crown Prince Abd Allah sustained output of crude the Government, Saudi Aramco
inaugurated the facility, and in oil by 2 million bpd to about entered into discussions with
April, he inaugurated the Dhah- 12 million bpd an increase international petroleum compa-
ran-Riyadh-Qasim multiproduct roughly equal to the output nies for possible gas exploration
pipeline and the Ras Tanura Re- of some leading oil-exporting and production joint ventures in
finery upgrade project. nations. the Kingdom. In 2004, the last
of four joint venture agreements
Additional oil production ca- With domestic demand for was signed for upstream gas
pacity was added with the natural gas increasing, Saudi projects in the Rub al-Khali.
completion of the 800,000 bpd Aramco placed greater empha-
sis on finding and producing The natural gas strategy does
Saudi Aramco, under the non-associated gas. One of the not end with the production of
direction of King Abd Allah, first tangible results of this strat- gas, but extends to associated
egy was the Hawiyah Gas Plant, downstream industries, thus
has entered into long-term inaugurated by Crown Prince further diversifying the national
partnerships abroad that will Abd Allah in October 2002. economy and creating new jobs
This was soon followed by the for Saudi citizens. To this end, in
ensure future markets for Haradh Gas Plant, inaugurated March 2006, ground was broken
Saudi Arabian crude oil. by the Crown Prince in January on a joint venture with Sumito-
2004. Under the direction of mo Chemical Co., Ltd. of Japan,

18 Saudi Aramco - 75 years

I n the Fo u n d e r's Fo o tsteps
Hawtah, 1997 Shaybah, 1999 the Hawiyah Gas
ting a ting a ting Pla
ura ur ur nt,
ug ug ug 2

I na

I na
I na

Qa tif, 2004
a ting
I na

to build an integrated refining subsidiary acquired a strategic thousands of Saudi employees

and petrochemical complex in shareholding in Showa Shell in to study in universities at home
Rabigh. Japan, and in 2007, agreements and abroad. Recognizing the
were signed with Sinopec, the need for advanced science and
The following year, in May 2007, Fujian provincial government mathematics skills to tackle the
Saudi Aramco and Dow Chemi- and ExxonMobil for the first fully energy and environmental chal-
cal Co. agreed to conduct a fea- integrated Sino-foreign projects lenges confronting all the people
sibility study for a world-scale that involve refining, petrochem- on the planet, King Abd Allah
chemicals and plastics produc- icals and marketing of fuels and announced the creation of a
tion complex integrated with the chemicals.
graduate research university: the
Ras Tanura Refinery.
King Abdullah University of Sci-
King Abd Allah and Saudi Aram-
In addition to forging interna- co are not only focused on the ence and Technology, or KAUST.
tional partnerships at home to economic development of the As a sign of continued trust in
strengthen the national econ- Kingdom, but on its human de- the Companys capabilities and
omy, Saudi Aramco, under the velopment as well. expertise, King Abd Allah called
direction of King Abd Allah, has on Saudi Aramco to develop and
entered into long-term partner- For decades, Saudi Aramco has build the university. Ground was
ships abroad that will ensure fu- operated one of the largest in- broken on 21st October 2007,
ture markets for Saudi Arabian dustrial training programs in and the first classes will be held
crude oil. In 2004, a Company the world and has sponsored in the Fall of 2009.

Saudi Aramco - 75 years 19

P i o ne e r P ro fi l e s

Abdullah Al-Tariki:
First Saudi Board Member
Engaging, dynamic, courageous and outspoken, Abdullah H. Al-Tariki is
widely remembered as a world figure in the politics of oil and energy.

A Saudi native, Al-Tariki originally came from Zilfi, the son of a camel
owner who organized caravans between Saudi Arabia and Kuwait. At an
early age, Al-Tariki was noted for his intelligence and was sent to schools in Kuwait and Cairo. He later
earned a scholarship to the University of Texas, where he studied chemistry and geology.

Al-Tariki was responsible for many firsts in Saudi Arabia. He was one of the first American-educated
Saudis and is believed to be the first Saudi trained in both chemistry and geology. At 35 years of age,
his role with the Directorate of Oil and Mining Affairs was to process petroleum statistics from Aramco
and provide these to the Royal Family with his analyses.

In 1954, he became director general of Petroleum and Mineral Affairs. In 1959, Al-Tariki was the first
Saudi elected to Aramcos Board of Directors. Upon creation of the Ministry of Petroleum and Mineral
Resources in 1960, Al-Tariki was appointed the first oil minister.

Al-Tariki was pivotal in supporting both the nationalization and the Saudization of the company.

Among his other accomplishments, Al-Tariki was instrumental in the founding in 1960 of the Organiza-
tion of Petroleum Exporting Countries (OPEC), and in his later years, served as an oil consultant and an
activist in Arab affairs.

Abdul Aziz M. Shalfan:

Bridging the Gap
Abdul Aziz Muhammad Shalfan joined California Arabian Standard Oil
Company (Casoc) in 1934 as Employee No. 4 and continued to work, de-
clining retirement for nearly 49 years, until his death in 1983.

During his lengthy tenure with the company, Shalfan served a variety of
functions within the organization and a key role in the Public Relations Department. Shalfan worked at
the Aramco Oil Exhibit and quickly developed a strong reputation for his warm and engaging treatment
of exhibit visitors.

Originally from the Najd, Shalfan as a young boy was brought to Bahrain where he encountered two
Western geologists in pursuit of oil. Although quite young, Shalfan offered his expertise as a native of
Saudi Arabia, to accompany the gentlemen in their exploration efforts. Such began his adventures in
the search for oil, which led Shalfan ultimately to the well called Dammam No. 7, where Max Steineke
and his geological team reached their goal for commercial oil discovery in 1938.

Shalfan experienced first-hand this momentous period in history, important both for the Kingdom of
Saudi Arabia and the world. Describing the rapid pace of transformation within Saudi Arabia as a result
of discovering oil, Shalfan proclaimed, We have gone from nothing to everything.

20 Saudi Aramco - 75 years

Th ey B u ilt A ramc o

Fahmi Basrawi: To Teach is to Learn

With only a sixth-grade education, Fahmi Basrawi began an exciting journey
with Aramco, obtaining a job as one of the first teachers at the companys Jabal
School in Dhahran.

A resident of Jeddah who worked as a clerk in the local police station, Basrawi
responded to an ad for Aramco employment. Because he could read and write
Arabic he was quickly hired. He was told he was going to be an English teacher!
Basrawi did not actually know English, but he soon taught himself the language, learning as he went,
only a lesson or two ahead of his students.

At the time Basrawi taught at the Jabal School, there were 3 or 4 teachers and over 100 students. His
work was cut out for him, and he quickly found himself to be a natural teacher with a penchant for
organizing youth sports and field trips. Basrawi remembered teaching Ali Al-Naimi for two years during
his time at the Jabal School. Al-Naimi, he recalled was a very prepared student.

Following his years at Jabal, driven by his own educational goals, Basrawi attended college in Beirut. He
was among the first group of Aramco students to study in Lebanon. He later returned to Dhahran for a
job in the companys Government Relations division.

Basrawi is also well known as a personality on Aramco Television, where he hosted educational pro-
grams for 17 years. Through this programming, women in the Eastern Province in Saudi Arabia learned
to read and write during an era when there were no schools for girls. He later hosted a popular quiz
show where Aramco contestants competed on the subjects of math, history, geography and religion.

One of Aramcos important pioneers, Basrawi reflects back on his time with Aramco and thinks it is
wonderful that the Saudi employee of today has even more opportunities for education than during his

Floyd Ohliger: Getting the Job Done

Surprisingly Floyd Ohliger, who was present during the very early days of Aramco,
would have been reluctant to consider himself a pioneer. In Ohligers eyes, the
true pioneers of the company were the early geologists, including Max Steineke
and others. Ohliger said in a 1983 interview with The Arabian Sun that his team
did not see themselves as pathfinders but rather as just men who were there
to work.
Educated in petroleum engineering at the University of Pittsburgh and Stanford University, Ohliger be-
gan his career in the oil fields of Venezuela and Colombia. In 1934 he was approached by Standard Oil
of California (Socal) about working in Saudi Arabia. He jumped at the chance, and immediately headed
to al-Khobar, where his first assignment as a petroleum engineer was to oversee construction of a pier
and supervise the unloading of equipment. He went on to hold many positions with Aramco, develop-
ing a strong reputation for getting the job done. One of Ohligers more interesting jobs was with
Government Relations, where he had frequent contact with King Abdul Aziz. The two men developed a
very positive, respectful relationship and Ohliger reflected fondly on his close interactions with the King.

Saudi Aramco - 75 years 21

P i o ne e r P ro fi l e s

Additional positions Ohliger held included resident manager, general manager, vice president and chair-
man of the Aramco Board of Directors. He retired from Aramco in 1957 and subsequently returned to
the United States with his family.

On the 50th Anniversary of Aramco, Ohliger returned to the Eastern Province and other areas in Saudi
Arabia, met with management and toured the new Exploration and Petroleum Engineering Center (EX-
PEC). He commented to The Arabian Sun during that return visit to the Kingdom that his work and
time with Aramco brought him a satisfaction more inward than anything else. He also talked about
the overwhelming transformation of the Kingdom in the years he had been away and said the devel-
opments for the country as a whole, including Aramco in the last 10 years, have been greater than
all the preceding years. Much of the transformation was the result of a highly successful oil industry
built through the hard work of Aramcos early pioneers, and Ohliger, whether he would admit it or not,
played a significant role in this success.

Fred Davies: Early Explorer, Dedicated

Spanning a 37-year career in the oil business, Fred Davies was one of Saudi
Aramcos earliest pioneers and geologists. Originally from Aberdeen, South Da-
kota, Davies studied engineering at the University of Minnesota before serving
in World War I. He became a geologist in the United States and started his ca-
reer in the oil business at the California Oil Company in Texas.

It was 1934 when Davies visited the Arabian Gulf on his first trip. On behalf of Socal (Standard Oil
Company of California) and its subsidiary Bapco, Davies worked with the team that located the first
wildcat well in Bahrain. Based on this discovery and his superior instincts, Davies recommended efforts
to obtain a concession agreement in Saudi Arabia. He was convinced of the Kingdoms great potential
for oil exploration.

This instinctive knowledge led to a tremendous future for Davies with the company, including his pres-
ence in 1939 when King Abd al-Aziz turned the valve that permitted oil to flow onto the first export
tanker at Ras Tanura. Davies career with the company flourished after the momentous entrance of
Saudi Arabia into commercial oil production.

Davies career path included President of Casoc (California Arabian Standard Oil Company); Aramco
Vice President of Exploration and Production; Executive Vice President of Aramco; and eventually CEO
and Chairman of the board. He also served on the senior leadership team during the season that
Aramco relocated its headquarters from New York to Dhahran. He relocated his family to Dhahran and
resided in the Kingdom for the remainder of his Aramco career.

In a display of honor, Aramcos first floating storage vessel was named the F.A. Davies. Liston Hills,
President of Aramco at the time, described Davies as a man whose vision, professional skills and per-
sistence were instrumental in the uncovering of vast petroleum reserves in the Gulf.

22 Saudi Aramco - 75 years

Th ey B u ilt A ramc o

Frank Jungers: Pioneer of Saudization

He held what Fortune Magazine called One of the Most Delicate Positions
in all Industry.

Undisputedly a key figure in the companys history, CEO Frank Jungers over-
saw momentous growth during his time with Aramco. Originally from North
Dakota, Jungers was educated in Oregon and Washington State in engineer-
ing. He served in the U.S. Navy and then immediately went to work for Standard Oil of California in San
Francisco. It was 1947, and Jungers was just 23 years of age when he was sent to Saudi Arabia for the
first time. He was immediately given a permanent assignment in the Kingdom to work on a construc-
tion project. He quickly developed a reputation for maintaining very positive relations with the Saudi
workforce. This is the reputation that Jungers carried with him throughout his career and an attribute
that made him a great success with the company.

Unlike some of the earlier pioneers who built the company and its facilities from the ground up, Jungers
joined a going concern, and worked hard to enhance and improve its operations. The course had al-
ready been laid out by his predecessors. Jungers, however, faced equally daunting challenges, as he
was running Aramco during an era of massive change.

A natural problem solver, Jungers was tapped early on for managerial roles in Ras Tanura and then
in Dhahran. In his desire to communicate better with his Saudi workforce, Jungers became fluent in
Arabic. In 1971, Jungers was appointed as President of Aramco and served as Chairman of the Board
and CEO from 1973 to 1978. During his time of senior leadership, Jungers oversaw the creation of
the Kingdoms Master Gas System, the negotiations surrounding the Saudization of the company, and
the OPEC oil embargo. A key figure during a critical time, Jungers today is recognized for his 30 years
of service with Aramco and his dedication to the growth and professional development of the Saudi
workforce during his tenure.

George Rentz: Senior Arabist, Superior

Senior Arabist is one of several titles bestowed upon Dr. George S. Rentz, Jr.,
during his tenure with the company.

Originally from Pennsylvania, Rentzs interest in Arabic culture occurred while

teaching in Syria in 1932 at the age of 20. In his three years there, Rentz developed a profound love for
the Arabic language which he pursued after returning to the United States. Rentz attended the Univer-
sity of California at Berkeley. He was studying classical Arabic and Near Eastern history at Berkeley when
World War II broke out. He left the university to run the U.S. Office of War Information in Cairo.

In 1944, Rentz was invited to Jeddah by Karl Twitchell, an American mining engineer who was instru-
mental in the signing of the Concession Agreement in 1933. With his superb command of the Arabic
language, Rentz was recruited as a translator for a mere 9-month opportunity, but went on to serve 17
years with Aramco.

Saudi Aramco - 75 years 23

P i o ne e r P ro fi l e s

With his comprehensive grasp of the language and culture, Rentz provided a critical role in Aramcos
Government Relations Department. He also served as Chief of the Arabian Research and Translation
Division, and Supervisor of Arabian Research. Rentz established high standards for Arabic translation
and research. He is also recalled for his contributions to a series of Aramco handbooks detailing the
history of Saudi Arabia, the petroleum industry and of Aramco itself.

Like other Americans who served with Aramco, Rentz was able to return to Dhahran later in his life to
see how the country had changed. At the age of 71, Rentz was struck by the size of the buildings and
the overwhelming accomplishments of the company. Rentzs contributions in research, scholarship and
service were a significant part of that success.

Max Steineke: Geologist and Icon

Chief geologist from 1936 - 1946, Max Steineke arrived in Saudi Arabia after 13
years as a Socal (Standard Oil Company of California) geologist with experience
in Alaska, Colombia and New Zealand. Steineke is described by author Wallace
Stegner in his book Discovery!, as Burly, big-jawed, hearty, enthusiastic, profane,
indefatigable, careless of irrelevant detail and implacable in tracking down a line
of inquiry, he made men like him, and won their confidence. The early pioneers
agreed, and Steineke was highly respected by both his American and Saudi colleagues. Despite their
limited communication in broken Arabic and English, Steineke developed a close friendship with chief
guide, Khamis ibn Rimthan. The two worked side by side for many years in the early exploration days.

Steineke is well known for his efforts at Dammam Well No. 7, which in 1938 produced oil in commercial
quantities for the first time in Saudi Arabia. With no promise of success and previous unsuccessful
drilling attempts the teams kept drilling at Steinekes urging, which led to the discovery that ultimately
transformed the Kingdom. It was no surprise that Steineke was awarded the prestigious Sidney Pow-
ers Memorial Medal in 1951, the highest honor for a petroleum geologist. Steinekes perseverance and
commitment to Aramco give him a very special place in both the company and world history.

Najat Husseini: First Saudi Female

Aramcos first Saudi female employee with a college degree, Najat Husseini holds
a significant place with pioneers in the companys history. The daughter of a
Saudi diplomat, Husseinis experience with education occurred outside the King-
dom, first in Rome, Italy, where she attended Marymount High School and sub-
sequently at the University of Damascus in Syria.
It was 1964, and Aramco had not yet hired an educated Saudi woman. Husseini, determined to put
her education to work, applied to the company. Aramco lacked a precedent in this matter and sought
special permission from King Faisal, a great supporter of womens education, to hire Husseini.

Upon gaining approval, Husseini took part in a health education outreach program where she contrib-
uted directly to Aramcos communities. With other Aramco employees, Husseini traveled and educated
Saudi families on personal care, health practices and sanitization. Her impact on Aramco and its female
work force as well as on the improved health care of the surrounding communities has left a lasting
mark on the company.

24 Saudi Aramco - 75 years

Th ey B u ilt A ramc o

Nassir Al-Ajmi: The Legacy of a

I wasnt looking for a career. I was looking for a living, Nassir Al-Ajmi says in a
2007 interview about his 42 year experience with Aramco. Al-Ajmi represents a
remarkable story of a humble teenager who started his path at Aramco as an au-
to-mechanic trainee in Dhahran in the 1950s. Eventually, Al-Ajmi grew to occupy
the role of Executive Vice President, leading the company through its evolution to
a state owned enterprise in 1988.
Al-Ajmi is honored as one of the most successful leaders in Saudi Arabia, in transitioning a company
and a Kingdom from the pre-oil discovery era to industrialization and growth. With his leadership skills
shining through at an early age, Al-Ajmi was selected by Aramco for an out-of-Kingdom education in
Lebanon and the United States. He completed a high school degree in Beiruit, and a University degree
at Milton College in Wisconsin. Upon returning to Aramco, Al-Ajmi took on several leadership roles
within the company and was ultimately sent for further advanced education at Columbia University and
Harvard University. With his education, ambition and determination, Al-Ajmi served in the roles of Vice
President, Senior Vice President and an eventual election to the Board of Directors. Colleagues describe
Al-Ajmi as hard working and always available.

Al-Ajmi is currently retired, and is a published author of The Legacy of a Lifetime. In a 2007 interview,
Al-Ajmi recounts his experience in the early days of Aramco. He provides thoughts on the future of
Aramco and says he hopes to see managers who are able to grow and learn beyond what the founders
were capable of. In speaking to a group of new engineers at Aramco, Al-Ajmi tells them he is glad to
not be competing with them. Thats the kind of organization that we hope to maintain in Aramco,
Al-Ajmi says, as a generation leaves, they leave people better than themselves.

Richard Kerr: Geologist, Engineer and

After working with Shell Oil in Mexico and Canada, Richard Kerr was approached
with an opportunity to travel to Saudi Arabia in 1933. Because of his expertise in
geology, Kerr was asked to provide aerial geological reconnaissance for Standard
Oil of California (Socal).
Kerr and colleague Charles Rocheville ordered a Fairchild 71 airplane and began their aerial journey.
There were no roads in Saudi Arabia at that time, nor any maps or communications tools to help them
find their way. Kerr and Rocheville relied on markers left by other explorers who dug trenches in the
sand, filled them with gas and set them on fire to leave blackened messages and words to other trav-
elers. Kerr studied, sketched and photographed the Arabian terrain, and played a great part in the
development of the countrys maps. Today, many of Kerrs photographs remain in Aramcos historical
After his first airborne mission, Kerr returned to Saudi Arabia for permanent employment with the com-
pany from 1937 1950. Described by colleagues as insatiably curious, another important accomplish-
ment Kerr made is the design of a low-pressure sand tire for desert driving. He received recognition by
the U.S. Secretary of Defense for this contribution which enabled longer distance driving in desert areas
and made greater exploration efforts possible in Saudi Arabia.

Kerrs later years with Aramco were spent in the New York office where he hosted many associates from
Aramco and Saudi Arabia. His lasting marks as an Aramco pioneer were the innovative contributions
borne from his spirit and dedication to the country and company.

Saudi Aramco - 75 years 25

26 Saudi Aramco - 75 years
Saudi Aramco - 75 years 27
Saudi Aramco Through The Decades

Put your trust in

King Abd al-Aziz Al Saud to Finance Minister Abd Allah al-Sulayman on 29th May 1933.

The Kingdom of Saudi Arabia was unified in 1932 by King Abd

al-Aziz Al Saud. On 29th May 1933, the Kingdom signed an oil
exploration concession agreement with Standard Oil Company of
California (Socal). This contract marked the beginning of a new
era in the Kingdoms history. Since then, the pace of change in the
company and in local communities has been spectacular. The sons of
Saudi herdsmen, farmers and fishermen became geologists, engineers
and technicians. Their sons are now the managers and executives of
an international energy company of more than 52,000 employees.
Today, Saudi Aramco manages the worlds largest conventional reserves
of crude oil, leads the world in crude oil production and natural gas
liquid exports, and is one of the worlds largest producers of natural gas
and refined petroleum products.

Al-Uqayr in 1934, four years before the discovery of oil

28 Saudi Aramco - 75 years

1930 - 1990

God and sign!

Saudi Aramco - 75 years 29

1933 - May 29, oil concession agreement is signed 1933 - November, Socal
between Saudi Arabia and Standard Oil Co. of creates a subsidiary, the
California (Socal, todays ChevronTexaco). The California Arabian Standard
concession was later assigned to Socal affiliate Oil Company, or Casoc, to
California Arabian Standard Oil Co. (Casoc). manage the concession.


Exploration field party, 1938

30 Saudi Aramco - 75 years

1934 - There are 13 Americans in the camp. One of 1935 - The first test well is
them is Max Steineke, who will play a critical role in drilled into the Dammam Dome.
the discovery of oil in the Kingdom. He teams up with
Khamis ibn Ramthan, a guide who will also have a
leading role in the search for oil.

>> Origins

Saudi Aramco - 75 years 31

1936 - The Texas company (later 1937 - Company geologist Max Steineke crosses
Texaco) acquires a 50-percent the Arabian Peninsula both ways, gaining
interest in Socals concession to help a comprehensive idea of the structure and
finance the construction of new stratigraphy of the peninsula upon which all
facilities. subsequent geological knowledge is built.

Drill deeper
Chief Geologist Max Steineke to Casoc executives in San Francisco in 1938.

Max Steineke is widely recognized as the geologist most responsible for the discovery of oil in
Saudi Arabia. Steineke was a senior geologist with Socal, arriving in Dhahran in the Fall of 1934.
In March and April 1937, he crossed the Arabian Peninsula both ways, gaining a comprehensive
idea of the structure and stratigraphy of the peninsula, on which all subsequent geological
knowledge is based. Prior to the success of Dammam No. 7, Casoc had suffered a string of
expensive setbacks. Casoc executives asked Steineke if it was worthwhile to continue
operations. His advice: Drill deeper. The oilmen drilled down 1,441 meters into
the Arab formation where Dammam No. 7 finally struck oil, and by 22nd
March 1938, was producing 3,600 barrels per day.

cou nted at th
of Dhahran, 1938 being eD
oto 0 0 utc
p h 5,0 h




. Ji
oc's first payme

h, Aug 25,1933
C as

32 Saudi Aramco - 75 years

1938 - Dammam Well No. 7 at Dhahran strikes oil in 1939 - King Abd Al-Aziz Al Saud
commercial quantities. First crude oil from inaugurates first export tanker
the Kingdom shipped by barge to shipment of oil at Ras Tanura.

m ines hail stone

exa sw
o ck hil
K e
r pier for bi-weekly


tri p


d i bo

y watches.


in, A

rabian Gulf, 1936

table near Wa
p lane di
inga An
u s
rt y




to by: Max Stei


an , 1938
D hahr
o of HM King Abd Al Aziz takes
the salute aboard the D. G.

Scofield during his visit to

E ar

Dhahran and Ras Tanura. This

was his first visit to Socal.
The Scofield was the first
tanker to take on oil from
the Ras Tanura terminal, Ras
Tanura, May 1, 1939

Saudi Aramco - 75 years 33

1940 - Crude 1940 - May, 11. The first company school 1941 - 3,000-bpd
production totals opens in al-Khobar. Classes in English refinery opens in Ras
3,933,903 barrels for and arithmetic are open to everyone, Tanura and is closed
year. employee or not. The company provides six months later due
teachers, desks, benches, blackboards, to shortages caused by
chalk and lamps. World War II.


Ras Tanura Refinery, 1946

34 Saudi Aramco - 75 years

1942 - Despite a decline of 1942 - Field mapping 1943 - Due to the difficulty of
manpower due to World War II, is suspended due to obtaining automotive parts,
production averages between wartime limitations camel transport is used to
10,000 and 12,000 bpd, all of it of manpower and supply the distant Jauf camp
shipped to Bahrain for processing. equipment. with diesel oil, gasoline,
drilling muds and cement.

>> Foundations

Saudi Aramco - 75 years 35

1944 - Company 1945 - The new 50,000-bpd Ras Tanura 1946 - The first increment of
name changed Refinery begins operations. The project the permanent administration
to Arabian is completed on schedule, a remarkable building (now the South
American Oil Co. achievement under the circumstances. Administration Building) is
(Aramco). It replaces the 3,000-bpd Ras Tanura completed and occupied in
Refinery that opened in 1939. Dhahran.

We came out here to

do a job and, by God,
we plan to do it.
Casoc employees in Saudi Arabia during the period 1941-1943.

In 1940, there were signs of a big oil field at Abqaiq and a major new discovery at Abu Hadriya.
The drilling location for Abu Hadriya No. 1 had been partly based on seismographic evidence,
a new development in exploration. When the well struck oil in March 1940, at twice the
depth of Dammam No. 7, it was an early vindication for exploration geophysics. This
significant strike also showed that similar deep geologic structures in Saudi Arabia
might yield oil. In January 1944, when the company was renamed the Ara-
bian American Oil Company, or Aramco, oil was critical for post-war
industry, aviation and the recovery of wartorn Europe.

HM King Abd Al-Aziz confers

with President Roosevelt on an
American cruiser U.S.S. Quincy
in the Suez Canal on February
14, 1945. Photo by: Int'l News
Photo U. S. A. Signal Corps

Backed by his royal guards as he surveys the

scene at the Dhahran Tennis Court on January
25, 1947, HM King Abd Al-Aziz is flanked by
Aramco executive James Macpherson (left), by T.
V. Stapleton and American Consul Waldo Bailey
(right). Courtesy of Evelyn (Mrs. Bill) Squires

36 Saudi Aramco - 75 years

1947 - King Abd Al-Aziz 1948 - Standard Oil Company 1949 - Saudi Arabia becomes the
visits Dhahran. New of New Jersey and Socony- fifth largest oil-producing nation. It
50,000-bpd refinery at Vacuum Oil Company (later has 80 producing oil wells, 44 in the
Ras Tanura completes renamed Exxon and Mobil, Abqaiq area, 30 in the Dammam
its first full year of respectively) acquire shares Dome and the rest scattered among
operation. in Aramco. the areas of new discovery.

er installation a Ready to run a bit into the well hole, two Saudi Arabian employees
biliz t Tw
n sta ilig of Aramco guide the drill pipe and bit down through rotary table on
ra h the platform of their rig near Abqaiq. May 1949.

Photo by: T. F. Walters


's D

View of Aramco

, 1949. Photo by
: T.
W F.

al t

on don y in the ce
ers nte
rid r,
h t

Date gard

a h , Ho
fuf, 1949.

nt of Ras Tanur
nfro a re
e unloa
ding passe
ng e m el i fin
n rs ca e
pla an
ai r





to b
Ar a

Saudi ma
, 194


: R. Y. Richie

0. Photo by: B.
H. Mo

Saudi Aramco - 75 years 37

1950 - The Trans-Arabian Pipeline, the 1951 - Safaniya field, the worlds
worlds longest oil pipeline, is completed largest offshore oil field, is discovered.
so oil can travel 1,719 kilometers (1,068 The company completes the 357-mi
miles) from the Abqaiq oil field to the (575 km) Saudi Government Railroad

Mediterranean Sea port at Sidon, Lebanon. from Dammam to Riyadh.

Drilling party outside Dhahran, 1953

38 Saudi Aramco - 75 years

1952 - Indications of 1953 - Company undertakes 1954 - Crude-oil production
Ghawar, worlds largest oil the construction of 10 exceeds 1 million bpd in
field, detected. Company primary schools in the May.
headquarters transferred Eastern Province.
from New York to Dhahran.

>> Momentum

Saudi Aramco - 75 years 39

1955 - Crude-oil reserves estimated 1956 - Discovery of the Khursaniyah field,
at 3035 billion barrels due to together with other drilling operations,
drilling in the Ghawar and Safaniya increases proved reserves of crude oil to 34
fields. billion barrels.

h Sowayig
r an x-ray at Aram , an
d h, Sa
w n fo co n ud
o ica i.
n gd Dh



ra n


Susan Ke

, Ja

He a

nuary 1952.

lth Center, 1950's

r guide. Phot
ip ionee ob
Ph o

ud y: R
Sa us


ll L

F. W


Khamis Ib

40 Saudi Aramco - 75 years

1957 - Cumulative crude-oil 1958 - Crude oil 1959 - Aramco publicizes
production reaches 3 billion barrels, production exceeds worldwide the availability
making Saudi Arabia fifth country 1 million bpd for a of non-associated gas as
to reach that mark. calendar year. an inexpensive fuel.

A young Saudi with Abdullah Ibn Hassan, Plant Supt. of GOSP

some camels having no. 4 for 12 Years, lives and works in Hofuf.
rest. (The camels were Photo By: R. E. Bright
a common means of
transportation in the
early days). Buildings
in background. Jiddah,
1950s. Photo by: T. F.

Survey exploration
party on desert
in Eastern Saudi
Arabia. Geologist
Falcon hunting is still
communicates with
practiced in Arabia.
headquarters via
These birds are
walkie-talkie as his
trained to hunt rabbits
companion sights
and hubara - while
through a transit.
others are highly
Exploration surveying.
trained in the hunting
Abqaiq, September
of gazelles. Desert,
1952. Photo by: T. F.
November 1955. Photo
by: Khalil Nasr

Mohammed Hazza, no 010696,

fire station leadman checks
pressure of hydrant no. 185
which serves the south plot
limits of the hydroformer in the
Ras Tanura refinery. Ras Tanura,
November 1956. Photo by: T. F.

Ain Dar no. 57 looms above a herd of watering camels while herdsman smile.
Located approximately 68 kms (41 Miles) north and west of Abqaiq, Aramco's
producing headquarters, no. 57 is situated in the north Ghawar field, 8 kms (5 miles)
due south of Ain Dar no. 56., Ain Dar no. 57, September 1957. Photo by: V. K. Antony
Saudi Aramco - 75 years 41
1961 - Aramcos first shipment of 1962 - Cumulative 1963 - Crude oil reserves
liquefied petroleum gas (LPG), the crude oil production total 57.8 billion barrels;
equivalent of 75 million cubic feet reaches 5 billion gas reserves total 24.1

of gas, is loaded onto a specially barrels. trillion scf.
designed tanker at Ras Tanura.

Berri Well No. 1, 1964

42 Saudi Aramco - 75 years

1964 - Berri oil field is 1964 - Najat Husseini is the 1965 - Crude oil
discovered. Proved petroleum first university-educated Saudi production for year
reserves increase to 59.2 billion female employee. She is a health exceeds 2 million
barrels. educator for Eastern Province bpd.

>> Development

Saudi Aramco - 75 years 43

1965 - The Company and the 1966 - Two-berth Sea 1967 - Cumulative
Government plant some 3 million Island loading terminal, crude oil production
trees in a successful effort to save built for largest tankers reaches 9 billion
villages and farms in al-Hasa from afloat, begins operation barrels.
being buried under encroaching off Ras Tanura.
sand dunes.

On the steeper hills we had to

slow down and we had to use
all five Caterpillar tractors for
towing, but still we managed a
speed of four miles an hour.
Crew foreman in 1967, on moving a 140-foot tall oil derrick to a desert site south of Abqaiq.

Aramcos exploration efforts during the 1960s led to the discovery of 16 oil fields. Crude oil
production continued to soar in this decade. In 1965, Aramco exceeded production of more
than 2 million barrels per day, and on 22nd November 1967, the 9 billionth barrel of crude
oil was produced. Aramco became the first company to produce 1 billion barrels of
crude oil in less than one year in 1968, its 30th year of commercial oil production.
In 1969, production reached nearly 3 million barrels of oil per day. Saudis
comprised slightly more than 75 percent of Aramcos workforce, and
76 percent of those Saudi employees held semi-skilled, su-
pervisory or professional jobs.

par ties in Rub A

ra tion l-K
lo l i.


us e


. H. Moody

A bedouin hunter proudly poses with his prize hunting

falcon in the bleak vastness of the eastern Rub' Al-Khali.
Sept. 1967. Photo by: S. A. Al-ghamidi

44 Saudi Aramco - 75 years

1968 - Shaybah field is discovered 1969 - Over 1,300 Saudis attend courses
in the northeastern Rub Al-Khali. in company training centers; 209 Saudis
Company becomes the first to produce 1 have out-of-Kingdom study and training
billion barrels of oil in less than a year. assignments.

Mohammed Khatib uses single-system

sound and film camera for locally produced
Medical: Assa Muslim, TV programs. Dhahran, July 1963. Photo by:
health educator from B. H. Moody
Aramco's Health Center,
shows preventive
medicine films and
lectures to class in
company built school
for sons of employees.
Thuqba, Dec 1960. Photo
by: V. K. Antony

Baba Hattab telling stories on TV story hour. (Baba

Hattab is Jamil Hattab. He retired Nov. 1, 1986).
Dhahran, May 1965.
Photo by: A. L. Yousif

Saudi employees preparing gm/v-12

marine engine for dynamometer test.
Dhahran, November 1968. Photo by:
S. M. Amin

Saudi operators
sewing in the Dammam
cooperative industries
garment factory, March
1966. Photo by: A. Latif

Saudi Aramco - 75 years 45

1970 - Companys first 1971 - Crude oil production 1971 - Saudi Arabia
1 million barrel crude increases by more than 25 is recognized by the
storage tank is completed percent over 1970, international petroleum press
at Ras Tanura. averaging 4.5 million bpd. as the leading oil-exporting

nation in the world.

Cross-section of company employees at Ras Tanura, 1973

46 Saudi Aramco - 75 years

1972 - Crude oil production 1973 - Government 1974 - Tankers load at
increases by more than 25 acquires a 25 percent Juaymah, newest Arabian Gulf
percent over 1970, participation interest oil-shipping terminal. Government
averaging 4.5 million bpd. in Aramco. participation interest in company
increases to 60 percent.

>> Growth

Saudi Aramco - 75 years 47

1975 - Government 1976 - Aramco 1976 - A Royal Decree creates the Saudi
asks Aramco to becomes only Consolidated Electric Company (SCECO) by
design, build and company in world to unifying Aramcos electrical network and
operate Master produce more than 3 26 private power companies in the Eastern
Gas System. billion barrels of crude Province. The Saudi Government reaches an
oil in a single calendar agreement with Aramco to develop, manage
year. and operate SCECO for five years.

48 Saudi Aramco - 75 years

1977 - King Khalid ibn Abd 1978 - Qurayyah Seawater 1979 - Aramco becomes
Al-Aziz inaugurates the Berri Treatment Plant begins to the worlds largest
natural gas liquids (NGL) supply approximately 3.7 producer of natural
center, to be integrated into million bpd of treated seawater gas liquids.
the Master Gas System. for injection into the Ghawar
field to enhance oil recovery.

Hamad Ali Najrani a geologist

, 1974. Photo in Aramcos Exploration
Q a ti f
st. by: department, Dhahran, January
ar ve Do
r 1970. Photo by: S. A. Al-




a . Abha, June 19
97 2 .
Photo by: A. M rabi 72.
. Al iA
ir, 1 -Kh ud Ph
r, As al Sa o



i ng

Topography spr

ouses in So

a. Al-Ghamidi
age h

Saudi Aramco - 75 years 49

1980 - Government increases 1981 - Key parts of Master Gas System fully
its participation interest in Aramcos or nearly finished. Data processing begins at
crude-oil concession rights, production the Exploration and Petroleum Engineering
and facilities to 100 percent, with Center (EXPEC) Computer Center, one of
retroactive financial effect to 1976. the worlds largest geoscience computing


The East-West Crude Oil Pipeline expansion, 1986

50 Saudi Aramco - 75 years

1982 - The discovery well, 1983 - King Fahd ibn Abd Al-Aziz 1984 - Company assumes
Dammam No. 7, is shut-in visits Dhahran on the companys operation of the EastWest
after producing almost 50th anniversary and inaugurates Crude Oil Pipeline.
32.5 million barrels of oil EXPEC. Production of nonassociated Company acquires its first
over 45 years. gas from the deep Khuff zone four supertankers.

>> Transformation

Saudi Aramco - 75 years 51

1985 - Nonassociated 1986 - Government asks that 1987 - East-West Crude Oil
gas production and exploration activities expand Pipeline capacity is expanded
processing capacity Kingdom-wide, to the limits of to 3.2 million bpd. New
reaches 1 billion scfd. the original concession area. Aramco exhibit opens in

Working together, we can

preserve the many Aramco
accomplishments of the past,
ensure the success of Saudi
Aramco and continue to
contribute to the future prosperity
of the Kingdom.
Ali I. Al-Naimi, President and CEO, in November 1988.

In 1980, the Saudi Government signed an agreement for full ownership of Aramco. Aram-
co began its transformation from a booming, oil-producing concern into an integrated
international oil company. In 1988, the companys name became Saudi Aramco,
and in 1989, it undertook a multibillion-dollar program to reach a maximum
sustained crude oil production capacity of 10 million barrels per day.
As the decade closed, Saudi Aramco celebrated its 50th year
of crude oil exports on 1st May 1989.

unset pict
o : 3 (s ure
lant n ) Ut
uary 1982. Ph p hm
n , Fe b r ot o nt
ra by



ha :
tr e



lities and gas


se n

1982. Pho
Data an


, u ti

to by


s t


lf Am
Su in

52 Saudi Aramco - 75 years

1988 - Saudi Arabian Oil Co. (Saudi 1989 -High-quality Arabian Super Light crude
Aramco) is established. Star Enterprise, oil and gas are discovered south of Riyadh,
a joint refining and marketing venture the first find after the establishment of Saudi
in the eastern and Gulf Coast United Aramco and the first outside the Companys
States, is established with Texaco. original operating area.

General view of classroom

of elementary and n, March 1983.
h a h ra Pho
secondary school, a Saudi
r y, D to
teacher is listening to a ra

Saudi student. Dammam,

May 1982. Photo by: S. M.

Ar a m c o m


Sulfur Stacks, Utilities and Gas

Treat No: 3 (Sunset Picture)
Uthmaniyah, May 1982. Photo By: Saudi Arabian children at Aramco-
S. M. Amin built government school in Al-Khobar,
1981. Photo by: S. M. Amin

Saudi Aramco - 75 years 53

1990 - Oil production increased 1991 - Company helps successfully combat
dramatically to stabilize world market Gulf oil spill. Saudi Aramco subsidiary buys
in response to Gulf crisis. Exploration 35 percent of Ssang Yong Oil Refining Co.
extended to include the Red Sea coastal Ltd. (now S-Oil Corp.) in Republic of Korea.
plain and territorial waters.


Shaybah, 1998

54 Saudi Aramco - 75 years

1992 - A Saudi Aramco 1993 - Royal decree 1994 - Maximum sustained
subsidiary buys 35 consolidates virtually all of crude oil production capacity
percent of SsangYong the Kingdoms refineries, is returned to 10 million
Oil Refining Co. Ltd. petroleum product distribution bpd. The company acquires a
(now S-Oil Corporation) facilities, and Governments 40-percent equity interest in
in the Republic of share in joint ventures, into Petron, the largest refiner in
Korea. Saudi Aramco. the Philippines.

>> Global Reach

Saudi Aramco - 75 years 55

1995 - Program to build 15 advanced 1996 - Saudi Aramco enters its
supertankers for Vela International Marine Ltd. fourth joint venture, purchasing 50
is completed. Saudi Aramco CEO and President percent of Motor Oil (Hellas) Corinth
Ali I. Al-Naimi named Minister of Petroleum and Refineries S.A. and Avinoil Industrial
Mineral Resources. Rabigh Refinery integrated Maritime Oil Co. S.A. in Greece.
into company operations.

56 Saudi Aramco - 75 years

1997 - Crown Prince 1998 - Saudi Aramco, Texaco 1999 - HRH Crown Prince
Abd Allah ibn Abd and Shell establish Motiva Abd Allah inaugurates
Al-Aziz inaugurates Enterprises LLC, a major Shaybah field. The Dhahran-
the companys newest refining and marketing joint Riyadh-Qasim multi-product
producing center at al- venture in the southern and pipeline and the Ras Tanura
Hawtah, south of Riyadh. eastern United States. upgrade project completed.

Driller at the offshore drilling platform with the

moon and birds at the background. Abu Ali,
Saudi artist Fawziah
September 1990. Photo by: S. M. Amin
Al-Abdelatif working
on her painting. Jiddah,
July 1998. Photo by: A.
Y. Al-Dobais

View of two young Saudis looking at

the sun dial in the Aramco oil exhibit.
Dhahran, 1990. Photo by: S. M. Amin

993. Photo by:

Saudi Aramco aviation
y b ah, 1 S. M
maintenance crew on routine a .A
t Sh
maintenance work at Dhahran

i on

hangar, February 1995. Photo


by: A. G. Waine

Saudi Aramco - 75 years 57

58 Saudi Aramco - 75 years
Saudi Aramco - 75 years 59
2000 - Aramco Gulf Operations 2000 - April. Saudi 2001 - Hawiyah Gas Plant,
Company, a fully owned subsidiary of Aramco launches capable of processing up
Saudi Aramco, is established to manage new logo and to 1.6 billion standard
the Governments petroleum interest in corporate cubic feet per day of non-
the Offshore Partitioned Zone between identity associated gas, comes on
Saudi Arabia and Kuwait. campaign. stream.


Hawiyah NGL plant, 2002

60 Saudi Aramco - 75 years

2002 - Saudi Refining Inc., a subsidiary 2003 - February. The Saudi 2003 - Haradh Gas
of Aramco Services Co., and Shell Strategic Storage Programs Plant is completed
Oil Co. complete the acquisition of Abha site one of five such two-and-a-half
Texacos interests in Motiva. Shell facilities is inaugurated months ahead of
and SRI now each own a 50 percent by HRH Prince Sultan. schedule.
interest in Motiva.

>> The New Millennium

Saudi Aramco - 75 years 61

2004 - King Abd Allah, 2005 - A company subsidiary, 2006 - Saudi Aramco and
then Crown Prince, Sinopec of China and ExxonMobil Sumitomo Chemical Co.
inaugurates the 800,000- sign an agreement to expand a of Japan break ground
barrel-per-day Qatif-Abu refinery in Fujian province, and on Petro Rabigh, an
Safah Producing Plant build downstream petrochemical integrated refining and
mega-project. facilities. petrochemical project.

62 Saudi Aramco - 75 years

2006 - Accords are 2007 - May. Saudi Aramco and Dow 2008 - Saudi Aramco
signed for two export Chemical Co. agree to conduct a feasibility celebrates its 75th
refineries, in Jubail (with study for the construction, ownership and anniversary.
Total) and in Yanbu operation of a world scale chemicals and
(with Conoco Phillips). plastics production complex, known as
the Ras Tanura Integrated Project.

Saudi Aramco - 75 years 63

Then and Now

Then and Now

Two Saudi drilling rig employees
guide the drilling pipe and bit
down through the rotary table
on the platform of their rig near
Abqaiq, 1949.

Saudi Aramco geoscientists

and petroleum engineers mod-
eling a hydrocarbon reservoir
in Dhahrans 3-D Visualization
Center. The 3-D models are
computer-based displays of
various integrated sets of data,
including seismic data, well
logs, core sample analyses, and
reservoir simulators.

Seawater rushes through the Aviation first started for Saudi

intake channel at the Qurayyah Aramco 73 years ago in 1934,
seawater treatment plant, the with the arrival at Jubail of a
largest such plant in the world. Fairchild 71 (pictured), specially
From here, the treated water is equipped for aerial photogra-
pumped via pipelines to Uth- phy. Then in its infancy, aerial
maniyah where it is distributed photography greatly simplified
to water-injection pump sta- mapping of a concession area
tions and injected into oil reser- the size of Texas and Louisiana
voirs to maintain pressure. combined.

64 Saudi Aramco - 75 years

Evolving Technologies

Today, Saudi Aramco Avia-

tion operates a fleet of 38
fixed wing and rotary aircraft
Abd al-Rahman Al-Barrak
(B737-700 pictured).
threads tape on a mainframe
computer in January 1963. Al-
Barrak became the first Saudi
employee to qualify as a com-
puter operator in 1962. He qual-
ified as an operator of both the
4,000-unit and 16,000-unit IBM
Model 1401 computers, used
in processing company payrolls,
financial and cost-accounting
systems, personnel statistics
and material supply records.

The exterior of the Research and Development Center building in

Dhahran, April 2006. This state-of-the-art facility of 33,000 square
meters provides laboratories, pilot plants, workshops, offices and
meeting rooms for 330 professional staff members, 75% of whom
are Saudi nationals. Company scientists at the R&DC have contributed
nearly one-third of the companys U.S. patents, some of which have
been awarded or are pending, for new gasoline-, diesel- and naphtha-
based fuel formulations and associated refinery processes.

The Dynamic Analysis team examines the Rotodynamic Test System

at the Saudi Aramco Research and Development Center (R&DC) in
Dhahran. It was tailor made for Saudi Aramco with substantial input
from the company. It is the only one of its kind in the Middle East.

Saudi Aramco - 75 years 65

The Shaybah Story:

Deep Desert Oil

Saudi Aramco heightened its profile as a world-class engineering and construction
organization with a presentation before the prestigious Construction Industry
Institute recently. The presentation, entitled The Shaybah story: Oil From Deep in
the Desert, was given at the organizations annual conference in Minneapolis.

bdulrahman F. Al-Wu- engineering and construction
haib, then vice president, process. Established in 1983 to
Project Management, and develop a national research cen-
currently vice president, Ras Ta- ter for construction, it consists of
nura Refining, reported on the a consortium of leading owner
series of construction accom- companies and contractors who
plishments before an attentive join together to find better ways
gathering of some 500 Institute of planning and executing capi-
members representing 83 com- tal construction programs.
panies. Assisting him in a panel
presentation and discussion that Al-Wuhaib saluted the construc- Abdulrahman F. Al-Wuhaib presented
followed were four key members tion industry organization in his the Shaybah story to the Construction
of the project team. They includ- presentation, giving credit to the Industry Institute.
ed Nadhmi Al-Nasr, manager, national forum for planning, en-
Shaybah Development Projects gineering and construction tech-
Department; Abdullah M. Okab, and has participated on a num-
niques developed and fostered ber of research teams over the
manager, Shaybah Producing
by the organization. He indicated years.
Department; Rudy Ionides, proj-
that the techniques had strong
ect director, Overseas Bechtel,
influence particularly in team Picture yourself, a project man-
Inc.; and Hamid Amin, area gen-
eral manager, Consolidated Con- building and schedule compres- ager, sitting in a nice cool office
tractors International Company. sion, two important areas that in the headquarters building,
J.G. Palmer, quality coordinator, played a major role in the suc- said Al-Wuhaib, as he began his
Project Management, served as cessful completion of the Shay- presentation. Suddenly the boss
moderator. bah program. stops by and says the company
needs to develop a grass-roots oil
The Construction Industry Insti- The Shaybah presentation field in Shaybah, one of the hot-
tute is a research organization marked the first time that Saudi test and harshest environments
Aramco has appeared on the an- on earth. It is 340 miles from the
with an all-encompassing mis-
nual conference agenda. Saudi nearest town. Vehicular travel will
sion: to improve the quality, safe-
Aramco has been a member of take four days over sand dunes.
ty, scheduling, competitiveness
the Construction Industry Insti- No problem, you say. It will be a
and cost-effectiveness of the
tute, through ASC, since 1992, challenge, but it can be done.

66 Saudi Aramco - 75 years

Oil From Deep in the Desert

The first steps in

Shaybah presented a
picture of overwhelming
challengesall to
be overcome.

Just after the front-end engineer- miliar to many in Saudi Aramco landscape, and all of our pro-
ing is underway, the boss comes acquainted with Shaybahs back- tection measures were enforced
back and says your schedule is cut ground and development. He throughout construction.
by 25 percenta whole year! You covered the project scope, the
have a total of three years to start obstacles faced, and explained As you can see, the terrain is
production. Now this is a real un- how the project team met a starkly beautiful, but treacher-
dertaking. ous and unforgiving. With tem-
myriad of challenges.
peratures sometimes reaching
Al-Wuhaib challenged his audi-
A map showed Saudi Arabia, 135 degrees Fahrenheit, anyone
ence: How would you manage
and execute a project this big, in the pipeline network and fiber unfortunate enough to get lost
such a remote and harsh environ- optic cables, and the Abqaiq in this environment would most
ment, in only three years? Plants and mammoth gas/oil likely pay with his life. The loca-
separation plants (GOSPs) and tion is 340 miles from the near-
The Shaybah team, he said, ac- related facilities. His audience est town, 240 miles from the
tually built Saudi Aramcos larg- saw scenes depicting the local nearest road. Until the new road
est oil production plant in this topography, large salt flats sur- was finished, surface travel took
extremely short time frame. rounded by sand dunes towering four days, men digging out stuck
700 feet, and viewed pictures of vehicles and sleeping on sand
Success was achieved through early construction work where dunes under the starsnice in
the combined efforts of a com- bulldozers leveled the imposing winter but a different story in
mitted team of employees, con- dunes to make way for men and summer.
tractors and suppliers, from the machines.
President of Saudi Aramco to The team faced extraordinary
the welders in the field. One The desert environment has difficulties, Al-Wuhaib said,
team, with one vision and one been undisturbed for thousands with transportation, equipment
missionthat was Shaybah. of years, Al-Wuhaib explained, maintenance, and worker safe-
and the project team felt that ty, health and morale. His rapt
Panoramic view of the its protection had to be one of audience chuckled when he
project their top priorities. Environmen- explained that even sand and
Using slides as he spoke, Al-Wu- tal impact assessments were con- gravel for concrete had to be im-
haib took his audience through ducted to minimize and mitigate ported because none of the local
a scenario that has become fa- potential harm to this delicate sand was suitable.
Saudi Aramco - 75 years 67
The Shaybah Story:

The availability of pipe

when and where needed
A major milestone was an indispensable part
was reached when the of the Shaybah story.
access road was Transportation
completed, allowing achievements were
much easier and speedier legendary during the
access to construction development of Shaybah. of bid packages, unique transpor-
and operations sites. Every capital item, as tation arrangements, Customs
well as all expendables, clearance assistance and com-
Biggest hurdle had to be transported pression of commissioning and
But of all the challenges, Al-Wu- deep into the desert.
startupthat contributed to the
haib said the schedule presented successful and timely completion
the biggest hurdle. Six months of Shaybah. But underlying them
into front-end engineering, man- stakeholders in the project. The all was team building, the mem-
agement requested that the com- team not only included such bers working together as a team
pletion be advanced. The plan routine members as design and to meet the aggressive schedule.
called for startup only 30 months construction contractors, but
later. According to Al-Wuhaib, also team members families, As a result, Al-Wuhaib said, the
not everyone in the company be- turnkey suppliers, and local of- team effort accomplished:
lieved it could be done. ficials and agents.
On-time completion with start
The steps the project took to Each and every stakeholder was of production just three years
meet the challenge were team impressed with the importance after the start of front-end engi-
building and schedule optimiza- of the project and his role in it, neering and only 18 months af-
tion, concepts promoted by the which was key to establishing ter start of construction;
Construction Industry Institute, commitment. The commitment
and strong management and had to come from the top, Al- Less than 3 percent change or-
team-member commitment. Wuhaib explained, and it did. ders;
Upper management communi-
An integrated project team cated its commitment to com- Capital expenditures well un-
structure was developed where- plete the project on time to all der the original budget; and
by members of Project Manage- Saudi Aramco organizations and
ment and Operations and other explained its importance. Mem- Proven methods of organiza-
involved organizations became bers of our team were committed tion and schedule improvement
members of a single team. This to success, and everyone worked that are being used on other
approach worked well as it overtime regardless of his role, projects in Saudi Aramco.
streamlined communications to ensure that the schedule was
and approval procedures and met. You never heard the words, In closing, Al-Wuhaib told his au-
greatly expedited the progress of Its not my job. dience that the word Shaybah
the work. in Arabic means gray-bearded,
Al-Wuhaib went on to explain or old man. Most of our project
A second innovation was to ex- numerous other innovative ap- team members, he said, now feel
pand the team concept to all proaches such as early release that they have earned this title.

68 Saudi Aramco - 75 years

Oil From Deep in the Desert

n scene in early
c t io st a
stru g ipe rack under co
n -2 p nst

OS ru



n .
s 500,000
to proces bpd
ed .
is gn
de-handling facili

e. Runway an
sabl d
the R
esidential p en ha
t as
us dis n

e tr






ess by air was

m pl
ty grows from

s tie the deser

ex takes shape

A cc
A ci

t o pe

s. ion
into e d ule s
everyday sch

Saudi Aramco - 75 years 69

King Helps Celebrate 75 th Anniversary

King Helps Celebrate

Under the patronage of King Abdullah ibn Abdulaziz Al Saud, Custodian of the Two Holy
Mosques, and the leaders of Gulf Cooperation Council (GCC) countries, Saudi Aramco kicked
off its 75th Anniversary celebration May 20 as government officials, company executives,
employees and invited guests gathered to welcome the King and GCC leaders at enormous
tents near the Saudi Aramco Exhibit in Dhahran.

By Ahmad Dialdin and Sara Bassam

T The country has

he program began with a has accomplished for
tour through an exhibition the Kingdom and its
showcasing Saudi Aramcos
story in historic images, detailed
given Saudi Aramco
timelines and innovative displays
of the companys key opera-
On this occasion, we
celebrate the passing
what it needs to
tions. of 75 years of national
growth, said King
become successful and
Among the sensory barrage of Abdullah, so thank
you very much to the
exceptional, the King
sights and sounds of the past 75
years, the highlight of the exhib- men and women of said.
it was a simple yet monumental Saudi Aramco.
Kingdoms international rela-
document - the original signed tions by providing energy to the
concession agreement between The country has given Saudi
world and effectively dealing
the Kingdom of Saudi Arabia Aramco what it needs to be-
with global energy crises when-
and Standard Oil of California, come successful and exception-
ever they happen.
displayed in a glass case. al, the King said. It gave the
company flexibility with which
In his speech, Ali I. Al-Naimi,
Following the tour, guests were it nationalized technologies and
Minister of Petroleum and Min-
ushered into a newly erected gained from international expe-
eral Resources, talked about
rience in the necessary fields and
tent-like structure created for Saudi Aramcos long history
the main celebration as King from the time of King Abdulaziz,
Abdullah welcomed everyone the Kingdoms founder, to the
King Abdullah praised Saudi
to the historic event and set the Aramco not only for its role in present and how much it has
tone of pride and gratitude for national development but also propelled this country to where
everything that Saudi Aramco for its role in supporting the it stands today.
70 Saudi Aramco - 75 years
King Helps Celebrate 75 th Anniversary

75 Anniversary th

King Abdullah, center, visits with some of the young

performers at the 75th Anniversary celebration as, from
left, HH the Amir of Kuwait Sheikh Sabah Al-Ahmad
Al-Sabah; HRH Prince Mohammed ibn Fahd; HE Fahd
ibn Mahmood Al-Saeed, Deputy Premier of Oman; HRH
Prince Mishal ibn Abdulaziz; HRH Prince Abdulaziz ibn
Salman; Khalid A. Al-Falih; and Abdallah S. Jumah look
on. (Photo by Hasan M. Al-Taraiki)

He also emphasized the pivotal tion and pride for all who have that we call the culture of Saudi
role of King Abdullah in the past left their mark through-out our Aramco, built on the discipline,
decade in supporting and guid- history of oil production. This commitment, reliability and ac-
ing several key megaprojects and industry will continue to bring countability of each and every
energizing Saudi Arabias eco- progress and advancements in employee. Under the guidance
nomic and industrial capabilities, the future, thanks in no small
of our country, the company has
all for the sake of the people and part to the support of our coun-
been allowed to work indepen-
the Kingdom. trys leadership, as well as to the
dedication, hard work and inno- dently and on pure business acu-
vation of this companys valued men two key elements in the
Today, our employees, both
employees. success of Saudi Aramco and its
Saudi and expat, recall 75 years
competitive prowess.
of dedication and hard work to
President & CEO Speaks
build and develop Saudi Arabias Jumah spoke next, reflecting As proud as we are of our past
oil industry, an industry that has upon the companys successful and present, we see an even
spread its wealth and prosper- past and promising future, and brighter future ahead of us,
ity throughout the Kingdom, expressing on behalf of Saudi Jumah said. The work and proj-
from north to south and east to Aramcos employees their pride ects we have now will make us
west, said Al-Naimi. for being part of this historic
better prepared for the next 75
moment and for working in the
While I realize there are no years; they cement Saudi Aram-
home of the Saudi oil industry.
words to convey how much this cos status as a fully integrated
event means to the Kingdom and We are proud to have inherited company, one of a kind in terms
to Saudi Aramco, Al-Naimi said, a strong tradition of devotion of its expertise, its size and its
I want to, through this speech, and dedication to our work, fundamental role nationally and
highlight the sense of apprecia- said Jumah, as well as a culture globally.

Saudi Aramco - 75 years 71

King Helps Celebrate 75 th Anniversary

"This industry will continue to bring

progress and advancements in the future,
thanks in no small part to the support of
our countrys leadership, as well as to the
dedication, hard work and innovation of
this companys valued employees.

Jumah introduced Saudi Aram- of King Abdulazizs historic sec- Miles Snyder, who was one of the
cos latest gift to the Kingdom, ond visit in 1947. children who shook hands with
the King Abdulaziz Center for King Abdulaziz in 1947, said a
Knowledge and Culture, to be This celebration was, in part, a few words about both momen-
erected in that very spot near the re-enactment of that visit, from tous occasions, then and now.
Saudi Aramco Exhibit. A short the setup of the tents down
film outlined the centers pur- to the visitors, dressed as they What was the 1947 event like?
pose and all that it would offer would have been in the 1940s. It was wonderful, said Snyder.
to the people of the country. Costumes included womens We American kids were able to
white gloves and hats. shake the hand of a real King!
After the speeches, 75 children
came on stage to entertain the
guests, dancing to Arabic songs
written specially for Saudi Aram-
co and its 75th Anniversary, fol-
lowed by gifts given to King Ab-
dullah and the GCC leaders.

King and Families

From there, the anniversary cele-
King Abdullah and guests wait for the 75th Anniversary
bration moved to the Kings Road
celebration to begin. On the left is HH the Amir of
complex in Dhahran, where a Kuwait, Shaikh Sabah Al-Ahmad Al-Sabah. To the right
representative group of families are HM the King of Bahrain, Shaikh Hammad ibn Isa Al-
welcomed King Abdullah and Khalifah, and HE Fahd ibn Mahmood Al-Saeed, Deputy
the GCC leaders in a re-creation Premier of Oman. (Photo by Abdullah Y. Al-Dobais)

72 Saudi Aramco - 75 years

King Helps Celebrate 75 th Anniversary

The proposed King Abdulaziz Center for Knowledge Minister of Petroleum and Mineral Resources Ali I. Al-
and Culture, shown here in an architectural image, was Naimi and a young Saudi performer present a gift from
announced May 20 in Dhahran by Abdallah S. Jumah as Saudi Aramco to King Abdullah at the 75th Anniversary
part of the 75th Anniversary celebration. celebrations. (Photo by Abdullah Y. Al-Dobais)

We all remember the event well. may we please have the honor of ardah, a traditional sword dance
We remember the sight of the being photographed with you? performed by Saudi Aramco em-
King, seated in a large easy chair ployees and expats.
atop a colorful carpet, with a lit- Soon afterwards, King Abdullah
and his guests watched a series Lydia Fitzmorris, speaking on be-
tle table with cookies on it beside
half of employees and families,
him. He was surrounded by his of international folklore perfor-
addressed the King in Arabic,
colorful retinue, including many mances. Children performed
saying, Your visit makes the cel-
of his sons. dances from The Phantom of ebration of the 75th Anniversary
the Opera, along with a Latino of Saudi Aramco an unforget-
Today, we join not as children but segment and a khaliji dance. The table event in our lives and those
as adults; many of us are grand- performances concluded with the of our children.
parents, Snyder said. When
we were young, that sense of
magic was everywhere, living as
we did in the Kingdom of Saudi
Arabia, Snyder said of his expe-
riences. Each of us regards our-
selves richer, wiser, more tolerant
and understanding because of
this great adventure.

Snyder concluded his remarks

with a request: Just as we had
the honor of being photographed The 75th Anniversary celebration was a sensory barrage
with your father, King Abdulaziz, of sights and sounds. (Photo by Abdullah Y. Al-Dobais)

Saudi Aramco - 75 years 73

74 Saudi Aramco - 75 years
Saudi Aramco - 75 years 75
Aramco Sustaining Capability

76 Saudi Aramco - 75 years

Mega Projects

Saudi Aramco - 75 years 77

Aramco Sustaining Capability

Enormous projects
Saudi Aramco
In a global project environment where many large projects struggle to meet their
cost and schedule targets, Saudi Aramco has been successfully executing its world-
class mega projects with ever shorter schedules, and well within budget.

By John Palmer & Timir Mukherjee

f the five mega projects plants, facilities for capturing
executed in the last 10 valuable petrochemical feed-
years, two were recipi- stock, and new crude oil produc-
ents of the Project Management tion facilities are all part of Saudi
Institutes prestigious Project of Aramcos ambitious domestic
the Year Award, and one was capital program to increase oil
honored at the 2005 Interna- supplies and support.
tional Petroleum Technology
Conference. Collectively, the Hawiyah, Khur-
saniyah, Khurais, Shaybah and
Saudi Aramco is currently ex- Manifa programs will by 2011
ecuting a series of new mega increase revenue to the King-
projects that will help meet the dom, and promote the local
world-wide energy demand in- economy by increasing oil pro-
creases and ensure the com- duction capacity by 2.85 million
panys leadership position for barrels per day (bpd), sales gas
years to come. Huge new gas by 1.4 billion cubic feet per day A key factor in the companys
processing (cfd), ethane production by 450 mega-projects success has been
million cfd, and condensate by the broad cooperation of corpo-
325,000 bpd. All these proj- rate Project Management per-
ects are being executed sonnel with internal stakeholders
on demanding sched- and contractors to deliver these
ules and within budget projects. The cooperative spirit
without a significant means that integrated teams re-
increase in company solve technical issues swiftly, op-
personnel while ex- timize scope, streamline design
panding the Saudi reviews and achieve full control
Arabian procurement of the quality and schedule. An-
and construction con- other major contributor to the
tent of the projects. success of these projects has
been the use of best practices -
This section will explain in value engineering, construc-
how this is being achieved. tability, planning for startup,

78 Saudi Aramco - 75 years

Mega Projects

now a specialty for

benchmarking, scope definition lenges. Today, the companys million) are now predominantly
and control, and the formal use mega projects are executed us- engineered and built using local
of lessons learned - to promote ing international engineering contractors.
excellence. firms for preliminary engineering
and international EPC (engineer- Mega Project History
Saudi Aramco is fully dedicated ing, procurement and construc- Saudi Aramco has a 70-year his-
to supporting Saudi Arabias role tion) contractors for detailed tory of successful project execu-
as the leading provider of ener- engineering, procurement and tion. Its facilities tend to be very
gy to the world, and history has construction, in tandem with lo- large compared to similar facili-
demonstrated its success. The cal subcontractors. Engineered ties worldwide. For example, the
company will continue to build materials are purchased from companys recent gas-oil sepa-
on its achievements through in- international suppliers and local ration plants (GOSPs) routinely
novation, solid integration and a manufacturers when possible. process 300,000 bpd of crude to
strong will to meet future chal- Smaller projects (up to $600 produce oil, water, and gas from

Saudi Aramco - 75 years 79

Aramco Sustaining Capability

wells averaging 5,000 - 10,000 and 420 million cfd of gas. The
bpd each. Pipelines ranging up program will also provide 4.5 mil-
to 60 inches in diameter trans- lion bpd of seawater for injection
port the oil to terminals. to support the increased produc-
In 1988, Arabian American Oil tion from Khurais and Ghawar
Enormous projects were the order
Company (Aramco) became Sau- fields. The seawater injection
of the day early in the companys
di Aramco, as the original U.S. pipeline network will consist of
history, with constantly press-
partners were bought out by the 920 kilometers of 48- 60 pipe.
ing needs to build new GOSPs,
Saudi Arabian Government. This In addition, the program will
water injection facilities to main-
change was accompanied by in- also increase the existing East/
tain reservoir pressure, pipelines,
creased hiring of Saudi nationals. West NGL pipeline capacity from
oil stabilization units and export
In the late 1980s, the company 425,000 bpd to 555,000 bpd to
terminals. Major capacity expan-
manage the increased NGL pro-
sions were built in the mid-1970s. started using lump-sum turnkey
duced at Khurais. Other pipeline
Until the late 1970s, projects in (LSTK) contracts for the largest
work includes all of the oil gath-
Saudi Aramco were managed by projects, and local contractors
ering and water injection distri-
operations organizations work- for smaller projects. There were
bution and sour gas to Shedgum
ing through major international no more mega projects until the Gas Plant. Infrastructure work
EPC companies. early 1990s. includes an air strip, residential
facilities for up to 1,000 person-
In 1977, Aramco started man- Mega Projects - Top 10 nel, and an industrial complex to
aging its projects with an inter-
Megaprojects in Saudi Aramco handle facility maintenance.
nal organization, using Program
are generally defined as projects
Management Contractors. The
or programs exceeding $1 bil- Manifa Field Development
first mega project was a very
lion in value. The projects listed (20062011)
large gas collection and distri-
here are the companys largest to Under the Manifa program, Sau-
bution program - known as the
date. di Aramco plans to install central
Master Gas System - to eliminate
facilities at Manifa to process
natural-gas flaring at the well- Khurais Field Development 900,000 barrels per day of Ara-
head and provide Saudi Arabia (20052009) bian Heavy crude oil. The Manifa
with natural gas as a commercial The Khurais program will build Central Processing Facilities (CPF)
resource. At that time, with ex- facilities for 1.2 million bpd of will include gas and oil separa-
penditures running about $3.5 Arabian Light crude through a tion, wet crude handling, gas
billion per year (2002 equivalent), new Central Processing Facil- compression, gas conditioning,
the Project Management organi- ity (CPF), the largest of its kind crude oil stabilization, produced
zation had six general managers in Saudi Arabia, near the town water disposal and water injec-
and 19 departments to manage of Khurais. A new gas plant will tion facilities. The CPF will be
the gas program and multiple treat the associated gas, produc- designed to process 900 mbcd
smaller projects. ing 70,000 bpd of condensate of crude oil, approximately 120
80 Saudi Aramco - 75 years
Mega Projects

million scfd of associated gas common goals for the extended The company was also moving
and 50 mbcd of hydrocarbon project team; lessons learned away from doing its own inspec-
condensate will be produced from previous projects. tion to requiring contractors to
as a result of this crude incre- inspect their own work. The proj-
ment. The gas and condensate Organizational factors: formal ect, though ultimately successful,
will be processed at Khursaniyah implementation of best practic- was completed nearly two years
Gas Plant, and the crude will be es; a culture of continuous im- behind schedule. The company
transported to Juaymah Termi- provement; project team conti- learned from a multitude of mis-
nal for export. This program is nuity; and successful contracting takes on this project, so that in
challenging primarily because of strategies. the future it must:
the location of the Manifa field
in shallow water in the western Many of these factors are ap- Assure that all stakeholders are
Arabian Gulf, requiring a 41-km plied to the whole project sys- completely aligned;
asphalted causeway and 27 drill- tem. With the increased de-
ing pads in the shallow water. mand for oil, Saudi Aramco has Provide very clear project scopes
significantly increased its capital and minimize scope changes af-
This shallow bay contains the program, with six active corpo- ter the Design Basis;
most prolific shrimping area in rate mega projects and three
Saudi Arabia, and all precautions joint-venture mega projects. The Clearly state the quality require-
will be taken to maintain this vi- company continues to set ag- ments in the contract, not in an
tal resource for the country. The gressive targets. attachment;
program will include installation
of four oil-producing offshore Factors contributing to Keep management and key
platforms with ten producing technical personnel on the job
and two evaluation wells each, for the entire project.
and seven water-injection plat- The Ras Tanura Refinery Up-
forms with ten water injectors grade Program, started in 1991 Another mega undertaking, the
each. Electric submersible pumps and completed in 1998, was a Shaybah project, was started
will provide artificial lift for pro- watershed project in many re- in 1995 and completed just 36
duction, which will be shipped spects. This $1.3 billion project months later, on time and on
without processing for multi- was the first major expansion of budget, despite the amazing lo-
phase flow transportation to the the RT Refinery, which started gistical challenges of building the
causeway and shore-based CPF. refining oil in 1947. There were companys first major project in
very few personnel in the com- the deep desert. Project man-
The entire Shaybah oilfield com- pany that had managed any agement professionals learned
plex had to be self-sufficient, mega projects, much less a com- from success on this project:
so the scope included a Boeing plex refinery project, so experi- minimal scope changes; well de-
enced industry engineers were fined scope; tight communica-
737-capable airport. There were
hired to help. tion internally and externally; and
two dominant contributing fac-
tors to these successes: alignment of all stakeholders.

Communication factors: com- The last significant learning step

mitment from Corporate Man- was benchmarking. A project
agement; CEO meetings; clear,

Saudi Aramco - 75 years 81

Aramco Sustaining Capability

From 1998 to 2002, several

programs were instituted that
made the changes permanent and
actually changed the culture to
one of continuous improvement.
system benchmark study of 30 have reduced average project mance to ISO 9001 and related
projects was conducted by IPA schedules from an average of 48 documents;
(Independent Project Analysis) in months to 35 months;
2000, showing that the compa- After several years of moderate
nys projects were taking 60 per- A Value Engineering Unit was success, asking project teams to
cent longer than the industry as formed after early successes implement CII best practices and
a whole and cost almost 30 per- showed that VE could signifi- the lessons learned program,
cent more. The company began cantly reduce project costs. Five Project Management established
to incorporate this learning into people were trained and certi- a Best Practices group in 2002 to
change. fied, and the unit continues to- formally implement these con-
day; cepts. This group of experienced
Improving the Program personnel works with project
Project Cost and Schedule per- teams in formal, facilitated ses-
Change started with Total Qual- formance targets were instituted sions to optimize the value of se-
ity Management in 1994, with in 1999 for on-time and on-bud- lected best practices.
quality teams and enthusiasm. get completions, value engineer-
PM personnel were reluctant to ing and value improvements. The result of these changes is
change much until the learning Recording value improvements that average project schedules
from the two aforementioned (improvement ideas proposed have been reduced from an aver-
projects and the benchmarking by team members) acknowl- age of 48 months (from start of
hit home. From 1998 to 2002, edged their contribution and preliminary engineering to me-
several programs were instituted provided incentives for finding chanical completion) for projects
that made the changes perma- ways to save money. This effort started in the early to mid-1990s
nent and actually changed the to an average of 35 months in
was enhanced by the advent of
culture to one of continuous im- 2006. About 50 new projects
a balanced scorecard (BSC) for
provement: start each year.
projects starting in 2002, when
several other performance mea- On-time performance has in-
A lessons-learned system was sures were added; creased from 4050 percent in
established in 1995, and added
the late 1990s to 8090 percent
to the knowledge base of proj- A standard contract schedule for the last five years.
ect personnel. The company also for quality, introduced in 2000,
joined the United States Con- significantly improved proj- On-budget performance (includ-
struction Industry Institute (CII) ect quality. Further quality im- ing contingency) has increased
to take advantage of their best provements, especially for local from 5060 percent to 8090
practices and sponsored a chap- construction contractors, were percent. Project quality has im-
ter of the Project Management In- promoted with a project quality proved substantially, and start-
stitute in the Arabian Gulf. All of measure for the BSC, focusing up time has decreased to less
these changes began to increase on adherence to requirements, than one month for almost all
the level of expertise. Changes and in 2002, requiring confor- projects.
82 Saudi Aramco - 75 years
Mega Projects

Safety performance for con- Areas participating. Nine major Project team integration for
struction contractors has also improvement areas were iden- groups of small projects based
improved substantially, with less tified, and the initiatives are all on mega project success in this
than one lost-time incident per moving into the implementation area;
10 million man-hours in each of phase.
the last four years. It is impor- More rigorous review of plot-
tant to note that this statistic is These initiatives are expected to plan layouts and equipment pe-
not comparable with U.S. statis- have a great impact on cost and ripherals and instrumentation;
tics because there are no OSHA schedule performance of all Sau-
regulations; minor injuries and di Aramco projects: Procurement process improve-
off-site traffic accidents are often ments including standardized
not recorded. Greater use of Innovative Con- procurement systems for local
tracting Strategies, which focus contractors and requisition tem-
Since 1998, VE studies have on converted LSTK, using reim- plates;
saved over $2 billion - roughly bursable engineering and pro-
7 percent of project value, and curement and then converting Construction productivity im-
value improvements initiated by to a regular lump-sum contract provements for local contrac-
the project team or contractors at 5070 percent of detailed de- tors who employ personnel from
has exceeded $1.8 billion. sign; Third World countries with lim-
ited industrial experience. The
Further Improvement Standardized Component De- initial focus is on reducing inter-
sign. The first effort was a stan- ruptions;
Saudi Aramco conducted its sec- dardized substation design using
ond IPA system benchmark in precast walls and roof with top-
early 2004 for 30 projects that Productivity improvement for
entry electrical wiring, allowing a local design contractors, focuses
started during 19992003. The slab floor and experienced erec-
results showed improvement on construction feedback to the
tion subcontractors. This design design process and design qual-
from the original study in 2000, will save design time and about
with average schedules about 25 ity control;
34 months in substation con-
percent longer than industry and struction;
costs about 15 percent higher. The Integrated Project Tech-
However, it identified multiple nology initiative will increase the
Increased accountability dur-
specific areas for improvement. use of information technology
ing the design basis (IPA FEL 1 &
Consequently, the company 2) now uses a more formalized (IT) for improved project pro-
launched a Corporate Capital gate approval process. Since cesses, data management and
Program Best in Class initiative 1998, value engineering studies flow, and for program manage-
with 23 of the 24 Administrative have saved over $2 billion; ment reporting.

Saudi Aramco - 75 years 83

Community Cornerstones

KAUST: Building Wis

Saudi Aramco is no stranger to mega-projects, but in 2007, the company
undertook a building program of a different kind: a $10 billion, world-class
research university that is the brainchild of King Abdullah. The new university, to
be located in Thuwal, Saudi Arabia, on the western Red Sea coast north of Jeddah,
will usher in a new era of scientific discovery and achievement that will benefit not
only the Kingdom but the entire world.

he King Abdullah University biosciences and engineering, try to drive economic growth
of Science and Technology materials science and engineer- and create jobs. These goals
(KAUST) builds on the tra- ing, and applied mathematics of forming a knowledge-based
dition of the Arab golden age and computational science. The economy, supporting scientists
of knowledge, when from the university, in collaboration with and their work at national and
8th to 11th centuries, scholars the world's foremost research international levels, and benefit-
of Baghdad's Bayt al-Hikma, or and academic institutions, will ing the world through research
House of Wisdom, preserved recruit top students globally to and economic development will
and enlarged on Greek and Ro- pursue master's and doctoral be achieved through partner-
man discovery, anticipated and degrees and conduct research. ships and collaborative agree-
informed Renaissance scholar- KAUST's Innovation Center, a ments with leading universities
ship, and made seminal contri- key element of the university, and research centers around the
butions to geometry, physics, will link researchers and indus- globe.
optics, medicine, logic, engineer-
ing and other fields. As wisdom's
new house, KAUST is chartered
to bring the world to Saudi Ara-
bia on one campus to explore
and develop solutions that will
transcend national boundaries to
serve the world.

The university will be interna-

tional in scope, open to men and
women of all nationalities and
faiths, creating opportunities for
top minds to address common
global issues and problems. Ini-
tially, KAUST will focus on four
interdisciplinary research clusters: KAUST, envisioned by King Abdullah as both a source of knowledge and a bridge be-
energy and the environment, tween people and cultures, is being built on the premise that a global institution with
global partners can exert a global impact.

84 Saudi Aramco - 75 years

Future Technology

dom's New House

"It is true that KAUST's physical campus represents
a mega-project, but Saudi Aramco's participation
is the result of more than the company's success
with giant construction projects. For nearly 75
years, the company has been the Kingdom's
international model, with 65 nationalities working
together to help meet the world's energy needs."

In addition, KAUST's $20 billion promises to usher in a new era multistory public complex com-
endowment will place the uni- of scientific and technological memorating the 75th anniversary
versity in the upper echelon of discovery. This unique coopera- and supporting King Abdullah's
the world's top-funded institu- tive research complex is intend- vision of a knowledge-based so-
tions of higher learning. ed not only to advance academ- ciety. In addition to housing a li-
ic knowledge and strengthen brary, learning facilities, a media
It is true that KAUST's physical and diversify the economies of
campus represents a mega-proj- center and an auditorium, the
Saudi Arabia and the region, center will host a variety of cul-
ect, but Saudi Aramco's partici-
but also to contribute to global tural events.
pation is the result of more than
economic and social advance-
the company's success with gi-
ment by producing generations In 2007 Saudi Aramco took
ant construction projects. For
nearly 75 years, the company of leading scientists, engineers
many steps to create jobs and
has been the Kingdom's inter- and technologists to find solu-
boost the domestic economy, in-
national model, with 65 nation- tions and innovations benefit-
cluding procuring two contracts
alities working together to help ing all humankind. In June, the
for the construction of 65 new
meet the world's energy needs. KAUST website (www.kaust. and logo were launched, offshore oil and gas production
platforms and structures. In addi-
Leadership in Community and on October 21, KAUST's
Enrichment groundbreaking on the Red Sea tion, a new yard in the Dammam
In a major, unprecedented un- coast north of Jiddah took place Port area will allow offshore fab-
dertaking at the direction of the before 1,500 dignitaries from rication to be done in Kingdom
government, Saudi Aramco is around the world. for the first time, capturing jobs
developing the King Abdullah in construction, procurement,
University of Science and Tech- In 2008 preliminary engineer- housing, transportation and
nology (KAUST), a world-class ing started on the Saudi Aram- other areas that previously were
graduate research university that co Cultural Center, a planned foreign-sourced.
Saudi Aramco - 75 years 85
Environmental Cornerstones

Saudi Aramco is committed to minimizing our footprint on the environment. We're focusing
research and development on cleaner, more efficient operations, processes and products. Our
good stewardship is reflected in environmental awareness programs to encourage conservation
and other environmentally responsible actions. And of course, it is reflected in our operating
record. A shining example is our shipping subsidiary, Vela, which in 2007 completed more than
1,000 voyages, transporting nearly 2 million bpd of crude oil to customers in the United States,
Europe, India and the Far East, without a significant environmental incident.

Research and cleaner transportation fuels will Saudi Aramco's scientists also
Development limit sulfur content and dramati- unveiled impressive environmen-
In another technological devel- cally reduce benzene content tal innovations in 2007. Hanaa
opment, Saudi Aramco is devel- and aromatics in gasoline. H. Habboubi, a scientist in the
oping new pre-refining process- R&D Center's Biotechnology
es to desulfurize whole crude oil Another environmental achieve- Group, led studies on genetically
and produce sweetened oil. This ment was funding a third diesel modifying bacteria so it can pro-
step anticipates that less sweet hydrotreater project at Ras Ta- vide a range of services for Saudi
crude will be available to global Aramco, from reducing sulfur in
nura Refinery, which will pro-
markets, and refiners will in- reservoirs to actually eating oil
duce low-sulfur diesel. When
in contaminated soil.
creasingly need to meet market the hydrotreater is completed in
requirements for lower sulfur- 2010, emissions from diesel fuel Environmental Programs
content clean fuels. produced in Kingdom will be re- As part of our Environmen-
duced by 95 percent. tal Master Plan, in 2007 Saudi
Saudi Aramco's fuel quality
road map, a plan stretching into
2030 for cleaner, higher qual-
ity fuels, sends a clear message "Our good stewardship is reflected
worldwide that hydrocarbon fu-
els can meet the most stringent in environmental awareness
environmental standards. The
map sets a timetable for intro- programs to encourage conservation
ducing clean fuels meeting am-
bient air quality standards in the
and other environmentally
Kingdom's urban centers. Our responsible actions."
86 Saudi Aramco - 75 years
Environmental Stewardship

"A new technology called the
Cutting Edge Membrane Bio
Reactor process will raise the
reused wastewater proportion to
more than 90 percent."

Aramco completed 12 projects wastewater treatment facilities The company also participated in
valued at almost $1 billion, and in major Saudi Aramco commu- the Ministry of Water and Elec-
20 more for a total of about nities. Additionally, a new tech- tricity's collaboration with Japan
$1.87 billion have been ap- nology called the Cutting Edge to develop an energy efficiency
proved. Future plans include an Membrane Bio Reactor process plan for Saudi Arabia's residen-
additional 10 projects with a to- will raise the reused wastewater tial, commercial and industrial
tal value of $564 million. proportion to more than 90 per- sectors.
cent within a few years.
Saudi Aramco's comprehensive As part of ongoing efforts, Saudi
groundwater protection pro- Saudi Aramco has established a Aramco conducted its annual
gram incorporates field sampling corporate Energy Management
Recycling Awareness Campaign.
and laboratory analytical func- Program with the ambitious
We also launched the Recycling
tions to monitor groundwater goal of improving energy perfor-
Website, extended community
quality, and other methodologies mance by 50 percent by the end
recycling programs and contin-
to protect human health and the of 2010. We're also collaborat-
environment. ing with national and interna- ued to promote our Water Con-
tional universities on energy con- servation Program through vari-
Saudi Aramco also implemented servation training and research. ous media.
programs to minimize ground- In another energy management
water consumption and promote initiative, Saudi Aramco is devel- The company approved 14 en-
reuse of treated wastewater. oping, along with other govern- ergy conservation initiatives this
Currently, more than 72 percent ment agencies, a national energy year that are anticipated to save
of the company's sanitary waste- policy and implementing a King- $27.5 million per year in Saudi
water is recycled for beneficial domwide awareness program Aramco facilities, and 15 more
recycling via tertiary sanitary to improve energy conservation. initiatives are under evaluation.
Saudi Aramco - 75 years 87
Reliable energy supplies far into the future

Reliable energy suppli

Saudi Aramco is continuously seeking new oil resources, as well as expanding production
through efforts including the two largest single increments in its history (Khurais and Manifa),
and expertly managing its existing portfolio of some 100 fields to maximize recovery. And as
the world's oil supplies become more challenging to produce, Saudi Aramco is taking the lead
in developing technologies to produce conventional oil reserves more efficiently.

Crude Oil

ot long ago, Saudi Aram- ploration strategy that aims to tion capacity, which by the end
co President and CEO replace reserves to match our of 2009 will reach 12 million
Abdallah S. Jumah is- annual crude oil production and barrels per day (bpd).
sued a challenge to the wider add at least 5 trillion standard
oil industry: Find enough new cubic feet of non-associated These efforts to discover new
resources to add 1 trillion bar- gas reserves per year. The pro- resources and add to reserves
rels to world reserves over the gram includes drilling and seis- for years to come are just one
next 25 years. That challenge mic activities to generate pros- reason Saudi Aramco is the
began at home. Saudi Aramco pects and improve imaging in world's cornerstone for crude
is leading the strategic develop- support of finding both oil and oil.
ment charge to help ensure reli- non-associated gas. Some of
able energy supplies far into the the capacity added by these Two Days, Two New Oil
future. Saudi Aramco is continu- major crude oil increments Discoveries
ously seeking new oil resources, will offset natural decline, and Success stories for 2007 includ-
as well as expanding production the remainder will expand our ed two new oil discoveries, both
through efforts including the maximum sustained produc- located in the Eastern Province
two largest single increments in
its history (Khurais and Manifa),
and expertly managing its exist-
ing portfolio of some 100 fields
to maximize recovery. And as
the worlds oil supplies become
more challenging to produce,
Saudi Aramco is taking the lead
in developing technologies to
produce conventional oil re-
serves more efficiently.

This 10-year, Kingdom-wide

capital program includes an ex-

88 Saudi Aramco - 75 years

Crude Oil

es far into the future

Saudi Aramcos mega-project slate is geared to ramp up production in response to the growing global need for energy.
Collectively, these strategic increments alone will match the daily oil production of some oil exporting countries.

southeast of Ghawar, the world's Mega-Projects: Production

largest onshore oil field. Success Stories
Saudi Aramco's ambitious capi-
The first, Mabruk, struck on tal program achieved many
April 26, is the first discovery in milestones during 2007 toward
the Hadriyah reservoir south of construction of crude oil incre-
Ghawar. ments. Since 2001 through the
scheduled completion of Manifa
The Mabruk-1 well flowed 5,600 in 2011, the company will have
bpd of Arabian Heavy oil with 2 built more than 4 million bpd
million standard cubic feet per of oil production capacity and
day (scfd) of gas. Under normal 3.3 billion scfd of new gas-plant
production conditions, the well output.
is expected to flow at a higher
rate. The following day, on April Mega-projects, generally de-
27, the Dirwazah field was dis- fined as programs exceeding
covered in the Unayzah reser- $1 billion in value, are not
voir. The Dirwazah-1 well flowed big news just for their size or
5,569 bpd of Arabian Light oil cost. Their impact also is huge.
with 2.8 million scfd of gas. Major crude increments will

Saudi Aramco - 75 years 89

Reliable energy supplies far into the future

add the following amounts to

Saudi Aramco's oil output ca-
pacity: Khurais, 1.2 million bpd;
Manifa, 900,000 bpd; Khursani-
yah, 500,000 bpd; and Shaybah,
250,000 bpd. While Nuayyim
does not qualify as mega, at
100,000 bpd, it will add signifi-
cantly to production capacity.

An unprecedented number of
major crude oil increments were
in progress during the year:
Khursaniyah is near completion,
and Shaybah, Khurais, Nuayyim
and Manifa are under construc-

To put the grand scale of this

expansion program in perspec-
tive, consider that the collective
capacity these increments repre-
sent is equivalent to the daily oil
production of some exporting

Khursaniyah: The Khursaniyah

Oil Production Facilities project
neared completion at the end
of 2007, with facilities slated to
come on-stream in 2008. The
plant has the capacity to pro-
cess and stabilize 500,000 bpd
of Arabian Light crude. All gath-
ering and distribution pipelines,
and communication and indus-
trial support facilities were com-
missioned in 2007. The integrat-
ed Khursaniyah Gas Plant (KGP)
designed to process the associ-
ated gas will be commissioned Saudi Arabia Crude Classifications
with a first-time distinction: a
100-percent Saudi workforce. Arabian Super Light (ASL) API > 40
Arabian Extra Light (AXL) API 36-40
Khurais: The Khurais program,
the largest integrated project in Arabian Light (AL) API 32-36
company history and the largest
industrial project in the world, is Arabian Medium (AM) API 29-32
on track for facilities completion
Arabian Heavy (AH) API < 29
in 2009.

90 Saudi Aramco - 75 years

Natural Gas

Natural Gas
Discoveries and also was discovered at the Jana-6
Expansions offshore well.
Saudi Arabia's expanding do-
mestic economy and industrial Gas Cornerstones
enterprises depend heavily on The Karan Gas Field Develop-
Saudi Aramco's natural-gas re- ment Project will provide off-
serves. Current use is at the high- shore platforms and pipelines
est level in the history of our gas for the production of 1.5 billion
program. To meet this demand, scfd of gas by 2012. Associated
Saudi Aramco is working hard to gas from Khursaniyah will be
find reserves and build its pro- processed at Berri Gas Plant until
duction and distribution capac- the new Khursaniyah Gas Plant is
ity. Total gas production average completed. Scheduled to begin
was 8 billion scfd at year-end. operations at the end of 2008,
Saudi Aramco plans to increase the new plant will process 1 bil-
gas capacity to 13 billion scfd by lion scfd of associated gas from
year-end 2011. Khursaniyah, Abu Hadriyah, Fa-
dhili and neighboring fields.
Saudi Aramcos exploration ef-
forts were rewarded with the The Hawiyah NGL Recovery Plant,
discovery of two significant gas on track for start-up in third-
reservoirs in 2007, both located quarter 2008, will process nearly industry, creating thousands of
in oil fields originally discovered 4 billion scfd of sales gas to yield job opportunities for Saudi citi-
in 1967. Karan-7, an extension 310,000 barrels of natural gas zens. Approximately 379 km of
of our largest gas field, Karan, is liquids. The NGL products will be related pipelines and two pump
located six km south of Karan-6, used as feedstock for the King- station upgrades were complet-
a 2006 reservoir discovery. Gas dom's expanding petrochemicals ed in November 2007, and are

Saudi Aramco - 75 years 91

Reliable energy supplies far into the future

"Total gas production average was

8 billion scfd at year-end. We plan
to increase gas capacity to 13 billion
scfd by year-end 2011."

ready to deliver the NGL prod- supply to industries at the Yan- The mystery of black powder,
ucts to end users. bu' and Rabigh petrochemicals a corrosive nuisance that clogs
complexes. and damages control valves,
Another component of the proj- parts and pipelines and whose
ect, the expansion of Ju'aymah The Master Gas System Eastern origin has stymied the industry
Gas Plant, is set for startup in Region Expansion Project, fund- for years, was solved when Saudi
second-quarter 2008 and will ed in July 2007 and slated for Aramco's Research and Develop-
fractionate additional NGL prod- completion in 2010, will expand ment Upstream Program com-
ucts. The last part of the pro- the MGS distribution system with pleted a two-year study and pre-
gram, the Hawiyah Gas Plant 215 km of 56-inch pipeline par- sented its findings in Norway in
Expansion, will process an addi- allel to existing lines and increase 2007. The company's scientists
tional 800 million scfd of non- capacity by 30 percent. determined that black powder
associated gas.
results from the gas components
Innovations and of oxygen and moisture; they
The integrated Khurais program
Breakthroughs also identified the culprit's pun-
will dehydrate and compress
Saudi Aramco has developed ishing properties, which include
450 million scfd of gas, and the
new drilling practices that led to tiny particles of metal, sand, dirt,
Manifa Oil Field program will
drilling horizontal wells targeting hydrocarbons and elemental
produce 120 million scfd of gas
separate layers and improving sulfur. The team worked closely
by third-quarter 2011.
access to gas reserves. As part with the Pipelines Department
The expansion of Yanbu' Gas of this process, we also devel- to isolate black powder's origin
Plant will increase ethane and oped clean drilling-fluid designs and composition, and Southern
NGL processing by 185,000 in 2007. An added benefit of Area Labs contributed to the
bpd, and will support the stra- this latest fluid development is a breakthrough by conducting gas
tegic aim of growing feedstock much lower cost. analysis.

92 Saudi Aramco - 75 years

Petroleum: Energy's Cornerstone

Petroleum: Energy's
According to the International Energy Agency, global demand for energy is projected to
grow by more than 50 percent over the next 25 years, exceeding 325 million barrels of oil
equivalent per day.

Why? Oil is a proven commodity, ulations of emerging economies future energy mix, we must also
and for decades to come, fossil such as China and India become recognize that many of these
fuels are expected to continue to more mobile thanks to improved options face significant techni-
comprise some 85 percent of the lifestyles. cal, commercial, environmental
energy pie. Much of that de- and cost hurdles on the road to
mand stems from transportation What about other types of en- feasibility and viability.
requirements; a recent World ergy, such as wind and solar,
Energy Council study concludes nuclear and renewables? Given On the other hand, from the
that through 2050, cars will con- spiking energy demand, contri- standpoints of abundance, reli-
tinue to depend primarily on pe- butions from all energy sources ability and affordability, fossil
troleum fuels and internal com- will be needed. So while we fuels are an established resource
bustion engines. And there will believe that alternative and re- with extensive production, trans-
continue to be more cars on the newable resources should be portation and distribution net-
roads, too, especially as the pop- developed as part of the world's works. They are expected to ac-

Board of Directors

Saudi Aramco - 75 years 93

Petroleum: Energy's Cornerstone

count for more than four-fifths

of the world's energy demand
for the next quarter-century, and
will not be displaced in the fore-
seeable future.

Petroleum's health-care applica-

tions are another indication of
how this vital energy source en-
hances, protects and preserves
life. Not only is petroleum a Saudi Aramco's Operations Coordination Center (OCC) is the hub of our oil, gas
component in a range of medi- and refined products management function. OCC personnel use realtime infor-
cines, it is also used as a coat- mation to deliver quality products to the customer at the right time and place.
ing to make pills easier to swal-
low. Petroleum-based plastics and our existing resources, we focused on improving petro-
are used in an array of medical are continually expanding our leum's performance, making it
applications and products. Cath- own reserves base of roughly more efficient and environmen-
eters, syringes, gloves, tubes, 260 billion barrels. In order to tally friendly.
pumps and prosthetics are just a
meet the world's growing en-
few examples.
ergy demand, we have ramped From the fuels that power cars,
Widespread misperception has up exploration activities with trucks and planes to the pet-
given rise to concerns about the the ambitious target of increas- rochemicals used in virtually
security of future petroleum sup- ing Saudi Aramco's discovered every manufactured product,
ply. Saudi Aramco believes that, oil resources, or oil in place, petroleum plays a vital role in
at current rates of consumption, including proven, probable, pos- everyday life: It's in clothes and
the world's resources are suffi- sible and contingent reserves. shoes; contact lenses and glass-
cient, even under conservative These exploration activities aim es; artificial limbs, heart valves
assumptions, to meet global to increase these oil in place and hearing aids; aspirin, anes-
demand for well over a century, resources from the current total thetics and antiseptics; car bod-
and for nearly 200 years when of 716 billion barrels to 900 bil- ies, tires, dashboards and safety
technological advances are fac- lion barrels and beyond within
glass; gasoline, diesel and jet
tored in. Despite this assurance the next 20 years. We are also
fuel; computers, CDs and televi-
sions; toothbrushes, toothpaste,
cosmetics and shaving cream;
sports equipment and recre-
ational gear; furniture, paint,
roofing and upholstery the
list of practical and beneficial
uses goes on and on.

Without a doubt, petroleum is

energy's cornerstone. And as
the world's leading producer
Agriculture is an excellent example of how petroleum and petroleum products and supplier of this vital natural
dramatically enhance daily life around the globe on virtually every level. From resource, Saudi Aramco is itself
fertilizers that promote less expensive, higher yield crops to the plastics used a cornerstone of reliability and
in irrigation hoses and other equipment to the fuel that powers farm machinery,
petroleum plays an important role in food production and distribution.

94 Saudi Aramco - 75 years



Saudi Aramco - 75 years 95

2008 Baker Hughes Inc. All rights reserved. 15201 S P ONSOR

Our Second Century of Innovation


Honored to be Celebrating 75 Years with Saudi Aramco

As Baker Hughes celebrates 101 years of innovation and service in the oil and gas industry,
we congratulate Saudi Aramco on its 75th anniversary. Todays Baker Hughes carries on the
tradition of R.C. Baker, Howard Hughes, Sr. and many other oil service pioneers. We join
Saudi Aramco employees in developing technology innovations to find, develop and produce
oil and gas to fuel our global economy.

For more information, visit our website

B e st i n C l a s s

AT 7 5,



N O. 1.
Congratulations, Saudi Aramco, from Halliburton.
For decades, weve been proud to help the worlds leading oil producer
meet global energy needs. And we continue to stand ready to support you
in supplying energy for future generations.


2008 Halliburton. All rights reserved.


Collaborative PartnershipsTargeted Solutions

Since our first wireline log for Saudi Aramco in 1941 we have
collaborated to deliver innovative products, services, and solutions
that optimize reservoir performance throughout Saudi Arabia.

We look forward to supporting Saudi Aramcos future

endeavors to provide Energy for Generations.

2008 Schlumberger. 08_mea_010


Schlumberger congratulates Saudi Aramco on its 75th anniversary

In SACs efforts to enhance its capabilities

and services we have forged a strategic
alliance with CosmoSeis to provide a large
range of tools that will exceedingly improve
the nal image through proprietary methods
for signal enhancement , near surface
treatment , multiple attenuation and velocity
model building and migration.

It is the vision of the leaders of the Kingdom of Saudi Arabia that has allowed the Oil and Gas
industry in Saudi Arabia to flourish. This vision was channelled through the Ministry of Petro-
leum and Minerals and Saudi Aramco and has developed the wider national industry.

Saudi Aramco has emerged from the past 75 years as a world class oil company and an industry
benchmark. It has become synonymous with best quality performance, environmental and
social responsibility and the engineering of mega-projects.

Saudi Aramco continues to develop the necessary technology, human resources and knowledge
vital to meet the challenges of Exploration and Production, E&P, in Saudi Arabia. Today Saudi
Aramco is successfully undertaking a number of Mega projects and developing complex fields
such as the Shaybah development in Rub Al Khali and the offshore Manifa by using extended
reach wells. Over the last few decades Saudi Aramco has played an unprecedented role in
contributing to Saudi Arabias economic prosperity and development.

King Abdulaziz City for Science and Technology, KACST, is proud to work with Saudi Aramco on
many research projects and looks forward to a positive contribution in developing the national
strategy for localization and development of Oil and Gas E&P technologies with a vision of
technology leadership by 2025.

For the next 75 years and beyond, we, at KACST, wholeheartedly wish Saudi Aramco further
success, growth and contribution to the Kingdom.

Note from Publisher

t is both an honor and privi- March 1938 while drilling Dam- that Saudi Aramco has produced
lege to have worked on the mam Well No. 7. That strike en- some of the most revolutionary
Saudi Aramco 75th Year An- capsulates the Pioneer Profiles techniques and processes in the
niversary supplement. Highlight- They built Aramco section, oilfield. Exemplifying this is the
ing a truly visionary array of pio- which outlines the roles of the award winning Shaybah Deep
neers, events and progress the explorers that delineated initial Desert field development, the
supplement is divided into 7 sec- acreage and production assets. Maximum Contact Reservoirs
tions; Royal Visits, Pioneer Pro- and POWERS reservoir simula-
files, Past, Present and Future, The Past (Blue), Present (Green)
tion as well as the fascinating ar-
Sponsors and this Note. and Future (Orange) sections cor-
ray of Saudi Aramco EXPEC RD
respond with the Saudi Aramco
technology applications. Todays
The first section Royal Visits to 75th Anniversary burst logos.
Saudi Aramco has global reach
Saudi Aramco - In the Found- The Past section traces the evo-
er's Footsteps reviews the visits lution of Saudi Aramco through and its success as the worlds No
that Saudi Aramco has received the decades starting with the 1 Oil company in terms of crude
from all six Saudi Kings. The vis- companys origins in the 1930s. oil production and holding of
its start with King Abd al-Aziz the worlds oil reserves is a com-
(reigned 1902 1953), King It continues with the companys bination of the blessings of God
Saud (reigned 1953 1964), foundations being established for its petroleum reserves, the
King Faysal (reigned from 1964 throughout the 1940s and out- wise stewardship of the rulers of
-1975), King Khalid (reigned lines the unprecedented mo- Saudi Arabia, and the efforts of
1975 1982), King Fahd mentum being built within Saudi its employees who understand
(reigned from 1982 2005) Aramco in the 1950s. It covers that the people of Saudi Arabia
to King Abd Allah who has the further growth and develop- and billions of people around
reigned from 2005. ment of the company during the the world rely on Saudi Aramco
1960s and 1970s. It also shows to provide them with the energy
The Royal Visits section exem- the transformation of the com- they need to live fuller, more
plifies the vision of the Saudi pany within the 1980s and the productive lives.
Arabian monarchy that started remarkable global reach of the
with King Abd al-Aziz seeking company by the 1990s. The future section is charac-
international oil company exper- terised by Mega Projects and a
tise to explore his kingdom for The Present section covers
continuation of the vision that
natural resources. This ultimately Saudi Aramco from the turn of
founded Aramco. Today, KAUST
led to Standard Oil of California, the millennium. From 2000
(The King Abdullah University
(Socal) being awarded the explo- Saudi Aramco has clearly shown
that it is part of a secure energy of Science and Technology)
ration concession on 29th May
future through its commitment symbolises King Abd Allahs vi-
to conservative long-term reser- sion of a graduate research uni-
Yet it took five years of hard voir management, strategic ex- versity capable of meeting the
work and persistence on the part pansion and international joint- need for advanced science and
of geologists, engineers, desert venture projects as well as cutting mathematics skills to tackle the
guides and executives before edge research and development, energy and environmental chal-
striking pay. CASOC found oil and enhanced oil recovery tech- lenges facing all the inhabitants
in commercial quantities on 3rd niques. Illustrating this is the fact of the planet.

106 Saudi Aramco - 75 years

Last but not least are the publi- markable past with the exciting Anniversary is an opportunity to
cation sponsors, which are found promise of the future. It will also celebrate its great achievements
on pages 95-105. allow us to send a big Thank over the years and to highlight
You to our current and retired the companys role in contribut-
Sentiments on the 75th Anniver- employees, to the people of the ing to the future of the Kingdom
sary are best expressed by two Kingdom and to all those with
and the world economy.
whom we partner.
Ali I. Al-Naimi, Minister of Petro- Acknowledgement
Saudi Aramco President and leum and Mineral Resources and Saudi Arabia Oil and Gas would
CEO Abdallah S. Jumah said, Chairman of the Board of Saudi like to express gratitude to Saudi
We view this as an opportunity Aramco said, Saudi Aramco is a Aramco for providing material
to connect the companys re- very special company, the 75th for this publication.
Wajid Rasheed Publisher and
Founder EPRasheed

Energy for generations

Saudi Aramco 75th Year Anniversary

Publisher and Founder EPRasheed Editors Layout

Wajid Rasheed Majid Rasheed Fernanda Brunoro Mauro Martins

United Kingdom Houston Saudi Arabia Brazil
n William Bart Goforth n Ana Felix
n Head Office n Akram ul Haq
Tel: (44) 207 193 1602 PO BOX 3260, Jeddah 21471
Tel: (1) 713 304 6119 Tel: (55) 21 9714 8690
n Brian Passey
Tel: (966) 557 276 426 n Josefina Filardo
n Sally Cole n Mohanned AlSagri Tel: (55) 11 9119 2104

Saudi Aramco - 75 years 107